ASX:AU1 · 2 October 2017

Annual Report to shareholders

AUSNET FINANCIAL SERVICES LIMITED (formerly Namibian Copper Limited) ABN 52 118 913 232

And its Controlled Entities

Annual Report June 2017

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017

Contents

Corporate Directory 2

Directors Report 3

Auditor’s Independence Declaration 30

Consolidated Statement of Profit or Loss and Other Comprehensive Income 31

Consolidated Statement of Financial Position 32

Consolidated Statement of Changes in Equity 33

Consolidated Statement of Cash Flows 34

Notes to the Financial Statements 35

Directors’ Declaration 76

Independent Auditor’s Report 77

Shareholder Information 83

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 Directors Philip Re Chairman (Appointed 19 December 2016) Paul Niardone Managing Director (Appointed 19 December 2016) John Kolenda Non Executive Director (Appointed 19 December 2016) Adam Davey Non Executive Director (Appointed 19 December 2016) Ross Cotton Non Executive Director (Appointed 20 January 2016)

Company Secretary Stuart Usher

Managing Director Paul Niardone

Registered Office Suite 1 GF, 437 Roberts Road Subiaco WA 6008

Principal Place of Business 254 Scarborough Beach Road Doubleview WA 6018

Solicitors Steinepreis Paganin Level 4, Next Building 16 Milligan St Perth WA 6000

Mills Oakley Level 2, 225 St. Georges Terrace Perth WA 6000

Share Registry Advanced Share Registry Services 110 Stirling Hwy Nedlands WA 6009

Auditors Bentleys Audit & Corporate (WA) Pty Ltd PO Box 7775 Cloisters Square Perth WA 6850

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT Your Directors present their report on Ausnet Financial Services Pty Ltd (“the Company”) formerly Namibian Copper Limited, and its controlled entities (“the Consolidated Entity”) for the year ended 30 June 2017.

Directors

The names of Directors in office at any time during or since the end of the year are:  Philip Re (Appointed 19 December 2016)  Paul Niardone (Appointed 19 December 2016)  John Kolenda (Appointed 19 December 2016)  Adam Davey (Appointed 19 December 2016)  Ross Cotton  Neil Warburton (Resigned 19 December 2016)  Gregory Hall (Resigned 19 December 2016)  Michael Curnow (Resigned 19 December 2016)

Directors have been in office since the start of the year unless otherwise stated.

Principal Activities

The principal activity of the Consolidated Entity for the financial year was real estate and related activities. There were no significant changes in the nature of the Consolidated Entity’s principal activities during the financial year.

Operating Results and Financial Position

The Consolidated Entity delivered a 30 June 2017 loss after tax of $3,804,242 (2016: $1,839,173 loss). The loss is different to that reported in the Appendix 4E lodged on 31 August 2018 as a result of recognition of amortisation of intangibles after tax of $90,702 and provision for non-recovery of commissions/wages of $144,468. However, included in the results was an acquisition cost of acquiring Ausnet Financial Services Limited formerly Namibian Copper Limited (Corporate Transaction Accounting Expense) of $1,439,297 which is a result of the reverse acquisition transaction as detailed in Note 3. If you exclude this cost, the results of the Consolidated Entity was a loss after tax of $2,129,775.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued) In comparison to the prior years results, taking into account non-recurring costs, non-cash costs and costs associated with the ASX listing and maintenance of an ASX listed entity, the results are as follows:

June June 2017 2016 $ $

Loss after income tax (3,804,242) (1,839,173) Add back Corporate Transaction Accounting Expense 1,439,297 – (2,364,945) (1,839,173) Add back ASX Listing related costs 355,517 – Legal costs 106,485 Rebranding costs 57,166 – Interest paid 96,170 – Amortisation of intangibles 90,702 – Provision for non recovery of commission/wages 144,468 Write-off non recoverable wages 103,698 – ASX Head Office costs 570,723 – (840,016) (1,839,173)

This results in a 54% improvement in operational results from a loss after tax of $1,839,173 in 2016 to a loss of $840,016 in 2017.

The net assets of the Consolidated Entity have increased from 30 June 2016 by $3,868,794 to $2,438,314 at 30 June 2017 (2016: $(1,430,480) net liabilities).

As at 30 June 2017, the Consolidated Entity’s cash and cash equivalents increased from 30 June 2016 by $2,048,677 to $2,202,655 at 30 June 2017 (2016: $153,978).

Dividends Paid or Recommended The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to the date of this report.

Review of Operations

Operations Review On December 14, 2015 Namibian Copper NL announced that it had signed a non-binding heads of agreement to acquire 100% of Ausnet Real Estate Services Pty Ltd. The Company then proceeded to a

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued) signed binding heads of agreement on April 19, 2016. Completion of the transaction followed certain terms being met:  In exchange for 100% of the issued capital in Ausnet, Namibian Copper NL (“NCO”) agreed to issue AUD$4M worth of fully paid ordinary shares in NCO at the re-quotation price of $0.03 being 133,333,333 NCO Shares. NCO shares to the shareholders of Ausnet, subject to ASX escrow provisions (Consideration Shares). As per the Prospectus lodged September 30, 2016 the Consideration Shares had changed to AUS$4M worth of fully paid ordinary shares in NCO at the re-quotation price of $0.02 being 200,000,000 NCO Shares.  Issue to Ausnet shareholders AUD$4M worth of NCO Consideration Performance Shares at the re-quotation price of $0.03 being 133,333,333 NCO Performance Shares (Performance Shares), in the following tranches: (i) Tranche 1; AUD$2M worth of Performance Shares (66,666,667 Consideration Performance Shares); and (ii) Tranche 2; AUD$2M worth of Performance Shares (66,666,667 Consideration Performance Shares).

As per the Notice of Meeting lodged June 20, 2016 for meeting held on July 20, 2016, the Consideration Performance Shares approved to be issued was 66,666,667 Performance Shares. In addition to this, 46,666,667 Incentive Performance Shares were approved to be issued to proposed and continuing Directors of NCO.

A Performance Share in the relvant class will convert into one share upon achievement of: 1. The Consideration Performance Shares vest upon achieving a 10% growth in the mortgage and finance business loan book within 18 months of settlement (first milestone); and 2. The Incentive Performance Shares vest upon: a. achieving a 10% growth in the mortgage and finance business loan book within 18 months of settlement; and b. achieving a 20 day volume VWAP on the ASX which equals or exceeds 3 times the re- quotation price of $0.02, at any time within 24 months of settlement (second milestone).

Conditions precedent for the completion of the acquisition that were met included NCO obtaining all regulatory and shareholder approvals as required:  To issue the consideration shares and performance shares;  To approve a change to its’ business from a mineral exploration company to a real estate and financial services company;  To change the name of Namibian Copper NL to Ausnet Financial Services Limited;  NCO undertaking a 3:2 rights issue at an issue price of $0.001 per NCO share to raise $0.5M;  Each party (NCO and Ausnet) completing financial and legal due diligence on the other, and the results of the due diligence being to the satisfaction of both parties;  NCO preparing a prospectus for a capital raising sufficient to enable NCO to be reinstated to quotation on the ASX, lodging the prospectus with the Australian Securities and Investments

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued) Commission (ASIC) and receiving sufficient applications to meet the minimum subscription under the prospectus; and  NCO receiving a letter from the ASX confirming that it will re-instate NCO to trading on the ASX following compliance with Chapters 1 and 2 of the ASX Listing Rules, with the terms of the letter acceptable to NCO and Ausnet.

NCO also agreed to issue the following options in connection with the acquisition:  50M NCO Shares and 50M listed NCO Options exercisable at $0.015 (pre-consolidation price) and expiring 30 April 2019 in consideration for introduction and consulting services.

A capital raising of $5.8M was conducted, with the result being the maximum amount raised following a highly oversubscribed public offering.

Subsequent to all conditions precedent being met and the capital raising concluded, the reverse acquisition transaction (as described in note 1(b)) was concluded on December 16, 2016 and the Company – now renamed to Ausnet Financial Services Limited – was reinstated to official ASX quotation on December 28, 2016.

