Forte Energy NL
LSE : FTE

March 17, 2014 03:00 ET

Half Yearly Report

                                                       



                                                                                                               
                                                FORTE ENERGY NL
                                                       
                                                       
                                                       
                                              ABN 59 009 087 852
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                          HALF-YEAR FINANCIAL REPORT
                                                       
                                                       
                                               31 DECEMBER 2013
                                                       
                                                       
                                                       
                                                       
                                                Forte Energy NL
                                                Suite 3 Level 3
                                                1292 Hay Street
                                              West Perth WA 6005
                                                   AUSTRALIA
                                                       
                                                       
                                                       
                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                                       
                                                       
                                                   CONTENTS







        Directors' Report                                                                                2

        Consolidated Statement of Comprehensive Income                                                   5

        Consolidated Statement of Financial Position                                                     6

        Consolidated Statement of Changes in Equity                                                      7

        Consolidated Statement of Cash Flows                                                             8

        Notes to the Half-Year Financial Report                                                          9

        Directors' Declaration                                                                          18

        Auditor's Independence Declaration                                                              19

        Independent Review Report                                                                       20





                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                               DIRECTORS' REPORT
                                                       

The  Board of Directors of Forte Energy NL present their half-year report on the Consolidated Entity consisting
of  Forte Energy NL ("the Company" or "Forte Energy") and the entities it controlled at the end of, or  during,
the half-year ended 31 December 2013 ("Consolidated Entity" or "Group").

Directors

The  names of the Company's Directors in office during the half-year and until the date of this report  are  as
below.  Directors were in office for this entire period unless otherwise stated.

Glenn Robert Featherby - Chairman
Mark David Reilly - Managing Director
Christopher David Grannell - Non-executive Director
James Gerald Leahy - Non-executive Director

Review and Results of Operations

The Consolidated Entity reported a loss for the half-year of $1,063,732 (2012: $1,475,965).

The  principal activity of the Consolidated Entity during the reporting period was the exploration for  mineral
resources.

The  Consolidated Entity continues to investigate resource opportunities. Currently these are  focused  on  the
Consolidated  Entity's uranium exploration licences in West Africa in the Republic of Guinea  and  the  Islamic
Republic  of  Mauritania.  The  Consolidated  Entity is also  actively  investigating  merger  and  acquisition
opportunities to capitalise on the strong long term fundamentals of the uranium market.

Despite the continued pressures evident in the worldwide uranium market, Forte Energy remains confident in  the
compelling medium to long term supply/demand fundamentals, which indicate a sizeable supply shortfall in coming
years.

During  the  reporting  period,  Forte  Energy  has  concentrated  on  the  assessment  of  external  strategic
opportunities in the market and the instigation of a strict cost control programme, alongside the  optimisation
of working capital management.

Limited  exploration  expenditure  was  incurred during the reporting  period,  with  the  focus  on  low  cost
exploration  and  scoping  related activities in relation to its Mauritanian and  Guinean  projects,  including
consolidation of the exploration results to date and high level consideration of priority areas to  target  for
increasing its resource bases.

A  general meeting was held on the 31st October 2013 at which shareholder approval was obtained for a placement
to  raise  up  to £918,000 (approximately $1,539,000) before costs at 0.4 pence (approximately 0.7  cents)  per
share.  The  placement was carried out in two tranches. £168,000 (approximately A$285,000)  was  raised  before
expenses  in  the  first  tranche  completed on 16 August 2013 with a further  £739,500  (approximately  A$1.25
million) before expenses raised in the second tranche following receipt of shareholder approval at the  general
meeting.

In  September  2013 the Company announced an agreement with Elementos Ltd (ASX: ELT) to vary the  terms  of  an
Option  To  Purchase  agreement  in relation to its Millenium mining leases in Queensland.  Under  the  revised
agreement, Forte Energy would receive $100,000 cash instead of the previous consideration of $160,000  in  cash
or  scrip.  The terms were renegotiated partly in an effort to achieve settlement, which occurred  in  December
2013.
                                                       
                                                       
During  the  reporting period, a US$1,000,000 convertible loan facility with Dutchess Capital was closed,  with
the US$600,000 initial drawdown amount satisfied through the issue of 113,752,047 ordinary shares.

