Forte Energy NL
AIM : FTE

March 17, 2015 03:00 ET

Half Yearly Report

                                                       1



                                                                                                               
                                                FORTE ENERGY NL
                                                       
                                                       
                                                       
                                              ABN 59 009 087 852
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                          HALF-YEAR FINANCIAL REPORT
                                                       
                                                       
                                               31 DECEMBER 2014
                                                       
                                                       
                                                       
                                                       
                                                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                                                   6

        Consolidated Statement of Financial Position                                                     7

        Consolidated Statement of Changes in Equity                                                      8

        Consolidated Statement of Cash Flows                                                             9

        Notes to the Half-Year Financial Report                                                         10

        Directors' Declaration                                                                          22

        Auditor's Independence Declaration                                                              23

        Independent Review Report                                                                       24





                                                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 2014 ("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 $2,626,504 (2013: $1,063,732).

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 projects in the Slovak Republic and its wholly owned exploration licences in West
Africa  in the Republic of Guinea and the Islamic Republic of Mauritania. The Consolidated Entity continues  to
actively investigate 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.

On  31  July  2014,  Forte  Energy  entered into a Partnership Agreement with European  Uranium  Resources  Ltd
("European  Uranium"), whereby Forte earned a 50% interest in the Slovak uranium projects of  European  Uranium
for the payment of CAD$500,000 with further expenditure of CAD$3,500,000 over 10 years required to maintain its
interest.  Payment  of  the  initial  CAD$500,000 cash consideration was  completed  on  1  October  2014.  The
partnership agreement is treated as an equity accounted associate.

Forte  Energy's interest is held through ownership of 50% of the shares in Ludovika Energy and Ludovika Mining,
the  Slovak-registered  entities which hold the mineral licenses comprising the Kuriskova  and  Novoveska  Huta
uranium  projects.  Forte  Energy is required to sole fund a minimum of CAD$350,000  a  year  on  the  Ludovika
entities  over the next ten years to maintain its 50% interest with the first year's expenditure of CAD$350,000
being an obligation.

Limited  exploration  expenditure was incurred during the reporting period in relation to its  Mauritanian  and
Guinean projects, as the Company focussed on the Slovak uranium projects, including undertaking a review of the
Canadian NI 43-101 compliant resource estimates that had been published previously by European Uranium.

The  review  was completed and the results announced on 28 January 2015, including JORC 2012 compliant  mineral
resource  estimates for both Kuriskova (42.2Mlb U3O8) and Novoveska Huta (21.1Mlb U3O8) for a total of  63.3Mlb
U3O8.  This  represents  an  increase of approximately 6Mlb U3O8 or 10% over the previous  NI  43-101  resource
estimates.  As a result, the Company's total JORC compliant resources in West Africa and Slovakia increased  by
70% (31.6Mlb) to 76.5 million pounds U3O8.
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         DIRECTORS' REPORT (Continued)
                                                       
                            KURISKOVA - 100% Gross JORC Compliant Mineral Resource
 MINERAL RESOURCE SUMMARY AT @ 0.03 U% CUT OFF, KURISKOVA DEPOSIT
   U%      Tonnes       % U3O8     U3O8 lbs      Metal U     Metal U3O8     Mo Tonnes     % Mo       Mo lbs
                                                 (Tonnes)     (Tonnes)
                                                                                                        
                                                   Indicated
 0.445    2,475,849     0.525     28,637,284      11,015       12,990       2,448,087     0.062     3,322,512
                                                                                                        
                                                   Inferred
 0.130    4,010,815     0.153     13,545,690      5,210         6,144       3,779,214     0.024     2,036,120
                                                                                                        
                                             Indicated + Inferred
 0.250    6,486,664     0.295     42,182,974      16,226       19,134       6,227,301     0.039     5,358,632
* To convert %U to %U3O8, a conversion factor of 1.17924 was used.
All at 0.03% U cut off; molybdenum included only when within blocks above U% cut off.
Forte holds a 50% interest in this deposit, subject to meeting expenditure commitments.
                                                       
                          NOVOVESKA HUTA - 100% Gross JORC Compliant Mineral Resource
 MINERAL RESOURCE SUMMARY AT @ 0.03 U% CUT OFF, NOVOVESKA HUTA DEPOSIT
  U %      Tonnes       % U3O8     U3O8 lbs       Metal U      Metal U3O8     Mo Tonnes     % Mo      Mo lbs
                                                 (Tonnes)       (Tonnes)
                                                                                                         