As a result of the transaction the Company changed its nature and scale, becoming a provider of real estate and financial services including:  Real Estate Services  Mortgage Origination Services  Settlement Agent Services  Financial Planning Services

On January 30, 2017 the Company announced that it had entered into a Licence Agreement and an Option to acquire Top Level Real Estate Pty Ltd (“Top Level”) (via its wholly owned subsidiary Ausnet Real Estate Services Pty Ltd) as part of its planned national roll-out of its The Agency platform, a disruptive and fast growing real estate sales and property management business.

The License Agreement allows the Company to launch The Agency on the east coast of Australia, with Top Level licenced to operate under “The Agency” brand within NSW, QLD and VIC. Top Level has signed agreements with an exciting team of senior real estate executives and currently has an initial 17 highly experienced sales agents.

Pursuant to a binding option agreement (“Option Agreement”), the shareholders and convertible noteholders of Top Level (“Vendors”) have granted Ausnet Real Estate Services Pty Ltd (“Ausnet Pty Ltd”) an option to acquire 100% of the issued capital of Top Level on issue at settlement of the acquisition (“Acquisition”), subject to the satisfaction or waiver of conditions precedent. John Kolenda, one of the Company’s current directors, has an interest in one of the Vendors.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued) The past twelve months have been pivotal to Ausnet and we have achieved a great deal.

Most notably, we listed on the ASX on 28 December 2016 having successfully completed a reverse take- over transaction with Namibian Copper NL (NCO) and a raise of $5.8m.

This is a truly transformative event. It has not only ensured the company was suitably capitalised to meet its well thought out expansion objectives, within and outside of the Western Australian market where the company was formed, but in our view, also validated the disruptive real estate model Ausnet has launched called “The Agency”.

Within months of listing we expanded into the East Coast launching “The Agency” in Sydney, having signed a licence agreement with Top Level Pty Ltd to use The Agency brand and IP exclusively in NSW. Top level was formed by a group of highly respected and experienced industry Executives and Sale Representatives that are nationally recognised, Ausnet also signed a 12-month option to buy Top Level Pty Ltd which expires on 30 Jan 2018.

The investment market had set 2 main bench marks for Ausnet to deliver and keep delivering. These were: 1. Demonstrate revenue growth via sales and the attraction of quality sales representatives;

2. Deliver the referral rates set to the ancillary businesses being the mortgage broking business and the settlement /conveyance business. These targets were set at:  20% of all sales to be referred to the mortgage business (which is three times the industry rate); and  40% of all sales to be referred to the settlement business.

These targets were set in a WA real estate market that has contracted 9% in sales turn over and 9% in value of the average home and deemed by most experts as the worst real estate market in the country.

This decline along with the banks tightening of lending requirements also lead to the number of residential loan applications for WA declining an average of 12.5% since March 16 quarter.

Despite this Ausnet is pleased to report very strong growth and that targets set have all been met or exceeded with respect to our WA operations.

“The Agency” continued its stellar growth with the three main indicators of listings, settlements and gross commissions exceeding 100% growth.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

In terms of the Group the highlights are as follows:

Revenue

Revenue is up 44.7% June 17 June 16 % change

Revenue $9.59 m $6.631m +44.7%

Commissions $6.335m $3.725m +70%

Fees $3.018m $2.858m + 6%

Total cashflow from operating activities was up 41% reducing the net cash outflow from operations from ($1.4m) in June 16 to ($0.84m) in June 17.

In comparison to the prior years results, taking into account non-recurring costs, non-cash costs and costs associated with the ASX listing and maintenance of an ASX listed entity, the actual loss due to operations for the year was $840k down on $1.84m previous year.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued) A 54% improvement in operational results despite our expansion into NSW

Net Assets

The Net Assets increased from ($1.43m) to $2.44m.

These numbers do not include the off-balance sheet market value of the loan book which is estimated to have a market value of $4m.

The company also has no bank finance and has not leveraged on the acquired rent roll from Beaufort, valued at approximately $2M.

The Agency

“The Agency”, is a high quality disruptive real estate brand wholly owned by Ausnet. In the past 12 months, it has seen significant growth in agent numbers, listings and settlements.

In the month of July 2017, based on independent industry numbers produced by the Real Estate Industry of Western Australia (“REIWA”), the Agency was recognised as the Top Office by Value of Properties Sold and Top Office by Number of Properties Sold for Perth metro sales.

1573 properties were sold in Perth during July, with the Agency selling 54 properties, with a combined value of $ 28,652,500.

For the June quarter, the Agency sold 187 properties from a total of 5497, giving “The Agency” a market share of 3.4%.

It is important to note that the real estate market both nationally and in WA is highly fragmented with the leading brand in WA Ray White holding approximately 10% for Perth Metro. (Note: REIWA does not capture private/online sales and non-members).

The Top Franchise Group, Ray White with 43 Branches/Offices sold 2086 properties for a value of $841.4m.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Overall “The Agency” Office finished 6th in the REIWA Office ranking for the year, in only its 2nd full year of operations.

With just on 50 sales representatives The Agency sold 366 properties for $229m.

(Of which 12 sales representatives only joined in the last month and are still to be fully integrated)

As a comparison, the top office which was established 6 years ago, with 141 sales representatives sold 627 properties for $308m.

Meaning that the office that finished on top had three times the number of sales representatives and sold only 30% more in dollar value.

Since launching “The Agency” brand in Western Australia, the company set and achieved its target of securing +50 high quality and respected Sales Agents by 30 June 2017.

The Agency has attracted, and it believes will continue to attract, significant interest from sales representatives wishing to join its business. As a Group, our 50 sales representatives are punching above their weight, out selling the Real Estate Offices with larger numbers of sales representatives in July.

Securing these sales representatives, who come to the business with a strong sales capability and network in the location in which they are based, are central to the successful expansion of the Agency model.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued) Highlights

June 17 June 16 % increase

Listings 639 307 108%

Settlements 359 113 263%

Gross Commissions $4.71m $1.28m 145%

Referral Rates Mortgage referrals Settlement referrals Notes Total Settlements 359 359 Referrals 298 440 Due to both the buyer and seller being referred % of settlements 83% 123% referred Conversion of 21% 72% referrals

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017

DIRECTORS REPORT (Continued)

Deals from our Mortgage business are also converting at a rate of 10% into Financial Planning and General Insurance leads.

The Agency Year on Year

June 17 June 16 Revenue $5m $2m GP $884k $341k Expenses ($1.38m) ($1.1m) Add backs $371k $220k Operating deficit ($125k) ($539)

(prior to head office management fee)

In March Ausnet concluded the acquisition of Beaufort Realty. The business had 430 property managements which has now grown to 450.

Beaufort Reality numbers for 3 months April to June 2017 were;

Sales Revenue: $ 314k Property Management Revenue: $ 152k Operating Profit after Tax: $ 92k

These numbers are ahead of expectation and will be incorporated into “The Agency” numbers going forward.

Top Level

In January 2017 Ausnet entered into a Licence and Option to Acquire agreement, with Sydney based real estate business Top Level Real Estate Pty Ltd (“Top Level”).

Not only does this agreement provide Ausnet with immediate expansion of “The Agency” on to the east coast of Australia, but it also sees us working with some of the most highly skilled real estate professionals in the country.

The agreement, in the view of the Board, will contribute greatly to the growth and expansion of the business. Under the agreement with Top Level Pty Ltd Ausnet accrues a 3% license fee for the use of the brand and IP, with an option to purchase the company for a pre-agreed consideration at any time before 31 January 2018.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued) As at 30th June Top Level had achieved the following numbers in only 4 months:

Agents recruited – 32 Agents confirmed not started – 45 Agents from Acquisitions – 18 Total Gross Commissions – $4.15m Total Settlements – 97 Property Managements – 65

As reported in June, Top Level Pty Ltd completed its first acquisition, “Province” in the lower North Shore of Sydney.

The acquisition added approximately 1,150 property managements and 18 sales representatives to the Top Level business. This acquisition partially completed the condition precedent to the Option Agreement, that if exercised would see Ausnet acquire the Top Level business.

It is anticipated that Top Level will sign the second acquisition that is part of the condition precedent over the coming weeks.