Events subsequent to balance date

On  10  March  2014  the  Company  announced that it had entered into a share exchange  agreement  with  Global
Resources  Investment Trust Plc (GRIT). Under the agreement Forte Energy issued 170,000,000 shares to  GRIT  at
0.4  pence  (approximately 0.75 cents) per share. In return, Forte Energy received 680,000 ordinary  shares  in
GRIT  at  £1.00  per GRIT share. The GRIT shares were listed on the London Stock Exchange on 7 March  2014  and
Forte Energy may dispose of the GRIT shares to raise working capital.

Apart  from other events which are described elsewhere in this Director's Report, there has not arisen  in  the
interval  between  the end of the financial period and the date of this report any other item,  transaction  or
event of a material or unusual nature likely, in the opinion of the Directors of the Company, to effect:

    i.      the Consolidated Entity's operations in future financial years; or
    ii.     the results of those operations in future financial years; or
    iii.    the Consolidated Entity's state of affairs in future financial years.


Dividends

No dividend has been paid during the period (2012:  $ nil).

                                                       
                                                       

AUDITOR'S INDEPENDENCE DECLARATION

A  copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act is set
out on page 18 and forms part of this report.

Signed in accordance with a resolution of the directors.






Mark Reilly
Managing Director

14 March 2014



Note:

The  information  in  this report that relates to the reporting of Mineral Resources is  based  on  information
compiled  by Mr. Galen White, who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM).
Mr  White  is  the Principal Geologist of CSA Global (UK) Ltd. CSA Global have an on-going role  as  geological
consultants  to  Forte  Energy  NL. Mr. White 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 as defined in the 2004 Edition of the 'Australasian Code for Reporting of  Exploration
Results,  Mineral Resources and Ore Reserves'. The total JORC resources tabulated here are as at  6th  of  July
2012. There has been no change, material or otherwise to the resource figures quoted here, since this date, and
as  such the resources remain reportable to JORC 2004 under which they were estimated. Any subsequent reporting
of  Exploration Results, Mineral Resources and Mineral Reserves to the market that represent a material  change
will be reported under JORC 2012, currently in force. Mr. White consents to the inclusion in this report of the
matters based on his information in the form and context in which it appears.
                                                       
                                                       
                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                                       
                                CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2013
                                                       
                                                       
                                                            Notes          2013                  2012
                                                                            $                     $
                                                                                                          
                                                                                                          
 Revenue                                                       4              94,245               101,460
 Other income                                                  5                   -                51,340
 Exploration expenses                                                       (34,234)              (23,759)
 Administrative expenses                                       6         (1,111,874)           (1,585,997)
                                                                                                          
 Loss before income tax                                                  (1,051,863)           (1,456,956)
 Income tax expense                                                         (11,869)              (19,009)
                                                                                                          
 Loss after income tax                                                   (1,063,732)           (1,475,965)
                                                                                                          
                                                                                                          
 Net loss for the period                                                 (1,063,732)           (1,475,965)
                                                                                                          
 Other comprehensive income
 Items that may be reclassified subsequently to profit                                                    
 and loss:
 Foreign currency translation                                              (358,783)                29,648
 Other comprehensive income for the period net of tax                      (358,783)                29,648
                                                                         (1,422,515)           (1,446,317)
 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE
 TO MEMBERS OF FORTE ENERGY NL
                                                                                                          
                                                                                                          
 Loss per share for loss attributable to the ordinary
 equity holders of the Company (cents per share)
 - basic loss per share                                                       (0.09)                (0.17)
 - diluted loss per share                                                     (0.09)                (0.17)
                                                                                                          


This statement of comprehensive income should be read in conjunction with the accompanying notes.

                                                       
                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                            AS AT 31 DECEMBER 2013
                                                       


                                                    Notes      31 December 2013            30 June 2013
                                                                       $                        $
 ASSETS                                                                                                  
 Current Assets                                                                                          
 Cash and cash equivalents                            7                   308,157                 146,013
 Trade and other receivables                                              427,282                 406,475
 Prepayments                                                               50,972                  57,684
                                                                          786,411                 610,172
 Non-current assets classified as held for sale       8                         -                 126,081
 Total Current Assets                                                     786,411                 736,253
                                                                                                         
