2011 |Annual Report - Integra Mining

integramining.com.au

2011 |Annual Report - Integra Mining

2011 | Annual Report


Integra Mining Limited 2011 aNNUaL RePORT

Index Page

Corporate Directory 1

Chairman’s Report 2

Highlights 3

Review of Operations 4

Report of the Directors 24

Corporate governance Statement 39

auditor’s Independence Declaration 44

Consolidated Statement of Comprehensive Income 45

Consolidated Statement of Financial Position 46

Consolidated Statement of Cash Flows 47

Consolidated Statement of Changes in equity 48

Notes to the Consolidated Financial Report 49

Directors’ Declaration 83

Independent auditor’s Report 84

additional aSX Information 86

Tenement Schedule 89

Page 1

Corporate dIreCtory

directors

John Fitzgerald

Christopher Cairns

Peter Ironside

Rowan Johnston

Richard Maltman

graeme Beissel

Company Secretary

Peter Ironside

registered office

168 Stirling Highway

NeDLaNDS Wa 6009

Telephone: (08) 9423 5920

Facsimile: (08) 9423 5930

e-mail: info@integramining.com.au

Website: www.integramining.com.au

Solicitors

Blake Dawson

2 The esplanade

PeRTH Wa 6000

Share registry

Computershare Investor Services Pty Ltd

Level 2, Reserve Bank Building

45 St georges Terrace

PeRTH Wa 6000

auditor

BDO audit (Wa) Pty Ltd

Chartered accountants

38 Station Street

SUBIaCO Wa 6008

Stock exchange Listing

aSX Limited

(Home Branch - Perth)

aSX Code: IgR

Bankers

Westpac Bank

109 St george’s Terrace

PeRTH Wa 6000

BNP Paribas

45 Ventnor avenue

WeST PeRTH Wa 6005


Chairman’s Report

We are in a strong financial position with modest debt, cash

reserves of $38 million at year end and substantial cashflow

generation from the Randalls gold Project.

Integra MInIng 2011 aNNUaL RePORT / Page 2

Dear Shareholder

The last year has been a momentous one for your Company. Integra is now a low cost producer with a

growing mine life. We continue to have good exploration success. The Company is now in a very strong

position and well placed to take advantage of both the high gold price and the continued rationalisation we

expect to see in the australian gold industry over the coming year.

The Randalls gold Project poured its first gold bar in September 2010. This project was developed on time

and under budget which was a tremendous achievement for a company developing a project for the first

time. Full credit goes to the executive team that worked tirelessly to make this happen. The Company has

now established itself as a low cost producer with a substantial operating margin. Importantly this was

achieved whilst maintaining the Company’s very good safety record during the year.

Subsequent to year end the upgrade to the processing plant to a nominal capacity of 1 million tonnes

per annum was also completed ahead of schedule and in line with budget. This upgrade will enable

the Company to increase production over the coming years. The Company has built up a large stockpile

containing 68,500 ounces of gold and this along with the expanded plant capacity provides both

considerable flexibility and reduced operating risk for the project.

The maiden Mineral Resource and Ore Reserve at Majestic were the highlights of another successful year for

Integra’s exploration and projects teams. The Company sees exploration as its key strength and has committed

$23 million over the coming financial year to increase existing resources / reserves and test promising targets

in the Randalls and aldiss projects. Mine life was extended to 6 years with the addition of new Ore Reserves at

Majestic, Harry’s Hill and Maxwells and further extensions are expected over the coming year.

We are in a strong financial position with modest debt, cash reserves of $38 million at year end and

substantial cashflow generation from the Randalls gold Project.

Our primary objectives are to grow the Company’s reserve base and build long term profitability. This will be

achieved by further exploration success and exploitation of our large underground Mineral Resource base in the

Randalls region. Trial mining at Cock-eyed Bob, being the first of three underground deposits in the Randalls

region, will commence during the coming year and this is a very important step in our long term growth plans.

The Board would like to thank all of our employees and contractors who have contributed substantially to our

achievements during the year. In particular the strong focus and commitment of our Managing Director and

his executive team has helped the Company establish a very strong base from which to grow. I would also

like to acknowledge the efforts of graeme Beissel who stepped down as Chairman in November 2010 after 4

years in that role. During this period, Integra has successfully made the transition from a small explorer to a

profitable gold producer.

We have the people, assets and financial resources to prosper in the new gold price environment.

John Fitzgerald

Chairman


Integra MInIng 2011 Highlights

The Integra team has put in an outstanding

year of delivery with a number of significant

milestones achieved:

September 2010 First gold poured

at the Randalls gold Project – project

construction completed on-schedule and

below cost;

January 2011 Consolidated Mineral

Resources increased 40% (710,000

ounces) to 30 million tonnes at 2.6 g/t gold

for a contained 2.5 million ounces;

February 2011 Raised $40 million to

retire $20m of debt and interest, fund

the process facility expansion, free up

funds for development associated with

underground trial mining at Cock-eyed Bob

and accelerated exploration;

March 2011 Randalls gold Project

commissioning completed, first commercial

production; and

June 2011 First full quarter of production

with 21,582 ounces produced at a cash

cost of $552. Production target of 100,000

ounces per year with forecast cash cost of

$550 per ounce in FY2012.

and subsequent to the end of year:

July 2011 94% increase in Ore Reserves

to 480,000 ounces for a minimum 6 year

mine life from open pit sources only, not

including any underground production

potential or other assets being brought into

Ore Reserves; and

Page 3

august 2011 Randalls gold Project

process facility upgrade complete ahead of

schedule and below cost.

all of this has been achieved with a very

pleasing safety record of 477 LTI free days

from the commencement of construction

up until a single LTI in May 2011 with an

employee straining a knee while stepping

over a small earth bund.

as at 30 June 2011, the Company has

produced 54,766 ounces at an average

cash cost of $549 per ounce. Revenue

totalled $70.6 million, at an average

gold sale price of $1,380 per ounce. Mine

operating profit for the year was $41 million

before depreciation, amortisation, royalties

and tax.

all ore to-date has been sourced from

the Salt Creek open pit mine. Mining

commenced at Maxwells, Integra’s second

open pit mine, in June this year.

Further production increases are expected

when underground mining commences,

subject to successful completion of a trial

mining exercise at the Cock-eyed Bob gold

deposit later in 2011. If successful, the

Cock-eyed Bob deposit would proceed into

full production and development would

start at the Santa gold deposit. Once open

pit mining is completed at the Maxwells

gold deposit, it also will be developed as an

underground operation.

The addition of underground production

would lift target gold production to 120,000

ounces on a sustainable basis, with a peak

to 140,000 ounces with the introduction of

high-grade oxide material from the Lucky

Bay gold deposit.

These production targets are not dependent

on further discoveries; however, Integra

has highly skilled and well funded (FY2012

budget of $23 million) exploration and

development teams focussed on a number

of specific targets within the Company’s

highly prospective 1,500 square kilometre

tenement holdings. Integra is confident of

continuing the Company’s discovery track

record.

as at 30 June 2011, the Company has produced 54,766 ounces at an average cash cost of $549

per ounce. Revenue totalled $70.6 million, at an average gold sale price of $1,380 per ounce.

Mine operating profit for the year was $41 million before depreciation, amortisation, royalties and tax.


Review of Operations

overvIew

Integra Mining Limited became an

australian gold producer in September

2010 from the Randalls gold Project, 60

km southeast of Kalgoorlie in Western

australia.

Integra’s tenement holdings and gold

deposits are located in the highly

prospective eastern goldfields region of

Western australia (Figure 1). The tenements

cover four regionally significant structures;

the aldiss and Cowarna Faults - southern

extensions of the Keith-Kilkenny Lineament,

the Bare Hill Fault - a southern extension

of the emu Fault and the Mt Monger Fault.

The Keith-Kilkenny Lineament and the emu

Fault are two of a series of deep crustal

thrust faults thought to be a major control

on the distribution of gold mineralisation in

the eastern goldfields of Western australia

(Figure 2).

Construction of the Randalls gold Project

was completed on-time and under-budget

with first gold poured in September 2010.

Commissioning was completed at the

end of February 2011 with commercial

production commencing from 1 March

2011. Steady state operation was reached

in the March quarter and shortly thereafter,

the Board approved a 25% expansion of the

Salt Creek processing facility to 1 million

tonnes per annum with a target production

of 100,000 ounces per year.

at the beginning of the financial year, gold

Mineral Resources stood at approximately

1.8 million ounces while Ore Reserves

totalled 320,000 ounces. In January 2011,

a Mineral Resource upgrade increased the

resource to 2.5 million ounces. Subsequent

to the year end, Integra’s Ore Reserves were

updated to 480,000 ounces net of mining

depletion to 30 June 2011.

Current gold production is from the Salt

Creek open pit. Mining commenced at the

Maxwells open pit towards the end of the

year with Maxwells ore being stockpiled for

Integra MInIng 2011 aNNUaL RePORT / Page 4

50km

400 000mE 420 000mE 440 000mE 460 000mE 480 000mE

Granites

Greenstones

Figure 1: eastern goldfields project locations and tenements.

PROJECTS

Integra - 100%

Cowarna JV (Alacer)

Peters Dam JV (Rubicon)

Mt. Monger (Newcrest)

Glandore JV (Alacer)

Erayinia JV (Image)

Queen Lapage JV (Rubicon) 20km

6 610 000mN

6 590 000mN

6 570 000mN

6 550 000mN

6 530 000mN


Review of Operations

Figure 2: regional geology and structural setting.

Page 5

122°00’ 124°00’

Granite rocks, gneiss,

migmatite

Banded iron formation

Marine & continental siltstone

Volcanogenic argillaceous &

arenaceous sedimentary rocks

Felsic volcanic rocks

Mafic & ultramafic volcanic

and intrusive rocks

Integra tenements

Mafic dyke

Lineament or fault

100km

122°00’

31°00’

later transport to the Salt Creek process

facility. Production will be supplemented

in due course by production from open pit

mines at Majestic, Harry’s Hill, Lucky Bay,

Spice, anomaly C/ Flycamp gold deposits

and, subject to successful underground

trial mining, underground operations at

Cock-eyed Bob, Santa and Maxwells gold

deposits. Design and project development

for a trial underground mining operation at

Cock-eyed Bob is presently underway.

as at 30 June 2011, the Company has

produced 54,766 ounces, at an average

cash cost of $549 per ounce. This

outstanding performance introduces

Integra as one of the lowest cost/ highest

margin gold producers in australia. gold

sales during the year averaged a realised

price of $1,380 per ounce for revenue

of $70.6 million and mine operating

profit for the year was $41 million before

depreciation, amortisation, royalties and

tax.

In early 2011, Integra raised approximately

$40 million to be used to fund debt

repayment and interest ($20 million),

process facility upgrade ($10 million),

Mineral Resources definition drilling ($5

million) and working capital ($5 million

less costs).


Review of Operations

HeaLtH and SaFety

Numerous Health and Safety systems,

procedures and related inititives were

introduced, including:

• Introduction of ”Start Safe, Work Safe,

Home Safe” Hazard Identification Take 5

procedures.

• Development of an emergency Response

Plan.

• establishment of an emergency

Response training and storage room.

• St John Senior First aid training for

Integra and contract staff.

• Occupational First aid training for

emergency Response Team.

• Implimentation of external OH&S

auditing.

• establishment of a monthly safety

award.

Injury statistics for the Randalls gold

Project were well below the Wa gold

industry frequency rate with one lost time

injury, one medical treatment and two

reportable injury incidents for the year.

Integra MInIng 2011 aNNUaL RePORT / Page 6

7

6

5

4

3

2

1

0

FeB

2010

MaR

2010

aPR

2010

MaY

2010

all reportable Injuries Frequency rate.

JUN

2010

JUL

2010

aUg

2010

SeP

2010

OCT

2010

NOV

2010

DeC

2010

JaN

2011

FeB

2011

MaR

2011

aPR

2011

MaY

2011

IgR als 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

DMP Data 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1

JUN

2011


Review of Operations

FInanCIaL perForManCe

Financial performance reflects Integra’s

transition to gold producer at the end of the

first quarter of the financial year.

Revenue from operations totalled a$70.6

million, gold sales being at an average

sales price of a$1,380 per ounce. Mine

operating profit before depreciation,

amortisation, royalties and tax was a$41

million. Cash costs for the year were a$549

per ounce.

During the year, a total of 13,961 ounces

were delivered into the hedges with BNP

Paribas and Westpac Banking Corporation.

as per the terms of the project finance

agreement with BNP Paribas and Westpac,

the Company entered into forward sales

contracts covering 91,952 ounces at a

Page 7

price of a$1,359 for delivery in the first two

years of production. as at 30 June 2011,

some 77,000 ounces (16% of Ore Reserves)

remain to be delivered over the following

seven quarters.

Integra forecasts FY 2012 gold production

cash costs at circa $550 per ounce

maintaining Integra’s position as one of

australia’s lowest cost and highest margin

gold producers.

period ounces produced Cash Cost per ounce

September to February* 25,568 $571

March Quarter 7,616 $468

June Quarter 21,582 $552

Financial Year 54,766 $549

*pre-production

aerial view of the Salt Creek open pit and tailings Storage Facility.

envIronMentaL

Integra is proud of its environmental

compliance and proactive approach to

rehabilitation.

Integra has a Board approved

environmental Management Plan and

ensures compliance with licences and

approvals by:

• Internal auditing (quarterly

environmental inspections of facilities),

• Independent third party auditing

(Tailings Storage Facility (TSF)

construction supervised by golder and

associates),

• Complying fully with statutory

reporting requirements (submission of

completion certificates to Department

of environment and Conservation for

Licences to Operate),

• Maintaining an environmental risk

register, and

• engaging ernst and Young to undertake

third party risk assessment including an

environmental risk assessment.

an innovative, cost effective, secure and

environmentally superior waste storage

facility has been developed at the Randalls

gold Project. an integrated waste landform

that accommodates all the mine waste

(both rock and tailings) in a single storage

facility has been established. This is a

significant departure from conventional

practice, whereby the tailings storage

facility and the mine waste stockpiles are

typically evolved as separate structures.

as a consequence of this design, tailings

storage facility walls are a minimum of

50 metres thick ensuring a very low risk of

tailings storage facility structural failure.


Review of Operations

operatIonS

Construction of the Randalls gold Project

was completed on-time and under-budget

with first gold poured in September 2010.

On 8 October 2010, the Randalls gold

Project was officially opened by the Right

Honourable Mr Norman Moore MLC,

Western australian Minister of Mines

and Petroleum with Mr Roy Woodall aO,

former Director of exploration with Western

Mining Corporation, attending as a guest

of honour. The event was well attended

by over 100 people including Integra staff

and their families, selected Wa-based

shareholders, representatives of Integra’s

project financiers BNP Paribas and

Westpac, representatives of Integra’s major

contractors gR engineering and alliance

Contracting, local dignitaries including

Brendan and Janie Jones - the pastoralists,

and representatives of the press.

Commissioning was completed at the end of

February 2011 with commercial production

commencing from 1 March 2011. Current

gold production is from the Salt Creek

open pit mine. Mining commenced at the

Maxwells open pit mine towards the end of

the year. as at 30 June 2011, the Company

has produced 54,766 ounces.

Ore mined to date is 107% of the Ore

Reserve model with the mineralised geology

model performing very well.

During the year the operation has continued

to build the run-of-mine (ROM) ore

stockpiles which as at 30 June 2011 were

estimated at 1.4 million tonnes with an

estimated 68,500 ounces of contained gold.

Page 9

proJeCt deveLopMent

During the March 2011 quarter, the Board

approved a 25% expansion of the Salt

Creek processing facility to 1 million

tonnes per annum with a target production

of 100,000 ounces per year. The capital

cost of the upgrade was estimated at $12

million and included:

• Installation of a secondary 900kW ball

mill (the primary ball mill is 1.75MW) as

a coarse overflow re-grind mill.

• Tripling the size of the gravity circuit

with 2 x 30 inch Knelson concentrators

and one tonne leach reactor (up from

250kg) – this provides extra capacity to

capture coarse ‘gravity’ gold and added

flexibility to operate either a single

unit while the other is being serviced

or both units together. It is expected

that more continuous operation of at

least one concentrator will improve gold

recoveries by reducing the coarse gold

load reporting to the leach circuit.

• addition of a second leach tank – this

increases leach residence time and

provides the leach capacity to treat

ores requiring a longer leach time. The

increased leach capacity improves gold

recoveries at higher throughputs and

provides flexibility to treat different ore

types.

• New dual blade agitators with more

powerful motor and gearbox and also

hollow shafts for additional oxygen

sparging to improve agitation and leach

efficiency.

• automated reagent dosing and

containment facilities.

• an oxygen generation plant to enhance

leach kinetics.

The process plant upgrade provides for

both an expansion of through-put capacity

to 1 million tonnes per year as well as

increased gold recovery efficiencies and

enhanced flexibility to treat a range of

gold bearing ores with different leach

characteristics. The process plant upgrade

was completed ahead of schedule at the

end of July 2011 and, subject to the receipt

of final claims, is expected to have been

completed below the budgeted cost.

total June -11 March -11 december -10

Ore Processed (t) 559,529 197,911 171,466 190,152

Processed Ore grade (g/t) 3.33 3.62 3.43 2.86

Ore Recovery (%) 91.3 93.4 93.0 89.15

gold Produced (ozs) 54,766 21,582 17,597 15,587


Review of Operations

table 1: randalls, aldiss, Mt Monger projects Consolidated Mineral resources.

Total Resource

Including Reserves

MIneraL reSourCeS

In early 2011 Integra announced a

consolidated Mineral Resources upgrade

(see aSX release 25 January 2011)

including:

• global Mineral Resources estimate of

30 million tonnes at 2.6 g/t gold for 2.5

million ounces

• Increase in contained gold of 40% or

710,000 ounces

• Measured and Indicated Resources

increased 33% (Chart 1)

• Maiden Inferred Resource for the recent

Majestic discovery of 260,000 ounces at

2.1 g/t gold

• Maiden Inferred Resource for the Lucky

Bay deposit of 25,000 ounces at 5.9 g/t

gold

The January 2011 Mineral Resources

upgrade continues a multi-year trend of

exploration success and material additions

to Integra’s Mineral Resources.

Integra MInIng 2011 aNNUaL RePORT / Page 10

JorC Category tonnes (t) gold (g/t) Contained gold (oz)

Measured 630,000 1.5 30,000

Indicated 16,000,000 2.7 1,400,000

Inferred 13,000,000 2.6 1,100,000

total 30,000,000 2.6 2,500,000

ore reServeS

Subsequent to year end, in July 2011,

Integra reported that revised open pit Ore

Reserve estimations have been completed

for existing and new gold deposits,

including the recent Majestic discovery

(see aSX release 25 July 2011). Total Ore

Reserves for the Randalls gold Project as

at 1 July 2011 are 6 million tonnes at 2.5

g/t gold for 480,000 ounces (Table 2).

The upgrade includes an updated open

pit Ore Reserve estimate for the Salt

Creek gold deposit (150,000 ounces net of

production depletion of 53,000 ounces),

revised open pit Ore Reserve estimate for

the Maxwells gold deposit (an increase

of 46,000 ounces to 144,000 ounces)

and a preliminary Ore Reserve estimate

for the Majestic open pit (98,000 ounces

attributable) and the Harry’s Hill open pit

(86,000 ounces).

gold ounces

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

Chart 1: Integra’s Mineral resources history.

Ore Reserves do not include the high-grade

Lucky Bay, Spice, Fly Camp/ anomaly C

gold deposits or northern extensions to the

recently discovered Majestic gold deposit

which are to be added to the Ore Reserves

at a later date. Integra’s Ore Reserve

pipeline is shown in Chart 2.

aUg 2004 aPR 2005 JUL 2005 FeB 2006 JaN 2008 JUN 2008 JaN 2011

aldiss randalls Mt Monger


Review of Operations

table 2: ore reserves as at 1 July 2011.

deposit JorC Category tonnes (t)* gold (g/t) Contained gold (oz)

Salt Creek

Maxwells

Majestic**

Harrys Hill

Total

Chart 2: ore reserves, near-term conversion opportunities and exploration target areas.

Page 11

underground

production

potential

Cock-eyed Bob

Santa

Maxwells

Proven (stockpiles) 1,291,000 1.49 61,799

Maxwells

Salt Creek

Majestic

Harry’s Hill

480,000oz

Lucky Bay

Majestic extensions

Spice

anomaly C / Fly Camp

Queen Lapage

Majestic

Mt Monger

Salt Creek

Siro (aldiss)

Probable 994,000 2.73 87,231

total 2,285,000 2.03 149,029

Proven (stockpiles) 113,000 1.85 6,721

Probable 1,082,000 3.95 137,406

total 1,195,000 3.75 144,130

Proven 0 0.00 0

Probable 1,362,550 2.23 97,690

total 1,362,550 2.23 97,690

Proven 0 0.00 0

Probable 1,134,837 2.37 86,471

total 1,134,837 2.37 86,471

Proven 1,404,000 1.52 68,520

Probable 4,573,000 2.78 409,000

total 6,000,000 2.5 480,000

Notes:

* Cut-off grade for Salt Creek and Maxwells Ore Reserves = 0.88 g/t gold, Majestic and Harry’s Hill Ore Reserves = 1.25 g/t gold

**Joint Venture Integra 85%, Newcrest Mining Limited 15% - Ore Reserves reported are Integra’s 85% equity portion

open pit

ore reserves

near term

Mineral

resources to

ore reserve

Conversion

exploration

targets


Review of Operations

underground produCtIon

potentIaL

While the Ore Reserve status of the

Randalls gold Project is on a very firm

foundation from open pit production

sources alone, it is Integra’s intention to

demonstrate the viability of underground

mining at three high-grade banded iron

formation (BIF) hosted gold deposits at

Cock-eyed Bob, Santa and Maxwells (Figure

3). Trial underground mining at Cock-eyed

Bob is planned to commence in October

2011. If successful, underground mining

will continue to the next level at Cock-eyed

Bob and underground development at the

Santa gold deposit will commence. Upon

completion of open pit mining operations

at the Maxwells gold deposit, underground

development will commence from the base

of the open pit.

