REALM RESOURCES LIMITED

ABN 98 008 124 025

INTERIM REPORT

FOR THE HALF-YEAR ENDED 30 JUNE 2016

The information in this interim report should be read in conjunction with the annual financial report for the year ended 31 December 2015.

Contents of financial report:

Corporate information ABN 98 008 124 025

Directors

Richard Rossiter - Chair and Executive Director Theo Renard - Executive Director

Michael Davies - Non-Executive Director

Company Secretary

Theo Renard

Registered and Principal Office

Suite 4101, Level 41

1 Macquarie Place

Sydney NSW 2000 AUSTRALIA

Telephone (+61 2) 9252 2186

Facsimile (+61 2) 9241 6133

Website www.realmresources.com.au Email: [email protected]

Share Registry

Computershare Investor Services Pty Limited Level 11

172 St Georges Terrace Perth WA 6000 AUSTRALIA

Auditors

RSM Australia Partners Chartered Accountants Level 13

60 Castlereagh Street

Sydney, NSW 2000 AUSTRALIA

Solicitors Maddocks Angle Place 123 Pitt Street

Sydney NSW 2000 AUSTRALIA

Stock Exchange Listing

Realm Resources Limited shares are listed on the Australian Securities Exchange (ASX code: RRP).

Country and Date of Incorporation

Australia, 30 January 1987

Directors' report

Your directors present their report on the consolidated entity consisting of Realm Resources Limited and the entities it controlled (referred hereafter as "the Group") at the end of, or during, the half-year ended 30 June 2016.

DIRECTORS AND COMPANY SECRETARY

The following persons were directors of Realm Resources Limited during the whole of the half-year and up to the date of this report:

Richard Rossiter (Executive Director)

Theo Renard (Executive Director and Company Secretary) Michael Davies (Non-Executive Director)

REVIEW OF OPERATIONS

Realm Resources Ltd. (ASX: RRP) ("Realm" or the "Company") is pleased to provide an update on activities during the H1 2016.

In summary:

• Business development activities focussed on seeking new resource sector investment opportunities, particularly those with near term cash generation potential as well as enhancing and/or realising the value of Realm's assets

• Katingan Ria thermal coal project - FOB cash cost forecast revision underway

• Expected price for Katingan Ria 4200kcal/kg GAR coal improved to US$29.00/t (vs. US$26.00/t)

• Corporate opportunities being evaluated for the Company's platinum group metals assets

• Platinum prices improved by 35% since the January 2016 low

Realm Resources Ltd. (ASX: RRP) ("Realm" or the "Company") is pleased to provide an update on activities during H1 2016.

Katingan Ria Coal Project

The Company continues to engage with PLN (Indonesian State owned Electricity Corporation) and other potential partners/buyers in order to progress its power station strategy. The depressed coal market and government inertia with respect to the power station development process continues to slow progress in this area. The Katingan Ria thermal coal project (Realm 51%) is ideally suited to supply proposed power stations in the region - i.e. Kalselteng No.1 (2x100MW) Kalselteng No.3 (2x100MW). These developments have unfortunately been further delayed (Figure 1).

The thermal coal price for expected Katingan Ria coal (i.e. 4,200 kcal/kg GAR) has risen to about US$35.00/t at the time of writing (vs a low of approximately US$26.00/t). Note: - 4,200 kcal/kg GAR coal typically trades at around 50% of the FOB Newcastle price (Figure 2). Supply cuts and continued robust demand for thermal could see the market supported in the medium term.