                                                   Measured
 0.055    2,973,287     0.065     4,254,594        1,637          1,930                                      
                                                                                                             
                                                   Indicated
 0.053    2,774,792     0.063     3,842,852        1,478          1,743                                      
                                                                                                             
                                                   Inferred
 0.102    4,902,082     0.121     13,043,317       5,017          5,916      10,423,317    0.016    3,770,800
                                                                                                         
                                        Measured + Indicated + Inferred
 0.076   10,650,161     0.090     21,140,763       8,132          9,589      10,423,317    0.016    3,770,800
* To convert %U to %U3O8, a conversion factor of 1.17924 was used.
All at 0.03% U cut off; molybdenum included only when within blocks above U% cut off.
Forte holds a 50% interest in this deposit, subject to meeting expenditure commitments.

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         DIRECTORS' REPORT (Continued)
                                                       
On  14  October 2014, the Company issued 271,157,428 fully paid ordinary shares under a placement for  a  total
consideration  of more than A$1.5m before costs, and included one free Placement Warrant for  each  two  shares
subscribed for. 192,607,392 shares were issued to Darwin Strategic Limited ("Darwin") under a Controlled Equity
Offering  financing  facility. A further 598,931,080 shares were issued to Darwin during the  period  following
conversion of the convertible loan note issued in April 2014.

On 30 December 2014, the Company announced that it had entered into a new convertible loan note instrument with
Darwin for a principal amount of £550,000 with a 2 year maturity.

Events subsequent to balance date

On  14  January  2015, the Company issued 371,758,268 fully paid ordinary shares following  the  receipt  of  a
conversion notice for the exercise of conversion rights in respect of £375,000 of convertible loan notes issued
in December 2014.

On 28 January 2015, the Company announced upgraded JORC code compliant resource estimates for the Kuriskova and
Novoveska Huta uranium projects in the Slovak Republic.
        
On  5  March 2015 the Company announced that it had received conditional approval under ASX Listing Rule  17.11
for the removal of the Company from the official list of the ASX

Apart  from  other  events which are described above 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 (2013:  $ nil).

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

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 23 and forms part of this report.

Signed in accordance with a resolution of the directors.






Mark Reilly
Managing Director

16 March 2015



Note:

The  information in this report that relates to the reporting of Mineral Resources in Mauritania and Guinea  is
based on information compiled or reviewed 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'. 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.

The  information  in this report that relates to the reporting of Mineral Resources in the Slovak  Republic  is
based  on  information compiled or reviewed by Ing. Boris Bartalsky, PhD. who is a Member of  the  Australasian
Institute  of  Mining and Metallurgy (AusIMM) and the Society of Mining, Metallurgy and Exploration  (SME).  Mr
Bartalsky  is  the  Director of Ludovika Energy, and country manager for the Slovakian  uranium  projects.  Mr.
Bartalsky 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
2012  Edition  of  the  'Australasian  Code for Reporting of Exploration Results,  Mineral  Resources  and  Ore
Reserves'.  Mr.  Bartalsky 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 2014
                                                       
                                                       
                                                            Notes          2014                  2013
                                                                            $                     $
                                                                                                          
                                                                                                          
 Revenue                                                       4                 504                 1,377
 Other income                                                  5                 144                92,868
 Exploration expenses                                                              -              (34,234)
 Impairment expense                                                        (104,780)                     -
 Administrative expenses                                       6         (2,522,372)           (1,111,874)
                                                                                                          
 Loss before income tax                                                  (2,626,504)           (1,051,863)
 Income tax expense                                                                -              (11,869)
                                                                                                          
 Loss after income tax                                                   (2,626,504)           (1,063,732)
                                                                                                          
                                                                                                          
 Net loss for the period                                                 (2,626,504)           (1,063,732)
                                                                                                          
 Other comprehensive loss
 Items that may be reclassified subsequently to profit                                                    
 and loss:
 Foreign currency translation                                                (8,371)             (358,783)
 Other comprehensive loss for the period net of tax                          (8,371)             (358,783)
                                                                         (2,634,875)           (1,422,515)
 TOTAL COMPREHENSIVE LOSS 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                                                       (0.15)                (0.09)
 - diluted loss per share                                                     (0.15)                (0.09)
                                                                                                          


