ABN 77 121 339 704

FINANCIAL REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2011

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CORPORATE DIRECTORY

CONTENTS

BOARD OF DIRECTORS

Directors’ report 2

Auditor’s independence declaration 5

Consolidated statement of comprehensive income 6

Consolidated statement of financial position 7

Consolidated statement of cash flows 8

Consolidated statement of changes in equity 9

Notes to the consolidated financial statements 10

Directors’ declaration 13

Independent Auditor’s review report 14

Andrew Simpson Arvind Misra Craig Readhead David Humann

Non-executive Chairman Managing Director Non-executive Director Non-executive Director

COMPANY SECRETARY Frank Campagna REGISTERED OFFICE 989 Wellington Street West Perth WA 6005 Telephone: (61 8) 9327 7444 Facsimile: (61 8) 9327 7499 E-mail: admin@indiaresources.com.au Web-site: www.indiaresources.com.au SHARE REGISTRY Computershare Investor Services Pty Ltd Level 2 45 St Georges Terrace Perth WA 6000Telephone: (61 8) 9323 2000 Facsimile: (61 8) 9323 2033 E-mail: perth.services@computershare.com.au Web-site: www.computershare.com.au AUDITORS BDO Audit (WA) Pty Ltd SOLICITORS Allion Legal Pty Ltd BANKERS National Australia Bank Limited Axis Bank STOCK EXCHANGE Shares in India Resources Limited are Quoted on ASX Limited (ASX Code: IRL)

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DIRECTORS' REPORT The Directors of India Resources Limited (“IRL” or “parent entity”) present their report on the results and state of affairs of the consolidated entity (“Group” consisting of IRL and its controlled entities) for the half-year ended 31 December 2011. DIRECTORS

The names of the Directors of IRL in office during the course of the financial period and at the date of this report are as follows: Andrew Simpson Non-executive Chairman Arvind Misra Managing Director Craig Readhead Non-executive Director David Humann Non-executive Director Unless otherwise indicated, all Directors held their position as a director throughout the entire financial period and up to the date of this report.

RESULTS OF OPERATIONS

The net loss of the consolidated entity for the half year ended 31 December 2011 after provision for income tax was $1.625M (half year ended 31 December 2010: loss of $1.016M). The deterioration in performance between these periods includes a loss of $0.2M on the Group’s shareholding in Pebble Creek Mining Limited against a gain of $0.4M reported in the comparison period. REVIEW OF OPERATIONS

IRL has targeted the high demand for minerals and prospective geology of India. IRL remains focused on building a profitable copper business, while at the same time broadening and diversifying its production base in the sub-continent. Through the Surda copper mine and its pursuit of other mining projects (in particular the Rakha Copper Mine and Project Management Services/Consultancy work), IRL is well positioned to benefit from the significant boom in coal and other mining activity in India. IRL’s exploration strategy is to purchase, partnership or joint venture into already granted leases, and bring modern exploration tools to bear on the best targets and bring these into production. IRL does not restrict itself to a particular commodity range, but will look primarily at strategic minerals to boost the local economy and supply local demand. To this end IRL continues to look for opportunities in the base metals, coal, iron ore and diamond sectors. SURDA COPPER PROJECT Production was adversely affected during the six month period due to a combination of industrial action, power brown outs due to the local Government owned power supply network, the flooding of Level 11 and delays in sand stowing which affected the advancement in mining of new higher grade areas. These issues were managed such that in December crushing and milling tonnages surpassed previous records for a single month with 39,026 and 39,018 tonnes respectively. The development of Level 11 is now providing encouraging copper grades and allowing a new Room and Pillar stope to come into production.

Quarterly Production 31-12-11 30-9-11 30-6-11 31-3-11

Ore Mined (Tonnes) 98,738 90,915 105,830 107,642

Ore Processed (Tonnes) 99,368 91,511 106,199 107,187

Mill Feed Grade (Cu) 0.85% 0.91% 0.99% 0.90%

Concentrate Produced (Tonnes) 3,166 3,013 3.656 3,515

Concentrate Grade (Cu) 24.1% 25.2% 26.4% 25.1%

Recovery 92.7% 93.3% 94.0% 93.4%

Metal in Concentrate (Tonnes) 763 760 967 884

NEW PROJECTS In addition to its Surda Copper Mine, the Group has continued to pursue other mining operations and development opportunities in India, especially coal. The coal market in India remains buoyant despite the economy slowing down somewhat in the second half of 2011. This is due to Coal India not keeping up

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with production commitments, and secondly the price of imported coal increasing due to the weakening Indian Rupee. The status of some key tenders being pursued by the Group is shown below. In addition a number of other tenders have been submitted. Biharanath Coal Mine (Bankura DRI) - submitted 2010: The LOI letter is deemed to have been

extended, as requested by IRL. Bankura DRI made progress in drafting a joint mining plan, which needed

to be submitted to the Ministry of Coal for approval.