 Non-current assets                                                                                      
 Available-for-sale financial assets                                        1,451                   1,697
 Exploration and evaluation expenditure               10               31,010,401              30,748,247
 Plant and equipment                                                      151,620                 175,264
 Total Non-Current Assets                                              31,163,472              30,925,208
                                                                                                         
 TOTAL ASSETS                                                          31,949,883              31,661,461
                                                                                                         
 LIABILITIES                                                                                             
 Current Liabilities                                                                                     
 Trade and other payables                                                 635,694                 550,745
 Income tax payable                                                        43,656                  28,495
 Provisions                                                                75,319                  85,269
                                                                          754,669                 664,509
 Liabilities associated with assets held for sale     8                         -                   2,760
 Total Current Liabilities                                                754,669                 667,269
                                                                                                         
 Non-Current Liabilities                                                                                 
 Related party loan                                                       205,860                       -
 Convertible loan                                                               -               1,172,992
 Total Non-Current Liabilities                                            205,860               1,172,992
                                                                                                         
 TOTAL LIABILITIES                                                        960,529               1,840,261
                                                                                                         
 NET ASSETS                                                            30,989,354              29,821,200
                                                                                                         
 EQUITY                                                                                                  
 Contributed equity                                   12               87,918,674              85,329,846
 Reserves                                                               2,032,253               2,389,195
 Accumulated losses                                                  (58,961,573)            (57,897,841)
                                                                                                         
 TOTAL EQUITY                                                          30,989,354              29,821,200
                                                       
                                                       
This statement of financial position should be read in conjunction with the accompanying notes.

                                                       
                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                   FOR THE HALF -YEAR ENDED 31 DECEMBER 2013
                                                       
                
                               Contributed     Accumulated       Equity        Foreign          Total
                                 equity          losses         benefits       currency        equity
                                                                reserve      translation          
                                    $               $              $              $               $
                                                                                                  
 At 1 July 2013                   85,329,846   (57,897,841)      2,519,765      (130,570)      29,821,200
                                           -    (1,063,732)              -              -     (1,063,732)
 (Loss) for the period
 Other comprehensive income                -              -              -      (358,783)       (358,783)
 Total comprehensive income                -    (1,063,732)              -      (358,783)     (1,422,515)
 for the half year net of
 tax
                                                                                                         
 Equity transactions:
 Share based payment                       -              -          1,841              -           1,841
 Issue of ordinary shares          2,710,299              -              -              -       2,710,299
 Transaction costs                 (121,471)                                                    (121,471)
 Balance At                       87,918,674   (58,961,573)      2,521,606      (489,353)      30,989,354
 31 December 2013
                                                                                                  
 
 
 At 1 July 2012                   83,076,849   (54,714,219)      2,456,399       (70,261)      30,748,768
                                           -    (1,475,965)              -              -     (1,475,965)
 (Loss) for the period
 Other comprehensive income                -              -              -         29,648          29,648
 Total comprehensive income                -    (1,475,965)              -         29,648     (1,446,317)
 for the half year net of
 tax
                                                                                                         
 Equity transactions:
 Share based payment                       -              -        136,907              -         136,907
 Issue of ordinary shares          1,350,668              -              -              -       1,350,668
 Transaction costs                  (91,287)                                                     (91,287)
 Balance At                       84,336,230   (56,190,184)      2,593,306       (40,613)      30,698,739
 31 December 2012
                                                       

This statement of changes in equity should be read in conjunction with the accompanying notes.
                                                       
                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                      CONSOLIDATED STATEMENT OF CASH FLOW
                                   FOR THE HALF -YEAR ENDED 31 DECEMBER 2013

                                                                           2013                  2012
                                                                            $                     $
                                                                                                           
Cash flows from operating activities

Payments to suppliers and employees                                        (1,026,009)           (1,252,892)
Interest and other income received                                             94,245               111,234
                                                                                                            
Net cash flows used in operating activities                                  (931,764)           (1,141,658)
                                                                                                           
Cash flows from investing activities                                                                       

Payment for purchase of equipment                                             (17,300)              (15,550)
Payment for exploration and evaluation expenditure                           (611,479)           (1,506,258)
Proceeds from sale of prospects                                                100,000                     -
                                                                                                            
Net cash flows used in investing activities                                  (528,779)           (1,521,808)
                                                                                                           