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 2014
                                                       


                                                    Notes      31 December 2014            30 June 2014
                                                                       $                        $
 ASSETS                                                                                                  
 Current Assets                                                                                          
 Cash and cash equivalents                            7                   794,618                  92,467
 Trade and other receivables                                              326,081                 286,155
 Prepayments                                                               34,561                  52,296
 Held for trading                                                         162,036                 707,671
 Total Current Assets                                                   1,317,296               1,138,589
                                                                                                         
 Non-current assets                                                                                      
 Available-for-sale financial assets                                       12,787                  40,139
 Equity accounted investment                          9                   689,151                       -
 Exploration and evaluation expenditure               10               30,982,168              31,060,057
 Plant and equipment                                                       45,379                  63,256
 Total Non-Current Assets                                              31,729,485              31,163,452
                                                                                                         
 TOTAL ASSETS                                                          33,046,781              32,302,041
                                                                                                         
 LIABILITIES                                                                                             
 Current Liabilities                                                                                     
 Trade and other payables                                                 919,519               1,968,074
 Income tax payable                                                        49,754                  47,298
 Provisions                                                                64,588                  46,264
 Loan from related party                              17                  267,056                       -
 Total Current Liabilities                                              1,300,917               2,061,636
                                                                                                         
 Non-Current Liabilities                                                                                 
 Loan from related party                              17                  303,372                 291,485
 Convertible loan notes                               12                1,047,619                 783,520
 Derivative financial instruments                     16                  611,410                       -
 Provisions                                                                     -                  26,139
 Total Non-Current Liabilities                                          1,962,401               1,101,144
                                                                                                         
 TOTAL LIABILITIES                                                      3,263,318               3,162,780
                                                                                                         
 NET ASSETS                                                            29,783,463              29,139,261
                                                                                                         
 EQUITY                                                                                                  
 Contributed equity                                   13               92,439,869              89,160,792
 Reserves                                                               2,158,020               2,166,391
 Accumulated losses                                                  (64,814,426)            (62,187,922)
                                                                                                         
 TOTAL EQUITY                                                          29,783,463              29,139,261
                                                       
                                                       
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 2014
                                                       
                
                               Contributed     Accumulated       Equity        Foreign          Total
                                 equity          losses         benefits       currency        equity
                                                                reserve      translation          
                                    $               $              $              $               $
                                                                                                  
 At 1 July 2014                   89,160,792   (62,187,922)      2,521,606      (355,215)      29,139,261
                                           -    (2,626,504)              -              -     (2,626,504)
 (Loss) for the period
 Other comprehensive income                -              -              -        (8,371)         (8,371)
 Total comprehensive income                -    (2,626,504)              -        (8,371)     (2,634,875)
 for the half year net of
 tax
                                                                                                         
 Equity transactions:
 Issue of ordinary shares          3,316,830              -              -              -       3,316,830
 Transaction costs                  (37,753)                                                     (37,753)
 Balance At                       92,439,869   (64,814,426)      2,521,606      (363,586)      29,783,463
 31 December 2014
                                                                                                  
 
 
 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
                                                       

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 2014

                                                                           2014                  2013
                                                                            $                     $
                                                                                                           
Cash flows from operating activities

Payments to suppliers and employees                                          (417,735)           (1,026,009)
Interest and other income received                                                489                94,245
Interest and other costs of finance paid                                     (73,169)                     -
                                                                                                            
Net cash flows used in operating activities                                  (490,415)             (931,764)
                                                                                                           
Cash flows from investing activities                                                                       

Payment for purchase of equipment                                                    -              (17,300)
Payment for 50% equity investment in Slovak entities                         (639,630)                     -
Payment for exploration and evaluation expenditure                            (32,607)             (611,479)
Proceeds from sale of prospects                                                      -               100,000
Proceeds from sale of held for trading investments                             397,577                    -
                                                                                                            
Net cash flows used in investing activities                                  (274,660)             (528,779)
                                                                                                           
Cash flows from financing activities                                                                       

Proceeds from borrowings                                                    1,160,140               205,860
Repayment of borrowings                                                       (2,213)                     -
Proceeds from issue of shares                                                 320,000             1,530,106
Transaction costs on issue of shares                                         (14,658)             (113,382)
                                                                                                           
Net cash flows from financing activities                                    1,463,269             1,622,584
                                                                                                           
Net increase in cash and cash equivalents                                     698,194               162,041
Effects of exchange rate changes on cash and cash equivalents                   3,957                   103
Cash and cash equivalents at beginning of the period                           92,467               146,013
                                                                                                           
Cash and cash equivalents at end of period                                    794,618               308,157
                                                       

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 2014

1.    CORPORATE INFORMATION

      The  half-year  report  of Forte Energy NL and its controlled entities ("Consolidated  Entity")  for  the
      period  ended 31 December 2014 was authorised for issue in accordance with a resolution of the  directors
      on 16 March 2015.