Subject to successful completion of the

trial mining exercise, the objective within

a two year period is to have 50% of the

process facility feed being provided by

underground sources at an expected grade

of 5-6 g/t gold. This will be blended with

open pit production feed and stockpiled

feed to maintain a 3-4 g/t head grade

presented to the process facility.

attributes which enhance the potential for

underground production from the BIFhosted

gold deposits include:

• Multiple parallel vertically dipping gold

mineralised BIF horizons

• Mineralised units are typically 2 metres

to 5 metres wide

• Very competent metawacke country rock

– expected good ground conditions

• Visual control on gold mineralisation

Integra MInIng 2011 aNNUaL RePORT / Page 12

Figure 3: randalls BIF-hosted gold deposits.

420 000mE 425 000mE 430 000mE 435 000mE

Ultramafics

Sediments

Basalt

High mag basalt

Greywacke

Granitoids

Gabbro

Felsic fragmental

Dolerite

Gold mine, prospect,

workings

Integra tenement

outline

RANDALLS

PROJECT

Proterozic dyke

Santa BIF

Maxwells BIF

Eastern BIF

Major fault

0 1 2 3 4 5km

6 570 000mN

6 565 000mN

6 560 000mN


Review of Operations

Santa trend

Santa, which is located 16 km east of the

Randalls gold processing facility, is one

of several areas being targeted by Integra

to support its plan to rapidly increase gold

production. Recent results have confirmed

both the depth and strike continuity of

BIF hosted gold mineralisation within the

Santa Trend. High-grade mineralisation

has a strike extent of 2 km and has been

demonstrated by drilling to extend to at

least 400 metres depth within the Santa

Trend (Figure 4). Outstanding high-grade

drilling results received during the year

include:

• 2.1 metres at 46.70 g/t gold from 270

metres drill depth

• 2.25 metres at 25.10 g/t gold from 271

metres drill depth

• 2.3 metres at 18.70 g/t gold from 235.7

metres drill depth

• 2 metres at 10.33 g/t gold from 140

metres drill depth

• 3 metres at 7.16 g/t gold from 176

metres drill depth

• 6 metres at 5.86 g/t gold from 126

metres drill depth

• 4 metres at 34.13 g/t gold from 20

metres drill depth, including 1 metre at

131 g/t gold

• 4 metres at 17.36 g/t gold from 21

metres drill depth, including 1 metres at

63 g/t gold

• 4 metres at 9.86 g/t gold from 82

metres drill depth

• 5 metres at 18.59 g/t gold from 148

metres drill depth

• 6 metres at 6.85 g/t gold from 136

metres drill depth

• 19.30 metres at 2.82 g/t gold from

103 metres drill depth, including 2.30

metres at 10.62 g/t gold

• 22 metres at 2.72 g/t gold from 57

metres drill depth, including 3 metres at

6.17 g/t gold

• 33 metres at 1.36 g/t gold from 95.55

metres drill depth, including 8 metres at

Page 13

3.28 g/t gold

• 11.75 metres at 3.41 g/t gold from

116.25 metres drill depth

• 7.50 metres at 4.16 g/t gold from 89.70

metres drill depth

This latest drilling confirms the potential

for both open pit mining in the northern

extents of the Santa Trend at Fly Camp

/ anomaly C areas and high-grade

underground production.

424 000mE 424 500mE

425 000mE

IGSCD035

5.05m@3.36g/tAu

ISRC0094

10.00m@2.68g/tAu

5.00m@5.21g/tAu

3.00m@3.58g/tAu

5.00m@18.59g/tAu

IGSCD034

2.65m@5.15g/tAu

3.30m@4.93g/tAu

11.75m@3.41g/tAu

6 566 000mN

6 565 500mN

6 565 000mN

IGSCD036

33.95m@1.36g/tAu

incl. 8.05m@3.28g/tAu

6.30m@1.99g/tAu

5.05m@3.88g/tAu

IGSCD041

6.20m@3.42g/tAu

2.25m@6.02g/tAu

ISRC0095

8.00m@1.71g/tAu

IGSCD039

1.20m@13.41g/tAu

IGSCD042

3.90m@3.27g/tAu

0 100 200 300m

Historic RC/DD Drilling

Current RC/DD Drilling

Pit Crest

Mineralised Envelope

Roads

Figure 4: Santa trend collar plan.

ISRC0101

6.00m@6.85g/tAu

ISRC0097

9.00m@2.10g/tAu

ISRC0096

5.00m@3.03g/tAu

22.00m@2.72g/tAu

incl. 3.00m@6.17g/tAu

IGSCD049

7.50m@4.16g/tAu

19.30m@2.82g/tAu

incl. 2.30m@10.62g/tAu

Waste Dump


Review of Operations

expLoratIon

Majestic prospect

(Integra Mining Limited 85%/ Newcrest

Operations Limited 15%)

During the year, Integra continued to report

more significant drilling results from

the Majestic gold discovery. High-grade

results received have extended the length

of known mineralisation to in excess of 200

metres and indicate that Majestic which is

located 22 km north of the Randalls gold

processing facility is a significant gold

mineralised system with excellent potential

to be a source of open pit material for the

plant.

In January 2011, a maiden Inferred

Resource for the Majestic discovery of

260,000 ounces at 2.1 g/t gold was

announced. In July 2011, an attributable

Probable Reserve of 1,362,550 at 2.23 g/t

gold for 97,690 ounces was reported.

Results received during the year confirm

the continuity of west-dipping, high-grade

gold mineralisation at Majestic (Figure 5

and 6). Discrete zones of higher-grade gold

mineralisation exist within much broader

coherent zones of gold anomalism which

define a consistent corridor of structurally

controlled gold mineralisation between two

sets of porphyry dykes. gold mineralisation

is hosted within silica/ sericite altered and

pyrite mineralised granodiorite. It would

appear that the phase of granodiorite

intrusion that drilling has targeted is a

hybrid porphyry with widespread gold

enrichment.

Results released during the year from the

Majestic “discovery” area included:

• 19 metres at 2.44 g/t gold

• 9 metres at 4.54 g/t gold

• 6 metres at 5.41 g/t gold

• 5 metres at 4.53 g/t gold

• 3 metres at 6.96 g/t gold

• 3 metres at 5.94 g/t gold

• 11 metres at 5.28 g/t gold

Integra MInIng 2011 aNNUaL RePORT / Page 14

Surface

300mRL

200mRL

100mRL

IMRC230D

4.01m@4.16

6.8m@3.9

70.55m@1.75

4.3m@15.16

IMRC231D

2m@3.66

42m@0.75

51m@2.06

IMRC232D

Figure 5: Majestic prospect Section 6581240mn.

Surface

300mRL

200mRL

100mRL

398 400mE 398 600mE

Figure 6: Majestic prospect Section 6581280mn.

IMRC233D

IMRC234D

3m@3.08

23m@3.14

3m@7.73

398 400mE 398 600mE

IMRC175D

7.5m@11.62

3.05m@5.49

34m@4.46

54m@0.67

IMRC174D

IMRC173D

1.7m@7.41

2.9m@3.31

31m@0.87

IMRC172D

IMRC171D

IMRC235D

55m@0.33

40m@2.45

76m@1.44

0 50m

High Grade Shoots

Mineralised Envelope

Porphyry

8m@8.20

Metres@grams per

tonne gold

23m@3.07

72m@1.41

4m@3.04

0 50m

High Grade Shoots

Mineralised Envelope

Porphyry

8m@8.20

Metres@grams per

tonne gold


Review of Operations CONTINUeD


Review of Operations

• 8 metres at 4.98 g/t gold

• 9 metres at 3.46 g/t gold

• 5 metres at 3.31 g/t gold

• 18 metres at 1.71 g/t gold

• 8 metres at 2.15 g/t gold

• 50 metres at 1.73 g/t gold, including 18

metres at 3.91 g/t gold

• 72 metres at 1.41 g/t gold, including 23

metres at 3.07 g/t gold

• 76 metres at 1.05 g/t gold, including 13

metres at 3.67 g/t gold

• 51 metres at 2.06 g/t gold including 23

metres at 3.14 g/t gold and 3 metres at

7.73 g/t gold

• 76 metres at 1.44 g/t gold, including 40

metres at 2.45 g/t gold

• 70.55 metres at 1.75 g/t gold including

4.30 metres at 15.16 g/t gold

• 3 metres at 16.80 g/t gold

• 34 metres at 4.46 g/t gold including

7.50 metres at 11.62 g/t gold

Towards the conclusion of the year, Integra

received RC and diamond drill intercepts

from north of the existing resource and

open pit design at the Majestic gold deposit

(Figure 7). Intercepts from two adjacent 20

metre spaced sections included:

• 89 metres at 4.55 g/t gold including 49

metres at 7.89 g/t gold and 11 metres

at 23 g/t gold

• 105 metres at 1.42 g/t gold including

48 metres at 2.70 g/t gold

• 10 metres at 3.10 g/t gold

• 5 metres at 4.51 g/t gold

• 4 metres at 4.86 g/t gold

Further infill drilling on section and further

along strike to the north is required to

properly define the extents of these highgrade

zones, however, it is interpreted

that they are continuous across sections

and represent shallowly plunging ‘shoots’

of high-grade gold mineralisation.

as these zones now extend the known

mineralisation further north of the current

Mineral Resource limits, it is expected that

the resource will be extended as will the

preliminary open pit design.

Integra MInIng 2011 aNNUaL RePORT / Page 16

6 581 800mN

6 581 600mN

6 581 400mN

6 581 200mN

398 200mE

398 400mE 398 600mE

IMRC274D IMRC272 IMRC270

4m@2.17g/tAu

IMRC273D IMRC271

48m@2.70g/tAu

Figure 7: Collar location plan showing preliminary open pit crest.

IMRC269

10m@3.10g/tAu

IMRC223D IMRC222

49m@7.89g/tAu

incl. 11m@23g/tAu

IMRC220

IMD033

5m@4.51g/tAu

incl.4m@4.86g/tAu

IMRC221

0 50 100m

Current RC/DD Drilling

Integra Drilling

Pit Design Crest


Review of Operations

First-pass RC drill testing of some of the

numerous +1 g/t aircore gold anomalies

over an area in the order of 2.5 km by 2 km

(Figure 8), have identified four new zones

of high-grade gold mineralisation which

returned results including:

• 9 metres at 2.78 g/t gold

• 2 metres at 12.73 g/t gold

• 3 metres at 7.12 g/t gold

• 6 metres at 6.64 g/t gold

• 5 metres at 3.10 g/t gold

• 8 metres at 1.57 g/t gold

• 6 metres at 1.98 g/t gold

• 3 metres at 4.39 g/t gold

• 3 metres at 3.81 g/t gold

• 11 metres at 1.83 g/t gold

• 7 metres at 1.63 g/t gold

• 13 metres at 5.43 g/t gold

• 9 metres at 1.18 g/t gold

• 3 metres at 2.56 g/t gold

During the year, copper-gold mineralisation

was intercepted in a hydrothermal breccia

located some 250 metres south of the

Majestic gold ‘Discovery Zone’ with quartz

/ pyrrhotite / pyrite / chalcopyrite matrix

fill with altered quartz diorite clasts. Best

results include:

• 20 metres at 0.66 g/t gold and 0.60%

copper

• 17 metres at 1.91 g/t gold and 0.43%

copper

• 20 metres at 0.94 g/t gold and 0.67%

copper

• 19 metres at 0.64 g/t gold and 0.42%

copper

• 5 metres at 1.10 g/t gold and 0.30%

copper

Page 17

3m@1623ppb

2m@1846ppb

4m@1056ppb

5m@1857ppb

4m@1067ppb

8m@1837ppb

1m@1627ppb

2m@1093ppb

4m@1316ppb

4m@1009ppb

4m@1046ppb

4m@2873ppb

3m@7301ppb

4m@3972ppb

4m@1062ppb

4m@1365ppb

4m@1567ppb

4m@1416ppb

7m@1379ppb

4m@1131ppb

4m@2820ppb

397 500mE 398 000mE 398 500mE 399 000mE 399 500mE 400 000mE

4m@1304ppb

1m@1102ppb

2m@1185ppb

4m@2981ppb

8m@2119ppb

Current Drillholes

Historic Drillholes

Project Boundary

1m@2572ppb

Discovery Zone

New Zones 0 500m

2m@1162ppb

4m@1106ppb

4m@1085ppb

4m@1056ppb

4m@1536ppb

4m@1013ppb

4m@2593ppb

4m@1676ppb

2m@2418ppb

4m@1173ppb

4m@1193ppb

4m@1035ppb

4m@1182ppb

2m@1252ppb

1m@1903ppb

4m@1223ppb

3m@1341ppb

4m@1015ppb

7m@1394ppb

4m@1869ppb

4m@1856ppb

Figure 8: aircore drill hole location map with +1 g/t results annotated overlaid on rtp aeromagnetics

(1000ppb = 1 g/t), discovery zone in yellow and new zones in purple.

6 582 500mN

6 582 000mN

6 581 500mN

6 581 000mN

6 580 500mN

6 580 000mN


Review of Operations

aldiss gold project

During the year, Integra conducted

reconnaissance aircore drilling of a major

structural target identified in collaboration

with the CSIRO. Drilling returned

widespread gold anomalism within a 10

kilometre corridor including:

• 8 metres at 1.25 g/t gold

• 4 metres at 1.61 g/t gold

• 4 metres at 1.37 g/t gold

• 3 metres at 1.59 g/t gold (end of hole)

• 4 metres at 1.14 g/t gold

• 1 metre at 1.80 g/t gold (end of hole)

Integra entered into a collaborative

research project with the CSIRO to develop

gold exploration targets in the aldiss

Project in 2008. The project identified a

10 kilometre long major shear and fluid

conduit active during the major gold

event in the region which had very sparse

previous exploration. During 2010, Integra

drilled 1,194 reconnaissance aircore drill

holes on notional 320 metre spaced lines

with 80 metre spaced drill collars. Despite

the complex regolith cover and very wide

spacing of the reconnaissance aircore

drill programme, the number and tenor

of anomalous gold results is particularly

encouraging. Roughly 10% of the holes

drilled returned an anomalous result of 0.1

g/t gold or greater (Figure 9).

Towards the end of the year, aircore

drilling recommenced in the aldiss SIRO

area to follow-up the priority 1 anomalies.

Subsequent to the completion of follow-up

aircore drilling of priority 1 anomalies,

RC drilling of selected targets will be

conducted.

Page 19

Figure 9: SIro target aircore drilling gold anomalies.


Review of Operations

agreeMentS

erayinia Farm-In

Integra entered into the erayinia Farm-

In agreement with Image Resources NL

(Image) for two tenements adjacent to

the aldiss Project. Integra has the right

to earn a 70% interest in the tenements

by exploration expenditure of $750,000

over a five-year period with a minimum

expenditure of $250,000 in the first year.

Integra manages field activities. Once

Integra has earned a 70% interest in the

tenements, Image may elect to contribute

pro-rata to further expenditure to maintain

a 30% interest or may elect to dilute their

interest by an agreed formula. Should

either Party’s interest in the tenements

reduce below 5%, they will automatically

be reverted to an NSR royalty of 2%.

Integra MInIng 2011 aNNUaL RePORT / Page 20

Queen Lapage Joint venture

Integra entered into an earn-in and

joint venture agreement with Rubicon

Resources Limited (Rubicon) on Rubicon’s

Queen Lapage project area. The Queen

Lapage Joint Venture (QLJV) comprises

approximately 113 km 2 of Rubicon

tenements, located approximately 50 km

north of the Salt Creek mining operation

(Figure 10). Under the terms of the

agreement, Integra may spend $1 million

over three years to earn a 51% interest

in the tenements. at Rubicon’s election to

either contribute pro-rata to expenditure or,

if not, Integra may then earn a further 19%

interest by the additional expenditure of

$1 million over a further two years. Integra

will spend a minimum $335,000 (including

$150,000 on direct drilling costs) within

twelve months before it may elect to

withdraw.

50km

The QLJV tenements are located at the

northern end of the Yindarlgooda Dome,

the dominant regional geologic structure in

proximity to which Integra’s existing tenure

and operations are located. In particular,

the JV tenements include a number of

drill holes containing results which, while

derived from early stage RaB drilling, the

Company considers potentially significant.

400 000mE 420 000mE 440 000mE 460 000mE 480 000mE

Granites

Greenstones

Figure 10: Queen Lapage Jv location plan.

20km

PROJECTS

Integra - 100%

Cowarna JV (Alacer)

Peters Dam JV (Rubicon)

Mt. Monger (Newcrest)

Glandore JV (Alacer)

Erayinia JV (Image)

Queen Lapage JV (Rubicon)

6 610 000mN

6 590 000mN

6 570 000mN

6 550 000mN

6 530 000mN


Review of Operations

Figure 11: Latitude Hill Jv location plan.

Latitude Hill Joint venture

Integra, through its wholly owned

subsidiary PayLODe Pty Ltd, entered into

a joint venture agreement with anglo

american exploration (australia) Pty Ltd

(anglo american) in respect of the Latitude

Hill tenement (e69/2687). The Latitude

Hill tenement is located in the Musgrave

geological province in Western australia

on the border with South australia (Figure

11), and is prospective for nickel-copperplatinum

group metal sulphide deposits.

Under the terms of the agreement, anglo

american may spend a$750,000 in order to

earn a 51% equity share in the tenement

within a three year period. Having earned

a 51% equity share, anglo american may

elect to earn a further 19% (total of 70%),

by spending an additional a$1.5 million

within the subsequent two years. If anglo

american elects not to meet the expenditure

requirements necessary to retain its 51%

share, Integra may re-acquire 100% equity

in the tenure.

anglo american has developed solid

Page 21

experience of exploring in the Musgrave

region over a number of years and

Integra looks forward to working with

anglo american to assess the exploration

potential of this project. Working with local

stakeholders is a priority for the project and

the exploration work programme will be

subject to the granting of required heritage

clearance and access permissions to the

Latitude Hill tenement.


Review of Operations

Corporate

Integra completed a capital raising

with the placement of 83,333,333

shares at 48 cents each to institutions

and sophisticated investor clients of

BBY Limited to raise gross proceeds of

approximately $40 million. Funds raised

from the issue were used for:

• Debt and interest repayment ($20

million)

• Process facility upgrade ($10 million)

• Mineral Resources definition drilling ($5

million)

• Working Capital ($5 million less costs)

The capital raising allowed the early

repayment of $20.1 million of principal and

interest with debt reduced from $45 million

to $26.2 million during the year.

Integra became a cornerstone investor in

Musgrave Minerals Ltd (aSX:MgV) having

vended its South australian tenements into

the company. Musgrave Minerals completed

an IPO in an oversubscribed raising of $20

million.

In November 2010, graeme Beissel

stepped down as Chairman and director.

Richard Maltman assumed the role until a

permanent replacement was appointed. In

June 2011, with shareholder approval, John

Fitzgerald was appointed to the Board as

Non-executive Director and Chairman.

Integra MInIng 2011 aNNUaL RePORT / Page 22

JorC CoMpLIanCe

Information in this Report that relates to

exploration Results, Mineral Resources

and Ore Reserves has been reviewed by

Mr Christopher Cairns, Managing Director,

who has sufficient experience 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 Cairns is

a member of The australasian Institute of

geoscientists and consents to the inclusion

in the report of the matters based on the

information in the form and context in

which it appears.


Integra MInIng 2011 Financials


Report of the Directors

Your Directors submit their report for the year ended 30 June 2011.

dIreCtorS

The Directors in office at the date of this report and at any time during the financial year are as follows. Directors were in office for the

entire year unless otherwise stated.

John Fitzgerald – appointed 27 June 2011

Christopher Cairns

Peter Ironside

Rowan Johnston

graeme Beissel

Richard Maltman

InForMatIon on dIreCtorS

John Fitzgerald

Chairman and Independent non-executive director

Mr John Fitzgerald (49) has over 25 years resource financing experience and has provided project finance and corporate advisory services

to a large number of companies in the resource sector.

He has previously held positions as Head of Investec’s Western australian business, Head of Institutional and Corporate Banking for the

Commonwealth Bank, executive Director of HSBC Precious Metals and Director responsible for NM Rothschild & Sons resource financing

business. Mr Fitzgerald is a Chartered accountant, a Fellow of the Financial Services Institute of australasia and a graduate member of

the australian Institute of Company Directors.

Mr Fitzgerald is the Chairman of Integra’s Remuneration Committee and a member of Integra’s audit and Risk Committee.

Other Current Directorships of Listed Companies

Mungana goldmines Ltd.

Former Directorships of Listed Companies in last three years

Indago Resources Limited.

Christopher Cairns

B.Sc (Hons)

Managing director

Mr Christopher Cairns (48) completed a First Class Honours degree in economic geology from the University of Canberra in 1992. Mr

Cairns joined BHP Minerals in 1993 working in Queensland before transferring to the Philippines in 1995. In 1997, he joined aurora

gold’s Mt Muro operation in Borneo as exploration Manager and in 2000 he moved to LionOre for the Thunderbox gold Mine drill-out. Mr

Cairns joined Sino gold in late 2001 and was Sino’s geology Manager responsible for the Jinfeng gold Deposit feasibility drillout and

discovered the stratabound gold mineralisation taking the deposit from 1.5Moz to 3.5Moz in 14 months.

Mr Cairns joined Integra in March 2004. Mr Cairns has extensive experience in progressing gold projects from exploration to development.

He has been a Director of Integra Mining Limited since December 2004.

Other Current Directorships of Listed Companies

None.

Former Directorships of Listed Companies in last three years

None.

Integra MInIng 2011 aNNUaL RePORT / Page 24


Report of the Directors

INFORMaTION ON DIReCTORS – continued

peter Ironside

B.Com, Ca

director and Company Secretary

Mr Peter Ironside (56) is a Chartered accountant and business consultant with over 25 years experience in the exploration and mining

industry. He has been a Director and/or Company Secretary of several aSX listed companies. Mr Ironside brings a significant level of

accounting, compliance and corporate governance experience to the Board, together with support in the areas of corporate initiatives and

capital raisings. Mr Ironside has been a Director of Integra Mining Limited since 21 December 2000.

Other Current Directorships of Listed Companies

atticus Resources Limited (since 5 april 2007).

Former Directorships of Listed Companies in last three years

None.

robert (rowan) Johnston

B.Sc Mining engineering

director

Mr Rowan Johnston (48) is a West australian School of Mines graduate, majoring in Mining engineering. He commenced his professional

career in Kambalda and has since worked for consultants, contractors and owners in France, Indonesia and throughout australia over the

last 30 years.

