MIRRABOOKA INVESTMENTS LIMITED

ABN 31 085 290 928

APPENDIX 4D STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

CONTENTS

• Results for announcement to the market

• Media Release

• Appendix 4D Accounts • Independent Auditors Review

This half-year report is presented under listing rule 4.2A and should be read in conjunction with the Company’s 2011 Annual Report.

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RESULTS FOR ANNOUNCEMENT TO THE MARKET

The reporting period is the half-year ended 31 December 2011 with the previous corresponding period being the half-year ended 31 December 2010.

Results for announcement to the market

• Net profit was $6.9 million. (This includes unrealised gains on the Company’s investment in Hastings Diversified Utilities Fund and losses on the Peet Convertible Notes of a total unrealised gain of $2.4 million after tax, which under the current accounting standards needs to be included in profit). This is 9.5% down from the previous corresponding period.

• Net operating result after tax was $4.5 million, 17.2% down from the previous corresponding period.

• Revenue from operating activities (excluding capital gains on investments) was $5.4 million, 3.6% down from the previous corresponding period.

• The interim dividend of 3.5 cents per share fully franked, the same as last year’s interim dividend, will be paid on 10 February 2012 to ordinary shareholders on the register on 27 January 2012.

• The Company’s Dividend Reinvestment Plan is in operation for the interim dividend, under which shareholders may elect to have all or part of their dividend payment reinvested in new ordinary shares. Pricing of the new DRP shares will be based on the average selling price of shares traded on the Australian Securities Exchange in the five days from the day the shares begin trading on an ex-dividend basis. No discount applies. The last day for the receipt of an election notice for participation in the plan is 27 January 2012.

• The final dividend for the 2011 financial year was 6.5 cents per share, fully franked, and it was paid to shareholders on 5 August 2011.

• Net asset backing per share as at 31 December 2011 was $1.80 before deferred tax on the unrealised gains on the long-term investment portfolio, down from $1.93 at the end of the previous corresponding period.

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MIRRABOOKA PORTFOLIO HOLDS ITS GROUND IN DOWN MARKET 9 January 2012

Equity market returns during 2011 were greatly influenced by the negative sentiment from the debt crisis in Europe. Since the start of this financial year the combined small and midcap sectors were down 12.6 percent for the six months. Against this benchmark Mirrabooka outperformed by over 10 percent with the portfolio return (including dividend paid) down only 2.3 percent. For the twelve month period Mirrabooka outperformed by over 16 percent with a portfolio return of negative 2.1 percent compared with the combined index which was down 18.9 percent.

Best performing stocks in the portfolio over the six months to 31 December 2011 were Hastings Diversified Utilities Fund which is currently under a takeover offer from the APA Group and is now the largest holding in Mirrabooka’s portfolio, Senex Energy, James Hardie Industries, Campbell Brothers and MSF Sugar.

Reported Profit after tax for the six months months to 31 December 2011 was $6.9 million versus $7.6 million last year. The Net Operating Result, which measures the underlying income generated by the portfolio, was $4.5 million, down on last year’s figure of $5.4 million. The fall in Net Operating Result was primarily due to the small negative result of $0.1 million in the trading portfolio in contrast to last year’s substantial contribution of $1.2 million.

The interim dividend has been maintained at 3.5 cents per share fully franked.

In these uncertain markets Mirrabooka has been focussing on companies which are well positioned in their respective industries and which have strong balance sheets and cash flows which allow for growing dividends over time. The largest purchases in the investment portfolio were in Ansell, ARB Corporation, Ramsay Health Care, InvoCare and Tox Free Solutions, including participation in their recent capital raising.

Major sales were in lluka, which became a top 50 stock by market capitalisation, Eastern Star Gas which was under a takeover offer from Santos, Select Harvest, Talent2 International, ASG Group and CFS Retail. The Company also participated in the off market buy back by Perpetual Limited.

Mirrabooka enters the upcoming period with a relatively strong level of cash in an environment that is likely to provide further buying opportunities. Our expectation is the market will experience ongoing volatility in the coming months before settling into a period of more normalised returns in the second half of the calendar year with the Australian market benefiting from further falls in interest rates and the evidence of a more sustained economic recovery in the United States.