Rakha Copper Mine (Hindustan Copper Ltd (HCL)) – submitted in July, 2011: The bid by IRL/Kopex to

re-open, operate and expand the Rakha Copper Mine was the lowest price bid, and we are awaiting

award of the contract.

HCL had sought clarification on the orders of the Kolkata High Court of India through the Supreme Court regarding the Kopex and IRL (Consortium) submission for the Rakha mine development contract. Subsequent to the end of the half year, legal proceedings have prevented HCL cancelling or re-tendering the Rakha project. This decision indicates the Consortium’s position to be very strong, and increases the likelihood that a Letter of Intent will be issued in favour of the Consortium’s bid.

Mandla North Coal Block (Jaypee Cement): An offer for doing the Detail Project Report (DPR) and

Incline Development was submitted in November 2011, which was followed by various meetings and

discussions which led the Group to offering a project consultancy role to Jaypee Cement. Following the

award of DPR consultancy work, the Company has also finalised another project management and

consultancy contract with Jaypee Cement, details of which will be provided at a later stage.

During the six month period a coal development and operations agreement was executed with Prism

Cement Limited (Prism) to develop and operate the first phase of Prism’s Sial Ghoghri coal deposit. This

contract was terminated subsequent to the completion of the half year period to 31 December 2011 (refer

to Note 6). EXPLORATION ACTIVITIES

Base Metals Hindoli Project In December 2011 IRL was invited to accept the Hindoli Reconnaissance Permit (RP06/09) in Rajasthan, India by the Rajasthan Government. IRL has a wealth of experience in this area as it is in close proximity to the Company’s Aravali Base Metals Project in Rajasthan. Aravalli Project Crown Mining Pvt Ltd (Crown) (a wholly owned subsidiary of the Company) has a preferential right to be granted a Mining Licence for the Aravalli base metals project. The project is composed of three prospects, two of which were discovered during the investigation of RP1/2004. During the six months meetings were held and representations made with Indian Government authorities as part of the process of progressing the consideration of the Company’s Mining Licence application. Further meetings with the Rajasthan State Chief Minister and the Minister of Mining are being arranged in pursuit of being granted the Mining License over the vast and highly mineralised area of the Aravali Project. Diamond Projects A private Indian diamond company, Vajra Diamond Mining Private Limited (Vajra), is earning an interest in the Company’s three diamond projects, Bundelkhand, Bhandara and Dharwar. Bundelkhand (Madhya Pradesh) During the quarter, results were received for the entire stream sediment sample program in the RP 62 and have reported four ilmenites, three spinels and one gold flake. RP 62 is considered a highly prospective area, as it is located immediately adjacent to India’s only recently producing Diamond Mine at Panna and Rio Tinto’s massive Bunder Diamond Project. Generally

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the kimberlites occur in clusters or corridors (as kimberlites are essentially controlled by major deep-seated faults/fractures) and it is likely that this area is part of the same corridor as Bunder and has the potential for the discovery of diamondiferous kimberlite. Geological Statements The geological and assay statements and commentary in the above report are based on information compiled by Andrew Kohler who is a member of the Australian Institute of Geoscientists. Mr. Kohler has reviewed the information and has satisfied himself that the values quoted and the parameters used in the report are reasonable and accurately reflect the operations involved. Mr. Kohler is a consultant of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration 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. Kohler consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Auditor’s Independence Declaration. A copy of the auditor’s independence declaration as required under section 307c of the Corporations Act 2001 is set out on page 5. Rounding of Amounts The Company is a company of the kind referred to as ASIC class order 98/0100, dated 10 July 1998, and in accordance with that class order, amounts in the Director’s Report and Half Year Financial Report are rounded off to the nearest thousand dollars, unless otherwise stated, Signed in accordance with a resolution of the Directors.

A Misra Managing Director 15 March 2012

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Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

15 March 2012 India Resources Limited The Board of Directors 989 Wellington Street WEST PERTH WA 6005 Dear Sirs, DECLARATION OF INDEPENDENCE BY GLYN O’BRIEN TO THE DIRECTORS OF INDIA RESOURCES LIMITED As lead auditor for the review of India Resources Limited for the half-year ended 31 December 2011, I declare that to the best of my knowledge and belief, there have been: • no contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the review; and

• no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of India Resources Limited and the entities it controlled during the period.