After Balance Date Events

There has not been any matter or circumstances occurring subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of the Consolidated Entity, the results of the operations, or the state of the affairs of the Consolidated Group in future financial years.

Future Developments, Prospects and Business Strategies

Likely developments, future prospects and business strategies of the operations of the Consolidated Entity and the expected results of those operations have not been included in this report as the Directors believe that the inclusion of such information would be likely to result in unreasonable prejudice to the Consolidated Entity.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Information on Directors

MR PHILIP RE Chairman and Non- Executive Director – Appointed on 19 December 2016 Mr Philip Re has been a Director for a number of publicly listed and unlisted companies involving transactions in property development and investment, technology, education, mining exploration and production, and the renewable energy industry. He has been directly involved in Raising Capital, Merger & Acquisitions, Initial Public Offers and Reverse Takeovers for various ASX listed companies and unlisted property syndicates over many years. Mr Re is the Managing director of Regency Corporate Pty Ltd where he provides corporate advisory services.

Interest in Shares and Options — 4,069,973 ordinary shares Directorships held in other — Arrowhead Resources Limited, Weststar Industrial Limited and listed entities during the past iCollege Limited three years

MR PAUL NIARDONE Managing Director – Appointed on 19 December 2016 Mr Niardone was the Executive Director and founder of Professional Public Relations (WA), the largest PR and communications firm in the State until he sold the business to WPP. He has experience in marketing and strategic planning for clients in both Government and the private sector. With a degree in Politics and Industrial Relations and a Masters in Business Administration, he started his career in the Department of Cabinet and Parliamentary Services. He was appointed inaugural Manager of the Peel Region Business Enterprise Centre, and was then appointed as the first Marketing Manager for the entire Enterprise Centre Network comprising 36 centres throughout WA. Mr Niardone’s marketing skills were recognised by Westpac in its decision to appoint him as one of the first Business Banking Managers in Australia without a banking background. His career to date has provided him with a unique opportunity to gain experience, insights and contacts in a wide range of industries at the CEO and Board level. He has sat on the boards of a number of public and private companies and not for profit organisations.

Interest in Shares and Options — 10,463,292 ordinary shares Directorships held in other — MinQuest Limited listed entities during the past three years

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

MR JOHN KOLENDA Non- Executive Director – Appointed on 19 December 2016 Mr Kolenda is the co-founder and Managing Director of the Finsure Group, one of Australia’s fastest growing retail finance brokerages, writing over $1 billion in new mortgages every month across 850 brokers. Prior to founding Aura and Finsure Group, Mr Kolenda founded X Ino, which was merged with Ray White to form Loan Market Group. From 1994 to 2004, John worked as the General Manager of Sales & Distribution of Aussie Home Loans, where he was responsible for the sales performance of over 700 mortgage advisors. As Chairman of Aura Group, Mr Kolenda leads corporate strategy for the group and supports the business through his network of strategic and institutional partners. Mr Kolenda’s leadership has given Aura Group the ability to execute on its growth plans to date. Mr Kolenda has significant board experience in both the public and private sector.

Interest in Shares and Options — 42,718,332 ordinary shares Directorships held in other — Disruptive Investment Group (DVI:AX), Global Reviews and listed entities during the past iBuyNew.com.au. three years

MR ADAM DAVEY Non- Executive Director – Appointed on 19 December 2016 Mr Davey is a Director, Private Clients and Institutional at Patersons Securities. Mr Davey’s expertise spans over 25 years and includes capital raising (both private and public), mergers and acquisition, ASX listings, asset sales and purchases, transaction due diligence and director duties. Mr Davey has been involved in significantly growing businesses in both the industrial and mining sector. This has been achieved through holding various roles within different organisations, including Chairman, Managing Director, Non-executive director, major shareholder or corporate adviser to the board. Mr Davey is also the Chairman of Teen Challenge Foundation, the largest Youth Drug and Alcohol Rehabilitation Centre in Western Australia.

Interest in Shares and Options — 617,144 ordinary shares Directorships held in other — Ensurance Limited, EPAT Technologies Limited listed entities during the past three years

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017

DIRECTORS REPORT (Continued)

MR ROSS COTTON Non- Executive Director – Appointed on 20 January 2016 Mr Cotton has extensive experience in both equity capital markets and corporate finance. As a corporate adviser, he has been advising both public and private companies on strategy, financing, acquisitions and corporate restructuring across the technology, industrial and resource sectors for over ten years. Mr Cotton has raised significant capital (via both equity and debt arrangements) for a wide range of companies in the small to mid-cap market and has a strong network of contacts in the investment industry throughout Australia, Asia and the United States of America.

Interest in Shares and Options — 5,400,000 ordinary shares Directorships held in other — iCollege Limited listed entities during the past three years

MR NEIL WARBURTON — Non-Executive Director – Appointed as Non-Executive Chairman on 20 January 2016, Resigned 19 December 2016 MR GREGORY HALL — Director (Non-Executive) – Appointed 14 June 2013, Resigned 19 December 2016 MR MICHAEL CURNOW Director (Non-Executive) – Appointed on 12 June 2014, Resigned 19 December 2016 Company Secretary

The following person held the position of Company Secretary at the end of the financial year:

Mr Stuart Usher — (Appointed 28 December 2016)

Mr Usher is a CPA and Chartered Company Secretary with 20 year’s extensive experience in the management and corporate affairs of public listed companies. He holds a Bachelor of Business degree and an MBA from the University of Western Australia and has extensive experience across many industries focusing on Corporate & Financial Management, Strategy & Planning, Mergers & Acquisitions, and Investor Relations & Corporate Governance.

Mr Jay Richard Stephenson — (Resigned 28 December 2016)

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Meetings of Directors

During the financial year, the following meetings of Directors were held. Attendances by each Director during the year were as follows:

Director’s Meetings Eligible to attend Attended Philip Re 4 4 Paul Niardone 4 4 John Kolenda 4 4 Adam Davey 4 4 Ross Cotton 6 5 Neil Warburton 2 2 Gregory Hall 2 2 Michael Curnow 2 2

The full board fulfils the role of remuneration, nomination and audit committees.

Indemnifying Officers or Auditor

In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every Officer of the Consolidated Entity shall be indemnified out of the property of the Company against any liability incurred by him in his capacity as Officer, auditor or agent of the Consolidated Entity or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in defending any proceedings, whether civil or criminal.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued) Options

At the date of this report, the unissued ordinary shares of Ausnet Financial Services Limited under option are as follows:

Grant Date Date of Expiry Exercise Price Number under Option 2 September 2014 30 April 2019 $0.15 22,147,500 2 September 2014 30 April 2019 $0.15 500,000 5 September 2014 30 April 2019 $0.15 1,428,572 20 July 2016 30 April 2019 $0.15 5,000,000 19 December 2016 19 December 2019 $0.04 51,666,667 Option holders do not have any rights to participate in any issues of shares or other interests in the company or any other entity.

There have been no options granted over unissued shares or interests of any controlled entity within the Consolidated Entity during or since the end of the reporting period.

Proceedings on Behalf of the Consolidated Entity

No person has applied for leave of Court to bring proceedings on behalf of the Consolidated Entity or intervene in any proceedings to which the Consolidated Entity is a party for the purpose of taking responsibility on behalf of the Consolidated Entity for all or any part of these proceedings.

The Consolidated Entity was not a party to any such proceedings during the year.

Non-audit Services

The board of directors, in accordance with advice from the audit committee, is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed below did not compromise the external auditor’s independence for the following reasons: (i) all non-audit services are reviewed and approved by the audit committee prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and (ii) the nature of the services provided do not compromise the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued) There were no non-audit services paid to the current external auditors, Bentleys Audit & Corporate (WA) Pty Ltd, during the year ended 30 June 2017.

Auditor’s Independence Declaration

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 (Cth) for the year ended 30 June 2017 has been received and can be found on page 30 of the Financial Report.

Remuneration Report – Audited This report which forms part of the Directors’ Report, details the nature and amount about the remuneration of the Consolidated Entity Directors and key management personnel (“KMP”).