He joined Integra Mining nearly 4 years ago in October 2007, where his significant experience in operations, project start ups and

feasibility studies in gold mining projects, particularly his recent experience, is of direct relevance to Integra’s continued development

target at the Company’s aldiss-Randalls gold Project. Mr Johnston is responsible for Operations and Resource Development and was an

integral part of the Company’s recent transition to producer.

Mr Johnston’s more recent experiences include general Manager for Fox Resources at Radio Hill in Karratha, Principal Mining engineer for

SRK consulting in charge of Due Diligence and Feasibility Studies, and Project Manager for Westonia Mines. He holds a first class mine

managers certificate recognised in australia, Indonesia and France.

Mr Johnston is a member of Integra’s audit and Risk Committee.

Other Current Directorships of Listed Companies

None.

Former Directorships of Listed Companies in last three years

None.

graeme Beissel

Independent non-executive director

Mr graeme Beissel (69) holds a Master of engineering Science and Bachelor of Civil engineering from the University of Melbourne and

has over 46 years mining, civil engineering, project management and corporate experience, having held board and management positions

in mining and civil engineering companies, both in australia and overseas. He is a former Managing Director of Macmahon Holdings

Limited (1992 to 1999) and executive Director of Concrete Constructions group Limited (1980 to 1989). Mr Beissel is a Fellow of the

australian Institute of Company Directors. He has been a director of Integra Mining Limited since May 2006.

Mr Beissel is a member of Integra’s Remuneration Committee and audit and Risk Committee.

Page 25


Report of the Directors

INFORMaTION ON DIReCTORS – continued

Other Current Directorships of Listed Companies

None.

Former Directorships of Listed Companies in last three years

essa australia Limited.

richard Maltman

LLB (Hons) B.Com

Independent non-executive director

Mr Richard Maltman (45) is a lawyer and practises primarily in the area of mining, resources and energy. as a lawyer he has acted for a

broad range of mining clients, from junior explorers to major resources companies as well as many companies operating in downstream

industries, mining services and resources project construction.

He also provides advice in relation to corporate and commercial legal matters, including mergers and acquisitions, capital raisings and

aSX and Corporations act compliance.

Mr Maltman worked in the mining industry prior to undertaking his legal studies. He has also lectured in accounting and Finance at the

University of Western australia and in Business Law at James Cook University in Queensland. Mr Maltman is a graduate of the australian

Institute of Company Directors.

Mr Maltman is a member of Integra’s Remuneration Committee and Chairman of Integra’s audit and Risk Committee.

Other Current Directorships of Listed Companies

None.

Former Directorships of Listed Companies in last three years

None.

MeetIngS oF tHe CoMpany’S dIreCtorS

The number of meetings of the Company’s Directors and of each board committee held during the year ended 30 June 2011, and the

number of meetings attended by each Director were:

Board of directors audit & risk committee remuneration committee

Maximum

Maximum

Maximum

attended possible attended possible attended possible

John Fitzgerald 1 1 - - 1 1

Christopher Cairns 8 8 * * 5 5

Peter Ironside 8 8 * * * *

Rowan Johnston 8 8 2 2 * *

graeme Beissel 7 8 2 2 4 5

Richard Maltman 8 8 2 2 5 5

* Not a member of the relevant committee

Integra MInIng 2011 aNNUaL RePORT / Page 26


Report of the Directors

dIreCtorS’ SHareHoLdIng IntereStS

The interest of each Director in the share capital of the Company at the date of this report is as follows:

Page 27

Fully paid ordinary Shares options/performance rights

direct

Interest

Indirect

Interest

direct

Interest

Indirect

Interest

details of options/performance rights

John Fitzgerald - - - 1,500,000 500,000 exercisable at 58c on or before 15

June 2013

500,000 exercisable at 62c on or before 15

June 2014

500,000 exercisable ast 62c on or before 15

June 2015.

Christopher Cairns - 1,867,876 - 4,000,000 1,000,000 exercisable at 30c

1,000,000 exercisable at 35c

1,000,000 exercisable at 40c

1,000,000 exercisable at 45c

all exercisable on or before 31 December 2013.

Peter Ironside - 3,261,503 - 3,000,000 750,000 exercisable at 30c

750,000 exercisable at 35c

750,000 exercisable at 40c

750,000 exercisable at 45c

all exercisable on or before 31 December 2013.

Rowan Johnston - 40,000 - 2,000,000 1,000,000 exercisable at 20c on or before

31 December 2011

1,000,000 exercisable at 35c on or before

31 December 2012

graeme Beissel - 2,220,882 - 3,000,000 1,000,000 exercisable at 40c

1,000,000 exercisable at 45c

1,000,000 exercisable at 50c

all exercisable on or before 31 December 2013.

Richard Maltman - - - 50,000 No exercise price for these performance rights.

Rights exercisable on 1 November 2011.

Corporate InForMatIon

Corporate Structure

Integra Mining Limited (Integra) is a company limited by shares that is incorporated and domiciled in australia. Integra has prepared a

consolidated financial report incorporating the entities that it controlled during the financial year as follows:

Integra Mining Limited - parent entity

PayLODe Pty Ltd - 100% owned subsidiary

LODed Pty Ltd - 100% owned subsidiary

BackLODe Pty Ltd - 100% owned subsidiary

nature of operations and principal activities

The principal activities of the group during the financial period were exploration of gold, nickel, copper, zinc sulphides, platinum group

elements and uranium. During the year, the group became a gold producer with operations commencing at the Company’s Randalls gold

Project.


Report of the Directors

CORPORaTe INFORMaTION – continued

review of operations

Refer to the Review of Operations preceding this Report of the Directors.

earnings per Share

Basic earnings Per Share was a profit of 2.45 cents (2010: loss of 3.3 cents).

dividends

No dividend has been paid or declared by the Company up to the date of this report. The Directors do not recommend that any amount be

paid by way of dividend.

Financial review

The group reported a profit for the year of $19,211,000 (2010: loss of $21,239,000). This was the first year of operations for Integra, with

commercial production from 1 March 2011.

Revenue from gold sales for the 4 months of production was $39,895,000. The gross profit from operations for this period was $15,957,000.

The net assets of the group have increased by $59,891,000 from 30 June 2010 to $165,077,000 in 2011. The group’s working capital,

being current assets less current liabilities, was $38,924,000 in 2011 compared to $5,833,000 in 2010.

Significant financial activities were as follows::

• Proceeds from share issues raising $38,900,000 after expenses;

• Writedown of exploration expenditure of $2,994,000;

• Borrowings of $30,000,000 and repayment of borrowings of $18,800,000; and

• Unrealised gains on gold forwards of $11,705,000.

In addition, Integra continued to invest significantly in exploration with expenditure of $18,929,000 for the year. The Company will

continue its policy of adding to its resource base. The Directors believe the Company is in a strong and stable position to expand and

grow its current operations.

SIgnIFICant CHangeS In State oF aFFaIrS

Significant changes in the state of affairs of the group during the financial year are detailed in the financial review in this report.

Future deveLopMentS, proSpeCtS and BuSIneSS StrategIeS

Refer to the Review of Operations preceding this Report of the Directors.

MatterS SuBSeQuent to tHe end oF tHe FInanCIaL year

There are no matters or circumstances that have arisen since 30 June 2011 that have or may significantly affect the operations, results,

or state of affairs of the group in future financial years.

envIronMentaL reguLatIon and perForManCe

The Company holds licences and abides by acts and Regulations issued by the relevant mining and environmental protection authorities.

The Company has a policy of at least complying with, but in most cases exceeding, its statutory environmental performance obligations.

These licences, acts and Regulations specify limits and regulate the management of various environmental management issues,

including discharges to the air, surface water and groundwater associated with the Company’s mining operations as well as the storage

and use of hazardous materials.

all environmental performance obligations are monitored by the Board and subjected from time to time to government agency audits and

site inspections. No environmental breaches have occurred or have been notified by any government agencies during the year ended 30

June 2011.

Integra MInIng 2011 aNNUaL RePORT / Page 28


Report of the Directors

optIonS and perForManCe rIgHtS

Options and Performance Rights at the date of this report are as follows:

Page 29

number Issue price of Shares expiry date

Unlisted Options 2,500,000 20¢ 31 December 2011

Unlisted Options 500,000 25¢ 31 December 2012

Unlisted Options 3,450,000 35¢ 31 December 2012

Unlisted Options 500,000 58¢ 15 June 2013

Unlisted Options 1,750,000 30¢ 31 December 2013

Unlisted Options 1,750,000 35¢ 31 December 2013

Unlisted Options 1,750,000 40¢ 31 December 2013

Unlisted Options 1,750,000 45¢ 31 December 2013

Unlisted Options 1,000,000 40¢ 31 December 2013

Unlisted Options 1,000,000 45¢ 31 December 2013

Unlisted Options 1,000,000 50¢ 31 December 2013

Unlisted Options 500,000 62¢ 15 June 2014

Unlisted Options 500,000 62¢ 15 June 2015

17,950,000

Performance Rights 50,000 Nil 1 November 2011

Performance Rights 1,500,000 76¢ 17 November 2012

Performance Rights 1,000,000 63¢ 31 March 2013

2,550,000

During the financial year, 2,400,000 options were exercised by employees at an average weighted exercise price of 37.8 cents.

reMuneratIon report (audIted)

This remuneration report outlines the remuneration arrangements of the Company and the group in accordance with the requirements of

the Corporations act 2001 (the act) and its regulations. This information has been audited as required by section 308(3C) of the act.

For the purposes of this report key management personnel are defined as those persons having authority and responsibility for planning,

directing and controlling the major activities of the group, directly or indirectly, including any Director (whether executive or otherwise) of

the parent company, and includes executives in the Company and group receiving the highest remuneration.

For the purposes of this report the term “executive” includes those key management personnel who are not directors.

details of Key Management personnel (including the five highest paid executives of the Company and the group)

directors

John Fitzgerald – Chairman (from 27 June 2011)

Christopher Cairns – Managing Director

Peter Ironside – Director (and Company Secretary)

Rowan Johnston – Director Operations

graeme Beissel – Non-executive Director

Richard Maltman – Non-executive Director

other Key Management personnel

graham Younge – general Manager Operations

Terence Brown – general Manager Projects

Marcus Willson – general Manager exploration (from 1 February 2011)


Report of the Directors

ReMUNeRaTION RePORT (aUDITeD) – continued

a. reMuneratIon governanCe

Board oversight

The Board is responsible for ensuring that the group’s remuneration structures are aligned with the long-term interests of Integra and its

shareholders.

accordingly the Board established a Remuneration Committee in June 2010 to assist in making decisions affecting key management

personnel remuneration.

remuneration Committee

The Remuneration Committee (as from 1 July 2011) comprises three independent non-executive directors. In order to ensure that this

committee is fully informed when making remuneration decisions, the committee receives reports from executive directors (who the

committee invites to attend meetings as and when appropriate), and can draw on services from a range of external sources if required.

Integra’s Remuneration Committee is responsible for setting the remuneration policies and reviewing and recommending the total

remuneration for directors and the executive management team (key management personnel). Non-executive remuneration reviews are

undertaken by the Board.

executive remuneration is reviewed annually having regard to individual and business performance, relevant comparative information

and internal and independent external information.

The remuneration review undertaken during the 2011 year completed a comprehensive review of the performance and remuneration

of all executive key management personnel. The committee reviewed industry data from the april 2011 australasian gold & general

Mining Industry Remuneration Report by McDonald & Company (australasia) Pty Ltd. In addition the Managing Director presented the

performance reviews undertaken on each executive key management personnel.

The Remuneration Committee also met in May 2011 to discuss the proposed remuneration of Integra’s Chairman. Mr John Fitzgerald

gave his written consent to be appointed as a director of the Company, conditional upon shareholders approving the options to be

granted. The number of options issued and their respective exercise prices were considered by the Remuneration Committee to be at the

appropriate level to attract and retain a proposed director and chairman of Mr Fitzgerald’s qualifications and experience. The options’

exercise price was set at a premium to the share price at date of issue. Shareholders approved these options at the Company’s general

meeting held on 27 June 2011.

B. prInCIpLeS uSed to deterMIne tHe nature and aMount oF reMuneratIon

remuneration philosophy

The performance of the Company depends upon the quality of its Directors and executives. To prosper, the Company must attract,

motivate and retain highly skilled Directors and executives.

To this end, the Company embodies the following principles in its remuneration framework:

• provide competitive rewards to attract high calibre executives;

• link executive rewards to shareholder value; and

• establish appropriate performance hurdles in relation to variable executive remuneration.

remuneration Structure

In accordance with best practice corporate governance, the structure of Non-executive Director and executive management remuneration

is separate and distinct.

Integra MInIng 2011 aNNUaL RePORT / Page 30


Report of the Directors

ReMUNeRaTION RePORT (aUDITeD) – continued

B. PRINCIPLeS USeD TO DeTeRMINe THe NaTURe aND aMOUNT OF ReMUNeRaTION – continued

non-executive director remuneration

objective

The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and retain Directors of

the highest calibre, whilst incurring a cost which is acceptable to shareholders.

Structure

Non-executive Directors’ fees are paid within an aggregate limit (currently $350,000 per annum) which is approved by the shareholders

from time to time. Retirement payments, if any, are agreed to be determined in accordance with the rules set out in the Corporations

act as at the time of the Director’s retirement or termination. Non-executive Directors’ remuneration may include an incentive portion

consisting of bonuses and/or equity based remuneration, as considered appropriate by the Board, which may be subject to shareholder

approval in accordance with aSX listing rules. any option incentive portion is targeted to add to shareholder value by having a strike

price considerably greater than the market price at the time of granting. Performance rights granted include an appropriate retention

incentive.

The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst

Directors is reviewed annually. The Board considers the amount of Director fees being paid by comparable companies with similar

responsibilities and the experience of the Non-executive Directors when undertaking the annual review process.

executive director and Senior executive remuneration

objective

The Company aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within

the Company and so as to:

• reward executives for company, and individual performance;

• ensure continued availability of experienced and effective management; and

• ensure total remuneration is competitive by market standards.

Structure

In reviewing the level and make-up of executive total remuneration, the Remuneration Committee ensures remuneration reflects the

market salary for a position and individual of comparable responsibility and experience. Remuneration is compared with the external

market by participation in industry salary surveys and during recruitment activities generally. If required, the Remuneration Committee

may engage an external consultant to provide independent advice in the form of a written report detailing market levels of remuneration

for comparable executive roles.

Total remuneration consists of a fixed remuneration and short term and long term incentive portions (equity based remuneration and/or

bonuses) as considered appropriate.

Fixed remuneration - objective

The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate to the position and is

competitive in the market. Fixed remuneration is reviewed annually and the process consists of a review of Company and individual

performance, and relevant comparative remuneration in the market.

Fixed remuneration - Structure

The fixed remuneration is a base salary or monthly consulting fee.

Page 31


Report of the Directors

ReMUNeRaTION RePORT (aUDITeD) – continued

B. PRINCIPLeS USeD TO DeTeRMINe THe NaTURe aND aMOUNT OF ReMUNeRaTION – continued

variable pay — Short term and Long term Incentives - objective

The objective of long term incentives is to reward executives in a manner which aligns this element of remuneration with the creation of

shareholder wealth.

variable pay — Long term Incentives – Structure

Long term incentives granted to executives are in the form of share based remuneration, eg options or performance shares. These

incentives granted are aimed to motivate executives to pursue the long term growth and success of the Company within an appropriate

control framework and demonstrate a clear relationship between key executive performance and remuneration. executive Director options

are granted at the discretion of the Board, as recommended by the Remuneration Committee, and approved by shareholders. The

executive Management Team are granted options/performance rights under Integra’s employee incentive scheme as recommended by

the Remuneration Committee. Performance hurdles are not attached to vesting periods, however there is a real risk of forfeiture until

the exercise conditions (vesting periods) are satisfied. The Remuneration Committee determines appropriate vesting periods to provide

rewards over a period of time to the recipients.

Bonus plan

as part of the executive remuneration package, bonuses may be granted based on the achievement of agreed milestones set by the

Remuneration Committee. The intention of this program is to facilitate goal congruence between executives with that of the Company’s

business and shareholders. The milestones are set with a certain level of consultation with executives to ensure buy-in. The measures

are specifically tailored to the areas each executive is involved in and has a level of control over. The milestones target areas covering

financial and non-financial as well as short and long-term goals. The level set for each milestone is based on budgeted figures for the

Company and respective industry standards.

Performance in relation to the milestones is assessed annually, with bonuses being awarded depending on the milestones achieved.

Following the assessment, the milestones are reviewed by the Remuneration Committee in light of the desired and actual outcomes, and

their efficiency is assessed in relation to the Company’s goals and shareholder wealth, before the milestones are set for the following year.

Bonuses may also be granted at the discretion of the Board and Remuneration Committee to reward performance.

Bonuses for the year ended 30 June 2011

During the year, Integra’s Remuneration Committee established a target pool of 30% of base salary as the maximum bonus payable

to executive directors based on performance of selected variables. The Remuneration Committee met in June 2011 to review the

performance of executive directors and determine the amount of bonuses to be paid for performance and the following bonuses were

approved:

Chris Cairns – performance bonus equivalent to 22.0% of base salary out of a maximum of 30%;

Peter Ironside – performance bonus equivalent to 22.2% of base salary out of a maximum of 30%; and

Rowan Johnston - performance bonus equivalent to 22.8% of base salary out of a maximum of 30%.

Details of the selected variables are described below.

Integra MInIng 2011 aNNUaL RePORT / Page 32


Report of the Directors

ReMUNeRaTION RePORT (aUDITeD) – continued

B. PRINCIPLeS USeD TO DeTeRMINe THe NaTURe aND aMOUNT OF ReMUNeRaTION – continued

Chris Cairns:

Remuneration for Mr Cairns included the following bonuses for 2010/2011 year:

Milestone Bonuses established in 2005 employment contract:

Milestone bonus payable after the first drawdown under any funding agreement entered into between the group and a

$

financing party in respect of the project financing of gold production from the group’s tenements east of Kalgoorlie.

Milestone bonus payable within 30 days of the group pouring first gold from production at the group’s tenements east

75,000

of Kalgoorlie.

Bonus for performance:

Integra’s remuneration committee approved a bonus for performance after considering the following variables:

100,000

- Corporate governance and external relations

- Safety

- Production

- Cash costs 110,000

285,000

The milestone bonuses for Mr Cairns were established in his 2005 employment contract, whilst Integra was an exploration company and

the Salt Creek discovery had not been made. These milestones were established as a reward to transform the Company into a producer

in the future. Mr Cairns successfully achieved these milestones.

Mr Cairns contract was amended in 2007 to also provide for milestone bonus payments payable at $0.50 per newly discovered Ore Reserve

ounce identified outside of current resource areas. This bonus is payable within 30 days of ounces being reported to aSX in compliance

with the JORC Code. In July 2011, Integra announced a 94% increase in Ore Reserves to 480,000 ounces. The milestone bonus payable

to Mr Cairns for the Majestic discovery will be made during the 2011/2012 year.

peter Ironside:

Remuneration for Mr Ironside included the following bonuses for 2010/2011 year:

Milestone Bonus established in 2007 contract:

Milestone bonus payable within 30 days of the group pouring first gold from production at the group’s tenements east

$

of Kalgoorlie.

Bonus for performance:

Integra’s remuneration committee approved a bonus for performance after considering the following variables:

50,000

- Corporate governance and external relations

- audit compliance

- Bank compliance 80,000

Page 33

130,000

The milestone bonus for Mr Ironside was established in his 2007 contract, whilst Integra was an exploration company. This milestone

was established as a reward to transform the Company into a producer in the future. Mr Ironside successfully achieved this milestone.


Report of the Directors

ReMUNeRaTION RePORT (aUDITeD) – continued

B. PRINCIPLeS USeD TO DeTeRMINe THe NaTURe aND aMOUNT OF ReMUNeRaTION – continued

rowan Johnston:

Remuneration for Mr Johnston included the following bonuses for 2010/2011 year:

Milestone Bonuses established in 2007 employment contract:

Milestone bonus payable within 30 days of the group pouring first gold from production at the group’s tenements east

$

of Kalgoorlie.

Bonus for performance:

Integra’s remuneration committee approved a bonus for performance after considering the following variables:

100,000

- Safety

- Production

- Cash costs 80,000

Integra MInIng 2011 aNNUaL RePORT / Page 34

180,000

The milestone bonus for Mr Johnston was established in his original 2007 contract, six months after Integra’s Salt Creek discovery. This

milestone was established as a reward to transform the Company into a producer in the future. Mr Johnston successfully achieved this

milestone.

graeme Beissel:

Remuneration for Mr Beissel included the following bonus for 2010/2011 year: $

Milestone Bonus established in 2006 contract:

Milestone bonus payable within 30 days of the group pouring first gold from production at the group’s tenements east

of Kalgoorlie.

35,000

The milestone bonus for Mr Beissel was established in his original 2006 contract, whilst Integra was an exploration company and the Salt

Creek discovery had not been made. This milestone was established as a reward to transform the Company into a producer in the future.

Mr Beissel successfully achieved this milestone.

other Key Management personnel:

Remuneration for Mr Younge, Mr Brown and Mr Willson included bonuses approved by Integra’s Remuneration Committee for performance

during the financial year.

C. ServICe agreeMentS

On appointment to the Board, all non-executive directors enter into a service agreement with the Company in the form of a letter of

appointment. The letter summarises the Board policies and terms, including compensation, relevant to the office of director.

Remuneration and other terms of employment for the executive directors and the other key management personnel are also formalised

in service agreements. each of these agreements provide for the provision of performance related cash bonuses, director options and

participation, when eligible, in the Integra Mining Limited Performance Rights Plan. Other major provisions of the agreements relating to

remuneration are set out below.


Report of the Directors

ReMUNeRaTION RePORT (aUDITeD) – continued

C. SeRVICe agReeMeNTS – continued

name term of agreement

John Fitzgerald – Non-executive Chairman Required to retire at the third annual

general meeting after election.