      Forte  Energy  NL is a for profit 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  2014
      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 2014 and considered  together  with  any
      public  announcements made by Forte Energy NL during the half-year ended 31 December 2014  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,  held  for trading investments and derivative financial instruments  which  have  been
      measured at fair value.

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

      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  2014  of
      $2,626,504  (31 December 2013: $1,063,732) and has net current assets at 31 December 2014 of $16,379  (30
      June 2014 net current deficiency: $923,047). 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.
      
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

      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. The Directors are currently assessing a number of options available to raise  those
      funds,  including  equity  placements to sophisticated investors, open  offers  to  shareholders,  rights
      issues,  debt to equity conversion and convertible loan facilities and will pursue these further  as  and
      when appropriate.
      
      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

      The  accounting  policies  adopted  in the preparation of the interim  condensed  consolidated  financial
      statements  are  consistent  with those followed in the preparation of the  Group's  annual  consolidated
      financial  statements for the year ended 30 June 2014, except for the adoption of  all  new  and  amended
      standards and interpretations effective as of 1 January 2014, including:

        Reference     Title
        AASB 2011-4   Amendments to Australian Accounting Standards to Remove Individual Key Management
                      Personnel Disclosure Requirements [AASB 124]
                      This amendment deletes from AASB 124 individual key management personnel disclosure
                      requirements for disclosing entities that are not companies. It also removes the
                      individual KMP disclosure requirements for all disclosing entities in relation to equity
                      holdings, loans and other related party transactions.
                      
        AASB 2012-3   Amendments to Australian Accounting Standards - Offsetting Financial Assets and
                      Financial Liabilities
                      AASB 2012-3 adds application guidance to AASB 132 Financial Instruments: Presentation to
                      address inconsistencies identified in applying some of the offsetting criteria of AASB
                      132, including clarifying the meaning of "currently has a legally enforceable right of
                      set-off" and that some gross settlement systems may be considered equivalent to net
                      settlement.
        Interpretat   Levies
        ion 21        This Interpretation confirms that a liability to pay a levy is only recognised when the
                      activity that triggers the payment occurs.  Applying the going concern assumption does
                      not create a constructive obligation.
        AASB 2013-3   Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets
                      AASB 2013-3 amends the disclosure requirements in AASB 136 Impairment of Assets. The
                      amendments include the requirement to disclose additional information about the fair
                      value measurement when the recoverable amount of impaired assets is based on fair value
                      less costs of disposal.
        AASB 2013-4   Amendments to Australian Accounting Standards - Novation of Derivatives and Continuation
                      of Hedge Accounting [AASB 139]
                      AASB 2013-4 amends AASB 139 to permit the continuation of hedge accounting in specified
                      circumstances where a derivative, which has been designated as a hedging instrument, is
                      novated from one counterparty to a central counterparty as a consequence of laws or
                      regulations.

      The adoption of these amendments had no material impact on the financial position or performance of the
      Group.
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

(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  2014  ("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.

                                                       
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

3.      SEGMENT INFORMATION

        Identification of reportable segments:
        
        For  management  purposes, the Consolidated Entity is organised into two operating  segments  based  on
        geographical exploration regions.
        
        Management  monitors the operating results of operating 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  and  basis  of segmentation 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 2014

                                                             Mauritania      Guinea uranium         Total
                                                              uranium         exploration             
                                                            exploration            $                  
                                                                 $                                    $
         Half year ended 31 December 2014                                                             
                                                                                                      
         Revenues                                                                                     
         Other Revenue from external customers                           -                -                   -
         Total Segment revenue                                           -                -                   -
         Unallocated items                                                                                     
         Interest Income                                                                                    504
         Total Revenue                                                                                      504
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