Key Management Personnel include:

Directors Mr Philip Re Chairman and Non-Executive Director (Appointed 19 December 2016) Mr Paul Niardone Managing Director (Appointed 19 December 2016) Mr John Kolenda Non-Executive Director (Appointed 19 December 2016) Mr Adam Davey Non-Executive Director (Appointed 19 December 2016) Mr Ross Cotton Non-Executive Director (Appointed 20 January 2016) Mr Neil Warburton Non-Executive Director (Appointed as Non-Executive Chairman on 20 January 2016, Resigned 19 December 2016) Mr Gregory Hall Non-Executive Director (Resigned 19 December 2016) Mr Michael Curnow Non-Executive Director (Resigned 19 December 2016)

A. Remuneration Policy

The remuneration policy of Ausnet Financial Services Limited has been designed to align director and management objectives with shareholder and business objectives by providing a fixed remuneration component, and offering specific long-term incentives, based on key performance areas affecting the Consolidated Entity’s financial results. The Board of Ausnet Financial Services Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best management and directors to run and manage the Consolidated Entity, as well as create goal congruence between directors, executives and shareholders.

The Board’s policy for determining the nature and amount of remuneration for Board members and senior executives of the Consolidated Entity is as follows:

The remuneration policy, setting the terms and conditions for the executive directors and other senior executives, was developed by the Board. 19

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Remuneration Report – Audited (Continued) All remuneration paid to Directors and executives is valued at the cost to the Company and expensed.

The Board policy is to remunerate non-executive Directors at the lower end of market rates for comparable companies for time, commitment, and responsibilities. The maximum aggregate amount of fees that can be paid to non-executive Directors is subject to approval by shareholders at the Annual General Meeting (AGM). Fees for non-executive Directors are not linked to the performance of the Consolidated Entity.

B. Performance Conditions Linked to Remuneration

The Consolidated Entity seeks to establish and maintain a Ausnet Financial Services Limited Performance Rights Plan (”Plan”) to provide ongoing incentives to any full time or part time employee, consultant or any person nominated by the Board (including director or company secretary of the Company who holds salaried employment with the Company on a full or part time basis) (“Eligible Participants”) of the Company.

The Board adopted the Plan to allow Eligible Participants to be granted Performance Rights to acquire shares in the Company.

The objective of the Plan is to provide the Company with a remuneration mechanism, through the issue of securities in the capital of the Company, to motivate and reward the performance of Eligible Participants in achieving specified performance milestones within a specified performance period. The Board will ensure that the performance milestones attached to the securities issued pursuant to the Plan are aligned with the successful growth of the Company’s business activities.

Employment Details of Members of Key Management Personnel

Mr Paul Niardone has entered into an Executive Services Agreements (ESA) with the Company to be employed as Managing Director upon and subject to the terms and conditions of the ESA. The key terms of this agreement are disclosed below:

(i) Remuneration

 Mr Niardone will receive a salary, exclusive of superannuation, of $300,000 per year, on a total employment cost basis, which will be reviewed annually by the Company (Salary).  Mr Niardone will not receive any further director’s fees in addition to the Salary from the Company during such period as Mr Niardone serves as a director of the Company as determined by the Board.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Remuneration Report – Audited (Continued)  In addition, the Company may at any time during the term of the ESA pay Mr Niardone a performance-based bonus of not less than 50% of the total employment cost over and above the salary. In determining the extent of any performance based bonus, the Company shall take into consideration the key performance indicators of Mr Niardone and the Company, as the Company may set from time to time, and any other matter that it deems appropriate.  The Company shall provide to Mr Niardone, at its own cost, life insurance protection on similar terms to the life insurance protection currently offered by Ausnet Real Estate Services Pty Ltd.  The Company will make employer superannuation contributions on behalf of Mr Niardone.  The Company will reimburse Mr Niardone for all reasonable travelling intra/interstate or overseas, accommodation, and general expenses incurred in the performance of all duties in connection with the business of the Company and its related bodies corporate  Mr Niardone is entitled to all leave in accordance with the National Employment Standard (NES) and Western Australian long service leave legislation.

(ii) Termination by the Company without reason

The Company may at its sole discretion terminate employment by giving three months’ written notice and, at the end of that notice period, making a payment to Mr Niardone equal to the salary payable over a five month period. The Company may elect to pay Mr Niardone the equivalent of the eight months’ salary and dispense with the notice period.

(iii) Termination by Mr Niardone

Mr Niardone may at his sole discretion terminate the Employment in the following manner:

 if at any time the Company commits any serious or persistent breach of any of the provisions contained in the ESA and the breach is not remedied within 28 days of receipt of written notice from Mr Niardone to the Company to do so, by giving notice effective immediately; or  by giving three months’ written notice to the Company.

On 16 August 2016, Mr Phillip Re executed a letter of appointment to become non-executive Chairman of the Company

(i) Term

Mr Re’s service commenced on the date of completion of the acquisition of Ausnet Real Estate Services Pty Ltd by the Company and will cease when he resigns, retires or is removed from office in accordance with the Company’s constitution or the Corporations Act.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Remuneration Report – Audited (Continued) (ii) Fee

Mr Re will be paid a fee of $60,000 per annum for his role as a non-executive Chairman of the Company. Any fees paid to Mr Re will in any event be subject to annual review by the Board of the Company and approval by Shareholders (if required). The Company will reimburse Mr Re for all reasonable expenses incurred in performing his duties.

On 16 August 2016, Adam Davey executed a letter of appointment to become a non-executive Director of the Company.

(i) Term

Mr Davey’s service will commence on the date of completion of the acquisition of Ausnet Real Estate Services Pty Ltd by the Company and will cease when he resigns, retires or is removed from office in accordance with the Company’s constitution or the Corporations Act.

(ii) Fee

Mr Davey will be paid a fee of $48,000 per annum for his role as a non-executive Director of the Company. Any fees paid to Mr Davey will in any event be subject to annual review by the Board of the Company and approval by Shareholders (if required). The Company will reimburse Mr Davey for all reasonable expenses incurred in performing his duties.

On 16 August 2016, John Kolenda executed a letter of appointment to become a non-executive Director of the Company effective from Settlement.

(i) Term

Mr Kolenda’s service will commence on the date of completion of the acquisition of Ausnet Real Estate Services Pty Ltd by the Company and will cease when he resigns, retires or is removed from office in accordance with the Company’s constitution or the Corporations Act.

(ii) Fee

Mr Kolenda will be paid a fee of $48,000 per annum for his role as a non-executive Director of the Company. Any fees paid to Mr Re will in any event be subject to annual review by the Board of the Company and approval by Shareholders (if required). The Company will reimburse Mr Kolenda for all reasonable expenses incurred in performing his duties.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Remuneration Report – Audited (Continued) The following table provides employment details of persons who were, during the financial year, members of KMP of the Consolidated Entity. The table also illustrates the proportion of remuneration that was performance based and the proportion of remuneration received in the form of options.

Position Held as at Contract Proportions of Elements of Proportions of Elements of Remuneration 30 June 2017 and Commencement/T Remuneration Related to Performance Not Related to Performance any Change during ermination Date Non-salary Fixed Salary/ Fixed Salary/ the Year Cash-based Shares/ Options/ Fees – cash Fees – share Incentives Units Rights based based Total % % % % % Group KMP Philip Re Non-Executive Appointed 19 – – – 100 – 100 Chairman December 2016 Paul Niardone Managing Director Appointed 19 – – – 100 – 100 December 2016 John Kolenda Non-Executive Appointed 19 – – – 100 – 100 Director December 2016 Adam Davey Non-Executive Appointed 19 – – – 100 – 100 Director December 2016 Ross Cotton Non-Executive Appointed 20 – – – 100 – 100 Director January 2016

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Remuneration Report – Audited (Continued) Performance rights As per the Notice of Meeting lodged June 20, 2016 for meeting held on July 20, 2016, the Consideration Performance Shares approved to be issued was 66,666,667 Performance Shares. In addition to this, 46,666,667 Incentive Performance Shares were approved to be issued to proposed and continuing Directors of NCO.