Page 35

Base salary

including super

(at 30/6/11) termination benefit

$98,100 None

Christopher Cairns – Managing Director Until 31 December 2013 $500,000 12 months

Peter Ironside – Company Secretary Until 31 December 2013 $360,000 3 months

Rowan Johnston – Director Operations Until 31 December 2013 $375,000 12 months

Richard Maltman – Non-executive Director Required to retire at the third annual

general meeting after election.

$65,400 None

graeme Beissel – Non-executive Director Initial term of 2 years commencing 1 July

2009.

$60,000 None

graham Younge – general Manager Operations Commencing 2 December 2009 $299,750 3 months plus 2

weeks for every year

thereafter

Terence Brown – general Manager Projects Commencing 10 May 2010 $272,500 3 months

Marcus Willson – general Manager exploration Commencing 1 February 2011 $300,000 6 months


Report of the Directors

ReMUNeRaTION RePORT (aUDITeD) – continued

d. detaILS oF reMuneratIon

Integra MInIng 2011 aNNUaL RePORT / Page 36

Short term Benefits

Salary /

consulting fees Cash bonus

year $

$

directors

J Fitzgerald 2011 - -

2010 - -

C Cairns 2011 488,600 285,000

2010 368,076 162,000

P Ironside 2011 360,000 130,000

2010 240,000 62,500

R Johnston 2011 350,000 180,000

2010 249,999 100,000

R Maltman 2011 - -

2010 - -

g Beissel 2011 70,842 35,000

2010 - 43,000

other Key Management personnel

g Younge 2011 275,000 100,000

2010 151,602 -

T Brown 2011 245,673 70,000

2010 36,730 -

M Willson 2011 118,663 20,000

2010 - -

g Wilson 2011 - -

2010 199,950 -

Total 2011 1,908,778 820,000

2010 1,246,357 367,500

directors fees

$

1,038

-

-

-

-

-

-

-

79,250

35,000

-

77,500

-

-

-

-

-

-

-

-

80,288

112,500

post employment

Super-

annuation

$

-

-

18,769

33,127

-

-

23,123

22,500

7,133

3,150

-

5,625

24,750

13,644

22,111

3,306

6,335

-

-

-

102,221

81,352

Benefits

other

$

-

-

6,313

5,660

-

-

5,780

-

-

-

-

-

-

-

3,000

-

-

-

-

-

15,093

5,660

Share Based

payments

options/

performance

rights

$

328

-

99,204

216,008

74,403

162,006

-

181,352

19,216

-

193,213

206,959

99,238

22,500

98,203

-

31,007

-

-

130,314

614,812

919,139

total

$

1,366

-

897,886

784,871

564,403

464,506

558,903

553,851

105,599

38,150

299,055

333,084

498,988

187,746

438,987

40,036

176,005

-

-

330,264

3,541,192

2,732,508

remuneration remuneration

consisting of

options during

the year

%

24.0%

-

11.0%

27.5%

13.2%

34.9%

-

32.7%

18.2%

-

64.6%

62.1%

19.9%

11.9%

22.4%

-

17.6%

-

-

39.4%

related to

performance

during the year

%

-

-

31.7%

20.6%

23.0%

13.5%

32.2%

18.1%

-

-

11.7%

12.9%

Performance hurdles are not attached to remuneration options / performance rights, however the Board determines appropriate vesting

periods to provide rewards over a period of time to key management personnel.

20.0%

-

15.6%

-

11.4%

-

-

-


Report of the Directors

ReMUNeRaTION RePORT (aUDITeD) – continued

e. SHare-BaSed CoMpenSatIon

The following options and performance rights were granted as equity compensation benefits to key management personnel. These options

and performance rights were issued free of charge. each option and performance right entitles the holder to subscribe for one fully paid

ordinary share in the Company at various exercise prices with various expiry dates.

terms and Conditions of each grant

exercise First Last

granted grant value each price exercise exercise

2011

directors

number date at grant date $ $ date date total value $

John Fitzgerald 500,000 30/06/11 0.125 0.58 1/01/13 15/06/13 62,500

John Fitzgerald 500,000 30/06/11 0.156 0.62 1/07/13 15/06/14 78,000

John Fitzgerald 500,000 30/06/11 0.189 0.62 1/01/14 15/06/15 94,500

Richard Maltman 50,000 18/11/10 0.585 nil 1/11/11 n/a 29,250

1,550,000 264,250

other Key Management personnel

graham Younge 500,000 18/11/10 0.114 0.76 18/11/11 17/11/12 57,000

graham Younge 50,000 17/02/11 0.715 nil 1/07/11 n/a 35,750

Terence Brown 1,000,000 18/11/10 0.114 0.76 18/11/11 17/11/12 114,000

Terence Brown 45,455 17/02/11 0.610 nil 1/07/11 n/a 27,728

Marcus Willson 1,000,000 31/03/11 0.124 0.63 31/03/12 30/03/13 124,000

2,595,455 358,478

totaL 4,145,455 622,728

None of the above options or performance rights vested during the year, were exercised, forfeited or lapsed.

The assessed fair values of the options and performance rights with an exercise price were determined using a Black-Scholes option

pricing model, taking into account the exercise price, term of option/right, the share price at grant date and expected price volatility of the

underlying share, expected dividend yield and the risk-free interest rate for the term of the option/right. The assessed fair values of the

performance rights with no exercise price were determined based on the share price at the date of acceptance of the performance rights.

Shares issued on exercise of options and performance rights

No director or other key management personnel of the group exercised options or performance rights during the year.

this is the end of the audited remuneration report.

IndeMnIFICatIon and InSuranCe oF oFFICerS

The Company has paid a premium to insure the Directors and Officers of the Company and its controlled entities. Details of the premium

are subject to a confidentiality clause under the contract of insurance.

The liabilities insured are costs and expenses that may be incurred in defending civil or criminal proceedings that may be brought

against the officers in their capacity as officers of entities in the group.

audItor IndependenCe

The auditor’s independence declaration for year ended 30 June 2011 under s307C of the Corporations act 2001 has been received and can

be found after the Corporate governance Statement.

Page 37


Report of the Directors

non-audIt ServICeS

The following non-audit services were provided by associated entities of BDO audit (Wa) Pty Ltd. The Directors are satisfied that the

provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations act.

The nature and scope of each type of non-audit service provided means that auditor independence was not compromised.

associated entities of BDO audit (Wa) Pty Ltd received or are due to receive the following amounts for the provision of non-audit services:

Tax compliance services $42,146 - BDO Corporate Tax (Wa) Pty Ltd

Refer to note 23 in the financial statements for details of fees paid / payable to the auditor of the parent entity and its associated

entities.

roundIng

The amounts contained in this report and in the financial statements have been rounded to the nearest $1,000 (where rounding is

applicable) under the option available to the Company under aSIC Class Order 98/0100. The Company is an entity to which the Class

Order applies.

Corporate governanCe

In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Integra Mining Limited

support and adhere to the principles of corporate governance. The Company’s Corporate governance Statement is contained in the

following section of this report.

Signed in accordance with a resolution of the Directors.

Christopher Cairns

Managing Director

Perth, Western australia

6 September 2011

Integra MInIng 2011 aNNUaL RePORT / Page 38


Corporate governance

This statement outlines the main corporate governance practices that were in place for the financial year. These corporate governance

practices comply with the aSX Corporate governance Council recommendations unless otherwise stated.

Board of directors

The Board operates in accordance with the broad principles set out in its charter, which is available from the corporate governance

information section of the Company website at www.integramining.com.au.

role and responsibilities of the Board

The Board is responsible for ensuring that the Company is managed in a manner which protects and enhances the interests of its

shareholders and takes into account the interests of all stakeholders. This includes setting the strategic directions for the company,

establishing goals for management and monitoring the achievement of these goals.

a summary of the key responsibilities of the Board include:

1. Strategy - Providing strategic guidance to the group, including contributing to the development of and approving the corporate

strategy;

2. Financial performance - approving budgets, monitoring management and financial performance;

3. Financial reporting and audits - Monitoring financial performance including approval of the annual and half-year financial reports

and liaison with the external auditors;

4. Leadership selection and performance - appointment, performance assessment and removal of the Managing Director. Ratifying

the appointment and/or removal of other senior management, including the Company Secretary and other Board members;

5. remuneration - Management of the remuneration and reward systems and structures for executive management and staff;

6. risk management - ensuring that appropriate risk management systems and internal controls are in place; and

7. relationships with the exchanges, regulators and continuous disclosure - ensuring that the capital markets are kept informed of

all relevant and material matters and ensuring effective communications with shareholders.

The Board has delegated to management responsibility for:

• Strategies - assisting in developing and implementing corporate strategies and making recommendations where necessary;

• Leadership selection and performance - appointing management where applicable and setting terms of appointment and evaluating

performance;

• Budgets - Developing the annual budget and managing day-to-day operations within budget;

• Risk Management - Maintaining risk management frameworks; and

• Communication - Keeping the Board and market informed of material events.

Composition of the Board

The names, skills, experiences and period of office of the Directors of the Company in office at the date of this Statement are set out in

the Report of the Directors.

The composition of the Board is determined using the following principles:

• Persons nominated as Non-executive Directors shall be expected to have qualifications, experience and expertise of benefit to the

Company and to bring an independent view to the Board’s deliberations. Persons nominated as executive Directors must be of

sufficient stature and security of employment to express independent views on any matter.

• The Chairperson should ideally be independent, but in any case be Non-executive and be elected by the Board based on his/her

suitability for the position.

• The roles of Chairperson and Managing Director should not be held by the same individual.

• all Non-executive Directors are expected voluntarily to review their membership of the Board from time-to-time taking into account

length of service, age, qualifications and expertise relevant to the Company’s then current policy and programme, together with the

Page 39


Corporate governance

other criteria considered desirable for composition of a balanced board and the overall interests of the Company.

• The Company considers that the Board should have at least three Directors (minimum required under the Company’s Constitution) and

have a majority of independent Directors but acknowledges that this may not be possible at all times due to the size of the Company.

Currently the Board has six Directors, of which three are independent (Mr John Fitzgerald, Mr graeme Beissel and Mr Richard

Maltman). The number of Directors is maintained at a level which will enable effective spreading of workload and efficient decision

making.

The Board has accepted the following definition of an independent Director:

“an independent Director is a Director who is not a member of management (a Non-executive Director) and who:

• is not a substantial shareholder of the Company or an officer of, or otherwise associated, directly or indirectly, with a substantial

shareholder of the Company;

• has not within the last three years been employed in an executive capacity by the Company or another group member, or been a

Director after ceasing to hold any such employment;

• is not a principal of a professional adviser to the Company or another group member;

• is not a significant consultant, supplier or customer of the Company or another group member, or an officer of or otherwise associated,

directly or indirectly, with a significant consultant, supplier or customer;

• has no significant contractual relationship with the Company or another group member other than as a Director of the Company;

• has not served on the Board for a period which could, or could reasonably be perceived to, materially interfere with the Director’s

ability to act in the best interests of the Company; and

• is free from any interest and any business or other relationship which could, or could reasonably be perceived to, materially interfere

with the Director’s ability to act in the best interests of the Company.”

Integra considers a significant consultant, supplier or customer to be material if the total of their annual invoices amounts to more than

5% of the Company’s total expenditure in that category.

Independent professional advice and access to Company Information

each Director has the right of access to all relevant Company information and to the Company’s executives and, subject to prior

consultation with the Chairperson, may seek independent professional advice at the Company’s expense. a copy of advice received by the

Director is made available to all other members of the Board.

nomination Committee / appointment of new directors

Because of the size of the Company and the size of the Board, the Directors do not believe it is appropriate to establish a separate

Nomination Committee. The Board has taken a view that the full Board will hold special meetings or sessions as required. The Board are

confident that this process for selection and review is stringent and full details of all Directors are provided to shareholders in the annual

report and on the web.

The composition of the Board is reviewed on an annual basis to ensure the Board has the appropriate mix of expertise and experience.

Where a vacancy exists, through whatever cause, or where it is considered that the Board would benefit from the services of a new

Director with particular skills, the Board determines the selection criteria for the position based on the skills deemed necessary for the

Board to best carry out its responsibilities and then appoints the most suitable candidate who must stand for election at the next general

meeting of shareholders.

term of office

Under the Company’s Constitution, the minimum number of Directors is three. at each annual general Meeting, one third of the Directors

(excluding the Managing Director) must resign, with Directors resigning by rotation based on the date of their appointment. Directors

resigning by rotation may offer themselves for re-election.

Integra MInIng 2011 aNNUaL RePORT / Page 40


Corporate governance

performance of directors and Managing director

The Remuneration Committee meets once a year with the specific purpose of conducting a review of the executive Directors and Company

Secretary’s performance. This review includes:

1. Measuring the contribution and performance of each executive Director; and

2. assessing any education requirements or opportunities.

The annual review of non-executive directors is undertaken by the Board.

Those Directors being reviewed are asked to leave the meeting during the review process.

The reviews were undertaken during the year ended 30 June 2011.

performance of Senior executives

The Remuneration Committee meets at least annually to discuss the reviews performed by the Managing Director of the performance of

senior executives, considerations include the following:

1. The performance of the senior executive in supplying the Board with information in a form, timeframe and quality that enables the

Board to effectively discharge its duties;

2. Feedback from other senior executives; and

3. any particular concerns regarding the senior executive.

a review was undertaken during the year ended 30 June 2011.

diversity

effective from 1 July 2011, Integra has established a Diversity Policy in accordance with the updated recommendations of the aSX

Corporate governance Principles and Recommendations.

Integra recognises its talented and diverse workforce as a key competitive advantage, and is committed to workplace diversity. Diversity

includes, but is not limited to, gender, age, ethnicity and cultural background.

The Diversity Policy defines the initiatives which assist Integra with maintaining and improving the diversity of its workforce.

Conflict of Interest

In accordance with the Corporations act 2001 and the Company’s constitution, Directors must keep the Board advised, on an ongoing

basis, of any interest that could potentially conflict with those of the Company. Where the Board believes a significant conflict exists,

the Director concerned does not receive the relevant Board papers and is not present at the Board meeting whilst the item is considered.

Details of Directors related entity transactions with the Company and group are set out in the related parties note in the financial

statements.

Code of Conduct

The Company has developed a Code of Conduct (the Code) which has been fully endorsed by the Board and applies to all directors

and employees. The Code is regularly reviewed and updated as necessary to ensure it reflects the highest standards of behaviour and

professionalism and the practices necessary to maintain confidence in the Company’s integrity.

The Code of Conduct embraces the values of:

• Integrity

• excellence

• Commercial Discipline

The Board encourages all stakeholders to report unlawful/unethical behaviour and actively promotes ethical behaviour and protection for

those who report potential violations in good faith.

Page 41


Corporate governance

audit and risk Committee

The audit and Risk Committee consists of the following directors:

• Mr Richard Maltman (non-executive director). Chairman of the Committee.

• Mr John Fitzgerald (non-executive director). appointed 27 June 2011.

• Mr graeme Beissel (non-executive director).

• Mr Rowan Johnston (executive director).

Full details of the qualifications of the Committee members can be found in the Report of the Directors.

The Committee held two meetings during the year ended June 2011. Mr Maltman, Mr Johnston and Mr Beissel attended all meetings. Mr

Fitzgerald was appointed in June 2011 and there were no meetings held in the 3 days to year end since his appointment.

risk oversight and Management

The Board recognises the importance of identifying and controlling risks to ensure that they do not have a negative impact on the

Company.

In accordance with the aSX Principle 7, the Board has established a Risk Management policy which is designed to safeguard the assets

and interests of the Company and to ensure the integrity of reporting.

The Board encourages management accountability for the Company’s financial reports by ensuring ongoing financial reporting during the

year to the Board. annually, the Company Secretary (who is responsible for preparing the financial reports) and the Managing Director are

required to state in writing to the Board that in all material respects:

Declaration required under s295a of the Corporations act 2001 -

• the financial records of the group for the financial year have been properly maintained;

• the financial statements and notes comply with the accounting standards;

• the financial statements and notes for the financial year give a true and fair view; and

• any other matters that are prescribed by the Corporations act regulations as they relate to the financial statements and notes for the

financial year are satisfied.

additional declaration required as part of corporate governance -

• the risk management and internal compliance and control systems in relation to financial risks are sound, appropriate and operating

efficiently and effectively.

These declarations were received for the June 2011 financial year.

The Board has also established the following Sub Committees to assist in internal control and business risk management:

• audit and Risk Committee; and

• Remuneration Committee

remuneration

The performance of the Company depends upon the quality of its Directors and executives. To prosper, the Company must attract,

motivate and retain highly skilled Directors and executives.

To this end, the Company embodies the following principles in its remuneration framework:

• provide competitive rewards to attract high calibre executives;

• link executive rewards to shareholder value; and

• establish appropriate performance hurdles in relation to variable executive remuneration.

a full discussion of the Company’s remuneration philosophy and framework and the remuneration received by Directors and executives in

the current period is included in the remuneration report, which is contained within the Report of the Directors.

There are no schemes for retirement benefits for Non-executive Directors, other than superannuation.

Integra MInIng 2011 aNNUaL RePORT / Page 42


Corporate governance

remuneration Committee

The Remuneration Committee consists of the following directors:

• Mr John Fitzgerald (non-executive director). Chairman of the Committee. appointed 27 June 2011.

• Mr graeme Beissel (non-executive director).

• Mr Richard Maltman (non-executive director).

• Mr Christopher Cairns (executive director). Resigned from the Committee 30 June 2011.

Full details of the qualifications of the Committee members can be found in the Report of the Directors.

The Committee held five meetings during the year ended June 2011. Mr Maltman and Mr Cairns attended all meetings. Mr Beissel

attended four meetings. Mr Fitzgerald was appointed in June 2011 and attended the one meeting held since his appointment.

trading in Integra Securities by directors, officers and employees

The Board has adopted a specific policy in relation to Directors and officers, employees and other potential insiders buying and selling

shares.

Directors, officers, consultants, management and other employees are prohibited from trading in the Company’s shares, options and other

securities if they are in possession of price-sensitive information.

The Company’s Security Trading Policy is provided to each new employee as part of their induction training. Integra Personnel must

receive written approval prior to any dealing in Integra securities.

The Directors are satisfied that the Company has complied with its policies on ethical standards, including trading in securities.

Market disclosure policies

The Board has a Market Disclosure Policy to ensure the compliance of the Company with the various laws and aSX Listing Rule

obligations in relation to disclosure of information to the market. The Managing Director is responsible for ensuring that all employees

are familiar with and comply with the policy.

Integra is committed to:

1. ensuring that shareholders and the market are provided with timely and balanced information about its activities;

2. complying with the general and continuous disclosure principles contained in the aSX Listing Rules and the Corporations act 2001;

and

3. ensuring that all market participants have equal opportunities to receive externally available information issued by Integra.

Communication with Shareholders

The Company places significant importance on effective communication with shareholders.

Information is communicated to shareholders through the distribution of the annual and half yearly financial reports, quarterly reports

on activities, announcements through the australian Securities exchange and the media, on the Company’s web site and through the

Chairman’s address at the annual general meeting.

In addition, news announcements and other information are sent by email to all persons who have requested their name to be added to

the email list. If requested, the Company will provide general information by email, facsimile or post.

The Company will, wherever practicable, take advantage of new technologies that provide greater opportunities for more effective

communications with shareholders.

Company website

Integra has made available details of all its corporate governance principles, which can be found in the corporate governance information

section of the Company website at www.integramining.com.au.

Page 43


auditor’s Independence Declaration

6 September 2011

The Directors

Integra Mining Limited

168 Stirling Highway

NeDLaNDS Wa 6009

Dear Sirs,

deCLaratIon oF IndependenCe By peter toLL to tHe dIreCtorS oF Integra MInIng LIMIted

as lead auditor of Integra Mining Limited for the year ended 30 June 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 audit

• any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Integra Mining Limited and the entities it controlled during the period.

Peter Toll

Director

Bdo audit (wa) pty Ltd

Perth, Western 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.