Cash flows from financing activities                                                                       

Proceeds from borrowings                                                      205,860                     -
Proceeds from issue of shares                                               1,530,106             1,478,328
Transaction costs relating to issue of shares                               (113,382)              (91,287)
                                                                                                           
Net cash flows from financing activities                                    1,622,584             1,387,041
                                                                                                           
Net increase/(decrease) in cash and cash equivalents                          162,041           (1,276,425)
Effects of exchange rate changes on cash and cash equivalents                     103                 (440)
Cash and cash equivalents at beginning of the period                          146,013             1,763,431
                                                                                                           
Cash and cash equivalents at end of period                                    308,157               486,566
                                                       

This statement of cash flow should be read in conjunction with the accompanying notes.

                                                       
                                                       
                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

1.    CORPORATE INFORMATION

      The  half-year  report  of Forte Energy NL and its controlled entities ("Consolidated  Entity")  for  the
      period  ended 31 December 2013 was authorised for issue in accordance with a resolution of the  directors
      on 14 March 2014.

      Forte  Energy  NL  is  a company limited by shares incorporated in Australia, whose shares  are  publicly
      traded  on  the  Australian Stock Exchange (ASX code "FTE"), and on the AIM Board  of  the  London  Stock
      Exchange.

      The  nature  of  operations and principal activities of the Consolidated Entity during the half-year  was
      the  exploration  for minerals. There have been no significant changes in the nature of these  activities
      during the half-year.

2.    BASIS OF PREPARATION AND ACCOUNTING POLICIES

(a)   Basis of Preparation

      This general purpose condensed consolidated financial report for the half-year ended 31 December  2013
      has  been  prepared  in accordance with AASB 134 "Interim Financial Reporting" and the  Corporations  Act
      2001.

      The  half-year  financial  report does not include all notes of the type  normally  included  within  the
      annual  financial  report  and therefore cannot be expected to provide as full an  understanding  of  the
      financial  performance,  financial position and financing and investing activities  of  the  Consolidated
      Entity as the full financial report.
      
      It  is  recommended  that the half-year financial report should be read in conjunction  with  the  annual
      financial  report  of Forte Energy NL for the year ended 30 June 2013 and considered  together  with  any
      public  announcements made by Forte Energy NL during the half-year ended 31 December 2013  in  accordance
      with the continuous disclosure obligations of the ASX Listing Rules.
      
      The half-year financial report has been prepared on a historical cost basis, except for available-for-
      sale investments and derivative financial instruments which have been measured at fair value.

      The financial report is presented in Australian dollars ($).

      For  the  purpose  of preparing the half-year financial report, the half-year has been  treated  as  a
      discrete reporting period.

      Going Concern

      This  report  has been prepared on the going concern basis, which contemplates the continuity  of  normal
      business  activity and the realisation of assets and settlement of liabilities in the  normal  course  of
      business.
      
      The  Consolidated  Entity has incurred a net loss after tax for the half year ended 31 December  2013  of
      $1,063,732  (31 December 2012: $1,475,965) and has net current assets at 31 December 2013 of $31,742  (30
      June  2013:  $68,984).  The Consolidated Entity's cash flow forecast shows that the  Consolidated  Entity
      will  require  further funds to enable it to continue to meet its ongoing administrative and  exploration
      expenditure for at least twelve months from the date of signing these financial statements.
      
                                                       
                                                       

      On  15  February  2013,  the  Company announced that it had entered into a GBP 10  million  discretionary
      equity financing facility over three years to secure access to additional funding as required.
      
      Subsequent to the end of the reporting period, the Company announced it had issued shares under  a  share
      exchange  agreement  in  exchange for 680,000 shares at £1.00 each in Global Resources  Investment  Trust
      Plc.  The  Company  may sell these shares to raise additional funds for exploration and working  capital.
      Refer to Note 13 for further details.
      
      The  Directors  are  satisfied that, at the date of the signing of the financial  statements,  there  are
      reasonable  grounds  to believe that the Consolidated Entity will be able to raise  sufficient  funds  to
      meet  its  obligations  as and when they fall due and continue to proceed with the Consolidated  Entity's
      strategic objectives.
      
      Should  the  Group  not achieve the matters set out above, there is uncertainty whether  the  Group  will
      continue  as  a  going  concern  and therefore whether it will realise  its  assets  and  extinguish  its
      liabilities in the normal course of business at the amounts stated in the financial report.
      