A Performance Share in the relevant class will convert into one share upon achievement of: 1. The Consideration Performance Shares vest upon achieving a 10% growth in the mortgage and finance business loan book within 18 months of settlement (first milestone); and 2. The Incentive Performance Shares vest upon: a. achieving a 10% growth in the mortgage and finance business loan book within 18 months of settlement; and b. achieving a 20 day volume VWAP on the ASX which equals or exceeds 3 times the re- quotation price of $0.02, at any time within 24 months of settlement (second milestone).

The following table shows how many performance shares were granted, vested and forfeited during the year.

Performance Rights Balance at end Financial Balance at start Granted during of year Maximum value Year granted of year the year Vested Forfeited (unvested) yet to vest*

Name No. No. No. % No. % No. $

Philip Re 2017 – 11,648,324 – – – – 11,648,324 –

Paul Niardone 2017 – 15,820,432 – – – – 15,820,432 –

John Kolenda 2017 – 22,339,445 – – – – 22,339,445 –

Adam Davey 2017 – 8,000,000 – – – – 8,000,000 –

Ross Cotton 2017 – 8,000,000 – – – – 8,000,000 –

* The maximum value of the performance shares yet to vest was estimated based on the fair value of shares granted which was valued at nil. The minimum value of the performance shares yet to vest is nil, as the shares will be forfeited if the vesting conditions are not met.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Remuneration Report – Audited (Continued) C. Remuneration

Details of the nature and amount of each element of the remuneration of each of the KMP of the Company (the Directors) for the year ended 30 June 2017 are set out in the following tables:

There were no cash bonuses paid during the year and there are no set performance criteria for achieving cash bonuses.

Remuneration Expense Details

The following table of benefits and payments represents the components of the current year and comparative year remuneration expenses for each member of KMP of the Consolidated Entity. Such amounts have been calculated in accordance with Australian Accounting Standards.

For the year ended 30 June 2017

Short-term benefits Post- Equity employment benefits Salary Other Superannuation Share- Other Total Performance- and fees benefits based payments based payment Name $ $ $ $ $ $ % Directors: Philip Re 51,000 – – – – 51,000 – Paul Niardone 266,112 8,750 19,616 – 46,324 340,802 13 John Kolenda 24,000 – – – – 24,000 – Adam Davey 24,000 – – – – 24,000 – Ross Cotton 24,000 – – – – 24,000 – 389,112 8,750 19,616 – 46,324 463,802

For the year ended 30 June 2016

Comparative information for 2016 is not included as the accounting acquirer (Ausnet Real Estate Services Pty Ltd) was not subject to the provisions of section 300A of the Corporations Act 2001 (Cth) during this period.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Remuneration Report – Audited (Continued) D. Service Agreements

There are no service agreements with Key Management Personal not previously disclosed.

E. Options and Performance Rights Granted as Remuneration

For the year ended 30 June 2017

Balance at Beg of Year Grant Details Exercised Lapsed Balance at End of Year Issue Date No. Value No. Value No. Value No. Value $ $ $ $ Group KMP Philip Re – – – – – – – – – – Paul Niardone – – – – – – – – – – John Kolenda – – – – – – – – – – Adam Davey – – – – – – – – – – Ross Cotton – – – – – – – – – – Neil Warburton* 1,445 28 Nov 2014 1,500,000 1,445 – – (1,500,000) (1,445) – – Gregory Hall* 1,445 28 Nov 2014 1,500,000 1,445 – – (1,500,000) (1,445) – – Michael Curnow* 1,445 28 Nov 2014 1,500,000 1,445 – – (1,500,000) (1,445) – – 4,335 4,335 – – (4,500,000) (4,335) – –

*Resigned from the position of non-executive director on 19 December 2016. Accordingly, all performance right options previously granted were lapsed on this date.

For the year ended 30 June 2016

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Remuneration Report – Audited (Continued) F. Share Holdings Disclosures Relating to Key Management Personnel

The number of ordinary shares in the Parent Entity held during the financial year by each Director of Ausnet Financial Services Limited and any other key management personnel, including their personally related parties, are set out below:

2017 Balance Granted as Issued on Exercise of Other Balance 1 July 2016 Remuneration Options during the Movements 30 June 2017 during the year year Philip Re – – – 4,069,973 4,069,973 Paul Niardone – – – 10,463,292 10,463,292 John Kolenda – – – 42,718,332 42,718,332 Adam Davey – – – 617,144 617,144 Ross Cotton 30,000,000 – – (24,600,000) 5,400,000 Neil Warburton 45,854,118 – – (45,854,118)** – Gregory Hall 35,121,986 – – (35,121,986)** – Michael Curnow 28,651,738 – – (28,651,738)** – Total 139,627,842 – – (76,359,101) 63,268,741

*Other movements relate to purchase/sale and issue of shares **Movement when resigned as Director

G. Option Holdings Disclosures Relating to Key Management Personnel

2017 Balance Granted as Exercise of Options Other Balance 1 July 2016 Remuneration during the year Movements 30 June 2017 during the year Philip Re – – – – – Paul Niardone – – – – – John Kolenda – – – – – Adam Davey – – – 142,858 142,858 Ross Cotton – – – 2,500,000 2,500,000 Neil Warburton 7,142,857 – – (7,142,857)** – Gregory Hall 2,850,000 – – (2,850,000)** – Michael Curnow 2,850,000 – – (2,850,000)** – Total 12,842,857 – – (10,199,999) 2,642,858

*Other movements relate to issue of options. **Movement when resigned as Director 27

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

Remuneration Report – Audited (Continued) H. Other Transactions with Key Management Personnel

Some Directors or former Directors of the Consolidated Entity hold or have held positions in other companies, where it is considered they control or significantly influence the financial or operating policies of those entities. During the year, the following entities provided exploration, accounting and corporate services to the Consolidated Entity. Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Entity Nature of transactions Key Total Transactions Payable Balance Management Personnel 2017 2016 2017 2016 $ $ $ $

Regency Partners Professional services Philip Re 3,190 – Daring Investments Pty Ltd Licence fees John Kolenda 11,906 – – –

I. Loans to Directors and Executives

There are no loans at 30 June 2017 to any Directors.

Voting and Comments Made at the Company’s 2016 Annual General Meeting

At the Annual General Meeting held on 25 November 2016, the company received 12,391,821 (100%) “Yes” votes and Nil “Against” and Abstain on its remuneration report for the 2016 financial year. The Consolidated Entity did not employ a remuneration consultant during the year.

– END OF REMUNERATION REPORT

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS REPORT (Continued)

This Report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of Directors.

Paul Niardone Managing Director

Dated this 29th day of September 2017

To The Board of Directors

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

As lead audit director for the audit of the financial statements of Ausnet Financial Services Limited for the financial year ended 30 June 2017, 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; and

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

Yours faithfully

BENTLEYS MARK DELAURENTIS CA Chartered Accountants Director

Dated at Perth this 29th day of September 2017

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME June June Note 2017 2016 $ $ Revenue from continuing operations 2 9,590,540 6,631,439

Less Expenses Salaries & employee benefits expenses (8,439,488) (6,165,639) Depreciation and Amortisation (125,942) (54,466) Profit/(loss) on disposal of assets – (98,182) Consultancy Fees (613,450) (202,045) Advertising & Promotion expenses (214,032) (236,206) Legal, Professional & Valuation fees (954,602) (702,653) Rent & Outgoings (247,440) (214,358) Other expenses (926,849) (747,062) Share based payment (118,830) – Impairment Costs (285,284) (54,605) Impairment of loan to Joint Venture entity – (33,619) Corporate transaction accounting expense 3 (1,439,297) – Loss before income tax (3,774,674) (1,877,396) Income tax (expense) / benefit 5 (29,568) 38,223 Loss from continuing operations (3,804,242) (1,839,173)

Other comprehensive income – – Total comprehensive loss for the period attributable to the members of Ausnet Financial Services Limited (3,804,242) (1,839,173)

Basic and diluted (loss) per share (cents per share) attributable to the members of Ausnet Financial Services Limited 4 (0.95) (1.20)

The accompanying notes form part of these financial statements

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Note June June 2017 2016 $ $ Current Assets Cash and cash equivalents 6 2,202,655 153,978 Trade and other receivables 7 1,451,188 1,092,550 Current tax asset 8 184,115 Total Current Assets 3,837,958 1,246,528