Please direct any enquiries to:

Ross Barker Geoff Driver Managing Director General Manager (03) 9925 2101 (03) 9225 2102

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MAJOR CHANGES TO THE INVESTMENT PORTFOLIO

A. Acquisitions (above $1 million) Cost$’000

Ansell 2,812 ARB Corporation 2,320 Ramsay Health Care 2,213 InvoCare 2,174 Tox Free Solutions 1,932 Souls Private Equity 1,756 ResMed 1,533 Wide Bay Australia 1,517 IRESS Market Technology 1,208 Engenco 1,026 B. Disposals (above $1 million) Proceeds

$’000 Iluka Resources 10,575 Eastern Star Gas (a) 2,044 Souls Private Equity (b) 1,842 Select Harvests 1,442 Talent2 International 1,339 ASG Group 1,225 CFS Retail Property Trust 1,178 Perpetual (c) 1,002

(a) Sold while under takeover offer from Santos Limited

(b) Takeover by Washington H Soul Pattinson and Company Limited

(c) Participation in off-market buyback

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TOP INVESTMENTS AS AT 31 DECEMBER 2011 Includes investments held in both the Investment and Trading Portfolios

Total Value$'000

1 Hastings Diversified Utilities Fund 15,9012 Campbell Brothers 13,7193 Tox Free Solutions 9,9814 Australian Infrastructure Fund 9,7945 * Oil Search 9,3746 Fleetwood Corporation 8,6397 Ansell 7,6348 James Hardie Industries 7,6049 InvoCare 7,50510 IRESS Market Technology 7,41511 Bradken 7,33712 Coca-Cola Amatil 6,78113 Austbrokers Holdings 6,06014 Senex Energy 5,97815 Iluka Resources 5,81316 REA Group 4,91317 Alumina 4,79118 Mermaid Marine Australia 4,56219 Ramsay Health Care 4,53120 Wellcom Group 4,482

152,812

As % of Total Portfolio 66.8%(excludes Cash)

Valued at closing prices at 30 December 2011

*Indicates that options were outstanding against all or part of the holding

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PORTFOLIO PERFORMANCE TO 31 DECEMBER 2011

ANNUALISED RETURNS

PERFORMANCE MEASURES 6 MONTH 1 YEAR 3 YEARS 5 YEARS 10 YEARS SINCE INCEPTION

NET ASSET BACKING -2.3% -2.1% 13.4% 0.6% 10.0% 9.7%

COMBINED S&P/ASX MID 50'S & SMALL ORDINARIES

ACCUMULATION INDEX -12.6% -18.9% 8.8% -5.4% 7.2% 6.1%

S&P/ASX MID 50'S ACCUMULATION INDEX -12.9% -16.3% 5.8% -5.6% 8.0% 7.4%

S&P/ASX MID 50'S INDUSTRIALS ACCUMULATION INDEX -8.1% -11.8% 3.9% -7.3% 5.8% 6.2%

S&P/ASX MID 50'S RESOURCES ACCUMULATION INDEX -28.4% -31.4% 11.2% -0.4% 18.9% 11.1%

S&P/ASX SMALL ORDINARIES ACCUMULATION INDEX -12.3% -21.4% 11.8% -5.2% 6.5% 4.9%

S&P/ASX SMALL INDUSTRIALS ACCUMULATION INDEX -10.5% -12.8% 8.9% -8.1% 3.6% 2.5%

S&P/ASX SMALL RESOURCES ACCUMULATION INDEX -14.7% -31.8% 18.9% 2.4% 16.6% 13.9%

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MIRRABOOKA INVESTMENTS LIMITED

ABN 31 085 290 928

HALF-YEAR REPORT 31 DECEMBER 2011

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COMPANY PARTICULARS

Mirrabooka Investments Limited (“MIR”) ABN 31 085 290 928

Directors:

Terrence A. Campbell AO, Chairman Ross E. Barker, Managing Director Ian A. Campbell David E. Meiklejohn AM Graeme W. Sinclair

Company Secretaries:

Simon M. Pordage Andrew J.B. Porter

Auditor: PricewaterhouseCoopers, Chartered Accountants Country of incorporation:

Australia

Registered office: Level 21 101 Collins Street Melbourne, Victoria 3000

Contact Details: Mail Address: Telephone: Facsimile: Email: Internet address:

GPO Box 2114, Melbourne, Victoria 3001 (03) 9650 9911 (03) 9650 9100 invest@mirra.com.au www.mirra.com.au

For enquiries regarding net asset backing (as advised each month to the Australian Securities Exchange):

Telephone: 1800 780 784 (toll free)

Share Registrar: Computershare Investor Services Pty Limited Mail Address:

Shareholder enquiry line: Facsimile: Internet:

GPO Box 2975, Melbourne, Victoria 3001 Yarra Falls, 452 Johnston Street, Abbotsford, Victoria 3067 1300 653 924 +613 9415 4342 (from overseas) (03) 9473 2500 www.investorcentre.com/contact

For all enquiries about shareholdings and related matters, please contact the share registrar as above.