      The  financial  report does not include any adjustments relating to the recoverability and classification
      of  recorded  asset amounts or to the amounts and classification of liabilities that might  be  necessary
      should the Group not be able to continue as a going concern.

 (b)  Significant accounting policies

      Except as disclosed below, the accounting policies and methods of computation adopted in the preparation of the
      half-year  financial  report  are consistent with those adopted and disclosed  in  the  Company's  annual
      financial  report  for the year ended 30 June 2013. The Group has adopted all new and  revised  Standards
      and  Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to  the
      consolidated  entity  and  effective from 1 July 2013.  The adoption of new  and  revised  Standards  and
      Interpretations has not affected the amounts reported for the current or prior half-year.

      AASB 10 Consolidated Financial Statements

      AASB  10  established a new control model that applies to all entities. It replaces parts of AASB  127
      Consolidated  and  Separate Financial Statements dealing with the accounting for  consolidated  financial
      statements and Interpretation-112 Consolidation - Special Purpose Entities.

      AASB 10 had no impact on the accounting of investments held by the Group.

      AASB 12 Disclosure of Interests in Other Entities
      
      AASB  12  includes  additional  disclosures relating to an entity's interest  in  subsidiaries,  joint
      arrangements, associates and structured entities.

      None  of  these  disclosure  requirements  are applicable for  interim  financial  statements,  unless
      significant  events  and transactions in the interim period require that they are provided.  Accordingly,
      the Group has not made such disclosures.
             
      AASB 13 Fair Value Measurement

      AASB 13 establishes a single source of guidance under AASB for all fair value measurements. AASB 13 does
      not  change when an entity is required to use fair value, but rather provides guidance on how to  measure
      fair value under AASB when fair value is required or permitted.



      AASB  13  also requires specific disclosures on fair values, some of which replace existing disclosure
      requirements in other standards, including AASB 7 Financial Instruments: Disclosures.

      There  has been no material impact upon adopting this standard. Additional disclosures are set out  in
      Note 14.
      
      IAS 19 Employee Benefits (Revised 2011) (IAS 19R)

      The Group has classified leave provisions based on the timing of when the Group expects the benefit to
      become due to be settled. There has been no material impact upon adopting this standard.

(c)   Basis of consolidation

      The  consolidated  financial statements comprise the financial statements of  Forte  Energy  NL  and  the
      entities  it  controlled  at the end of, or during, the half year ended 31 December  2013  ("Consolidated
      Entity").

      Control  is  achieved when the Group is exposed, or has rights, to variable returns from its  involvement
      with  the  investee  and  has the ability to affect those returns through its power  over  the  investee.
      Specifically, the Group controls an investee if and only if the Group has:

               o       Power over the investee (i.e. existing rights that give it the current ability to direct relevant
                       activities in the investee
               o       Exposure, or rights, to variable returns from its involvement with the investee, and
               o       The ability to use its power over the investee to affect its returns.

      In  preparing  the consolidated financial statements, all intercompany balances and transactions,  income
      and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.

      Subsidiaries  are  fully consolidated from the date on which control is transferred to  the  Consolidated
      Entity  and  cease  to  be  consolidated  from the date on  which  control  is  transferred  out  of  the
      Consolidated Entity.

                                                       

3.      SEGMENT INFORMATION

        Identification of reportable segments:
        
        For  management  purposes,  the Consolidated Entity is organised into two business  segments  based  on
        geographical exploration regions.
        
        Management  monitors the operating results of business segments separately for the  purpose  of  making
        decisions  about  resources  to  be  allocated and of assessing  performance.  Segment  performance  is
        evaluated  based  on exploration costs and results obtained. Finance costs, finance income  and  income
        taxes are managed on a group basis.
        
        The reportable segments of the Consolidated Entity are as follows:
        
               o       Uranium exploration in Mauritania.
               o       Uranium exploration in Guinea.

        Accounting policies and inter-segment transactions:

        The  accounting  policies  used by the Consolidated Entity in reporting segments  are  consistent  with
        those used to prepare the half-year financial report and are the same as those used in the prior year.
        
        It  is  the  Consolidated Entity's policy that if items of revenue and expenses are  not  allocated  to
        operating segments then any associated assets and liabilities are also not allocated to segments.  This
        is to avoid asymmetrical allocations within segments which management believe would be inconsistent.
        