                                                             Mauritania      Guinea uranium         Total
                                                              uranium         exploration             
                                                            exploration            $                  
                                                                 $                                    $
         Results                                                                                               
         Segment results                                         (105,788)         (26,957)           (132,745)
         Unallocated items                                                                                     
         Unallocated interest and other income                                                              648
         Unallocated expenses                                                                       (2,494,407)
         Net loss before tax                                                                        (2,626,504)
                                                                                                               
         Segment assets                                         23,905,172        7,111,729          31,016,901
         Unallocated items                                                                                     
         Cash and cash equivalents                                                                      794,618
         Other Corporate assets                                                                       1,235,262
         Total   assets   per  statement  of   financial                                             33,046,781
         position
                                                                                                               
         Segment liabilities                                      (25,528)                -            (25,528)
         Unallocated liabilities                                                                    (3,237,790)
         Total liabilities                                                                          (3,263,318)

                                                             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
         Results                                                                                               
         Segment results                                          (16,310)         (28,009)            (44,319)
         Unallocated items                                                                                     
         Unallocated interest and other income                                                           94,245
         Unallocated expenses                                                                       (1,101,789)
         Net loss before tax                                                                        (1,051,863)
                                                                                                               
         Segment assets as at 30 June 2014                      23,984,068        7,125,963          31,110,031
         Unallocated items                                                                                     
         Cash and cash equivalents                                                                       92,467
         Other Corporate assets                                                                       1,099,543
         Total   assets   per  statement  of   financial                                             32,302,041
         position as at 30 June 2014
                                                                                                               
         Segment liabilities as at 30 June 2014                  (996,905)                -           (996,905)
         Unallocated liabilities                                                                    (2,165,875)
         Total liabilities as at 30 June 2014                                                       (3,162,780)

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

4       REVENUE
                                                                               2014                 2013
                                                                                $                    $
                                                                                                            
         Interest income                                                            504                1,377
         Total revenue                                                              504                1,377
                                                                                                             
5       OTHER INCOME

         Office sub-lease rent                                                      144               92,868
         Total other income                                                         144               92,868

6       ADMINISTRATIVE EXPENSES

         Accounting and audit fees                                               26,788               82,500
         Consulting fees                                                         19,587               28,193
         Depreciation of plant and equipment                                     18,178               33,506
         Employee benefits expense (i)                                          319,620              315,459
         Other employment expenses                                                2,936                2,991
         Foreign exchange differences                                          (15,701)             (12,406)
         Impairment loss on available for sale financial assets                 403,675                  245
         Interest expense                                                        83,053                6,549
         Legal fees                                                             (7,542)               61,333
         Loan fees and costs                                                     49,427                    -
         Loan note discount                                                     105,163                    -
         Media and public relations                                               9,509               53,805
         Nominated adviser and broker fees                                       52,486               60,707
         Reporting and listing costs                                             72,121               66,918
         Loss on derivative financial instruments                             1,303,950                    -
         Telecommunication and computing                                         29,171               47,921
         Travel and accommodation                                                45,212               70,870
         Minimum lease payments - operating lease                               (5,604)              249,998
         Other                                                                   10,343               43,285
         Total administrative expenses                                        2,522,372            1,111,874

(i)     Employee benefits expense is comprised of:

         Salaries and wages                                                     328,839              299,339
         Employee provisions                                                    (9,219)             (13,512)
         Share based payments - employees and officers                                -                1,841
         Other staff costs                                                            -               27,791
         Total                                                                  319,620              315,459

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

7.      CASH AND CASH EQUIVALENTS
                                                                      31 December               30 June
                                                                          2014                    2014
                                                                              $                    $
                                                                                                            
        Cash at bank and on hand                                               794,618              84,517
        Short term deposits                                                          -               7,950
                                                                               794,618              92,467

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

8.      DIVIDENDS

        There were no dividends proposed or paid during the half-year ended 31 December 2014 (2013: nil).

9.      EQUITY ACCOUNTED INVESTMENT

        Opening balance                                                              -                   -
        Initial contribution                                                   536,249                   -
        Additions                                                              152,902                   -
        Closing balance                                                        689,151                   -

        On  16  June  2014,  Forte  announced  a  Partnership Agreement with  European  Uranium  Resources  Ltd
        ("European  Uranium"), whereby Forte earned a 50% interest in the Slovak uranium projects  of  European
        Uranium for payment of CAD$500,000 with further expenditure of CAD$3,500,000 over 10 years required  to
        maintain its interest. A definitive partnership agreement was subsequently executed by both parties  on
        31  July  2014  and payment of the initial CAD$500,000 cash consideration was completed  on  1  October
        2014.
        