Integra MInIng 2011 aNNUaL RePORT / Page 44

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


Consolidated Statement of Comprehensive Income FOR THe YeaR eNDeD 30 JUNe 2011

Page 45

note

year ended

30 June 2011

$’000

Consolidated

year ended

30 June 2010

$’000

Continuing operations

revenue

Revenue from gold sales 2(a) 39,895 -

Other revenue from operations 2(b) 85 -

39,980 -

Cost of production 2(c) (24,023) -

gross profit 15,957 -

Other revenue - interest 1,077 1,386

gain on disposal of tenements 13 1,038 -

exploration impairment 9 (2,994) (2,510)

administration and other expenses 2(d) (6,869) (5,609)

profit/(loss) before unrealised treasury, tax and finance costs 8,209 (6,733)

Finance costs 2(e) (2,566) (68)

Profit/(loss) before unrealised treasury and tax 5,643 (6,801)

Unrealised gains/(losses) on gold put options and gold forwards 11,705 (22,713)

profit/(loss) before income tax 17,348 (29,514)

Income tax benefit 4 1,863 8,275

profit/(loss) after income tax attributable to owners of Integra Mining Limited 19,211 (21,239)

Other comprehensive income, net of tax - -

total comprehensive profit/(loss) for the year attributable to owners of Integra

Mining Limited 19,211 (21,239)

earnings per share for profit/(loss) attributable to the ordinary equity holders of

Integra Mining Limited: Cents per Share Cents per Share

Basic profit/(loss) per share 3 2.45 (3.3)

Diluted profit/(loss) per share 3 2.40 -

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


Consolidated Statement of Financial Position aS aT 30 JUNe 2011

Integra MInIng 2011 aNNUaL RePORT / Page 46

note

30 June 2011

$’000

Consolidated

30 June 2010

$’000

aSSetS

Current assets

Cash and cash equivalents 28(a) 37,748 30,297

Trade and other receivables 5 3,046 3,996

Inventories 6 41,442 439

Derivative financial assets 7 - 620

total Current assets 82,236 35,352

non-Current assets

Property, plant and equipment 8 59,757 60,574

exploration and evaluation costs 9 30,243 22,824

Development expenditure 10 29,981 27,018

Deferred mining costs 11 4,664 -

Deferred tax assets 12 11,653 9,189

Other financial assets 13 1,143 -

Other assets 6 6

total non-Current assets 137,447 119,611

total assets 219,683 154,963

LIaBILItIeS

Current Liabilities

Trade and other payables 14 18,996 14,714

Borrowings 15 19,683 12,165

Derivative financial liabilities 16 4,124 2,462

Provisions 17 509 178

total Current Liabilities 43,312 29,519

non-Current Liabilities

Borrowings 15 5,017 -

Derivative financial liabilities 16 3,884 17,871

Provisions 17 2,393 2,387

total non-Current Liabilities 11,294 20,258

total Liabilities 54,606 49,777

net assets 165,077 105,186

equity

Contributed equity 18 186,573 147,071

Share-based payments reserve 19 4,113 2,935

accumulated losses (25,609) (44,820)

total equity 165,077 105,186

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


Consolidated Statement of Cash Flow FOR THe YeaR eNDeD 30 JUNe 2011

Cash flows from operating activities

Page 47

note

year ended

30 June 2011

$’000

Consolidated

year ended

30 June 2010

$’000

Receipts – gST refunds and revenue 51,349 3,278

Payments to suppliers and employees (27,805) (8,965)

Interest received 1,077 1,386

Interest paid (3,000) -

net cash flows from/(used in) operating activities 28(b) 21,621 (4,301)

Cash flows from investing activities

Payments for plant and equipment (13,260) (41,318)

Payments for exploration capitalised (19,904) (19,582)

Payments for development capitalised (60,811) -

Revenue received – capitalised as pre-production 30,660 -

exploration bonds released - 1,265

Investments (252) -

Purchase of gold put options - (3,000)

net cash flows used in investing activities (63,567) (62,635)

Cash flows from financing activities

Proceeds from issue of shares 40,908 69,583

Payment of share issue costs (2,007) (3,044)

Proceeds from borrowings 30,000 15,000

Borrowing costs (704) (2,835)

Borrowings repaid (18,800) -

net cash flows from financing activities 49,397 78,704

net increase in cash and cash equivalents held 7,451 11,768

add opening cash and cash equivalents brought forward 30,297 18,529

Closing cash and cash equivalents carried forward 28(a) 37,748 30,297

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


Consolidated Statement of Changes in equity FOR THe YeaR eNDeD 30 JUNe 2011

ConSoLIdated

Integra MInIng 2011 aNNUaL RePORT / Page 48

Issued

Capital

$’000

Share-based

payments

reserve

$’000

accumulated

Losses

$’000

total

equity

$’000

at 1 July 2009 79,618 1,375 (23,581) 57,412

Profit/(loss) for the year - - (21,239) (21,239)

Other comprehensive income for the year - - - -

total comprehensive income for the year

transactions with owners in their capacity as owners:

- - (21,239) (21,239)

Issue of share capital, net of transaction costs and tax 67,453 - - 67,453

Share based payments - 1,560 - 1,560

at 30 June 2010 147,071 2,935 (44,820) 105,186

Profit/(loss) for the year - - 19,211 19,211

Other comprehensive income for the year - - - -

total comprehensive income for the year

transactions with owners in their capacity as owners:

- - 19,211 19,211

Issue of share capital, net of transaction costs and tax 39,502 - - 39,502

Share based payments - 1,178 - 1,178

at 30 June 2011 186,573 4,113 (25,609) 165,077

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


Notes to the Consolidated Financial Report 2011

1. aCCountIng poLICIeS

(i) Basis of preparation

These financial statements are general purpose financial statements, which have been prepared in accordance with the requirements

of the Corporations act 2001, australian accounting Standards and other authoritative pronouncements of the australian accounting

Standards Board including the australian accounting Interpretations. The financial statements have been prepared on a historical cost

basis with the exception of derivative financial instruments and investments which have been measured at fair value.

The financial statements are presented in australian dollars, which is the parent company’s functional and presentation currency, and

all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated. The group is of a kind referred to in Class Order

98/0100, issued by the australian Securities and Investments Commission, relating to the “rounding off” of amounts in the financial

report. amounts in the financial report have been rounded off in accordance with that class order to the nearest thousand dollars.

(ii) Statement of Compliance

The financial statements comply with australian accounting Standards and International Financial Reporting Standards (IFRS).

(iii) adoption of new and revised Standards

early adoption of accounting standards

aaSB 9 Financial Instruments (effective from 1 January 2013)

The Company has early adopted aaSB 9 Financial Instruments, with effect from 1 July 2010, as the Directors believe the revised

accounting policy for fair value adjustments to investments more reliably presents the financial position of the group. aaSB 9 allows,

and the group has made, an election to measure investments, that are not held for trading, at fair value through the profit and loss

account. There is no impact on prior year financial statements as this is the first year Integra has held investments.

Standards not yet effective

The group has reviewed all of the australian accounting Standards and Interpretations that have recently been issued or amended but

are not yet effective and have not been adopted by the group for the annual reporting period ending 30 June 2011. These are listed below.

No other standard, amendment or interpretation issued is expected to affect the recognition of amounts in the financial statements.

IFrS 11 Joint arrangements (effective from 1 January 2013)

IFRS 11 clarifies the accounting treatments for joint arrangements. There is no material impact for Integra.

IFrS 12 disclosure of Interests in other entities (effective from 1 January 2013)

IFRS 12 is a disclosure standard only which may require additional disclosures for interests in other entities, including joint

arrangements.

IFrS 13 Fair value Measurement (effective from 1 January 2013)

IFRS 13 establishes a single framework for measuring fair value of financial and non-financial items. Integra has not yet made an

assessment of the impact of these amendments.

amendments to IaS1 presentation of Items of other Comprehensive Income (effective from 1 January 2013)

When this standard is first adopted for the year ended 30 June 2014, there will be no impact on amounts recognised for transactions and

balances for 30 June 2014 (and comparatives). However, the statement of comprehensive income will include name changes and include

subtotals for items. Impact is disclosure only.

IaS 19 employee Benefits (effective from 1 January 2013)

IaS 19 includes amendments to the timing for recognition of liabilities for termination benefits. Integra currently calculates its liability

for annual leave employee benefits on the basis that it is due to be settled within 12 months of the end of the reporting period because

employees are entitled to use this leave at any time. The amendments to IaS 19 require that such liabilities be calculated on the basis

of when the leave is expected to be taken, i.e. expected settlement. Integra has not yet made an assessment of the impact of these

amendments.

Page 49


Notes to the Consolidated Financial Report 2011

1. aCCOUNTINg POLICIeS – continued

(iv) Significant accounting estimates and assumptions

Significant accounting judgments

In the process of applying the group’s accounting policies, management has made the following judgments, apart from those involving

estimations, which have the most significant effect on the amounts recognised in the financial statements.

exploration and evaluation assets

The group’s accounting policy for exploration and evaluation expenditure is set out at Note 1(v). The application of this policy necessarily

requires management to make certain estimates and assumptions as to future events and circumstances. any such estimates and

assumptions may change as new information becomes available. If, after having capitalised expenditure under the policy, it is concluded

that the expenditures are unlikely to be recovered by future exploitation or sale, then the relevant capitalised amount will be written off to

the statement of comprehensive income.

Critical accounting estimates and assumptions

The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The

key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets

and liabilities within the next annual reporting period are:

Impairment of assets

In determining the recoverable amount of assets, in the absence of quoted market prices, estimations are made regarding the present

value of future cash flows using asset-specific discount rates and the recoverable amount of the asset is determined. Value-in-use

calculations performed in assessing recoverable amounts incorporate a number of key estimates.

The recoverable amounts of cash generating units and individual assets have been determined based on the higher of value-in-use

calculations and fair values. The calculations require the use of estimates and assumptions. It is reasonably possible that the gold price

assumption may change which may then impact our estimated life of mine determinant and may then require a material adjustment to

the carrying value of tangible assets.

The consolidated entity reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying

amount may not be recoverable. assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash

flows of other assets and liabilities. If there are indications that impairment may have occurred, estimates are prepared for future cash

flows of the mining assets. expected future cash flows used to determine the value in use of tangible assets are inherently uncertain and

could materially change over time. They are significantly affected by a number of factors including reserves and production estimates,

together with economic factors such as gold prices, discount rates, estimates of costs to produce reserves and future capital expenditure.

Provision for restoration costs

In determining an appropriate level of provision consideration is given to the expected future costs to be incurred, the timing of these

expected future costs (largely dependent on the life of the mine), and the estimated future level of inflation.

The ultimate cost of restoration is uncertain and costs can vary in response to many factors including changes to the relevant legal

requirements, the emergence of new restoration techniques or experience at other mine-sites. The expected timing of expenditure can also

change, for example in response to changes in reserves or to production rates.

Changes to any of the estimates could result in significant changes to the level of provisioning required, which would in turn impact

future financial results.

Share-based payment transactions - options

The group measures the cost of share options granted to employees by reference to the fair value of the equity instruments at the date at

which they are granted. The fair value of options is determined using the Black-Scholes model. Should the assumptions used in these

calculations differ, the amounts recognised could significantly change. Details of estimates used can be found in Note 21.

Integra MInIng 2011 aNNUaL RePORT / Page 50


Notes to the Consolidated Financial Report 2011

1. aCCOUNTINg POLICIeS – continued

(iv) Significant accounting estimates and assumptions – continued

Commitments - Exploration

The group has certain minimum exploration commitments to maintain its right of tenure to exploration permits. These commitments

require estimates of the cost to perform exploration work required under these permits. These have been disclosed in Note 20.

Recoverability of deferred income tax assets

The group recognises deferred income tax assets in respect of tax losses and temporary differences to the extent that the future

utilisation of these losses and temporary differences is considered probable. assessing the future utilisation of these losses and

temporary differences requires the group to make significant estimates related to expectations of future taxable income.

estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws. To the

extent that future cash flows and taxable income differ significantly from estimates, this could result in significant changes to the

deferred income tax assets recognised, which would in turn impact future financial results.

Fair value of derivative financial instruments

The group assesses the fair value of its financial derivatives in accordance with the accounting policy stated in Note 1(v). Fair

values have been determined based on well established valuation models and market conditions existing at the reporting date. These

calculations require the use of estimates and assumptions. Changes in assumptions concerning gold prices and volatilities could have

significant impact on the fair valuation attributed to the group’s financial derivatives. When these assumptions change or become known

in the future, such differences will impact asset and liability carrying values in the period in which they change or become known.

The Company has taken out hedges to mitigate the risk in the gold price. The hedges are fair valued at each accounting period, with

movements in the fair value being recognised in the statement of comprehensive income for the period. The directors have not adopted

hedge accounting (which would defer the movements in fair value in equity until the forecast transaction occurs) as they believe the

costs and effort needed to use hedge accounting do not outweigh the benefits.

Deferred stripping expenditure

The group defers advanced stripping costs incurred during the production stage of its operations. This calculation requires the use

of judgements and estimates such as estimates of tonnes of waste to be removed over the life of the mining area and economically

recoverable reserves extracted as a result. Changes in a mine’s life and design will usually result in changes to the expected stripping

ratio (waste to mineral reserves ratio). These changes are accounted for prospectively.

Determination of Mineral Resources and Ore Reserves

The group reports its Mineral Resources and Ore Reserves in accordance with the Joint Ore Reserves Committee (JORC) “australasian

Code for Reporting of exploration Results, Mineral Resources and Ore Reserves” – the JORC Code. The information on Mineral Resources

and Ore Reserves is prepared by Competent Persons as defined by the JORC Code.

There are numerous uncertainties inherent in estimating Mineral Resources and Ore Reserves. assumptions that are valid at the time of

estimation may change significantly when new information becomes available.

Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of

reserves and may, ultimately, result in the reserves being restated. Such changes may impact asset carrying values, depreciation and

amortisation rates, deferred stripping costs and provisions for restoration.

Determination start of production

Consideration is given to the determination of the point at which development ceases and production commences for a mine development

project. This point determines the cut-off between pre-production and production accounting.

Page 51


Notes to the Consolidated Financial Report 2011

1. aCCOUNTINg POLICIeS – continued

(iv) Significant accounting estimates and assumptions – continued

The group ceases capitalising pre-production costs at the point commercial production commences. This is based on the specific

circumstances of a project, and considers when the mines’ plant becomes ‘available for use’ as intended by management. Determining

when the production start date is achieved is an assessment made by management and includes the following factors:

• the level of development expenditure compared to project cost estimates;

• completion of a reasonable period of testing of the mine plant and equipment;

• mineral recoveries, availability and throughput levels at or near budgeted levels;

• the ability to produce gold into a saleable form (where more than an insignificant amount is produced); and

• the achievement of continuous production.

any revenues occurring during the pre-production period are capitalised and offset against capitalised development costs.

(v) Summary of Significant accounting policies

Basis of consolidation

The consolidated financial statements include the financial statements of Integra Mining Limited (“the Company”), and its subsidiaries

(“the group” or “group”). The financial statements of subsidiaries are prepared for the same reporting period as the parent company,

using consistent accounting policies. adjustments are made to bring into line any dissimilar accounting policies that may exist.

Where an entity has been acquired during the year, its results are included in consolidated results from the date control commenced.

Unrealised gains and losses and inter-entity balances resulting from transactions with or between controlled entities are eliminated in

full on consolidation.

Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The

chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has

been identified as the board of directors that makes strategic decisions.

Cash and cash equivalents

Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand and short-term deposits with an

original maturity of three months or less. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and

cash equivalents as defined above, net of outstanding bank overdrafts.

trade and other receivables

Receivables are initially recognised at fair value and subsequently measured at amortised cost, less allowance for doubtful debts.

Current receivables for gST are due for settlement within 30 days and other current receivables within 12 months. Cash on deposit is not

due for settlement until rights of tenure are forfeited or performance obligations are met.

Inventories

gold in circuit, bullion on hand and ore stockpiles are physically measured or estimated and valued at the lower of cost and net realisable

value. Cost represents the weighted average cost and includes direct costs and an appropriate portion of fixed and variable production

overhead expenditure, including depreciation and amortisation incurred in converting materials to finished products.

Consumables and spares are valued at the lower of cost and net realisable value. any provision for obsolescence is determined by

reference to specific stock items identified.

Integra MInIng 2011 aNNUaL RePORT / Page 52


Notes to the Consolidated Financial Report 2011

1. aCCOUNTINg POLICIeS – continued

(v) Summary of Significant accounting Policies – continued

derivatives

The group uses derivative financial instruments such as gold options and gold forward contracts to manage the risks associated with

commodity price.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently measured to their

fair value. Changes in the fair value of derivatives are recorded in the statement of comprehensive income.

The fair value of derivative financial instruments that are traded on an active market is based on quoted market prices at the statement

of financial position date. The fair value of financial instruments not traded on an active market is determined using appropriate

valuation techniques.

Refer to Note 27 for treatment of the group’s gold contracts.

plant and equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.

Depreciation is calculated on a reducing balance basis to write off the net cost of each item of plant and equipment over its expected

useful life, being 1 to 5 years. Depreciation of the processing plant is based on life of mine.

exploration and evaluation expenditure

Costs related to the acquisition of properties that contain resources are allocated separately to specific areas of interest. These costs are

capitalised until the viability of the area of interest is determined.

exploration and evaluation expenditure is stated at cost and is accumulated in respect of each identifiable area of interest. Such costs

are only carried forward to the extent that they are expected to be recouped through the successful development of the area of interest

(or alternatively by its sale), or where activities in the area have not yet reached a stage which permits a reasonable assessment of the

existence or otherwise of economically recoverable reserves, and active operations are continuing. accumulated costs in relation to an

abandoned area are written off to the statement of comprehensive income in the period in which the decision to abandon the area is

made.

The company reviews the carrying value of each area of interest at each reporting date and any exploration expenditure which no longer

satisfies the above policy is written off.

Restoration costs expected to be incurred are provided for as part of exploration, evaluation, development or production phases that give

rise to the need for restoration.

development expenditure

When the technical and commercial feasibility of extracting a mineral resource has been demonstrated the resource enters its

development phase. The costs of the assets are transferred from exploration and evaluation expenditure and reclassified into

development expenditure and include past exploration and evaluation costs and development costs. although development expenditure

is not amortised, it is tested annually for impairment.

Mine development expenditure

Capitalised development costs for areas in production are amortised on a unit-of-production basis over the economically recoverable

reserves of the mine. The unit of account will be tonnes mined.

Capitalised development costs include exploration and evaluation expenditure previously deferred relating to that ore body. Separate

calculations are undertaken for each ore body.

Page 53


Notes to the Consolidated Financial Report 2011

1. aCCOUNTINg POLICIeS – continued

(v) Summary of Significant accounting Policies – continued

deferred stripping costs

Stripping costs incurred in the development of a mine before production commences will be capitalised as part of the mine development

costs and amortised over the life of the mine on a unit-of-production basis.

In the production phase the stripping costs will be deferred using the ‘average mining cost approach’. Under this approach the amount of

stripping costs deferred is based on the life of mine mining costs divided by life of mine ore tonnes. Stripping costs incurred in the period

are deferred to the extent that the current period mining cost per tonne of ore exceeds the life of the mine cost per tonne of ore. Where the

opposite occurs stripping costs are expensed.

Impairment of assets

at each reporting date, the group assesses whether there is any indication that an asset may be impaired. Where an indicator of

impairment exists, the group makes a formal estimate of recoverable amount. Where the carrying amount of an asset exceeds its

recoverable amount the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset, unless the

asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate cash inflows that are

largely independent of those from other assets or groups of assets, in which case, the recoverable amount is determined for the cashgenerating

unit to which the asset belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable

amount, the asset or cash-generating unit is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects

current market assessments of the time value of money and the risks specific to the asset.

Derecognition of financial assets and liabilities:

a financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:

• the rights to receive cash flows from the asset have expired;

• the Company retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without

material delay to a third party; or

• the Company has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks

and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has

transferred control of the asset.

a financial liability is derecognised when the obligation under the liability is discharged, cancelled or expired. When an existing financial

liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially

modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The

difference in the respective carrying amounts is recognised in the statement of comprehensive income.

restoration, rehabilitation, and environmental costs

The group recognises any legal restoration obligation as a liability at the time a legal liability exists. The carrying amount of the long lived

assets to which the legal obligation relates is increased by the restoration obligation costs and amortised over the producing life of the

asset. a provision is raised for the restoration and rehabilitation of each mine site. Restoration and rehabilitation works can include facility

decommissioning and dismantling; removal or treatment of waste materials; land rehabilitation; and site restoration. The extent of the work

required and the associated costs are dependent on the relevant regulatory requirements and the group’s environmental policies.

Investments

Investments in listed entities are categorised as financial assets at fair value through profit or loss. Designation is re-evaluated at each

reporting date, but there are restrictions on reclassifying to other categories.

Integra MInIng 2011 aNNUaL RePORT / Page 54


Notes to the Consolidated Financial Report 2011

1. aCCOUNTINg POLICIeS – continued

(v) Summary of Significant accounting Policies – continued

When these financial assets are recognised initially, they are measured at fair value.

at each reporting date, gains or losses on these financial assets are recognised in profit or loss.

trade and other payables

Trade payables and other payables are recognised initially at fair value and subsequently at amortised cost and represent liabilities for

goods and services provided to the group prior to the end of the financial year that are unpaid and arise when the group becomes obliged

to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and usually paid within 30

days of recognition.

Borrowings

all borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. after

initial recognition, interest-bearing borrowings are subsequently measured at amortised cost using the effective interest method. Fees

paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of the borrowings.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least

12 months after the reporting date.

provisions

Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it is probable that

an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the

amount of the obligation. Where the group expects some or all of a provision to be reimbursed, for example under an insurance contract,

the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any

provision is presented in the statement of comprehensive income net of any reimbursement.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax

rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where

discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave, and any other employee entitlements expected to

be settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which are

expected to be paid when the liability is settled.

Long service leave liabilities are measured at the present value of the estimated future cash outflow to be made in respect of services

provided by employees up to the reporting date. Consideration is given to future wage and salary levels, experience of employee

departures and period of service.

employee entitlements expenses and revenues arising in respect of wages and salaries, non-monetary benefits, annual leave, long service

leave, sick leave and other entitlements are charged against profits on a net basis.

Contributions are made to employee superannuation plans and are charged as expenses when incurred.

Share-based payment transactions

The group may provide benefits to employees (including directors) of the group in the form of share-based payment transactions, whereby

employees render services in exchange for shares or rights over shares (‘equity-settled transactions’).

The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are

granted.

Page 55


Notes to the Consolidated Financial Report 2011

1. aCCOUNTINg POLICIeS – continued

(v) Summary of Significant accounting Policies – continued

Share-based payments – options and performance rights with an exercise price:

The fair value of these payments is determined using a Black-Scholes option pricing model that takes into account the exercise price, the

term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected

dividend yield and the risk free interest rate for the term of the option. The fair value of the options granted is adjusted to reflect market

conditions, but excludes the impact of any non-market vesting conditions. Non-market vesting conditions, if any, are included in

assumptions about the number of options likely to be exercisable.

Share-based payments –performance rights with no exercise price:

The fair value of these payments is determined based on the share price at the date the rights have been accepted by employees.

Upon exercise of the options or performance rights, the proceeds received, net of any transaction costs, are credited to issued capital.

Jointly controlled interest

The proportionate interests in the assets, liabilities and expenses of a joint interest activity have been incorporated in the financial

statements under the appropriate headings. Details of the joint ventures are set out in Note 26.

revenue recognition

Revenues are recognised at fair value of the consideration received or receivable net of the amount of goods and services tax (gST)

payable to the taxation authority. exchanges of goods or services of the same nature and value without any cash consideration are not

recognised as revenues.

Interest revenue

Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.

Borrowing costs

Borrowing costs are recognised in the statement of comprehensive income in the period in which they are incurred except borrowing costs

that are directly attributable to the acquisition, construction, or production of a qualifying asset that necessarily takes a substantial

period to get ready for its intended use or sale. In this case, borrowing costs are capitalised as part of the cost of such a qualifying

asset.

Income tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to

the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by

the reporting date.

Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax bases of assets and

liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary

differences, except where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is not

a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax

losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and

the carry-forward of unused tax assets and unused tax losses can be utilised, except where the deferred income tax asset relating to

the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business

combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer

probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Integra MInIng 2011 aNNUaL RePORT / Page 56


Notes to the Consolidated Financial Report 2011

1. aCCOUNTINg POLICIeS – continued

(v) Summary of Significant accounting Policies – continued

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised

or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has become

probable that future taxable profit will allow the deferred tax asset to be recovered.

Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of comprehensive income.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against

current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

Tax consolidations

Integra is the head entity in the tax-consolidated group comprising its wholly-owned subsidiaries. The effective date of implementation

was 1 January 2004 for the tax-consolidated group. Integra Mining Limited and the controlled entities in the tax consolidated group

account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group

continues to be a standalone taxpayer in its own right.

In addition to its own current and deferred tax amounts, Integra Mining Limited also recognises the current tax liabilities (or assets) and

the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated

group.

other taxes

Revenues, expenses and assets are recognised net of the amount of gST, except where the amount of gST incurred is not recoverable from

the taxation authority. In these circumstances the gST is recognised as part of the cost of acquisition of the asset or as part of an item of

the expense as applicable.

Receivables and payables are stated with the amount of gST included. The net amount of gST recoverable from, or payable to, the

taxation authority is included as part of receivables or payables in the statement of financial position.

Cash flows are included in statement of cash flows on a gross basis. The gST components of cash flows arising from investing and

financing activities that are recoverable from, or payable to, the taxation authority are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of gST recoverable from, or payable to, the taxation authority.

Contributed equity

Issued and paid up capital is recognised at the fair value of the consideration received by the Company. any transaction costs arising on

the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.

earnings per share (epS)

Basic ePS is calculated as net profit attributable to members, adjusted to exclude costs of servicing equity (other than dividends) and

preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.

Diluted earnings per share is determined when the Company has on issue potential ordinary shares which are dilutive. It is calculated

by dividing net profit attributable to members, adjusted to exclude costs of servicing equity (other than dividends) and any expenses

associated with dividends and interest of dilutive potential ordinary shares, by the weighted average number of ordinary shares (both

issued and potentially dilutive) adjusted for any bonus element.

Page 57


Notes to the Consolidated Financial Report 2011

2. revenue and expenSeS Consolidated

Integra MInIng 2011 aNNUaL RePORT / Page 58

year ended

30 June 2011

$’000

year ended

30 June 2010

$’000

(a) revenue

gold sales 70,497 -

gold sales capitalised into pre-production costs (note 10) (30,602) -

Revenue from gold sales 39,895 -

(b) other revenue from operations

Other revenue 143 -

Other revenue capitalised into pre-production costs (note 10) (58) -

Other revenue from operations 85 -

(c) Cost of production

amortisation of development costs and rehabilitation costs 10,608 -

Depreciation - operations 9,116 -

Less capitalised as development (5,632) -

Royalties 1,252 -

Other production costs net of inventory movement 8,679 -

Cost of production 24,023 -

Costs incurred on the production of gold at the Randalls project up until 28 February 2011 were

capitalised to pre-production costs.

(d) administration and other expenses

employee benefits expense

Wages, salaries and bonuses 2,475 1,471

Share-based remuneration payments 1,178 1,560

Superannuation 181 113

Other employee costs 298 149

4,132 3,293

other expenses

Depreciation – administration 260 372

Operating lease rentals 129 135

exploration costs expensed 40 -

Fair value loss on investments 147 -

Other management and administration expenses 2,161 1,809

6,869 5,609

(e) Finance costs

accretion of rehabilitation provision 243 68

Less amount capitalised as development (136) -

107 68

Interest expense 3,309 -

Less amount capitalised as development (2,103) -

1,206 -

Borrowing expense 2,038 -

Less amount capitalised as development (785) -

1,253 -

2,566 68


Notes to the Consolidated Financial Report 2011

3. earnIngS per SHare Consolidated

Page 59

year ended

30 June 2011

year ended

30 June 2010

Cents Cents

Basic profit/(loss) per share 2.45 (3.3)

Diluted profit/(loss) per share 2.40 n/a

Profit/(loss) attributable to ordinary equity holders of the Company used in calculating:

$’000 $’000

- basic profit/(loss) per share 19,211 (21,239)

- diluted profit/(loss) per share 19,357 -

number

of shares

number

of shares

Weighted average number of ordinary shares outstanding during the year used in the

calculation of basic earnings per share

adjustment for calculation of diluted earnings per share

784,778,239 641,781,989

- options and performance shares 21,358,395 -

Weighted average number of ordinary shares outstanding during the year used in the

calculation of diluted earnings per share 806,136,634 641,781,989

In 2010, the Company’s potential ordinary shares, being its options granted, were not considered dilutive as the conversion of these

options would result in a decrease in net loss per share.


Notes to the Consolidated Financial Report 2011

4. taxatIon Consolidated

(a) Income tax benefit

Integra MInIng 2011 aNNUaL RePORT / Page 60

year ended

30 June 2011

$’000

year ended

30 June 2010

$’000

Current tax - -

Deferred tax 1,863 8,275

1,863 8,275

Deferred income tax revenue included in income tax benefit comprises:

Increase in deferred tax assets (note 12) 1,863 8,275

(b) numerical reconciliation of income tax expense to prima facie tax payable

Profit/(loss) before income tax 17,348 (29,514)

Income tax (benefit) @ 30%

Tax effect of amounts which are not deductible in calculating taxable income:

5,204 (8,854)

Share based payments 353 468

Other costs not deductible 67 11

Fair value movement on derivatives (5,914) 6,814

Temporary differences previously not recognised now recognised in deferred tax benefit (1,573) (6,714)

Total income tax (benefit) (1,863) (8,275)

The franking account balance at year end was $nil (2010: $nil)

(c) amounts recognised directly in equity

Deferred tax arising in the reporting period and not recognised in the net profit or loss or other

comprehensive income but directly credited to equity:

Net deferred tax credited directly to equity (notes 12 and 18) 601 914

(d) unrecognised tax losses and temporary differences

None

(e) tax consolidation legislation

Integra Mining Limited and its wholly-owned australian controlled entities have implemented the tax consolidation legislation. The

accounting policy in relation to this legislation is set out in note 1(v).

On adoption of the tax consolidation legislation, the entities in the tax consolidation group entered into a tax sharing agreement which,

in the opinion of the directors, limits the joint and several liability of the wholly-owned entities in the case of a default by the head entity,

Integra Mining Limited.

The entities have also entered into a tax funding agreement under which the wholly-owned entities will fully compensate Integra Mining

Limited for any current tax payable assumed and are to be compensated by Integra Mining Limited for any current tax receivable and

deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Integra Mining Limited under the tax

consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entity’s

financial statements.

The amounts receivable/payable under the proposed tax funding agreement are due upon receipt of the funding advice from the head

entity, which is issued as soon as practicable after the end of each financial year.


Notes to the Consolidated Financial Report 2011

5. trade and otHer reCeIvaBLeS Consolidated

Page 61

30 June 2011

$’000

30 June 2010

$’000

Current

gST receivable 2,497 3,961

Prepayments 253 34

Other sundry debtors 296 1

Total current receivables 3,046 3,996

Fair Value and Risk Exposures

(i) Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value.

(ii) The maximum exposure to credit risk is the fair value of receivables. Collateral is not held as security.

(iii) Details regarding interest risk exposure are disclosed in note 27.

(iv) Other receivables generally have repayments between 30 and 90 days.

Receivables do not contain past due or impaired assets as at 30 June 2011 (2010: none).

6. InventorIeS

Current

Consumables and spares 1,316 -

Ore stockpiles 37,396 439

gold in circuit 1,371 -

Bullion on hand 1,359 -

41,442 439

7. FInanCIaL derIvatIve aSSetS - Current

gold put options (note 27) - 620

- 620

8. property, pLant and eQuIpMent

Plant and equipment at cost 67,228 59,282

accumulated depreciation (9,728) (507)

57,500 58,775

Buildings at cost 2,115 2,029

accumulated depreciation (437) (230)

1,678 1,799

Motor vehicles at cost 757 -

accumulated depreciation (178) -

579 -

59,757 60,574


Notes to the Consolidated Financial Report 2011

8. PROPeRTY, PLaNT aND eQUIPMeNT – continued

Integra MInIng 2011 aNNUaL RePORT / Page 62

plant and

equipment

$’000

Buildings

$’000

Motor

vehicles

$’000

total

$’000

2011 reconciliation of plant and equipment:

Carrying amount at beginning of the year 58,775 1,799 - 60,574

additions 7,716 86 757 8,559

Disposals - - - -

Depreciation charge (8,991) (207) (178) (9,376)

Carrying amount at end of the year 57,500 1,678 579 59,757

2010 reconciliation of plant and equipment:

Carrying amount at beginning of the year 9,013 - - 9,013

additions 49,878 2,029 - 51,907

Disposals (2) - - (2)

Depreciation charge (114) (230) - (344)

Carrying amount at end of the year 58,775 1,799 - 60,574

9. expLoratIon and evaLuatIon CoStS Consolidated

30 June 2011

$’000

30 June 2010

$’000

exploration costs brought forward 22,824 31,027

exploration costs this year 18,929 20,201

exploration costs written off (2,994) (2,510)

Revision of restoration costs during the year - 17

Transfer to development expenditure (8,516) (25,911)

exploration costs carried forward 30,243 22,824

Ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful development and commercial

exploitation or, alternatively, sale of the respective areas.

Impairment

exploration and evaluation expenditure written off during the year relates to certain mineral tenements. This is due to the low level of

current and planned activity to assess the existence of economically recoverable reserves of those tenements.


Notes to the Consolidated Financial Report 2011

10.deveLopMent expendIture Consolidated

areas in development

Page 63

30 June 2011

$’000

30 June 2010

$’000

Balance brought forward 27,018 -

Transfer from exploration and evaluation costs 8,516 25,911

Revision of restoration costs during the year (152) 1,107

Development expenditure this year 36,003 -

Pre-production sales revenue (gold sales and other revenue) (30,660) -

Transfer to areas in production (28,953) -

areas in production

11,772 27,018

Balance brought forward - -

Transfer from areas in development 28,953 -

Revision of restoration costs during the year (136) -

amortisation expensed (10,608) -

18,209 -

Total development expenditure 29,981 27,018

11.deFerred MInIng CoStS

Deferred mining costs 4,664 -

These costs represent deferred stripping costs.

12.deFerred tax aSSetS

the balance is attributable to:

Tax losses 12,926 16,480

Share issue expenses 1,204 1,042

Provision for mine restoration 402 29

Property, plant and equipment 69 69

gold forward derivatives 2,402 -

Others 2,721 124

Total deferred tax assets

Set-off of deferred tax liabilities pursuant to set-off provisions:

19,724 17,744

exploration expenditure (9,073) (6,555)

Development expenditure 1,002 (2,000)

Net deferred tax assets 11,653 9,189

Deferred tax assets expected to be recovered after more than 12 months 11,653 9,189


Notes to the Consolidated Financial Report 2011

13.otHer FInanCIaL aSSetS Consolidated

Integra MInIng 2011 aNNUaL RePORT / Page 64

30 June 2011

$’000

30 June 2010

$’000

Investment in listed entities – at fair value 1,143 -

During the year, the group acquired an investment in listed entity, Musgrave Minerals Limited

(aSX: MgV) as follows:

Shares acquired for cash 252 -

Shares and options acquired under tenement sale agreement 1,038 -

Fair value loss at year end (147)

1,143 -

The gain on disposal of the tenements was equivalent to the proceeds of $1,038,000 as the book values of the tenement assets were nil.

14.trade and otHer payaBLeS

Current

Trade creditors and accruals 18,996 14,714

Fair Value and Risk Exposures

(i) Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.

(ii) Details regarding liquidity risk are disclosed in note 27.

(iii) Trade and other payables are unsecured and usually paid within 60 days of recognition.

15.BorrowIngS

Current

Bank Loans 21,000 15,000

Less borrowing costs (1,317) (2,835)

non-Current

19,683 12,165

Bank Loans 5,200 -

Less borrowing costs (183) -

5,017 -

Risk Exposures

Details of the group’s exposure to risks arising from borrowings are set out in note 27.

Borrowing Facility

In February 2010, Integra entered into a Randalls gold Project Facility agreement with BNP Paribas and Westpac Banking Corporation.

The agreement provides for a:

a) $45 million construction facility

b) $5 million cost overrun facility (unused at 30 June 2011)

c) $5 million performance bond facility. Refer note 20.

d) $3 million working capital facility (unused at 30 June 2011)

e) Hedging facilities


Notes to the Consolidated Financial Report 2011

15. BORROWINgS – continued

The facility is secured with fixed and floating charges over assets of the company and its subsidiaries.

The maturity date for the construction facility is 30 September 2012. Repayments are on a quarterly basis. The performance bond facility

expires when the last repayment on the construction facility is made.

The following ratios are to be maintained:

a) Loan life cover ratio of not less than 1.50:1

b) Project life cover ratio of not less than 1.80:1

c) Debt service cover ratio of not less than 1.50:1

d) Reserve tail ratio of not less than 25%

There have been no breaches of the above ratios.

During the year ended 30 June 2011, Integra drew down the remaining $30 million of the construction facility. In March 2011, Integra

repaid $18.8 million of this facility.

16.FInanCIaL derIvatIve LIaBILItIeS Consolidated

Page 65

30 June 2011

$’000

30 June 2010

$’000

Current

gold forwards (note 27) 4,124 2,462

non-Current

gold forwards (note 27) 3,884 17,871

17.provISIonS

Current

Provision for annual leave 509 178

non-Current

Provision for long service leave 85 34

Provision for restoration 2,308 2,353

2,393 2,387

Reconciliation of provision for restoration:

Carrying amount at beginning of the year 2,353 1,161

Revision of restoration costs during the year (288) 1,124

accretion 243 68

Carrying amount at end of the year 2,308 2,353

The provision for restoration represents the legal obligation for restoration over tenement areas acquired and other non-current assets

acquired. The timing of the provision is based on licences in existence at year end.


Notes to the Consolidated Financial Report 2011

18.ContrIButed eQuIty Consolidated

(a) Issued Capital

Integra MInIng 2011 aNNUaL RePORT / Page 66

30 June 2011

$’000

30 June 2010

$’000

Ordinary shares fully paid 186,573 147,071

(b) Movements in ordinary Share Capital

number of

Shares Summary of Movements Issue price $’000

470,603,859 Opening balance at 1 July 2009 79,618

34,275,052 Options exercised 20c 6,855

1,000,000 Options exercised 25c 250

51,682,400 Share placement on 7 October 2009 25c 12,921

- Costs of share placement (1,897)

25,504,000 Share purchase plan on 19 October 2009 25c 6,376

- Costs of share purchase plan (39)

172,727,083 Share placement on 9 December 2009 25c 43,182

Costs of share placement (1,109)

Deferred tax credit recognised directly in equity 914

755,792,394 Closing Balance at 30 June 2010 147,071

550,000 Options exercised 20c 110

850,000 Options exercised 35c 298

1,000,000 Options exercised 50c 500

83,333,333 Share placement on 1 March 2011 48c 40,000

Costs of share placement (2,007)

Deferred tax credit recognised directly in equity 601

841,525,727 Closing Balance at 30 June 2011 186,573


Notes to the Consolidated Financial Report 2011

18. CONTRIBUTeD eQUITY – continued

(c) unlisted options

Integra Mining Limited had the following unlisted options on issue as at 30 June 2011:

Page 67

number exercise price exercisable on or before

2,850,000 $0.20 31 December 2011

500,000 $0.25 31 December 2012

4,100,000 $0.35 31 December 2012

500,000 $0.58 15 June 2013

1,750,000 $0.30 31 December 2013

1,750,000 $0.35 31 December 2013

1,750,000 $0.40 31 December 2013

1,750,000 $0.45 31 December 2013

1,000,000 $0.40 31 December 2013

1,000,000 $0.45 31 December 2013

1,000,000 $0.50 31 December 2013

500,000 $0.62 15 June 2014

500,000

18,950,000

$0.62 15 June 2015

During the year, 1,300,000 were forfeited, no unlisted options expired or were cancelled and 2,400,000 options were exercised. 1,500,000

unlisted options were granted during the year.

(d) performance rights

Integra Mining Limited had the following Performance Rights on issue as at 30 June 2011:

number exercise price exercisable on

1,168,154 nil 1 July 2011

50,000 nil 1 November 2011

1,500,000 $0.76 17 November 2012

1,000,000

3,718,154

$0.63 31 March 2012

During the year, 142,201 performance rights were forfeited, no performance rights expired or were cancelled and no performance rights

were exercised. 3,860,355 performance rights were granted during the year.

(e) terms and Conditions of Issued Capital

Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in the

proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held.

Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.

(f) Capital Management

When managing capital, management’s objective is to ensure the entity continues as a going concern as well as to maintain optimal

returns to shareholders and benefits for other stakeholders. Management also aims to maintain a capital structure that ensures the

lowest cost of capital available to the entity.


Notes to the Consolidated Financial Report 2011

18. CONTRIBUTeD eQUITY – continued

(f) Capital Management – continued

Management may in the future adjust the capital structure to take advantage of favourable costs of capital and issue further shares in

the market. Management has no current plans to adjust the capital structure. There are no plans to distribute dividends in the next year.

Total capital is equity as shown in the statement of financial position.

The group is not subject to any externally imposed capital requirements.

19.SHare-BaSed payMentS reServe Consolidated

Integra MInIng 2011 aNNUaL RePORT / Page 68

30 June 2011

$’000

30 June 2010

$’000

Balance at the beginning of the year 2,935 1,375

Share based payments made during the year 1,178 1,560

Balance at the end of the year 4,113 2,935

Nature and purpose of the reserve:

The Share-based payments reserve is used to recognise the fair value of options and performance rights granted.

20.CoMMItMentS and ContIngent LIaBILItIeS Consolidated

30 June 2011

$’000

30 June 2010

$’000

operating Commitments:

Commitments in relation to operating leases contracted for at year end, but not recognised as

liabilities, payable

Within one year 295 132

Later than one year but not more than five years 589 3

Later than five years - -

884 135

These non-cancellable operating leases are primarily for office premises.

other commitments:

Commitments in relation to development of mine site contracted for at year end, but not

recognised as liabilities, payable

Within one year 33,847 44,668

Later than one year but not more than five years 50,955 53,415

84,802 98,083

tenement expenditure Commitments:

The Company and the group are required to maintain current rights of tenure to tenements,

which require outlays of expenditure in 2011/2012. Under certain circumstances these

commitments are subject to the possibility of adjustment to the amount and/or timing of

such obligations, however, they are expected to be fulfilled in the normal course of operations.

estimated minimum required expenditure on mining, exploration and prospecting leases for

2011/2012 2,662 2,537


Notes to the Consolidated Financial Report 2011

20. COMMITMeNTS aND CONTINgeNT LIaBILITIeS – continued

Contingencies:

It is possible that native title, as defined in the Native Title act 1993, might exist over land in which the Company has an interest. It

is impossible at this stage to quantify the impact (if any) that the existence of native title may have on the operations of the Company.

However, at the date of these accounts, the Directors are aware that applications for native title claims have been accepted by the Native

Title Tribunal over tenements held by the Company.

guarantees:

Integra has a Performance Bond facility of $5 million as part of its Randalls gold Project Facility agreement with BNP Paribas and

Westpac Banking Corporation (note 15). as at 30 June 2011 an amount of $2,849,000 had been used as performance bonds on

tenements required by the Department of Mines and Petroleum.

21.eMpLoyee InCentIve SCHeMe and otHer SHare-BaSed payMentS

(a) performance rights plan

Integra’s Performance Rights Plan has been established to provide eligible employees with a potential ownership interest in the Company

for the purpose of:

• providing them with an opportunity to share in the growth in value of the Company,

• encouraging them to improve the longer-term performance of the Company and its returns to shareholders, and

• assisting in the recruitment, reward and retention of employees of the Company and its subsidiaries.

The rights are granted at the discretion of the Board, who may take into account skills, experience, length of service with the Company,

remuneration level and such other criteria as considered appropriate. Performance rights issued pursuant to the Plan are issued free of

charge. The exercise price and expiry date, and the date(s) on which the rights may be exercised, is determined by the Board. The rights

are not quoted on the aSX and transfers are restricted.