        The  following items and associated assets and liabilities are not allocated to operating  segments  as
        they are not considered part of the core operations of any segment:
               o       Interest income and cash balances
               o       Net gains and losses on disposal of available-for-sale investments
               o       Non-current assets classified as held for sale, and
               o       Corporate and administrative income and expenses other than the depreciation of fixed assets.
        
        Operating segments - 31 December 2013

                                                           Mauritania       Guinea uranium         Total
                                                             uranium         exploration              
                                                           exploration            $                   
                                                                $                                    $
         Half year ended 31 December 2013                                                             
                                                                                                      
         Revenues                                                                                     
         Other Revenue from external customers                         -                  -                   -
         Total Segment revenue                                         -                  -                   -
         Unallocated items                                                                                     
         Interest Income                                                                                  1,377
         Other unallocated revenue                                                                       92,868
         Total revenue per statement of comprehensive                                                    94,245
         income
                                                       

                                                         Mauritania      Guinea uranium           Total
                                                          uranium         exploration               
                                                        exploration            $                    
                                                             $                                      $
         Results                                                                                               
         Segment results                                      (16,310)          (28,009)               (44,319)
         Unallocated items                                                                                     
         Unallocated revenue                                                                             94,245
         Unallocated expenses                                                                       (1,101,789)
         Net loss before tax                                                                        (1,051,863)
                                                                                                               
         Segment assets                                     22,650,471         8,425,140             31,075,611
         Unallocated items                                                                                     
         Cash and cash equivalents                                                                      308,157
         Other Corporate assets                                                                         566,115
         Total  assets  per statement  of  financial                                                 31,949,883
         position
                                                                                                               
         Segment liabilities                                  (19,176)          (99,918)              (119,094)
         Unallocated liabilities                                                                      (841,435)
         Total liabilities                                                                            (960,529)

         Half year ended 31 December 2012                                                             
                                                                                                      
         Revenues                                                                                     
         Other Revenue from external customers                         -                  -                   -
         Total Segment revenue                                         -                  -                   -
         Unallocated items                                                                                     
         Interest Income                                                                                  4,772
         Other unallocated revenue                                                                       96,689
         Total revenue per statement of comprehensive                                                   101,460
         income
         Other unallocated income                                                                        51,340
         Results                                                                                               
         Segment results                                      (17,856)          (35,651)               (53,507)
         Unallocated items                                                                                     
         Unallocated revenue                                                                            101,460
         Other unallocated income                                                                        51,340
         Unallocated expenses                                                                       (1,556,249)
         Net loss before tax                                                                        (1,456,956)
                                                                                                               
         Segment assets as at 30 June 2013                  22,497,443         8,330,227             30,827,670
         Unallocated items                                                                                     
         Cash and cash equivalents                                                                      146,013
         Non-current assets classified as  held  for                                                    126,081
         sale
         Other Corporate assets                                                                         561,697
         Total  assets  per statement  of  financial                                                 31,661,461
         position as at 30 June 2013
                                                                                                               
         Segment liabilities as at 30 June 2013              (138,214)           (3,876)              (142,090)
         Unallocated liabilities                                                                    (1,698,171)
         Total liabilities as at 30 June 2013                                                       (1,840,261)

                                                       

4       REVENUE
        
                                                                               2013                 2012
                                                                                $                    $
                                                                                                            
         Interest income                                                          1,377                4,772
         Office sub-lease rent                                                   92,868               96,689
         Total other revenue                                                     94,245              101,460
                                                                                                             
                                                                                                             
5       OTHER INCOME

Gain on derivative financial instruments                                              -               51,340
Total other income                                                                    -               51,340

6       ADMINISTRATIVE EXPENSES

                                                                                                            
Accounting and audit fees                                                        82,500              113,076
Consulting fees                                                                  28,193               25,545
Depreciation of plant and equipment                                              33,506               48,912
Employee benefits expense (i)                                                   315,459              472,194
Other employment expenses                                                         2,991               10,812
Foreign exchange differences                                                   (12,406)               11,440
Impairment loss on available for sale assets                                        245                   65
Legal fees                                                                       61,333               38,819
Media and public relations                                                       53,805              100,394
Nominated adviser and broker fees                                                60,707               47,500
Promotions, roadshows and conferences                                               725                3,797
Reporting and listing costs                                                      66,918               57,991
Share based payments - other                                                          -              127,660
Telecommunication and computing                                                  47,921               40,745
Travel and accommodation                                                         70,870              109,314
Minimum lease payments - operating lease                                        249,998              288,150
Other                                                                            49,109               89,583
Total administrative expenses                                                 1,111,874            1,585,997
                                                                                               