Glyn O’Brien Director BDO Audit (WA) Pty Ltd Perth, Western Australia

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

2011 2010

Note $`000 $`000

Revenue from continuing operations 5,406 6,042

Production costs (4,419) (4,875)

Employee and directors – remuneration expenses (587) (665)

Employee and directors – share based payment expenses (36) (60)

Corporate and administrative expenses (386) (378)

Depreciation and amortisation (675) (714)

Finance costs (373) (675)

Change in fair value of investments (192) 410

Exploration and evaluation costs written off (373) -

Change in fair value of convertible notes derivatives 10 (208)

Gain on debt for equity swap - 107

Loss before income tax expense (1,625) (1,016)

Income tax expense - -

Loss after income tax (1,625) (1,016)

Other comprehensive expense

Exchange differences on translation of foreign operations

(368)

(1,178)

Other comprehensive expense for the half-year,

net of tax

(368)

(1,178)

Total comprehensive expense for the half-year (1,993) (2,194)

Loss is attributable to:

Shareholders of India Resources Limited (1,625) (1,016)

Total comprehensive expense for the half-year is attributable

to:

Shareholders of India Resources Limited

(1,993)

(2,194)

Loss per share attributable to the ordinary equity holders of the

company:

Cents Cents

Basic and diluted loss per share (0.30) (0.25)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011

Note 31 Dec 2011 30 Jun 2011

$`000 $`000

Current assets

Cash and cash equivalents 2 415 243

Trade and other receivables 2,756 2,014

Inventories 1,160 1,277

Prepayments 656 198

Other financial assets 193 385

Total current assets 5,180 4,117

Non-current assets

Other financial assets - 318

Plant and equipment 4,048 4,963

Mine development 4 1,312 1,585

Deferred exploration expenditure 4,414 4,551

Total non-current assets 9,774 11,417

Total assets 14,954 15,534

Current liabilities

Trade and other payables 3,724 2,505

Borrowings 3,729 3,737

Total current liabilities 7,453 6,242

Non–current liabilities

Borrowings - 56

Derivative financial instruments - 65

Total non-current liabilities

- 121

Total liabilities 7,453 6,363

Net assets 7,501 9,171

Equity

Contributed equity 37,877 37,541

Accumulated losses (29,056) (28,640)

Reserves (1,320) 270

Total equity 7,501 9,171

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

2011 2010

Note $`000 $`000

Cash flows from operating activities

Receipts from customers 4,986 6,671

Payments to suppliers and employees (4,947) (6,933)

Interest received 9 9

Interest paid (222) (231)

Net cash outflow from operating activities

(174)

(484)

Cash flows from investing activities

Payments for purchase of plant and equipment (86) (354)

Payments for mine project development (63) (42)

Payments for exploration and evaluation (308) (284)

Loans repaid on Swan Gold Mining (Monarch) debt 7a - 854

Net cash outflow from investing activities

(457)

174

Cash flows from financing activities

Proceeds from issues of shares 336 593

Share issue transaction costs (11) (52)

Proceeds from borrowings - -

Repayment of borrowings (8) -

Cost of early termination of convertible note facility 2 - (164)

Net cash inflow from financing activities

317

377

Net decrease in cash and cash equivalents (314) 67

Cash and cash equivalents at the beginning of the period (1,970) (2,662)

Effects of exchange rate changes on the balance of cash

held in foreign currencies

501

383

Cash and cash equivalents at the end of the period (1,783) (2,212)

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Contributed

equity

$`000

Reserves

$`000

Accumulated

losses

$`000

Total

Equity

$`000

Balance at 30 June 2010 34,841 1,549 (25,776) 10,614

Total comprehensive expense

for the half-year -

(1,178)

(1,016)

(2,194)

Transactions with owners in their

capacity as owners

Issue of share capital

Amortisation of Share issue expenses

1,640

(283)

-

-

1,640

(283)

Amortisation of Share-based payments 29 261 - 290

Balance at 31 December 2010 36,227

632

(26,792)

10,067

Balance at 30 June 2011 37,541 270 (28,640) 9,171

Total comprehensive expense

for the half-year -

(368)

(1,625)

(1,993)

Transactions with owners in their

capacity as owners

Collateral shares adjustment 8

-

-

8

Issue of share capital 417 - - 417

Amortisation of Share issue expenses (11) 85 - 74

Amortisation of Share-based payments (176) - - (176)

Transfer from reserves 98 (1,307) 1,209 -

Balance at 31 December 2011 37,877

(1,320)

(29,056)

7,501

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

1. BASIS OF PREPARATION OF HALF YEAR REPORT

This general purpose financial report for the interim half-year reporting period ended 31 December

2011 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial

Reporting and the Corporations Act 2001.