        Forte's  interest  is  held  through  ownership of 50% of  the  shares  in  European  Uranium's  Slovak
        subsidiaries,  Ludovika  Energy  and Ludovika Mining, which hold the mineral  licenses  comprising  the
        Kuriskova and Novoveska Huta uranium projects. Forte must sole fund a minimum of CAD$350,000 a year  on
        the  Ludovika  entities  over the next ten years to maintain its 50% interest  with  the  first  year's
        expenditure of CAD$350,000 being an obligation.

10.     EXPLORATION AND EVALUATION EXPENDITURE

        Movements in carrying amounts

                                                                                                               
        Carrying amount at 1 July                                             31,060,057            30,748,247
        Additions                                                                 26,891             1,551,382
        Impairment                                                             (104,780)           (1,239,572)
        Carrying amount at end of period net of impairment                    30,982,168            31,060,057

        Exploration and evaluation costs have been capitalised at cost. An impairment expense of $104,780 (year
        ended  30  June 2014: $1,239,572) was recognised during the half-year ended 31 December 2014  when  the
        Company decided not to renew exploration permit 1588 in Mauritania.

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

11.     COMMITMENTS AND CONTINGENCIES

        Under  the agreement with European Uranium, Forte is committed to sole fund CAD$350,000 expenditure  on
        the  project during the first year of the agreement executed on 31 July 2014 (refer Note 9). There have
        been  no other material changes to the exploration commitments and contingencies disclosed in the  most
        recent  annual financial report. There have been no material changes to the commitments in relation  to
        operating leases disclosed in the most recent annual financial report.

12.     CONVERTIBLE LOAN NOTE
        
        On 30 December 2014 the Company entered into a convertible loan agreement with Darwin Strategic Limited
        ("Darwin").  Under the agreement Forte has issued Loan Notes for £550,000 to Darwin,  repayable  by  30
        December  2016.  Darwin may elect to convert all or part of the loan at the lower of  0.396  pence  per
        share  or  90%  of  an  average market price calculated during the twenty  days  prior  to  conversion.
        Subsequent  to  the  end of the reporting period, the Company issued 371,758,268  fully  paid  ordinary
        shares following the receipt of a conversion notice for the exercise of conversion rights in respect of
        £375,000 of the Loan Notes.
        
13.     CONTRIBUTED EQUITY

                                                                    31 December 2014           30 June 2014
                                                                              $                     $
         Ordinary shares                                                                                     
         2,478,891,511 (30 June 2014: 1,416,495,311)                                                        
         ordinary shares, fully paid                                         92,417,369           89,138,292
                                                                                             
         2,250,000 (30 June 2014: 2,250,000) 25 cent                                                        
         value ordinary shares, partly paid to 1 cent                            22,500               22,500
                                                                             92,439,869           89,160,792

         (i)          Ordinary shares                                                                        
         
               Movement in ordinary shares on issue                         Number                  $
                                                                                                     
                                                                                                     
                                                                            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
                                                                                                     
                                                                          1,416,495,311            89,160,792
                 At 1 July 2014
                 Placement                                                  271,157,428             1,518,480
                 Controlled equity offering                                 192,307,692               921,150
                 Conversion of loan note                                    598,931,080               877,200
                 Transaction costs                                                    -              (37,753)
                                                                                                             
                  Balance at 31 December 2014                             2,478,891,511            92,439,869

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014
        
13.     CONTRIBUTED EQUITY (Cont'd)
        
        (ii)    Options
        
                 Options over ordinary shares:
                 
                 During the financial period:
                     *       135,578,714 options were granted with an exercise price of 0.5 pence,
                     *       164,062,500 options were granted with an exercise price of 0.4 pence, and
                     *       60,692,308 options were granted with an exercise price of 0.32 pence.

        The  following table illustrates the number (No.) and weighted average exercise prices (WAEP)  of,  and
        movements in, share options issued during the year:
                 
                                                                Number of options            WAEP
        Outstanding at 30 June 2014                                                                      
                                                                          9,000,000                 0.086
        Granted during the half-year                                    360,333,522                 0.044
        Forfeited during the half-year                                            -                     -
        Exercised during the half-year                                            -                     -
        Expired during the half-year                                              -                     -
        Outstanding at 31 December 2014                                 369,333,522                 0.045
        Exercisable at 31 December 2014                                 369,333,522                 0.045
                                                                                                         

14.     EVENTS AFTER THE BALANCE SHEET DATE
   
    *   On 14 January 2015, the Company issued 371,758,268 fully paid ordinary shares following the receipt of
        a conversion notice for the exercise of conversion rights in respect of £375,000 of convertible loan notes.