Page 69


Notes to the Consolidated Financial Report 2011

21. eMPLOYee INCeNTIVe SCHeMe aND OTHeR SHaRe-BaSeD PaYMeNTS – continued

(b) Summary of share based payments

Set out below are the summaries of options and performance rights granted as share based payments:

grant

date

expiry

date

Integra MInIng 2011 aNNUaL RePORT / Page 70

exercise

price

Balance

at start of

the year

granted

during

the year

exercised

during

the year

Forfeited,

expired or

Cancelled

during

the year

Balance

at end of

the year

vested and

exercisable

at end of

the year

Consolidated– 2011

employees and Consultants

18/12/08 31/12/11 20c 1,900,000 - (550,000) - 1,350,000 1,350,000

6/05/09 31/12/12 25c 1,500,000 - - (1,000,000) 500,000 500,000

10/06/09 31/12/12 35c 3,250,000 - (850,000) (300,000) 2,100,000 2,100,000

18/11/10 17/11/12 76c - 1,500,000 - - 1,500,000 -

10/11/10 1/07/11 nil - 1,214,900 - (142,201) 1,072,699 -

31/03/11 30/03/13 63c - 1,000,000 - - 1,000,000 -

Key Management personnel

25/01/08 31/12/10 50c 1,000,000 - (1,000,000) - - -

18/12/08 31/12/11 20c 1,500,000 - - - 1,500,000 1,500,000

2/04/09 31/12/13 30c 1,750,000 - - - 1,750,000 1,750,000

2/04/09 31/12/13 35c 1,750,000 - - - 1,750,000 1,750,000

2/04/09 31/12/13 40c 1,750,000 - - - 1,750,000 -

2/04/09 31/12/13 45c 1,750,000 - - - 1,750,000 -

10/06/09 31/12/12 35c 1,500,000 - - - 1,500,000 1,500,000

23/11/09 31/12/13 40c 1,000,000 - - - 1,000,000 1,000,000

23/11/09 31/12/13 45c 1,000,000 - - - 1,000,000 -

23/11/09 31/12/13 50c 1,000,000 - - - 1,000,000 -

21/01/10 31/12/12 35c 500,000 - - - 500,000 500,000

10/11/10 1/07/11 nil - 95,455 - - 95,455 -

10/11/10 1/11/11 nil - 50,000 - - 50,000 -

30/06/11 15/06/13 58c - 500,000 - - 500,000 -

30/06/11 15/06/14 62c - 500,000 - - 500,000 -

30/06/11 15/06/15 62c - 500,000 - - 500,000 -

21,150,000 5,360,355 (2,400,000) (1,442,201) 22,668,154 11,950,000

Weighted average exercise price 0.348 0.500 0.378 0.246 0.388 0.307


Notes to the Consolidated Financial Report 2011

21. eMPLOYee INCeNTIVe SCHeMe aND OTHeR SHaRe-BaSeD PaYMeNTS – continued

(b) Summary of share based payments– continued

grant

date

Page 71

expiry

date

exercise

price

Balance

at start of

the year

granted

during

the year

exercised

during

the year

Forfeited,

expired or

Cancelled

during

the year

Balance

at end of

the year

vested and

exercisable

at end of

the year

Consolidated– 2010

employees and Consultants

1/12/04 15/11/09 35c 5,128,206 - - (5,128,206) - -

24/08/06 15/11/09 30c 1,050,000 - - (1,050,000) - -

31/08/07 31/12/09 20c 1,000,000 - (850,000) (150,000) - -

8/10/07 15/11/09 30c 125,000 - - (125,000) - -

18/12/08 31/12/11 20c 1,900,000 - - - 1,900,000 1,900,000

6/05/09 31/12/12 25c 1,500,000 - - - 1,500,000 500,000

10/06/09 31/12/12 35c 3,250,000 - - - 3,250,000 3,250,000

Key Management personnel

5/05/06 15/11/09 25c 1,000,000 - (1,000,000) - - -

5/05/06 15/11/09 30c 2,000,000 - - (2,000,000) - -

5/05/06 15/11/09 35c 1,000,000 - - (1,000,000) - -

31/08/07 31/12/09 20c 500,000 - (500,000) - - -

25/01/08 31/12/10 50c 1,000,000 - - - 1,000,000 1,000,000

18/12/08 31/12/11 20c 1,500,000 - - - 1,500,000 1,500,000

2/04/09 31/12/13 30c 1,750,000 - - - 1,750,000 1,750,000

2/04/09 31/12/13 35c 1,750,000 - - - 1,750,000 -

2/04/09 31/12/13 40c 1,750,000 - - - 1,750,000 -

2/04/09 31/12/13 45c 1,750,000 - - - 1,750,000 -

10/06/09 31/12/12 35c 1,500,000 - - - 1,500,000 1,500,000

23/11/09 31/12/13 40c - 1,000,000 - - 1,000,000 -

23/11/09 31/12/13 45c - 1,000,000 - - 1,000,000 -

23/11/09 31/12/13 50c - 1,000,000 - - 1,000,000 -

21/01/10 31/12/12 35c - 500,000 - - 500,000 -

29,453,206 3,500,000 (2,350,000) (9,453,206) 21,150,000 11,400,000

Weighted average exercise price 0.313 0.436 0.221 0.331 0.348 0.306

The weighted average share price at the date of exercise of options exercised during the year ended 30 June 2011 was 60.19 cents (2010:

23.3 cents).

The assessed fair values of the share-based payments were determined as follows:

With an exercise price:

a Black-Scholes option pricing model, taking into account the exercise price, term of option, the share price at grant date and expected

price volatility of the underlying share, expected dividend yield and the risk-free interest rate for the term of the option.


Notes to the Consolidated Financial Report 2011

21. eMPLOYee INCeNTIVe SCHeMe aND OTHeR SHaRe-BaSeD PaYMeNTS – continued

(b) Summary of share based payments– continued

With no exercise price:

The right has been valued based upon the share price at time of acceptance of the right.

The inputs to the model used were:

2011

grant date 10/11/10 30/06/11 30/06/11 30/06/11

granted to directors directors directors directors

Dividend yield (%) n/a - - -

expected volatility (%) n/a 63.32 63.32 63.32

Risk-free interest rate (%) n/a 4.63 4.63 4.63

expected life of options (years) n/a 1.96 2.96 3.96

Underlying share price ($) 0.585 0.44 0.44 0.44

exercise price ($) nil 0.58 0.62 0.62

Value of Option/Right ($) 0.585 0.1245 0.1559 0.1887

grant date 18/11/10 18/11/10 31/03/11 10/11/10

employees, employees, employees, employees,

consultants and consultants and consultants and consultants and

granted to

other KMp other KMp other KMp other KMp

Dividend yield (%) - - - n/a

expected volatility (%) 51.44 51.44 63.32 n/a

Risk-free interest rate (%) 4.93 4.93 4.76 n/a

expected life of options (years) 2.00 2.00 2.00 n/a

Underlying share price ($) 0.55 0.55 0.45 0.659*

exercise price ($) 0.76 0.76 0.63 Nil

Value of Option/Right ($) 0.1144 0.1143 0.1240 0.659*

* average value as acceptance dates varied from 8/12/10 to 15/2/11. Value per right ranged from 0.495 to 0.735.

2010

grant date 23/11/09 23/11/09 23/11/09 21/01/10

employees,

consultants and

granted to directors directors directors other KMp

Dividend yield (%) - - - -

expected volatility (%) 82.66 82.66 82.66 70.48

Risk-free interest rate (%) 3.75 3.75 3.75 3.75

expected life of options (years) 4.11 4.11 4.11 2.95

Underlying share price ($) 0.300 0.300 0.300 0.255

Option exercise price ($) 0.40 0.45 0.50 0.35

Value of Option ($) 0.1707 0.1634 0.1568 0.1015

The expected life of the options/rights is based on historical data and is not necessarily indicative of exercise patterns that may occur.

Integra MInIng 2011 aNNUaL RePORT / Page 72


Notes to the Consolidated Financial Report 2011

21. eMPLOYee INCeNTIVe SCHeMe aND OTHeR SHaRe-BaSeD PaYMeNTS – continued

(b) Summary of share based payments– continued

The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily

be the actual outcome. No other features of options or performance rights granted were incorporated into the measurement of fair value.

(c) range of exercise price

The range of exercise price for options / performance rights granted as share based payments outstanding at the end of the year was $nil

- $0.76 (2010: $0.20 - $0.50).

(d) weighted average remaining Contractual Life

The weighted average remaining contractual life of share based payment options / performance rights that were outstanding as at 30

June 2011 was 1.8 years (2010: 2.7 years).

(e) weighted average Fair value

The weighted average fair value of share-based payment options / performance rights granted during the year was $0.255 (2010:

$0.155).

(f) value of Share-based payments in the Financial Statements

Included as an expense in the statement of comprehensive income is $1,178,000 (2010: $1,560,000) relating to share-based payments

expensed during the year.

22.Key ManageMent perSonneL dISCLoSureS

(a) Key Management personnel Compensation Consolidated

Page 73

30 June 2011

$

30 June 2010

$

Short-term employee benefits 2,809,066 1,726,357

Post-employment benefits 117,314 87,012

Share-based payments 614,812 919,139

3,541,192 2,732,508


Notes to the Consolidated Financial Report 2011

22. KeY MaNageMeNT PeRSONNeL DISCLOSUReS – continued

(b) equity Instrument disclosures relating to Key Management personnel

(i) Option/Performance Rights holdings

The number of options/performance rights over ordinary shares in the Company held during the financial year by each Director of Integra

Mining Limited and any other key management personnel of the group, including their personally related parties, are as follows:

2011

options / performance rights (held directly and indirectly) - number

name

directors

Integra MInIng 2011 aNNUaL RePORT / Page 74

Balance at

1 July 2010

granted as

remuneration

during the year

exercised/

expired/

cancelled

during the year

Change due to

appointment/

(resignation)

Balance at

30 June 2011

number vested

and exercisable

John Fitzgerald - 1,500,000 - - 1,500,000 -

Christopher Cairns 4,000,000 - - - 4,000,000 2,000,000

Peter Ironside 3,000,000 - - - 3,000,000 1,500,000

Rowan Johnston 2,000,000 - - - 2,000,000 2,000,000

graeme Beissel 3,000,000 - - - 3,000,000 1,000,000

Richard Maltman - 50,000 - - 50,000 -

other Key Management personnel

graham Younge 500,000 550,000 - - 1,050,000 500,000

Terence Brown - 1,045,455 - - 1,045,455 -

Marcus Willson - 1,000,000 - - 1,000,000 -

Total Options 12,500,000 4,145,455 - - 16,645,455 7,000,000

2010

options (held directly and indirectly) - number

name

directors

Balance at

1 July 2009

options granted

as remuneration

during the year

options

exercised/

expired/

cancelled during

the year

Change due to

appointment/

(resignation) Balance at

30 June 2010

number vested

and exercisable

graeme Beissel 4,005,500 3,000,000 (4,005,500) - 3,000,000 -

Christopher Cairns 7,024,345 - (3,024,345) - 4,000,000 1,000,000

Peter Ironside 6,015,836 - (3,015,836) - 3,000,000 750,000

Richard Maltman - - - - - -

Rowan Johnston 2,000,000 - - - 2,000,000 2,000,000

other Key Management personnel

greg Wilson 2,500,000 - (500,000) (2,000,000) - 2,000,000

graham Younge - 500,000 - - 500,000 -

Terence Brown - - - - - -

Total Options 21,545,681 3,500,000 (10,545,681) (2,000,000) 12,500,000 3,750,000


Notes to the Consolidated Financial Report 2011

22. KeY MaNageMeNT PeRSONNeL DISCLOSUReS – continued

(b) equity Instrument Disclosures Relating to Key Management Personnel – continued

(ii) Share holdings

The number of ordinary shares in the Company held during the financial year by each Director of Integra and any other key management

personnel of the group, including their personally related parties, are as follows.

2011

Shares (held directly and indirectly) - number

name

directors

Page 75

Balance at

beginning

of the year

net change

during the year

Balance at

end of the year

John Fitzgerald - - -

Christopher Cairns 1,764,986 48,543 1,813,529

Peter Ironside 2,651,503 610,000 3,261,503

Rowan Johnston - - -

graeme Beissel 2,220,882 - 2,220,882

Richard Maltman - - -

other Key Management personnel

graham Younge - - -

Terence Brown - - -

Marcus Willson - - -

Total Shares 6,637,371 658,543 7,295,914

There were no shares granted during the year as compensation (2010: nil). There were no shares issued upon exercise of options during

the year (2010: 1,500,000).

2010

Shares (held directly and indirectly) – number

name

directors

Balance at

beginning

of the year

net change

during the year

Change due to

appointment/

(resignation)

Balance at

end of the year

graeme Beissel 1,775,382 445,500 - 2,220,882

Christopher Cairns 670,641 1,094,345 - 1,764,986

Peter Ironside 715,667 1,935,836 - 2,651,503

Richard Maltman - - - -

Rowan Johnston - - - -

other Key Management personnel

greg Wilson - 500,000 (500,000) -

graham Younge - - - -

Terence Brown - - - -

Total Shares 3,161,690 3,975,681 (500,000) 6,637,371


Notes to the Consolidated Financial Report 2011

22. KeY MaNageMeNT PeRSONNeL DISCLOSUReS – continued

(b) equity Instrument Disclosures Relating to Key Management Personnel – continued

(c) Other Transactions with Key Management Personnel

Mr Peter Ironside, Director, is a shareholder and director of Ironside Pty Ltd. During the year an amount of $129,547 (2010: $149,873)

was paid to this company for office rental at normal commercial rates. Mr Richard Maltman, Director, was a director of aphelion Legal.

During the year an amount of $41,826 (2010: $17,410) was paid to this business for legal advice at normal commercial rates.

23.audItorS’ reMuneratIon Consolidated

Integra MInIng 2011 aNNUaL RePORT / Page 76

year ended

30 June 2011

$

year ended

30 June 2010

$

amount received or due and receivable by the auditor and its related practices:

Bdo audit (wa) pty Ltd

audit and review of financial statements

Bdo Corporate tax (wa) pty Ltd

76,038 36,558

Taxation compliance services 42,146 21,262

118,184 57,820

24.parent entIty dISCLoSureS parent

30 June 2011

$’000

30 June 2010

$’000

Summarised Statement of Comprehensive Income

Profit/(loss) for the year after tax 19,211 (21,239)

Other comprehensive income - -

Total comprehensive profit/(loss) for the year 19,211 (21,239)

Summarised Statement of Financial position

Current assets 82,236 35,352

Non Current assets 137,447 119,611

total assets 219,683 154,963

Current Liabilities 43,312 29,519

Non Current Liabilities 11,294 20,258

total Liabilities 54,606 49,777

net assets 165,077 105,186

total equity of the parent entity comprising:

Share Capital 186,573 147,071

Reserves 4,113 2,935

accumulated losses (25,609) (44,820)

total equity 165,077 105,186


Notes to the Consolidated Financial Report 2011

24. PaReNT eNTITY DISCLOSUReS – continued

Details of the investments in the controlled entities are:

name of entity

Page 77

Country of

Incorporation

2011

% Held

2010

% Held

PayLODe Pty Ltd australia 100% 100%

LODed Pty Ltd australia 100% 100%

BackLODe Pty Ltd australia 100% 100%

guarantees, commitments and contingent liabilities of the parent are the same as for the Consolidated group. Refer notes 15 and 20.

25.SegMent InForMatIon

Management has determined the operating segments based on the reports reviewed by the board of directors that are used to make

strategic decisions. The consolidated entity does not have any operating segments with discrete financial information. The group does

not have any customers, other than the Perth Mint and its bankers, and all the group’s assets and liabilities are located within australia.

The Board of Directors review internal management reports on a monthly basis that is consistent with the information provided in the

statement of comprehensive income, statement of financial position and statement of cash flows. as a result no reconciliation is required

because the information as presented is what is used by the Board to make strategic decisions.

26.JoInt ventureS

The group has the following interests in unincorporated joint ventures:

Integra group

% Interest

Joint venture principal activities 30 June 2011 30 June 2010

Troy Joint Venture exploration 50% 50%

Scott Bishop/Stephen Parsons Joint Venture exploration 90% 90%

Cowarna Joint Venture exploration 90% 90%

glandore Joint Venture exploration 19.84% 19.84%

Newcrest Joint Venture exploration 85% 85%

Peter’s Dam Joint Venture* exploration - -

Latitude Hill Joint Venture** exploration 100% -

Queen Lapage Joint Venture* exploration - -

* Integra Mining Limited earning 51% interest

** anglo american exploration (australia) Pty Ltd earning 51% interest

The joint ventures are not separate legal entities. They are contractual arrangements between participants for the sharing of costs and

outputs and do not in themselves generate revenue and profit. The joint ventures are of the type where initially one party contributes

tenements with the other party earning a specified percentage by funding exploration activities; thereafter the parties often share

exploration and development costs and output in proportion to their ownership of joint venture assets. The joint ventures do not hold any

assets and accordingly the Company’s share of exploration evaluation and development expenditure is accounted for in accordance with

the policy set out in note 1.


Notes to the Consolidated Financial Report 2011

27.FInanCIaL rISK ManageMent oBJeCtIveS and poLICIeS

The group’s principal financial instruments comprise cash, short-term deposits, borrowings and hedge instruments. The main purpose

of these financial instruments is to provide working capital for the group’s operations and mine development. The group uses derivative

financial instruments to hedge certain risk exposures. Derivatives are used exclusively for managing financial risks, and not as trading or

other speculative instruments.

The group has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations.

It is, and has been throughout the period under review, the group’s policy that no trading in financial instruments shall be undertaken.

The main risks arising from the group’s financial instruments are interest rate risk, liquidity risk, commodity risk, foreign currency risk

and credit risk. The Board reviews and agrees on policies for managing each of these risks.

The group holds the following financial instruments:

Integra MInIng 2011 aNNUaL RePORT / Page 78

30 June 2011

$’000

Consolidated

30 June 2010

$’000

Financial assets

Cash and cash equivalents 37,748 30,297

Other receivables 274 -

Derivative financial instruments - 620

Other financial assets – investments 1,143 -

39,165 30,917

Financial Liabilities

Trade and other payables 18,996 14,714

Borrowings 24,700 12,165

Derivative financial instruments 8,008 20,333

51,704 47,212

Interest Rate Risk

at year end the group’s exposure to market risk for changes in interest rates relates primarily to the Company’s short-term cash deposits

and borrowings. The group constantly analyses its exposure to interest rates, with consideration given to potential renewal of existing

positions, the mix of fixed and variable interest rates and the period to which deposits may be fixed.

at year end, the group had the following financial instruments exposed to interest rates:

30 June 2011

$’000

Consolidated

30 June 2010

$’000

Financial assets

Cash and cash equivalents 36,652 30,032

Financial Liabilities

Borrowings 26,200 15,000

Net exposure 10,452 15,032


Notes to the Consolidated Financial Report 2011

27. FINaNCIaL RISK MaNageMeNT OBJeCTIVeS aND POLICIeS – continued

Sensitivity

at 30 June 2011, if interest rates had increased by 0.75% from the year end variable rates with all other variables held constant, post tax

profit and equity for the group would have been $18,000 higher (2010: changes of 1.5% $381,000 higher).

The 0.75% (2010: 1.5%) sensitivity is based on reasonably possible changes, over a financial year, using an observed range of historical

RBa movements over the last year.

Liquidity Risk

The group manages liquidity risk by monitoring immediate and forecast cash requirements and ensuring adequate cash reserves are

maintained. a maturity analysis of financial liabilities is disclosed in the table below.

Maturity analysis of financial liabilities:

Page 79

30 June 2011

$’000

Consolidated

30 June 2010

$’000

non-derivatives

Trade payables

Within 6 months 18,996 14,714

Borrowings

6 to 12 months 19,683 12,165

15 months 5,017 -

43,696 26,879

derivatives – gold forwards

6 to 12 months 4,124 2,462

Between 1 and 2 years 3,884 10,562

Between 2 and 5 years - 7,309

8,008 20,333

The contractual payments above are equal to the carrying amounts of financial liabilities.

Financing arrangements

The group had the following undrawn borrowing facilities at the end of the reporting period:

30 June 2011

$’000

Consolidated

30 June 2010

$’000

Floating rate

Borrowings – construction facility - 30,000

Foreign Currency risk

as a result of exposure to the gold commodity market, the Company has exposure to the USD. The Company manages this exposure by

hedging gold in aUD. Refer to commodity price risk.


Notes to the Consolidated Financial Report 2011

27. FINaNCIaL RISK MaNageMeNT OBJeCTIVeS aND POLICIeS – continued

Commodity price risk

The group is exposed to movements in the gold price. as part of the risk management policy of the group and in compliance with the

conditions required by the group’s financiers, a variety of financial instruments (such as gold forward sales contracts and gold put

options) are used from time to time to minimise the risk of aUD denominated gold prices falling below the cash costs of production

by providing price certainty over a portion of the forecast production at an acceptable margin in excess of the forecast cash cost of

production. Hedging programs undertaken are structured with the objective of retaining as much upside to the gold price as possible, but

in any event, by limiting hedging commitments to no more than 70% of the group’s forecast production.

The value of these financial instruments at any given point in time, will in times of volatile market conditions, show substantial variation

over the short term. The hedging facilities provided by the group’s various hedging counterparties do not contain margin calls. The group

does not hedge account for these instruments.

Sensitivity

at 30 June 2011, if the gold price had increased by 15% or decreased by 15% with all other variables held constant, post tax profit

and equity for the group would have been $16,585,000 lower/ $42,000 higher due to the non-cash fair value adjustment on derivatives

through the statement of comprehensive income (2010: increased by 14%, $26,757,000 lower/ $10,822,000 higher). The percentage

change used in the sensitivity analysis is based on the differential between forward and spot prices as at year-end.

Details of the gold hedging contracts (all aUD denominated) at year end are shown below.

2011 Forward sale contracts put options Bought total

average Sales

average Strike

average

ounces price $/ounce ounces price a$/ounce ounces a$/ounce

Maturity within 1 year 51,081 1,359 - - 51,081 1,359

Between 1 and 2 years 26,910 1,359 - - 26,910 1,359

Between 2 and 3 years - - - - - -

Total 77,991 1,359 - - 77,991 1,359

2010 Forward sale contracts put options Bought total

average Sales

average Strike

average

ounces price $/ounce ounces price a$/ounce ounces a$/ounce

Maturity within 1 year 14,398 1,359 57,472 1,237 71,870 1,261

Between 1 and 2 years 50,644 1,359 - - 50,644 1,359

Between 2 and 3 years 26,910 1,359 - - 26,910 1,359

Total 91,952 1,359 57,472 1,237 149,424 1,312

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group. The

group has adopted the policy of dealing with creditworthy counterparties and obtaining sufficient collateral or other security where

appropriate, as a means of mitigating the risk of financial loss from defaults. The group measures credit risk on a fair value basis.

Cash is deposited only with institutions with a minimum credit rating of aa (or equivalent) as determined by a reputable credit rating

agency e.g. Standard & Poor. The group has all cash deposited with one bank.

For derivative financial instruments, management mitigates some credit risk by only entering into hedging transactions with

counterparties with a minimum credit rating of aa (or equivalent). The group uses two hedging counterparties.

Integra MInIng 2011 aNNUaL RePORT / Page 80


Notes to the Consolidated Financial Report 2011

27. FINaNCIaL RISK MaNageMeNT OBJeCTIVeS aND POLICIeS – continued

The group does not have any other significant credit risk exposure to a single counterparty or any group of counterparties having similar

characteristics.

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if

available) or to historical information about counterparty default rates:

Page 81

30 June 2011

$’000

Consolidated

30 June 2010

$’000

Cash at bank and short-term bank deposits

aa 37,746 30,296

derivate financial assets

aa - 620

Fair value

Disclosure of fair value measurements by level are as follows:

• Level 1 – the fair value is calculated using quoted prices in active markets

• Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or

liability, either directly (as prices) or indirectly (derived from prices)

• Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data

The following table presents the group’s assets and liabilities measured at fair value as well as the methods used to estimate the fair

value.

Quoted

Market

price

(Level 1)

$’000

year ended 30 June 2011 year ended 30 June 2010

valuation

with

observable

Market data

(Level 2)

$’000

valuation

with no

observable

Market data

(Level 3)

$’000

total

$’000

Quoted

Market

price

(Level 1)

$’000

valuation

with

observable

Market data

(Level 2)

$’000

valuation

with no

observable

Market data

(Level 3)

$’000

Financial assets

Investments

Derivative financial

855 288 - 1,143 - - - -

assets - - - - - 620 - 620

855 288 - 1,143 - 620 - 620

Financial liabilities

Derivative financial

liabilities - 8,008 - 8,008 - 20,333 - 20,333

Financial instruments that use valuation techniques with only observable market inputs represent forward commodity contracts not

traded on a recognised exchange.