This interim financial report does not include all the notes of the type normally included in an annual

financial report. Accordingly, this report is to be read in conjunction with the annual report for the year

ended 30 June 2011 and any public announcements made by India Resources Limited during the

interim reporting period in accordance with the continuous disclosure requirements of the Corporations

Act 2001.

These financial statements have been prepared using the historical cost convention. All amounts

are presented in Australian dollars unless otherwise stated.

The accounting policies adopted are consistent with those of the previous financial period and

corresponding interim reporting period, except for the impact of the Standards and Interpretations

described below.

Impact of accounting standards issued but not yet applied AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (effective from 1 January 2013) AASB 9 Financial Instruments addresses the classification and measurement of financial assets and is likely to affect the Group’s accounting for its financial assets. The standard is not applicable until 1 January 2013 but is available for early adoption. The Group is yet to assess its full impact and the Group has not yet decided when to adopt AASB 9.

Going concern The Directors are of the opinion that, as at the date of these financial statements, the Group is a going concern and, as a result, the financial report for the period ended 31 December 2011 does not include any adjustments relating to the recoverability and classification of the recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern.

During the half year ended 31 December 2011, the Group recorded a loss of $1.625M and, as at the

reporting date, the Group’s current liabilities exceed its current assets by $2.273M. The loss for the

period includes:

Depreciation and amortisation charges of $0.675M;

Non-cash share based expenses of $0.036M;

Non–cash financing costs of $0.130;

Non-cash provision for diminution in listed investment (Pebble Creek) of $0.192M.

Non-cash exploration written off of $0.065M.

Two loan facilities either mature or need to be serviced during the next twelve months. The Directors

expect to either repay or service these loans as follows:

The Indian bank overdraft facility is expected to be serviced from operating cash flows from the Surda mine; and

The Company is discussing an extension of the terms of the loan from Noble Resources Australia Pty Ltd, and expect the loan repayment date will be extended by six months to 30 September 2012 (refer Note 6(b)).

The Directors are of the opinion that there is a reasonable expectation that the Group will be able to

continue as a going concern on the basis that:

The Company expects to continue to receive the support of its major shareholders;

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The Group will be able to continue to operate under the Surda works order granted by

Hindustan Copper Limited as disclosed in Note 7;

The Surda mine has generated positive operating cash flows for the majority of the last

twelve months and the Directors expect these operations will continue to generate positive

cash flows from operations in the future.

Despite the opportunities being advanced by the Group, the Directors acknowledge that until such time

as the group becomes profitable and the loan facilities are repaid, there remains uncertainty as to

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 and at the amounts stated in the financial

report.

31 Dec 2011 31 Dec 2010

$’000 $’000

2. CASH AND CASH EQUIVALENTS

For the purposes of the cash flow statement, cash and cash equivalents are

comprised of the following:

Cash at bank and on hand 415 440

Bank drawdown facility (2,194) (2,652)

Net cash balance (1,779) (2,212)

Non cash investing and financing activities

Share based payment for refinance of loan payable - (500)

Share based payment for conversion of convertible notes 10 (208)

Share based payment for early termination of convertible note facility - (391)

Gain on debt for equity swap (Territory/Alexandra)

Loss on reversal of provision for diminution in listed investment

-

(192)

107

410

31 Dec 2011

Shares

31 Dec 2010

Shares

31 Dec 2011

$

31 Dec 2010

$

3. EQUITY SECURITIES ISSUED

Movements in ordinary shares on issue

during the half year:

Share placements - 39,500,000 - 593 Convertible notes 8,175,001 76,817,865 65 904 Equity Facility 34,063,333 - 336 - Employee share based compensation 1,600,000 1,500,000 16 29 Partial cancellation of loan (a) - 9,538,344 - 143 Collateral shares adjustment (9,198,815) - (118) - Transfer from reserves - - 98 -

Share issue costs - - (61) (283)

34,639,519 127,356,209 336 1,386

(a) Issued in consideration of partial cancellation of loan payable to Territory Resources Limited.

4. SEGMENT INFORMATION

The Group operates predominantly in one business and geographical segment, being mineral

exploration and development in India, and all of the assets of the Group are deployed for these

purposes.