    *   On  28 January 2015, the Company announced upgraded JORC code compliant resource estimates for the
        Kuriskova and Novoveska Huta uranium projects in the Slovak Republic.
        
    *   On 5 March 2015 the Company announced that it had received conditional approval under ASX Listing Rule
        17.11 for the removal of the Company from the official list of the ASX

15.     FINANCIAL INSTRUMENTS

        At  31  December  2014  the  carrying value of the Group's financial assets and  financial  liabilities
        approximate their fair value.
        
        Available-for-sale  and  held for trading investments consist of investments in  ordinary  shares,  and
        therefore  have  no  fixed maturity date or coupon rate. The fair value at 31  December  2014  included
        unrealised  losses  during the half year of $403,675 (2013: loss of $245) due  to  movement  in  equity
        prices and currency exchange rates.
        
        Listed shares
        The  fair  value  of  listed investments has been determined directly by reference to  published  price
        quotations in an active market. There are no individually material investments.

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014
        
15.     FINANCIAL INSTRUMENTS (Cont'd)

        At  31  December the Company held 358,110 (30 June 2014: 680,000) shares in Global Resources Investment
        Trust  Plc ("GRIT"). It is expected that the GRIT shares will be disposed of within 12 months to  raise
        working capital.
        
        All financial instruments for which fair value is recognised or disclosed are categorised within the
        fair value hierarchy, described as follows, based on the lowest level input that is significant to the
        fair value measurement as a whole:
        
        *       Level 1 - Quoted market prices in an active market (that are unadjusted) for identical assets
                or liabilities
        *       Level 2 - Valuation techniques (for which the lowest level input that is significant to the
                fair value measurement is directly or indirectly observable)
        *       Level 3 - Valuation techniques (for which the lowest level input that is significant to the
                fair value measurement is unobservable)
        
        As at 31 December 2014, the Group held the following classes of financial instruments measured at fair
        value:
        
                                                                          31 Dec 2014         30 Jun 2014
                                                                              AUD                 AUD
         Level 1                                                                                             
         Available for sale financial assets                                       12,787              40,139
         Held for trading                                                         162,036             707,671
                                                                                  174,823             747,810
                                                                                                    
         
         Level 2
         Derivative financial instruments                                         611,410                   -
                                                                                  611,410                   -

16.     DERIVATIVE FINANCIAL INSTRUMENTS

        The  Company  has  entered into the following derivative contract that has not  been  designated  as  a
        hedge:
        
                                                                                 31 December        30 June
                                                                                     2014             2014
                                                                                      $                $
                                                                                                             
        Darwin warrant derivatives at fair value -14 October 2014                    406,055                -
        Darwin CEO warrant derivatives at fair value -14 October 2014                 67,065                -
        Placement warrant derivatives at fair value -14 October 2014                 138,290                -
                                                                                     611,410                -
        
        164,062,500  unlisted  warrants expiring on 21 October 2019 were approved by shareholders  on  30  July
        2014 and issued to Darwin on 14 October 2014 in relation to the April 2014 loan note. The warrants  are
        exercisable  at  GBP  0.4 pence each and entitle the holder to one fully paid  ordinary  share  in  the
        Company  once  exercised. The fair value at inception was $541,406. The fair value at 31 December  2014
        was $406,055.
                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014
        
16.     DERIVATIVE FINANCIAL INSTRUMENTS (Cont'd)
        
        60,692,308 unlisted warrants expiring on 14 October 2019 were issued to Darwin on 14 October  2014  and
        ratified  by  shareholders on 26 November 2014 in relation to a Controlled Equity  Offering  agreement.
        The  warrants are exercisable at GBP 0.32 pence each and entitle the holder to one fully paid  ordinary
        share  in  the Company once exercised. The fair value at inception was $78,900. The fair  value  at  31
        December 2014 was $67,065.
        