Non Current Assets Property, Plant and Equipment 9 78,595 22,613 Intangible Assets 10 3,201,441 – Deferred Tax Asset 12 – 346,821 Total Non Current Assets 3,280,036 369,434 Total Assets 7,117,994 1,615,962

Current Liabilities Trade and Other Payables 13 4,058,364 2,060,905 Borrowings 14 6,117 449,473 Provisions 15 276,093 441,693 Total Current Liabilities 4,340,574 2,952,071

Non Current Liabilities Deferred tax liabilities 211,433 – Provisions 16 127,673 94,371 Total Non Current Liabilities 339,106 94,371 Total Liabilities 4,679,680 3,046,442 Net Assets/(Liabilities) 2,438,314 (1,430,480)

Equity Contributed Equity 17 9,706,731 2,509,890 Reserves 18 476,195 – Accumulated Losses (7,744,612) (3,940,370) Total Equity/(Net Deficiency) 2,438,314 (1,430,480)

The accompanying notes form part of these financial statements

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Contributed Accumulated Reserves CONSOLIDATED Equity Losses Total

Balance 1 July 2016 2,509,890 (3,940,370) – (1,430,480) Loss for the year – (3,804,242) – (3,804,242) Other comprehensive income – – – – Total comprehensive income for the period – (3,804,242) – (3,804,242)

Transactions with equity holders in their capacity as owners: Share Subscriptions (net of transaction costs) 7,196,841 – – 7,196,841 Options issued – – 476,195 476,195 Dividends paid to equity holders – – – Balance 30 June 2017 9,706,731 (7,744,612) 476,195 2,438,314

Balance 1 July 2015 1,599,086 (2,101,197) – (502,111) Loss for the year – (1,839,173) – (1,839,173) Other comprehensive income – – – – Total comprehensive income for the period – (1,839,173) – (1,839,173)

Transactions with equity holders in their capacity as owners: Share Subscriptions (net of transaction costs) 910,804 – – 910,804 Dividends paid to equity holders – – – Balance 30 June 2016 2,509,890 (3,940,370) – (1,430,480)

The accompanying notes form part of these financial statements

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 CONSOLIDATED STATEMENT OF CASH FLOWS

June June Note 2017 2016 $ $ Cash flows from operating activities Receipts from customers 8,921,689 5,958,188 Payments to suppliers and employees (9,643,275) (7,349,535) Interest received 26,529 231 Interest paid (98,101) (35,250) Income tax paid (50,692) – Net cash (outflows) from operating activities 19 (843,850) (1,426,366)

Cash flows from investing activities Payments for Property Plant and Equipment (26,898) (10,901) Proceeds from sale of Property Plant and Equipment 10,000 4,800 Payments for intangibles (422,887) – Net cash inflow on acquisition of Beaufort (cash held at 3(ii) (2,239,714) – acquisition) Net cash inflow on reverse acquisition (cash held at acquisition) 3(i) 165,082 – Net cash (outflows) from investing activities (2,514,417) (6,101)

Cash flows from financing activities Proceeds from issue of shares 5,800,000 869,804 Share issue costs (384,700) – Repayments of borrowings (8,356) (11,368) Net Proceeds from borrowings – 435,000 Net cash inflows from financing activities 5,406,944 1,293,436

Net increase/(decrease) in cash held 2,048,677 (139,031) Cash at the beginning of financial year 153,978 293,009 Cash at the end of financial year 6 2,202,655 153,978

The accompanying notes form part of these financial statements

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Ausnet Financial Services Limited is a for-profit entity for the purpose of preparing the financial statements.

The financial report covers Ausnet Financial Services Limited and controlled entities (“the Consolidated Entity”). Ausnet Financial Services Limited is a Company limited by shares, incorporated and domiciled in Australia. The financial report is presented in Australian dollars which is the Consolidated Entity’s functional and presentation currency.

The financial statements are presented in Australian dollars and have been prepared under the historical cost convention. The financial statements of the Consolidated Entity also comply with the International Financial Reporting Standards as issued by the International Accounting Standards Board.

b) Reverse Acquisition

Ausnet Financial Services Limited (formerly Namibian Copper Limited) is listed on the Australian Securities Exchange. The Company completed the legal acquisition of Ausnet Real Estate Services Pty Ltd on 16 December 2016.

Ausnet Real Estate Services Pty Ltd (the legal subsidiary) was deemed to be the acquirer for accounting purposes as it has obtained control over the operations of the legal acquirer Ausnet Financial Services Limited (accounting subsidiary). Accordingly, the consolidated financial statements of Ausnet Financial Services Limited have been prepared as a continuation of the financial statements of Ausnet Real Estate Services Pty Ltd. Ausnet Real Estate Services Pty Ltd (as the deemed acquirer) has accounted for the acquisition of Ausnet Financial Services Limited from 16 December 2016. The comparative information presented in the consolidated financial statements is that of Ausnet Real Estate Services Pty Ltd.

The impact of the reverse acquisition on each of the primary statements is as follows: (a) The consolidated statement of profit and loss and other comprehensive income: (i) for the year ended 30 June 2017 comprises 12 months of Ausnet Real Estate Services Pty Ltd and 196 days of Ausnet Financial Services Limited; and (ii) for the comparative period comprises 1 July 2015 to 30 June 2016 of Ausnet Real Estate Services Pty Ltd. (b) The consolidated statement of financial position: (i) as at 30 June 2017 represents both Ausnet Real Estate Services Pty Ltd and Ausnet Financial Services Limited as at that date; and (ii) as at 30 June 2016 represents Ausnet Real Estate Services Pty Ltd as at that date.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(c) The consolidated statement of changes in equity: (i) for the year ended 30 June 2017 comprises Ausnet Real Estate Services Pty Ltd’s balance at 1 July 2016, its loss for the year and transactions with equity holders for 12 months. It also comprises Ausnet Financial Services Limited transactions within equity for the 196 days ended 30 June 2017 and the equity value of Ausnet Real Estate Services Pty Ltd and Ausnet Financial Services Limited at 30 June 2017. The number of shares on issue at the end of the year represent those of Ausnet Financial Services Limited only. (ii) for the comparative period comprises 1 July 2015 to 30 June 2016 of Ausnet Real Estate Services Pty Ltd ‘s changes in equity. (d) The consolidated statement of cash flows: (i) for the year ended 30 June 2017 comprises the cash balance of Ausnet Real Estate Services Pty Ltd, as at 1 July 2015, the cash transactions for the 12 months (12 months of Ausnet Real Estate Services Pty Ltd and the period from 17 December 2016 to 30 June 2017 of Ausnet Financial Services Limited) and the cash balances of Ausnet Real Estate Services Pty Ltd and Ausnet Financial Services Limited as at 30 June 2017. (ii) for the comparative period comprises 1 July 2015 to 30 June 2016 of Ausnet Real Estate Services Pty Ltd.

c) Going concern

This report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and liabilities in the normal course of business. The Consolidated Entity has incurred a loss for the year ended 30 June 2017 of $3,804,242 (2016: loss of $1,839,173). The loss for 30 June 2017 includes one off transaction costs of $1,439,297. In addition the Consolidated Entity experienced net cash outflows from operating activities of $843,850 (2016: cash outflows of $1,426,366) and there was a working capital deficit of $502,616 at 30 June 2017 (2016: $1,705,543 deficit).

During the year ended 30 June 2017, the Company successful completed a re-compliance capital raising of $5,800,000 before costs.

The ability of the Consolidated Entity to continue as a going concern is dependent on the following:  It is successful with any future capital raise plans on the back of its successful reverse takeover of NCO and raising of $5.8m;  The Company continues to meet its current payment plans in place with the ATO or the successful renegotiation of payment plans with the ATO;  Raising additional finance through its leverage on its rent roll assets;  Continued support from creditors and suppliers.

The Directors are confident that the Consolidated Entity will receive further funding and consider the Consolidated Entity is a going concern, but recognise that it is dependent on the matters mentioned above and in the financial statements. 36

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

On the basis that sufficient funding is expected to be raised to meet the Consolidated Entity’s expenditure forecasts, the Directors consider that the Consolidated Entity remains a going concern and these financial statements have been prepared on a going concern basis, which assumes the continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business. In considering the above, the directors have reviewed the Consolidated Entity’s financial position and are of the opinion that the use of the going concern basis of accounting is appropriate.