Transfer Between Categories

There were no transfers between Level 1 and Level 2 during the year.

total

$’000


Notes to the Consolidated Financial Report 2011

28.CaSH FLow StateMent InForMatIon Consolidated

(a) Cash and Cash equivalents

Integra MInIng 2011 aNNUaL RePORT / Page 82

30 June 2011

$’000

30 June 2010

$’000

Cash at bank and in hand 37,748 30,297

The group’s and the parent entity’s exposure to interest rate risk is discussed in note 27. The

maximum exposure to credit risk at year end is the carrying amount of each class of cash and

cash equivalents mentioned above.

(b) reconciliation of profit/(Loss) after tax to the net Cash Flows used in operations

Profit/(loss) after income tax

Non-Cash Items:

19,211 (21,239)

Depreciation 3,744 372

amortisation 10,608 -

gain on sale of tenements (1,038) -

Net (gain)/loss on sale of non-current assets - 2

Share-based payments 1,178 1,560

accretion of rehabilitation provision 107 68

Borrowing costs expensed 1,253 -

exploration expenditure written off 2,994 2,510

Fair value loss on investments 147 -

Fair value adjustment of derivatives

Change in assets and liabilities:

(11,705) 22,713

(Increase)/decrease in receivables 950 (3,167)

Increase in inventories (12,202) (439)

Increase in deferred tax assets (1,863) (8,275)

Increase in development expenditure (2,103) -

Increase in payables 9,957 1,569

Increase in provisions 383 25

Net cash flows from/(used in) operating activities 21,621 (4,301)

(c) non-cash financing and investing activities

During the year, the group disposed of tenements for consideration of shares and options in listed entity, Musgrave Minerals Limited

($1,038,000). Refer note 13. There were no other non-cash financing or investing activities during the year (2010: none).

29.eventS SuBSeQuent to year end

There are no matters or circumstances that have arisen since 30 June 2011 that have or may significantly affect the operations, results,

or state of affairs of the group in future financial years.


Directors’ Declaration

In accordance with a resolution of the Board of Directors, I state that:

In the opinion of the Directors:

(a) the financial statements and notes are in accordance with the Corporations act 2001, including:

Page 83

(i) giving a true and fair view of the group’s financial position at 30 June 2011 and of its performance for the year ended on that

date; and

(ii) complying with accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting

requirements; and

(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable;

and

(c) the financial statements and notes comply with International Financial Reporting Standards as disclosed in note 1.

This declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295a of

the Corporations act 2001 for the financial year ending 30 June 2011.

On behalf of the Board

Christopher Cairns

Managing Director

Perth, Western australia

6 September 2011


Independent auditor’s Report

Integra MInIng 2011 aNNUaL RePORT / Page 84

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

Independent audItor’S report to tHe MeMBerS oF Integra MInIng LIMIted

report on the Financial report

We have audited the accompanying financial report of Integra Mining Limited, which comprises the consolidated statement of financial

position as at 30 June 2011, the consolidated statement of comprehensive income, the consolidated statement of changes in equity

and the consolidated statement of cash flows for the year then ended, 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 year’s end or from time to time during the financial year.

directors’ responsibility for the Financial report

The directors of the company are responsible for the preparation of the 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 financial report that is free from material misstatement, whether due to fraud or error. In Note 1(ii),

the directors also state, in accordance with accounting Standard aaSB 101 Presentation of Financial Statements, that the financial

statements comply with International Financial Reporting Standards.

auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with

australian auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements

and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

an audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The

procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial

report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. an audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as

well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, 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 Integra Mining Limited, would

be in the same terms if given to the directors as at the time of this auditor’s report.

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 Report

opinion

In our opinion:

(a) The financial report of Integra Mining Limited is in accordance with the Corporations act 2001, including:

(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2011 and of its performance for the year

ended on that date; and

(ii) complying with australian accounting Standards and the Corporations Regulations 2001; and

(b) The financial report also complies with International Financial Reporting Standards as disclosed in Note 1(ii).

report on the remuneration report

We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2011. The directors of the company

are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300a of the Corporations

act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with

australian auditing Standards.

auditor’s opinion

In our opinion, the Remuneration Report of Integra Mining Limited for the year ended 30 June 2011, complies with section 300a of the

Corporations act 2001.

Bdo audit (wa) pty Ltd

peter toll

Director

Perth, Western australia

Dated this 6th day of September 2011

Page 85


additional aSX Information

additional information required by aSX Ltd and not shown elsewhere in this report is as follows. The information is current as at

28 September 2011.

twenty Largest Shareholders

number of percentage of

name

ordinary Shares Issued Capital

1 National Nominees Limited 145,109,645 17.20

2 J P Morgan Nominees australia Limited 98,655,151 11.69

3 HSBC Custody Nominees (australia) Limited 58,172,221 6.89

4 JP Morgan Nominees australia Limited 27,580,187 3.27

5 gary B Branch Pty Ltd 12,500,000 1.48

6 Citicorp Nominees Pty Limited 10,724,697 1.27

7 equity Trustees Limited 9,824,539 1.16

8 Miss gail Maree Smith 8,000,000 0.95

9 Citicorp Nominees Pty Limited 5,897,106 0.70

10 Mr Matthew george Dominello 5,325,000 0.63

11 Barrick gold Of australia Limited 4,692,308 0.56

12 HSBC Custody Nominees (australia) Limited - a/C 3 4,101,921 0.49

13 HSBC Custody Nominees (australia) Limited-gSCO eCa 3,965,521 0.47

14 Mr Michael Cull + Mr alexander Cull 3,550,000 0.42

15 australian Investors Pty Ltd 3,467,778 0.41

16 Mr george Simon Marks 2,800,000 0.33

17 Mr Bruce graham Barker + Mrs Wendy ann Barker 2,700,000 0.32

18 andrew Lockhart & Co Pty Ltd 2,233,679 0.26

19 Peter Crisp Pty Ltd 2,000,000 0.24

20 Yarraandoo Pty Ltd 2,000,000 0.24

413,299,753 48.98

Shares on issue at 28 September 2011 843,743,881

Substantial Shareholders

an extract of the Company’s register of substantial shareholders is as follows:

number of percentage of

name

ordinary Shares Issued Capital

acorn Capital Limited 63,098,951 7.50

JP Morgan Chase & Co 49,731,039 6.57

Baker Steel Capital Managers LLP 51,173,000 6.10

Van eck associates Corporation 42,510,474 5.04

Integra MInIng 2011 aNNUaL RePORT / Page 86


additional aSX Information

distribution of Shareholdings

Size of Holding

Page 87

number of

Shareholders

number of

ordinary Shares

percentage of

Issued Capital

1 - 1,000 454 193,242 0.02

1,001 - 5,000 1,816 5,778,008 0.68

5,001 - 10,000 1,577 13,483,123 1.60

10,001 - 100,000 4,042 146,284,475 17.34

100,000 and over 856 678,005,033 80.36

Total Shareholders 8,745 843,743,881 100.00

Number of shareholders holding less than a marketable parcel 468

voting rights

all shares carry one vote per share without restriction.

unlisted options and performance rights

number of

number of

options

employee options

exercise price $ exercise date

optionholders

1,650,000 0.20 on or before 31 December 2011 6

2,150,000

other unlisted options

0.35 on or before 31 December 2012 5

850,000 0.20 on or before 31 December 2011 4

500,000 0.25 on or before 31 December 2012 1

1,250,000 0.35 on or before 31 December 2012 6

500,000 0.58 between 1 January 2013 and 15 June 2013 1

1,750,000 0.30 on or before 31 December 2013 2

1,750,000 0.35 on or before 31 December 2013 2

1,750,000 0.40 between 1 December 2011 and 31 December 2013 2

1,750,000 0.45 between 1 December 2012 and 31 December 2013 2

1,000,000 0.40 on or before 31 December 2013 1

1,000,000 0.45 between 30 September 2011 and 31 December 2013 1

1,000,000 0.50 between 30 September 2012 and 31 December 2013 1

500,000 0.62 between 1 July 2013 and 15 June 2014 1

500,000

performance rights

0.62 between 1 January 2014 and 15 June 2015 1

50,000 n/a from 1 November 2011 1

1,500,000 0.76 between 18 November 2011 and 17 November 2012 2

1,000,000 0.63 between 31 March 2012 and 30 March 2013 1

2,124,049 n/a from 1 July 2012 77


additional aSX Information

The names of optionholders and performance rights holders who hold 20% or more of each class of unlisted options and performance

rights (excluding employee options and performance rights) are as follows:

name

options expiring 31 december 2011

Exercise Price $0.20

number of

options percentage

angela Leonie Wilson 500,000 59%

Michelle Maria Skinner 250,000 29%

options expiring 31 december 2012

Exercise Price $0.25

Roger Mason 500,000 100%

Exercise Price $0.35

angela Leonie Wilson 500,000 40%

anthony and amanda Sparks 250,000 20%

options expiring 31 december 2013

Exercise Price $0.30

goldwork asset Pty Ltd 1,000,000 57%

Ironside Pty Ltd 750,000 43%

Exercise Price $0.35

goldwork asset Pty Ltd 1,000,000 57%

Ironside Pty Ltd 750,000 43%

Exercise Price $0.40

goldwork asset Pty Ltd 1,000,000 57%

Ironside Pty Ltd 750,000 43%

Exercise Price $0.45

goldwork asset Pty Ltd 1,000,000 57%

Ironside Pty Ltd 750,000 43%

Exercise Price $0.40

graeme Beissel & associates Pty Ltd 1,000,000 100%

Exercise Price $0.45

graeme Beissel & associates Pty Ltd 1,000,000 100%

Exercise Price $0.50

graeme Beissel & associates Pty Ltd 1,000,000 100%

options expiring 15 June 2013

Exercise Price $0.58

Mr John Fitzgerald 500,000 100%

options expiring 15 June 2014

Exercise Price $0.62

Mr John Fitzgerald 500,000 100%

options expiring 15 June 2015

Exercise Price $0.62

Mr John Fitzgerald 500,000 100%

Integra MInIng 2011 aNNUaL RePORT / Page 88


Tenement Schedule

weStern auStraLIa teneMent SCHeduLe

MuSgrave teneMentS

1. payLode tenements 100%

tenement registered Holder or applicant Shares

eLa69/1677 PayLODe Pty Ltd 100/100ths

2. payLode tenements 100%

(Managed by anglo american exploration (australia) pty Ltd - earning 51%)

tenement registered Holder or applicant Shares

e69/2687 PayLODe Pty Ltd 100/100ths

3. Joint venture – Loded 50% / troy resources 50%

(Managed by troy resources nL)

tenement registered Holder or applicant Shares

eLa69/1690 Troy Resources NL

LODed Pty Ltd

eLa69/1691 Troy Resources NL

LODed Pty Ltd

eLa69/1692 Troy Resources NL

LODed Pty Ltd

eLa69/1693 Troy Resources NL

LODed Pty Ltd

eLa69/1694 Troy Resources NL

LODed Pty Ltd

eLa69/1695 Troy Resources NL

LODed Pty Ltd

eLa69/1696 Troy Resources NL

LODed Pty Ltd

eLa69/1697 Troy Resources NL

LODed Pty Ltd

eLa69/1698 Troy Resources NL

LODed Pty Ltd

Page 89

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths

50/100ths


Tenement Schedule

aLdISS goLd proJeCt teneMentS

4. Integra tenements 100%

tenement registered Holder or applicant Shares

e28/469 Integra Mining Limited 100/100ths

e28/470 Integra Mining Limited 100/100ths

e28/1681 Integra Mining Limited 100/100ths

e28/2113 Integra Mining Limited 100/100ths

eLa28/2152 Integra Mining Limited 100/100ths

eLa28/2167 Integra Mining Limited 100/100ths

eLa28/2168 Integra Mining Limited 100/100ths

g28/1 Integra Mining Limited 100/100ths

g28/2 Integra Mining Limited 100/100ths

g28/3 Integra Mining Limited 100/100ths

g28/4 Integra Mining Limited 100/100ths

M28/43 Integra Mining Limited 100/100ths

M28/171 Integra Mining Limited 100/100ths

M28/208 Integra Mining Limited 100/100ths

MLa28/289 Integra Mining Limited 100/100ths

Cowarna Jv proJeCt teneMentS

5. Integra tenements – 90% Interest

tenement registered Holder or applicant Shares

e25/248 Integra Mining Limited

90/100ths

avoca Resources Ltd

10/100ths

e25/278 Integra Mining Limited

90/100ths

avoca Resources Ltd

10/100ths

e25/297 Integra Mining Limited

90/100ths

avoca Resources Ltd

10/100ths

e28/1559 Integra Mining Limited

90/100ths

avoca Resources Ltd

10/100ths

Integra MInIng 2011 aNNUaL RePORT / Page 90


Tenement Schedule

randaLLS proJeCt teneMentS

6. Integra tenements 100%

tenement registered Holder or applicant Shares

e25/162 Integra Mining Limited 100/100ths

e25/323 Integra Mining Limited 100/100ths

e25/336 Integra Mining Limited 100/100ths

e25/343 Integra Mining Limited 100/100ths

e25/344 Integra Mining Limited 100/100ths

L25/8 Integra Mining Limited 100/100ths

L25/22 Integra Mining Limited 100/100ths

L25/27 Integra Mining Limited 100/100ths

L25/29 Integra Mining Limited 100/100ths

L25/31 Integra Mining Limited 100/100ths

M25/71 Integra Mining Limited 100/100ths

M25/125 Integra Mining Limited 100/100ths

M25/133 Integra Mining Limited 100/100ths

M25/236 Integra Mining Limited 100/100ths

M25/307 Integra Mining Limited 100/100ths

M25/347 Integra Mining Limited 100/100ths

P25/1837 Integra Mining Limited 100/100ths

P25/1838 Integra Mining Limited 100/100ths

P25/1865 Integra Mining Limited 100/100ths

P25/1919 Integra Mining Limited 100/100ths

P25/1922 Integra Mining Limited 100/100ths

P25/1970 Integra Mining Limited 100/100ths

P25/1971 Integra Mining Limited 100/100ths

P25/1972 Integra Mining Limited 100/100ths

P25/1973 Integra Mining Limited 100/100ths

P25/1974 Integra Mining Limited 100/100ths

P25/1975 Integra Mining Limited 100/100ths

P25/1976 Integra Mining Limited 100/100ths

P25/1977 Integra Mining Limited 100/100ths

P25/1978 Integra Mining Limited 100/100ths

P25/1979 Integra Mining Limited 100/100ths

P25/2060 Integra Mining Limited 100/100ths

Page 91


Tenement Schedule

Mt Monger proJeCt teneMentS

7. Integra tenements 100%

tenement registered Holder or applicant Shares

e25/203 Integra Mining Limited 100/100ths

e25/332 Integra Mining Limited 100/100ths

eLa25/427 Integra Mining Limited 100/100ths

L25/14 Integra Mining Limited 100/100ths

L25/16 Integra Mining Limited 100/100ths

L25/17 Integra Mining Limited 100/100ths

L25/18 Integra Mining Limited 100/100ths

L25/20 Integra Mining Limited 100/100ths

L25/23 Integra Mining Limited 100/100ths

L25/24 Integra Mining Limited 100/100ths

L26/162 Integra Mining Limited 100/100ths

M25/117 Integra Mining Limited 100/100ths

M26/148 Integra Mining Limited 96/96ths

M26/197 Integra Mining Limited 100/100ths

M26/248 Integra Mining Limited 100/100ths

M26/249 Integra Mining Limited 100/100ths

M26/357 Integra Mining Limited 100/100ths

M26/364 Integra Mining Limited 100/100ths

M26/391 Integra Mining Limited 100/100ths

M26/401 Integra Mining Limited 100/100ths

M26/406 Integra Mining Limited 100/100ths

M26/409 Integra Mining Limited 100/100ths

M26/417 Integra Mining Limited 100/100ths

M26/635 Integra Mining Limited 100/100ths

P25/1880 Integra Mining Limited 100/100ths

P25/1881 Integra Mining Limited 100/100ths

P25/1882 Integra Mining Limited 100/100ths

P25/1883 Integra Mining Limited 100/100ths

P25/1884 Integra Mining Limited 100/100ths

P25/1885 Integra Mining Limited 100/100ths

P25/1886 Integra Mining Limited 100/100ths

P25/1887 Integra Mining Limited 100/100ths

P25/1889 Integra Mining Limited 100/100ths

P25/1890 Integra Mining Limited 100/100ths

P25/1891 Integra Mining Limited 100/100ths

P25/1892 Integra Mining Limited 100/100ths

P25/1893 Integra Mining Limited 100/100ths

P25/1894 Integra Mining Limited 100/100ths

PLa25/2067 Integra Mining Limited 100/100ths

PLa25/2106 Integra Mining Limited 100/100ths

P25/2114 Integra Mining Limited 100/100ths

P26/3232 Integra Mining Limited 100/100ths

P26/3421 Integra Mining Limited 100/100ths

Integra MInIng 2011 aNNUaL RePORT / Page 92


Tenement Schedule

tenement registered Holder or applicant Shares

P26/3422 Integra Mining Limited 100/100ths

P26/3423 Integra Mining Limited 100/100ths

P26/3424 Integra Mining Limited 100/100ths

P26/3425 Integra Mining Limited 100/100ths

P26/3426 Integra Mining Limited 100/100ths

P26/3427 Integra Mining Limited 100/100ths

P26/3428 Integra Mining Limited 100/100ths

P26/3429 Integra Mining Limited 100/100ths

P26/3430 Integra Mining Limited 100/100ths

P26/3431 Integra Mining Limited 100/100ths

P26/3432 Integra Mining Limited 100/100ths

gLandore Jv proJeCt teneMentS

8. Integra tenements 19.84%

tenement registered Holder or applicant Shares

P25/1925 Solomon (australia) Pty Ltd

80/100ths

Integra Mining Limited

20/100ths

P25/1926 Solomon (australia) Pty Ltd

80/100ths

Integra Mining Limited

20/100ths

P25/1927 Solomon (australia) Pty Ltd

80/100ths

Integra Mining Limited

20/100ths

P25/1928 Solomon (australia) Pty Ltd

80/100ths

Integra Mining Limited

20/100ths

P25/1929 Solomon (australia) Pty Ltd

80/100ths

Integra Mining Limited

20/100ths

P25/1930 Solomon (australia) Pty Ltd

80/100ths

Integra Mining Limited

20/100ths

P25/1931 Solomon (australia) Pty Ltd

80/100ths

Integra Mining Limited

20/100ths

Page 93


Tenement Schedule

newCreSt proJeCt teneMentS

9. Integra tenements - 85%

tenement registered Holder or applicant Shares

e25/208 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

MLa25/350 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1897 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1898 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1899 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1900 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1901 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1902 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1903 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1904 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1905 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1906 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1907 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1908 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1909 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1910 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1911 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1912 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1913 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

P25/1914 Integra Mining Limited

85/100ths

Newcrest Operations Limited

15/100ths

Integra MInIng 2011 aNNUaL RePORT / Page 94


Tenement Schedule

tenement registered Holder or applicant Shares

P25/1915 Integra Mining Limited

Newcrest Operations Limited

P25/1916 Integra Mining Limited

Newcrest Operations Limited

P25/1917 Integra Mining Limited

Newcrest Operations Limited

P25/1918 Integra Mining Limited

Newcrest Operations Limited

Page 95

85/100ths

15/100ths

85/100ths

15/100ths

85/100ths

15/100ths

85/100ths

15/100ths

10. Integra tenements - 100%

tenement registered Holder or applicant Shares

P25/2120 Integra Mining Limited 100/100ths

peter’S daM Jv proJeCt teneMentS

11. Integra tenements - earning 51% interest

tenement registered Holder or applicant Shares

e15/869 Rubicon Resources Ltd 100/100ths

e25/153 Rubicon Resources Ltd 100/100ths

e25/154 Rubicon Resources Ltd 100/100ths

e25/293 Rubicon Resources Ltd 100/100ths

e25/307 Rubicon Resources Ltd 100/100ths

e25/319 Rubicon Resources Ltd 100/100ths

e25/376 Rubicon Resources Ltd 100/100ths

e25/379 Rubicon Resources Ltd 100/100ths

eLa25/390 Rubicon Resources Ltd 100/100ths

eLa25/391 Rubicon Resources Ltd 100/100ths

eLa25/396 Rubicon Resources Ltd 100/100ths

randeLL HILL proJeCt teneMentS

12. Integra tenements 100%

tenement registered Holder or applicant Shares

e25/364 Integra Mining Limited 100/100ths

red daLe proJeCt teneMentS

13. Integra tenements 100%

tenement registered Holder or applicant Shares

e25/280 Integra Mining Limited 100/100ths

e25/281 Integra Mining Limited 100/100ths

e25/449 Integra Mining Limited 100/100ths

e25/450 Integra Mining Limited 100/100ths


Tenement Schedule

roweS FInd proJeCt teneMentS

14. Integra tenements 100%

tenement registered Holder or applicant Shares

P28/1046 Integra Mining Limited 100/100ths

M28/164 Integra Mining Limited 100/100ths

MLa28/370 Integra Mining Limited 100/100ths

15. Integra tenements 90%

tenement registered Holder or applicant Shares

e28/1482 Integra Mining Limited

90/100ths

Scott Bishop

5/100ths

Stephen Parsons

5/100ths

erayInIa FarM-In proJeCt teneMentS

16. Integra tenements - earning 51% interest

tenement registered Holder or applicant Shares

e28/1895 Image Resource NL 100/100ths

e28/2071 Image Resource NL 100/100ths

Queen Lapage Jv proJeCt teneMentS

17. Integra tenements - earning 51% interest

tenement registered Holder or applicant Shares

e25/273 Rubicon Resources Ltd 100/100ths

e25/326 Rubicon Resources Ltd 100/100ths

e25/455 Rubicon Resources Ltd 100/100ths

e27/291 Rubicon Resources Ltd 100/100ths

e27/426 Rubicon Resources Ltd 100/100ths

Integra MInIng 2011 aNNUaL RePORT / Page 96


Photographs pages 3 and 15 courtesy Chris Paddick (Integra Mining employee)

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