Marenica Energy : 2016 Annual Financial Report

ABN 71 001 666 600

Corporate Information 3

Directors' Report 4

Auditor's Independence Declaration 11

Remuneration Report - Audited 12

Consolidated Statement of Profit or Loss and Other Comprehensive Income 19

Consolidated Statement of Financial Position 20

Consolidated Statement of Changes in Equity 21

Consolidated Statement of Cash Flows 22

Consolidated Notes to the Financial Statements 23

Directors' Declaration 48

Auditor's Report 49

Corporate Information

ABN 71 001 666 600

M Hill (Managing Director)

D Buerger (Independent Non-executive Chairman) D Sanders (Independent Non-executive director) N Chen (Non-executive director)

L Qing (Non-executive director)

S Hunter

AMRC Building, 7 Conlon Street Waterford WA 6152

Tel: +61 8 6555 1816

AMRC Building, 7 Conlon Street Waterford WA 6152

Tel: +61 8 6555 1816

www.marenicaenergy.com.au

Rothsay Chartered Accountants Level 1, Lincoln House

4 Ventnor Avenue West Perth WA 6005 Tel: +61 8 9486 7094

Australian Securities Exchange Limited - MEY Namibia Stock Exchange - MEY

German Exchanges - Frankfurt, Stuttgart, Munich, Düsseldorf, Berlin and Tradegate

Perth

Advanced Share Registry Services 110 Stirling Highway

Nedlands WA 6009

Tel: +61 8 9389 8033

Fax: +61 8 9262 3723

MEY

Your Directors present their report on the group consisting of Marenica Energy Limited and the entities it controlled at the end of, or during, the year ended 30 June 2016 ("Group").

The following persons were Directors of Marenica Energy Limited during or since the end of the financial year and up to the date of this report. Directors were in office for the entire period unless otherwise stated.

Names, qualifications, experience and special responsibilities

Appointed 23 September 2010.

Re-appointed for further 3 years on 21 November 2013.

Mr. Buerger has over 40 years' experience in the minerals resources industry. He has extensive industry experience in project management, general management and executive management roles. He was the Managing Director and CEO of Bendigo Mining Limited from 1994 until his retirement in 2007. He holds a BSc and an M.Phil. degree. He is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Company Directors.

During the last three years, Mr. Buerger has been a director of the following listed company:

- Moly Mines Limited - appointed 17 January 2014, retired 1 July 2014

Appointed 19 August 2010, Resigned 31 March 2016

Re-appointed for a further 3 years on 21 November 2013.

Mr. Becker is a metallurgist and resources industry consultant with over 40 years of professional experience. During his career he has worked in senior operational, R&D, feasibility study and consulting roles on mines and/or projects in lead/zinc, gold/silver, uranium, copper, nickel/cobalt and scandium. He holds a Bachelor of Science (Engineering) degree from the University of London (1974) and completed his MBA at Bond University (1998). Mr. Becker is a Chartered Professional (Metallurgy), Fellow of the Australasian Institute of Mining and Metallurgy, an Associate of the Royal School of Mines (UK), a Member of the Australian Institute of Company Directors, and a Member of the CEO Institute.

Directorships in the past 3 years: None

Appointed 4 August 2008.

Re-appointed for a further 3 years on 3 November 2014

Mr. Sanders is a lawyer with over 15 years of experience in corporate and resources law. He advises numerous ASX listed companies, including companies in the resources sector, on capital raising, mergers and acquisitions, Corporations Act and ASX Listing Rules compliance and corporate governance. He holds Bachelor of Law and Bachelor of Commerce degrees from the University of Western Australia and a Graduate Diploma of Applied Finance and Investments from the Securities Institute of Australia.

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