If the Consolidated Entity does not achieve its budgeted results and is unable to raise additional funding there exists a material uncertainty which may cast significant doubt whether the Consolidated Entity will continue as a going concern and therefore the Consolidated Entity may be unable to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

The financial report does not contain any adjustments relating to the recoverability and classification of recorded assets or to the amounts or classification of recorded assets or liabilities that might be necessary should the Group not be able to continue as a going concern.

d) Principles of Consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Ausnet Financial Services Limited as at 30 June 2017 and the results of all subsidiaries for the year then ended. Ausnet Financial Services Limited and its subsidiaries together are referred to in this financial report as the Consolidated Entity.

Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Consolidated Entity. They are de-consolidated from the date that control ceases.

The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Consolidated Entity (refer to note 1(w)). Investments in subsidiaries are accounted for at cost in the individual financial statements of Ausnet Financial Services Limited.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Consolidated Entity. Non-controlling interests in the results and

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

equity of subsidiaries are shown separately in the consolidated Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position respectively.

e) Income Tax

The income tax expense (revenue) for the period comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date.

Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the period as well unused tax losses.

Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or

liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

Tax consolidation Ausnet Real Estate Services Pty Ltd and its wholly-owned Australian subsidiaries have formed an income tax consolidated group (“the Group”) under the tax consolidation legislation. Each entity in the Group recognises its own current and deferred tax liabilities, except for any deferred tax liabilities resulting from unused tax losses and tax credits, which are immediately assumed by the parent entity. The Group notified the Australian Tax Office that it had formed an income tax consolidated group to apply from 1 July 2010. The tax consolidated group has entered a tax sharing agreement whereby each company in the Group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.

As at the date of this report, Ausnet Financial Services Limited and Beaufort Realty Pty Ltd have not been included in the tax consolidated group.

f) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is

recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash flows from other assets or groups of assets (cash-generating units). Non-financial assets, other than goodwill, that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

g) Cash and cash equivalents

For Statement of Cash Flow presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid instruments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

h) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and amounts collected on behalf of third parties. Revenue is recognised for major business activities as follows:  Settlement Fee Income – on settlement of real estate transaction.  Upfront commissions for Mortgage Origination – on approval of finance to clients and settlement of real estate transaction.  Trail commissions – on receipt.  Real Estate Commissions – upon settlement and/or sale of property is unconditional  Training Seminars and Functions – on date function is held.  Interest Revenue – on a proportional basis taking into account the interest rates applicable to the financial assets.  Dividend Revenue – when it is received. All revenue is stated net of the amounts of goods and services tax (GST).

i) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the Statement of Financial Position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.

j) Property, Plant and Equipment

Plant and equipment are measured on the cost basis.

The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment and is recognised net within other income/other expenses in profit or loss. When revalued assets are sold, any related amount included in the revaluation reserve is transferred to retained earnings.

The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

net cash flows which will be received from the assets’ employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts.

Depreciation

The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land, is depreciated on either a straight line basis or diminishing balance basis, whichever is considered most appropriate, over their useful lives to the consolidated entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the remaining term of the lease.

The depreciation rates used for each class of depreciable assets are:

Class of Asset Depreciation Rate Leasehold Improvements (over term of lease) Office furniture and fittings 10% Office equipment 25% Motor vehicle 25%

k) Intangible assets

(i) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Consolidated Entity’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisitions of associates is included in investments in associates. Goodwill is not amortised but it is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose, identified according to operating segments.

(ii)Trail Book intangible assets Trail book contracts and licences have a finite useful life and are carried at cost less accumulated amortisation and impairment losses. Amortisation is calculated using the straight-line method to allocate the cost of trail book and licences over their estimated useful lives, which vary from 5 to 8 years.

(iii)Property Management intangible assets The property management rights are expected to have a finite life and are therefore amortised over their useful lives. The investment is carried at cost less accumulated amortisation and impairment losses. 41

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Amortisation is calculated using the diminishing value method to allocate the cost of the rent roll over its estimated useful lives which is based on comparable market evidence. The amortisation rate used is 15%.

(iv)Business and domain names Business and domain names are recognised at cost of acquisition. They have a finite useful life and are amortised on a systematic basis based on the future economic benefits to be obtained over its useful life. Amortisation is calculated using the diminishing value method at 10%.

l) Employee Benefits

Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year together with benefits arising from wages and salaries, annual leave and sick leave which will be settled after one year, have been measured at the amounts expected to be paid when the liability is settled. Other employee benefits payable later than one year have been measured at the amounts expected to be paid when the liability is settled. Contributions are made by the consolidated entity to employee superannuation funds and are charged as expenses when incurred.

m) Comparative Figures

Where required by Accounting Standards comparative figures have been adjusted to conform to changes in presentation for the current financial year.

n) Non Current Investments

Under AASB 139: Financial Instruments: Recognition and Measurement, financial assets are required to be classified into four categories, which determine the accounting treatment of the item. The categories and various treatments are:

− held to maturity, measured at amortised cost; − held for trading, measured at fair value with unrealised gains or losses charged to the profit and loss; − loans and receivables, measured at amortised cost; and − available for sale instruments, measured at fair value with unrealised gains or losses taken to equity.

o) Critical accounting estimates and critical judgements in applying accounting policies

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company. 42

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Key Estimate – Impairment The Company assesses impairment at the end of each reporting period by evaluating conditions and events specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. No impairment has been recognised at the end of the reporting period.

Key Estimate – Taxation Balances disclosed in the financial statements and the notes thereto, that are related to taxation, are based on the best estimates of directors. These estimates take into account both the financial performance and position of the company as they pertain to current income taxation legislation, and the directors understanding thereof. No adjustment has been made for pending or future taxation legislation. The current income tax position represents that directors’ best estimate, pending an assessment by the Australian Taxation Office.

Critical judgement – Recognition of trailing commission revenue & trailing commission expense The Consolidated Entity receives trailing commissions from lenders on loans they have settled that were originated by the Consolidated Entity. The trailing commissions are received over the life of the loans based on the individual loan balance outstanding. The Consolidated Entity also makes trailing commission payments to brokers based on the individual loan balance outstanding.

As disclosed in Note 1(h), revenue from trailing commission on receipt. The directors considered the detailed criteria for the recognition of revenue from the rendering of services set out in AASB 118 ‘Revenue’, in particular whether the recognition of revenue on the trail satisfied the probability requirements. The directors determined that at the contract level, the Consolidated Entity cannot reliably determine the likelihood of that individual remaining with the Consolidated Entity or the period that they will continue for, resulting in revenue only being recognised upon receipt.

Trailing commission expenditure is recognised on the same basis as trailing commission revenue and is recognised upon receipt of trailing commission revenue.

p) Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the profit or loss on a straight-line basis over the period of the lease.

q) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts. Trade receivables are due for settlement within no more than 30 days. Marketing allowances and upfront commissions paid to employees and agents are recovered against future sales commissions received by the employee or agent.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Collectability of trade and other receivables are reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is established when there is objective evidence that the Consolidated Entity will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.

r) Trade payables

These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

s) Provisions

Provisions for legal claims, service warranties and make good obligations are recognised when the Consolidated Entity has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

t) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any differences between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

u) Contributed Equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

v) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting date.

w) Business combinations

The acquisition method of accounting is used to account for all business combinations, including business combinations involving entities or businesses under common control, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Consolidated Entity. The consideration transferred also includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary. Acquisition–related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.

On an acquisition-by-acquisition basis, the Consolidated Entity recognises any non-controlling interest in the acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Consolidated Entity’s share of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

x) Financial Risk Management

The Consolidated Entity’s activities expose it to a variety of financial risks: market risk (including interest rate risk), credit risk and liquidity risk. The Consolidated Entity’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Consolidated Entity.

Risk management is carried out by the full Board of Directors as the Consolidated Entity believes that it is crucial for all board members to be involved in this process. The Chairman, with the assistance of senior management as required, has responsibility for identifying, assessing, treating and monitoring risks and reporting to the Board on risk management.