(i)     Employee benefits expense is comprised of:

Salaries and wages                                                              299,339              369,680
Employee provisions                                                            (13,512)             (31,767)
Share based payments - employees and officers                                     1,841                9,247
Other staff costs                                                                27,791              125,034
Total                                                                           315,459              472,194

                                                       

7.      CASH AND CASH EQUIVALENTS


                                                                     31 December               30 June
                                                                         2013                    2013
                                                                             $                    $
                                                                                                           
Cash at bank and on hand                                                      308,157             146,013
                                                                              308,157             146,013

        Cash  at  bank earns interest at floating rates based on daily bank deposit rates. The carrying amounts
        of cash and cash equivalents represent fair value.

8.      NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

        In  line  with  the  Consolidated  Entity's focus on progressing its  uranium  exploration  projects,  the
        Consolidated  Entity completed the sale of its Millenium copper/cobalt project in Queensland  in  December
        2013  to realise value for its non-uranium assets. These exploration assets had previously been recognised
        as assets held for sale.

        Under the sale agreement, the Company received $23,321 for reimbursement of tenement costs incurred during
        the  option period and $100,000 sale proceeds. The total of $123,321 reflected the carrying amount of  the
        project so no gain or loss was recognised.

        The assets and liabilities associated with the non-uranium assets are as follows:

         Capitalised exploration and evaluation expenditure                -             126,081                        
         Liabilities                                                       -             (2,760)                        
                                                                           -             123,321                        

9.      DIVIDENDS

        There were no dividends proposed or paid during the half-year ended 31 December 2013 (2012: nil).


10.     EXPLORATION AND EVALUATION EXPENDITURE

        Movements in carrying amounts

                                                                                                               
         Carrying amount at 1 July                                            30,748,247            28,463,555
         Additions                                                               262,154             2,284,692
         Carrying amount at end of period net of impairment                   31,010,401            30,748,247

        Exploration  and  evaluation  costs have been capitalised at cost. No impairment  loss  was  recognised
        during the half-year ended 31 December 2013 (2012: nil) because either:
        *       The exploration and evaluation activities are expected to be recouped through successful development
                and exploitation of the area of interest or, alternatively, by its sale; or
        *       Exploration and evaluation activities in each area of interest have not at the reporting date reached
                a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable
                reserves, and active and significant operations in, or relevant to, the area of interest are continuing.



11.     COMMITMENTS AND CONTINGENCIES

        There  have been no material changes to the exploration commitments and contingencies disclosed in  the
        most   recent  annual  financial  report.  Commitments  in  relation  to  operating  leases  have  been
        substantially  reduced following the rental of the Perth office reverting to a monthly  basis  from  31
        August 2013 and the termination of the lease for the London office in February 2014.


12.   CONTRIBUTED EQUITY

                                                                    31 December 2013           30 June 2013
                                                                              $                     $
         Ordinary shares                                                                                     
         1,246,495,311 (30 June 2013: 905,868,264)                                                          
         ordinary shares, fully paid                                         87,896,174           85,307,346
                                                                                             
         2,250,000 (30 June 2012: 2,250,000) 25 cent                                                        
         value ordinary shares, partly paid to 1 cent                            22,500               22,500
                                                                             87,918,674           85,329,846

         (i)          Ordinary shares                                                                        
         
                 Movement in ordinary shares on issue                         Number                  $
                                                                                                     
                 At 1 July 2012                                             796,164,311            83,076,849
                 Share issues                                                78,980,000             1,350,668
                 Transaction costs                                                    -              (91,287)
                                                                                                             
                 Balance at 31 December 2012                                875,144,311            84,336,230
                                                                                                     
                                                                            905,868,264            85,329,846
                 At 1 July 2013
                 Share issues                                               340,627,047             2,710,299
                 Transaction costs                                                    -             (121,471)
                                                                                                             