Securities Exchange Code:

MIR Ordinary shares

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DIRECTORS' REPORT This report in relation to the half-year to 31 December 2011 is presented by the Directors of Mirrabooka Investments Limited (‘the Company’) in accordance with a resolution of Directors.

Directors The following persons were Directors of the Company during the half-year and up to the date of this report:

T.A. Campbell AO (appointed December 1998) R.E. Barker (appointed December 1998) I.A. Campbell (appointed November 2007) D.E. Meiklejohn AM (appointed March 2006) G. W. Sinclair (appointed August 2009)

Review of the Company's operations and results

Overview

Mirrabooka's principal activity is investment in small to medium size companies listed on the Australian and New Zealand Stock Exchanges. There have been no changes in the nature of the Company’s activities during the period. Operations began on 22 April 1999. Performance Indicators and Outcomes

The net profit of the Company for the six months to 31 December 2011, which includes the unrealised gains or losses on options written, puttable instruments and non-equity investments of $2.4 million, was $6.9 million, down from $7.6 million the previous corresponding period.

Net operating result, which excludes the unrealised gains or losses on options written, puttable instruments and non-equity investments, was $4.5 million or 17% down on the equivalent number of $5.4 million last year. The net operating result per share for the six months to 31 December 2011 was 3.3 cents per share.

Dividend

The Board has declared an interim fully franked dividend of 3.5 cents per share, the same as last year’s interim dividend.

Auditor’s independence declaration A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 11.

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INCOME STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Note Half-year 2011

Half-year 2010

$’000 $’000 Dividends and distributions 4,927 5,023 Revenue from deposits and bank bills 425 527 Total revenue 5,352 5,550 Net gains/(losses) on trading portfolio (77) 1,204 Income from options written portfolio 98 45 Other income 16 10 Income from operating activities 3

5,389 6,809

Administration expenses (1,034) (1,041)

Operating result before income tax expense 4,355 5,768

Income tax credit/(expense)* 103 (381)

Net operating result for the half-year 4,458 5,387

Net gains on puttable instruments and non-equity investments 3,581 3,209 Tax on net gains on puttable instruments and non-equity investments*

(1,074) (963)

Net gains/(losses) on open options positions (88) (5) Deferred tax on net gains/(losses) on open options positions* 26 1 2,445 2,242

Profit for the half-year 6,903 7,629

Cents Cents Basic earnings per share 9

5.07 5.73 Half-year Half-year 2011 2010 $000 $000 * Total Tax Expense 945 1,343

This Income Statement should be read in conjunction with the accompanying notes.

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

Half-Year to 31 December 2011 Half-Year to 31 December 2010 Revenue Capital Total Revenue Capital Total

$’000 $’000 $000 $’000 $’000 $’000 Net Profit 4,458 2,445 6,903 5,387 2,242 7,629 Other Comprehensive Income Unrealised gains/(losses) for the period on securities in the portfolio at 31 December

- (10,687) (10,687) - 26,881 26,881

Deferred tax credit/(expense) on above - 2,979 2,979 - (8,217) (8,217) Gains/(losses) for the period on securities realised - (2,548) (2,548) - 2,876 2,876 Tax credit/(expense) on above - 710 710 - (879) (879) Total Other Comprehensive Income1 - (9,546) (9,546) - 20,661 20,661

Total comprehensive income 2,3 4,458 (7,101) (2,643) 5,387 22,903 28,290 1 These are the net capital gains/(losses) not recorded through the Income Statement. Capital includes the unrealised gains or losses on open options positions. 2 This is the company’s Net Return for the half-year, which includes the Net Operating Result plus the net realised and unrealised gains or losses on the Company’s investment portfolio and net gains/losses on open options positions. 3 Total tax movement in Other Comprehensive Income : 2011 - $3.7m, 2010 – ($9.1)m .

This Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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BALANCE SHEET AS AT 31 DECEMBER 2011 31 Dec 30 June 2011 2011 Note $’000 $’000

Current assets Cash 14,131 19,038 Receivables 2,752 1,102 Trading portfolio 4 1,551 2,920 Total current assets 18,434 23,060 Non-current assets Investment portfolio 227,203 236,310 Deferred tax assets 186 105 Total non-current assets 227,389 236,415

Total assets 245,823 259,475 Current liabilities Payables 302 422 Tax payable 679 1,089 Options written portfolio 5 - 3 Total current liabilities 981 1,514 Non-current liabilities Deferred tax liabilities - investment portfolio 6 16,498 19,472 Total non-current liabilities 16,498 19,472 Total liabilities 17,479 20,986 Net Assets 228,344 238,489 Shareholders' equity

Share Capital 7 151,045 149,737 Revaluation Reserve 25,633 33,847 Realised Capital Gains Reserve 37,742 40,904 Retained Profits 13,924 14,001 Total shareholders' equity 228,344 238,489 This Balance Sheet should be read in conjunction with the accompanying notes.

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STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 Half-Year to 31 December 2011

Note

Share

Capital $000

Revaluation

Reserve $000

Realised Capital Gains $000

Retained

Profits $’000

Total $’000

Total equity at the beginning of the half-year 149,737 33,847 40,904 14,001 238,489

Dividends paid 8 - - (4,337) (4,473) (8,810) Shares issued - Dividend Reinvestment Plan 1,313 - - - 1,313 Share Issue Costs (5) - - - (5) Total transactions with share-holders 1,308 - (4,337) (4,473) (7,502)

Profit for the half-year - 2,507 - 4,396 6,903 Other Comprehensive Income Net unrealised losses for the period for stocks held at 31 December

- (7,708) - - (7,708)

Net realised losses for the period on securities sold - (1,838) - - (1,838) Transfer to Realisation Reserve of realised gains on investments

- (1,175) 1,175 - -

Other Comprehensive Income for the half-year - (10,721) 1,175 - (9,546) Total equity at the end of the half-year 151,045 25,633 37,742 13,924 228,344

This Statement of Changes in Equity should be read in conjunction with the accompanying notes

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STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (CONT)

Half-Year to 31 December 2010

Note

Share

Capital $000

Revaluation

Reserve $000

Realised Capital Gains $000

Retained

Profits $’000

Total $’000

Total equity at the beginning of the half-year 134,074 17,202 44,292 11,428 206,996

Dividends paid 8 - - (6,286) (1,885) (8,171) Shares issued - Share Purchase Plan 15,728 - - - 15,728 Share Issue Costs (65) - - - (65) Total transactions with share-holders 15,663 - (6,286) (1,885) 7,492

Profit for the half-year - 2,246 - 5,383 7,629 Other Comprehensive Income

Net unrealised gains for the period for stocks held at 31 December

- 18,664 - - 18,664

Net realised gains for the period on securities sold - 1,997 - - 1,997 Transfer to Realisation Reserve of realised gains on investments

- (4,679) 4,679 - -

Other Comprehensive Income for the half-year - 15,982 4,679 - 20,661

Total equity at the end of the half-year 149,737 35,430 42,685 14,926 242,778 This Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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CASH FLOW STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 Half-year Half-year 2011 2010

$’000 $’000 INFLOWS/ INFLOWS/

(OUTFLOWS) (OUTFLOWS) Cash flows from operating activities Sales from trading portfolio 1,494 4,738 Purchases for trading portfolio (415) (3,792) Interest received 464 524 Proceeds from entering into options in options written portfolio

8 -

Payment to close out options in options written portfolio

- -

Dividends and distributions received 4,659 3,671 6,210 5,141 Other receipts 16 10 Administration expenses (1,032) (1,037) Income taxes paid (102) (403) Net cash inflow/(outflow) from operating activities 5,092 3,711

Cash flows from investing activities Sales from investment portfolio 25,069 20,815 Purchases for investment portfolio (26,961) (23,576) Tax paid on capital gains (606) (3) Net cash inflow/(outflow) from investing activities (2,498) (2,764)

Cash flows from financing activities Share issues - 15,728 Share Issue Costs (5) (65) Dividends paid (7,496) (8,171) Net cash inflow/(outflow) from financing activities (7,501) 7,492