        135,578,714  unlisted  warrants expiring on 14 October 2016 were approved by shareholders  on  30  July
        2014  and issued to investors who participated in the Company's placement in October 2014. Participants
        received  one free-attaching warrant for every 2 shares. The warrants are exercisable at GBP 0.5  pence
        each  and  entitle the holder to one fully paid ordinary share in the Company once exercised. The  fair
        value at inception was $230,484. The fair value at 31 December 2014 was $138,920.

        Unlisted warrants issued and option pricing model inputs:
        
        The  Binomial  model inputs for unlisted warrants issued on 14 October 2014 to Darwin under  the  April
        2014 Loan Note agreement included:
        (a) 164,062,500  warrants  were granted for no consideration. Entitlements to the  warrants  vested  at
             grant date
        (b) Exercise price of options: 0.4 pence.
        (c) Grant date: 30 July 2014
        (d) Time to maturity: 4.8 years
        (d)  Underlying security spot price at date of options grant: 0.3 pence
        (e)  Expected future volatility:  80%
        (f)  Expected Dividend yield: Nil
        (g)  Risk-free interest rate: 1.97%.

        The  Binomial model inputs for unlisted warrants issued on 14 October 2014 to Darwin under a Controlled
        Equity Offering agreement included:
        (a) 60,692,308  warrants  were granted for no consideration. Entitlements to  the  warrants  vested  at
             grant date
        (b) Exercise price of options: 0.32 pence.
        (c) Grant date: 26 November 2014
        (d) Time to maturity: 4.8 years
        (d)  Underlying security spot price at date of options grant: 0.15 pence
        (e)  Expected future volatility:  80%
        (f)  Expected Dividend yield: Nil
        (g)  Risk-free interest rate: 1.27%.

        The  Binomial  model  inputs  for  unlisted  warrants issued  on  14  October  2014  to  investors  who
        participated in the Company's placement in October 2014 included:
        (a) 135,578,714  warrants  were granted for no consideration. Entitlements to the  warrants  vested  at
             grant date
        (b) Exercise price of options: 0.5 pence.
        (c) Grant date: 30 July 2014
        (d) Time to maturity: 1.8 years
        (d)  Underlying security spot price at date of options grant: 0.3 pence
        (e)  Expected future volatility:  80%
        (f)  Expected Dividend yield: Nil
        (g)  Risk-free interest rate: 1.04%.

                                                FORTE ENERGY NL
                                             (ABN 59 009 087 852)
                                                       
                                         NOTES TO THE FINANCIAL REPORT
                                   FOR THE HALF-YEAR ENDED 31 DECEMBER 2014
        

17.     RELATED PARTIES

a)      Subsidiaries
        The  consolidated  financial statements include the financial statements of Forte  Energy  NL  and  the
        following subsidiary:
        
                                                        Country of                  % Equity Interest
        Name                                          Incorporation               2014               2013
                                                                                                       
        Forte Energy UK Limited                       United Kingdom              100                100
        
b)      Ultimate parent
        Forte Energy NL is the ultimate parent company.

c)      Other transactions and balances with Key Management Personnel and their related parties.
    
        From  1  September  2011, the Company began renting an office at normal market prices  from  an  entity
        associated  with  G  R  Featherby. During the half-year rental charges of $9,900 (2013:  $40,150)  were
        incurred payable to the entity. At 31 December 2014 there was an outstanding balance of $27,982.
        
        During  the half year ended 31 December 2014, an entity associated with G R Featherby loaned an  amount
        of  $263,217 to the Company. The loan included a facility fee of $20,000 and incurs interest at  5.85%.
        At 31 December 2014 there was an outstanding balance of $267,056.
        
        During  the  2014 financial year amounts totalling $291,485 were loaned to the Company by M  D  Reilly.
        The  loans  are  interest  free with no contracted repayment date. At 31 December  2014  there  was  an
        outstanding balance of $303,372.
        
        There were no other related party transactions.

                                               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 2014 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 Company will be able to pay its debts as and when they become due and payable.

On behalf of the Board






Mark Reilly
Managing Director



16 March 2015










A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation


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 2014,
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
16 March 2015












A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation


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



To the members of Forte Energy NL

Report on the 31 December 2014 Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Forte Energy NL, which comprises the
consolidated statement of financial position as at 31 December 2014, the consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated 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 2014 and its performance for the halfyear 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 2014 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(a) in the financial report which describes the
principal conditions that raise doubts about the consolidated 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
16 March 2015




A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation

Contact Information

  • Forte Energy NL