                 Balance at 31 December 2013                              1,246,495,311            87,918,674

        
        (ii)    Options
        
                 Options over ordinary shares:
                 
                 During the financial period:
                     *       88,652,500 options expired with an exercise price of 3 pence,


                                                       
                                                       

13.     EVENTS AFTER THE BALANCE SHEET DATE
   
        On  10 March 2014 the Company announced that it had entered into a share exchange agreement with Global
        Resources  Investment Trust Plc (GRIT). Under the agreement Forte Energy issued 170,000,000  shares  to
        GRIT  at  0.4  pence  (approximately 0.75 cents) per share. In return, Forte  Energy  received  680,000
        ordinary  shares  in  GRIT  at £1.00 per GRIT share. Shares in GRIT were listed  on  the  London  Stock
        Exchange on 7 March 2014. Forte Energy may dispose of the GRIT shares to raise working capital.

14.     FINANCIAL INSTRUMENTS

        At  31  December  2013  the  carrying value of the Group's financial assets and  financial  liabilities
        approximate their fair value.


                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                            DIRECTORS' DECLARATION
                                                       

In accordance with a resolution of the Directors of Forte Energy NL, I state that:

In the opinion of the Directors:

(a)     the financial statements and notes of the Consolidated Entity are in accordance with the Corporations
        Act 2001, including:

        (i)     giving a true and fair view of the financial position as at 31 December 2013 and the
                 performance for the half-year ended on that date of the Consolidated Entity; and
        
        (ii)    complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
                 Regulations 2001; and

(b)     subject to the matters described in Note 2 Going Concern, there are reasonable grounds to believe that
        the Consolidated Entity will be able to pay its debts as and when they become due and payable.

On behalf of the Board






Mark Reilly
Managing Director



14 March 2014


A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
FD:DJ:Forte 003
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au

Auditor's Independence Declaration to the Directors of Forte Energy NL

In relation to our review of the financial report of Forte Energy NL for the half-year ended 31
December 2013, to the best of my knowledge and belief, there have been no contraventions of the
auditor independence requirements of the Corporations Act 2001 or any applicable code of
professional conduct.


Ernst & Young


Fiona Drummond
Partner
14 March 2014





A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
FD:DJ:Forte:004
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au

Independent review report to members of Forte Energy NL

Report on the 31 December 2013 Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Forte Energy NL, which comprises
the condensed statement of financial position as at 31 December 2013, the condensed statement
of comprehensive income, condensed statement of changes in equity and condensed statement of
cash flows for the half-year ended on that date, notes comprising a summary of significant
accounting policies and other explanatory information, and the directors' declaration of the
consolidated entity comprising the company and the entities it controlled at the half-year end or
from time to time during the half-year.

Directors' Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report
that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal controls as the directors determine are necessary to
enable the preparation of the half-year financial report that is free from material misstatement,
whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review.
We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410
Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state
whether, on the basis of the procedures described, we have become aware of any matter that makes
us believe that the financial report is not in accordance with the Corporations Act 2001 including:
giving a true and fair view of the consolidated entity's financial position as at 31 December 2013
and its performance for the half-year ended on that date; and complying with Accounting Standard
AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of
Forte Energy NL and the entities it controlled during the half-year, ASRE 2410 requires that we
comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in accordance with
Australian Auditing Standards and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the
Corporations Act 2001. We have given to the directors of the company a written Auditor's
Independence Declaration, a copy of which is included in the Directors' Report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us
believe that the half-year financial report of Forte Energy NL is not in accordance with the
Corporations Act 2001, including:

a) giving a true and fair view of the consolidated entity's financial position as at 31 December
   2013 and of its performance for the half-year ended on that date; and

b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the
   Corporations Regulations 2001.

Emphasis of Matter

Without qualifying our conclusion, we draw attention to Note 2 in the financial report which
describes the principal conditions that raise doubt about the entity's ability to continue as a going
concern. These conditions indicate the existence of a material uncertainty that may cast significant
doubt about the consolidated entity's ability to continue as a going concern and therefore, the
consolidated entity may be unable to realise its assets and discharge its liabilities in the normal
course of business.


Ernst & Young


Fiona Drummond
Partner
Perth
14 March 2014

Contact Information

  • Forte Energy NL