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5. CONTINGENT ASSETS AND LIABILITIES

The Group has provided for a potential tax liability with the Australian Tax Office for $0.136M relating to

the 2008 and 2009 financial years. This issue remains under review and the final amount payable

remains unknown, however another $0.054M in interest may payable.

6. EVENTS OCCURRING AFTER THE REPORTING DATE

On 31 January 2012 Prism Cement terminated the Coal Mine Development and Operations Agreement

that it has signed with the Group.

7. SURDA WORK ORDER NOTE AND UPDATE

On 26 March 2007, Hindustan Copper Limited (HCL) granted a works order to Monarch Gold Mining Company Limited (subsequently renamed as Swan Gold Mining Limited (Swan))(subsequently India Resources Limited as a Special Purpose Vehicle) to:

(a) recommission and bring into operations the Surda Mine; and (b) bring into operation, at the Group’s cost, the Concentrator Plant at Mosaboni, and to mine and

beneficiate the ore to produce copper concentrate.

By a deed of appointment effective from 2 January 2007, Swan appointed IRL as a Special Purpose Vehicle (SPV) in India. Under the deed of appointment IRL is required to implement the contractual obligations entered into by Swan and is entitled to all the benefits flowing from that performance and agreed to indemnify Swan for all liabilities arising out of contractual arrangement with HCL. HCL has acknowledged the appointment of IRL as Swan’s SPV and IRL therefore considers that Swan has observed the terms of the works order. IRL has been in communication and discussion with HCL since April 2008 with a view towards achieving an assignment of the works order by the most appropriate means. The Directors were not satisfied with the current arrangement with Swan as the holder of the licence and India Resources Limited operating as the SPV. The Directors of IRL are also aware of an uncertainty regarding the continuity of the arrangement under the works order as a result of the appointment of administrators by Swan, as the terms of the initial agreement between HCL and Swan gives HCL the right to terminate the licence in this event. HCL have not exercised their right to terminate nor have they proceeded to or indicated their intention to do so. Regardless, the Directors are aware that the current arrangement could potentially imperil the continuation of the contract. The Directors believe IRL has a continuing positive relationship with HCL and the Group has continued to successfully operate the contract, and receive payments from HCL. The Directors also believe that HCL has had no issue with the Group’s ongoing commitment to the contract. IRL is continuing to work with HCL, its solicitors and advisers to achieve a transfer of the works order to it. Until such time as the transfer of the works order is executed the ultimate outcome of the discussions with HCL cannot be determined, and no provision for impairment of assets relating to the Indian operations or any provision for any liability that may result has been made in the financial report. The Directors are confident that a suitable resolution will eventually be achieved.

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DIRECTORS’ DECLARATION In the opinion of the directors of India Resources Limited: 1. the financial statements and notes set out on pages 6 to 12 are in accordance with the Corporations

Act 2001, including:

(a) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

(b) giving a true and fair view of the consolidated entity’s financial position as at 31 December

2011 and of its performance for the half-year ended on that date; and 2. at the date of this declaration and as set out in Note 1, there are reasonable grounds to believe that

the Company will be able to pay its debts as and when they become due and payable. This declaration has been made in accordance with a resolution of the directors.

A Misra Managing Director 15 March 2012

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Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF INDIA RESOURCES LIMITED

Report on the Half-Year Financial Report We have reviewed the accompanying half-year financial report of India Resources Limited, which comprises the statement of financial position as at 31 December 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the disclosing entity and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report The directors of the disclosing entity 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 control as the directors determine is 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 half-year 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 2011 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 India Resources Limited, 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of India Resources Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.F

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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 India Resources Limited 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

2011 and of its performance for the half-year ended on that date; and (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations

Regulations 2001. Emphasis of Matter We draw attention to Note 7 in the half-year financial report which discusses the material uncertainty around the company's licence to operate the Surda mine in India. Should the consolidated entity not obtain a work order or Hindustan Copper Limited terminate the existing arrangement, significant uncertainty may exist over the consolidated entity’s ability to realise assets relating to the company's Indian mining operations at the value recorded in the consolidated statement of financial position. Our conclusion is not modified in respect of this matter. Emphasis of Matter Without modifying our conclusion, we draw attention to Note 1 in the half-year financial report which indicates that India Resources Limited incurred a net loss of $1,625,000 during the half-year ended 31 December 2011 and, as of that date, the disclosing entity’s current liabilities exceeded its current assets by $2,273,000. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty which 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. BDO Audit (WA) Pty Ltd

Glyn O’Brien Director Perth, Western Australia Dated this 15th day of March 2012

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