Net increase/(decrease) in cash held (4,907) 8,439 Cash at the beginning of the half-year 19,038 12,152 Cash at the end of the half-year 14,131 20,591 This Cash Flow Statement should be read in conjunction with the accompanying notes.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 1. Basis of preparation of half-year financial report This general purpose half-year financial report 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. This report should be read in conjunction with the 2011 Annual Report and public announcements made by the Company during the half-year, in accordance with the continuous disclosure requirements of the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. The Company has attempted to improve the transparency of its reporting by adopting ‘plain English’ where possible. Key ‘plain English’ phrases and their equivalent AASB terminology are as follows:

Phrase AASB Terminology Market Value Fair Value for Actively Traded Securities 2. Financial reporting by segments The Company operates as a Listed Investment Company in Australia. It has no reportable business or geographic segments.

3. Income from operating activities Half-year 2011 $'000

Half-year 2010 $'000

Income from operating activities is comprised of the following:

Dividends & distributions • securities held in investment portfolio 4,818 4,982 • securities held in trading portfolio 78 41

4,896 5,023

Interest income • securities held in investment portfolio 31 - • deposits and income from bank bills 425 527

456 527 Net gains/(losses) and write downs • net gains/(losses) from trading portfolio sales 99 568 • realised gains on options written portfolio 98 45 • unrealised gains/(losses) in trading portfolio (176) 636

21 1,249 Other income 16 10 Income from operating activities 5,389 6,809

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4. Current assets – trading portfolio

The Company enters into option contracts in the trading portfolio for the purpose of enhancing returns, offsetting risk or providing opportunities to acquire or sell securities at advantageous prices.

As at balance date there were call options outstanding which potentially required the Company, if they were exercised, to deliver securities to the value of $0.9 million (30 June 2011 : $Nil).

5. Current liabilities – options written portfolio

As at balance date the Company had no sold call options in the options written portfolio which were outstanding (30 June 2011: $2.5 million value if exercised).

6. Deferred tax liabilities – investment portfolio

In accordance with AASB 112 Income Taxes, deferred tax liabilities have been recognised for Capital Gains Tax on unrealised gains in the investment portfolio at current tax rates (30%) totalling $16.5 million (30 June 2011 : $19.5 million). As the Directors do not intend to dispose of the portfolio, this tax liability may not be crystallised at this amount.

7. Shareholders’ equity – share capital

Movements in Share Capital of the Company during the half-year were as follows: Date Details Notes Number

of shares ’000

Issue price

$

Paid-up Capital

$’000 01/07/2011 Opening Balance 135,540 149,737 05/08/2011 Dividend Reinvestment Plan i 718 1.83 1,313 Various Share Issue Costs - (5)

31/12/2011 Balance 136,258 151,045 i The Company has a Dividend Reinvestment Plan under which shareholders elected to

have all or part of their dividend payment reinvested in new ordinary shares. Pricing of the new DRP shares was based on the average selling price of shares traded on the Australian Securities Exchange in the five days from the day the shares begin trading on an ex-dividend basis.

8. Dividends Half-year

2011 $’000

Half-year 2010

$’000 Dividends paid during the period 8,810 8,171 (6.5 cents

per share) (6.5 cents

per share)

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Dividends not recognised at period end

Half-year 2011

$’000

Since the end of the half-year the Directors have declared an interim dividend of 3.5 cents per share fully franked. The aggregate amount of the proposed interim dividend expected to be paid on 10 February 2012, but not recognised as a liability at the end of the half-year is 4,769

9. Earnings per Share Half-year 2011

Half-year 2010

Number Number Weighted average number of ordinary shares used as the denominator

136,117,917 133,029,677

Basic earnings per share $’000 $’000 Net profit for the half-year 6,903 7,629 Cents Cents Basic earnings per share 5.07 5.73 Net operating result per share

$’000 $’000 Net operating result 4,458 5,387 Cents Cents Net operating result per share

3.28 4.05 Dilution

As there are no options, convertible notes or other dilutive instruments on issue, diluted earnings per share is the same as basic earnings per share. This similarly applies to diluted net operating result per share.

10. Contingencies At balance date Directors are not aware of any material contingent liabilities or contingent assets other than those already disclosed elsewhere in the financial report.

11. Events subsequent to balance date Since 31 December 2011 to the date of this report there has been no event of which the Directors are aware which has had a material effect on the Company or its financial position.

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