(a) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Consolidated Entity’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk The Consolidated Entity does not have any foreign currency exposures.

Interest rate risk The Consolidated Entity are exposed to movements in market interest rates on cash and cash equivalents. The Consolidated Entity policy is to monitor the interest rate yield curve out to 120 days to ensure a balance is maintained between the liquidity of cash assets and the interest rate return.

Other market price risk The Consolidated Entity does not carry any equity price risk and does not enter into commodity contracts.

(b) Credit risk Credit risk is the risk of financial loss to the Consolidated Entity if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Consolidated Entity’s receivables from customers and investment securities.

The maximum exposure to credit risk at balance date is the carrying amount (net of provision for impairment) of those assets as disclosed in the statement of financial position and notes to the financial statements. The only significant concentration of credit risk for the Consolidated Entity is the cash and cash equivalents held with financial institutions. All material deposits are held with the major Australian banks and any loans made to external parties are secured under contracts and charges over relevant assets, for which the Board evaluate credit risk to be minimal.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(c) Liquidity risk Liquidity risk is the risk that the Consolidated Entity will not be able to meet its financial obligations as they fall due. The Consolidated Entity’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Consolidated Entity’s reputation.

The Consolidated Entity manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The financial liabilities of the Consolidated Entity are confined to trade and other payables as disclosed in the Statement of Financial Position. All trade and other payables are non-interest bearing and due within 12 months of the reporting date.

y) Adoption of new and revised standards

The Consolidated Entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Consolidated Entity during the financial year.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

New Accounting Standards for Application in Future Periods Accounting Standards issued by the AASB that are not yet mandatorily applicable to the Group, together with an assessment of the potential impact of such pronouncements on the Group when adopted in future periods, are discussed below:

 AASB 9 : Financial Instruments and associated Amending Standards (applicable to annual reporting periods beginning on or after 1 January 2018).

The Standard will be applicable retrospectively and includes revised requirements for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial instruments and simplified requirements for hedge accounting. The key changes that may affect the Consolidated Entity on initial application include certain simplifications to the classification of financial assets, simplifications to the accounting of embedded derivatives, upfront accounting for expected credit loss, and the irrevocable election to recognise gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Based on preliminary analysis the directors anticipate that the adoption of AASB 9 is unlikely to have a material impact on the Consolidated Entity’s financial instruments.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

 AASB 15 : Revenue from Contracts with Customers (applicable to annual reporting periods beginning on or after 1 January 2018,).

When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principles-based model. Apart from a limited number of exceptions, including leases, the new revenue model in AASB 15 will apply to all contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers. The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. To achieve this objective, AASB 15 provides the following five-step process: – identify the contract(s) with a customer; – identify the performance obligations in the contract(s); – determine the transaction price; – allocate the transaction price to the performance obligations in the contract(s); and – recognise revenue when (or as) the performance obligations are satisfied. The transitional provisions of this Standard permit an entity to either: restate the contracts that existed in each prior period presented per AASB 108 : Accounting Policies, Changes in Accounting Estimates and Errors (subject to certain practical expedients in AASB 15 ); or recognise the cumulative effect of retrospective application to incomplete contracts on the date of initial application. There are also enhanced disclosure requirements regarding revenue. Although the directors anticipate that the adoption of AASB 15 may have an impact on the Consolidated Entity’s financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

 AASB 16 : Leases (applicable to annual reporting periods beginning on or after 1 January 2019).

When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117 : Leases and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as operating or finance leases. The main changes introduced by the new Standard are as follows: – recognition of a right-of-use asset and liability for all leases (excluding short-term leases with less than 12 months of tenure and leases relating to low-value assets); – depreciation of right-of-use assets in line with AASB 116 : Property, Plant and Equipment in profit or loss and unwinding of the liability in principal and interest components; – inclusion of variable lease payments that depend on an index or a rate in the initial measurement of the lease liability using the index or rate at the commencement date; – application of a practical expedient to permit a lessee to elect not to separate non-lease components and instead account for all components as a lease; and – inclusion of additional disclosure requirements.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB 108 or recognise the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application. Although the directors anticipate that the adoption of AASB 16 will impact the Consolidated Entity ‘s financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

NOTE 2: REVENUE Consolidated Entity June June 2017 2016 $ $ Revenue from continuing operations: Commissions 6,335,430 3,725,292 Fees 3,018,512 2,858,453 Management fees 173,526 36,000 Interest received 24,764 232 Other income 38,308 11,462 Total Revenue 9,590,540 6,631,439

NOTE 3: BUSINESS COMBINATION

(i) REVERSE ACQUISTION

On 16 December 2016, Ausnet Financial Services Limited (formerly Namibian Copper Limited acquired 100% of the ordinary share capital and voting rights in Ausnet Real Estate Services Pty Ltd as detailed in the prospectus and supplementary prospectus announced by the Company.

Under AASB 3 Business Combinations (AASB 3) this is treated as a ‘reverse acquisition’, whereby the accounting acquirer is deemed to be Ausnet Real Estate Services Pty Ltd and Ausnet Financial Services Limited is deemed to be the accounting acquiree. Refer to the effect upon the basis of preparation at Note 1(b).

(a) Acquisition Consideration

As consideration for the issued capital of Ausnet Real Estate Services Pty Ltd, Ausnet Financial Services Limited issued 200,000,000 post consolidation shares to the shareholders of Ausnet Real Estate Services Pty Ltd at $0.02 and 66,666,667 performance shares for a total consideration of $4,000,000. No cash was paid as part of the acquisition consideration. 49

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS (b) Fair value of consideration transferred

Under the principles of AASB 3, the transaction between Ausnet Financial Services Limited and Ausnet Real Estate Services Pty Ltd is treated as a reverse acquisition. As such, the assets and liabilities of the legal subsidiary (the accounting acquirer), being Ausnet Real Estate Services Pty Ltd, are measured at their pre-combination carrying amounts. The assets and liabilities of the legal parent (accounting acquiree), being Ausnet Financial Services Limited are measured at fair value on the date of acquisition.

The consideration in a reverse acquisition is deemed to have been incurred by the legal subsidiary (Ausnet Real Estate Services Pty Ltd) in the form of equity instruments issued to the shareholders of the legal parent entity (Ausnet Financial Services Limited). The acquisition-date fair value of the consideration transferred has been determined by reference to the fair value of the number of shares the legal subsidiary (Ausnet Real Estate Services Pty Ltd) would have issued to the legal parent entity Ausnet Financial Services Limited to obtain the same ownership interest in the combined entity. Therefore the deemed fair value of the acquisition of Ausnet Financial Services Limited (Accounting Subsidiary) was determined to be 87,793,034 shares on issue in Ausnet Financial Services Limited at $0.02 for a total value of $1,755,861.

Goodwill is calculated as the difference between the fair value of consideration transferred less the fair value of the identified net assets of the legal parent, being Ausnet Financial Services Limited. Details of the transaction are as follows:

Fair Value $

Fair value of consideration transferred 1,755,861

Fair value of assets and liabilities held at acquisition date: Cash 165,082 Trade and other receivables 185,049 Other current assets 7,660 Trade and other payables (20,407) Borrowings (20,820) Fair value of identifiable assets and liabilities assumed 316,564 Goodwill (Corporate transaction accounting expense) 1,439,297

The goodwill calculated above represents goodwill in Ausnet Financial Services Limited; however this has not been recognised. Instead the deemed fair value of the interest in Ausnet Real Estate Services Pty Ltd issued to existing Ausnet Financial Services Limited shareholders to effect the combination (the consideration for the acquisition of the public shell company) was recognised as an expense in the consolidated statement profit or loss and comprehensive income. This expense has been presented as a “Corporate transaction accounting expense” on the face of the consolidated statement profit or loss and comprehensive income. 50

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS (ii) ACQUISTION OF BEAUFORT REALTY PTY LTD

On 31 March 2017, Ausnet Real Estate Services Pty Ltd acquired 100% of the ordinary share capital and voting rights in Beaufort Realty Pty Ltd.

(a) Acquisition Consideration

As consideration for the issued capital of Beaufort Realty Pty Ltd, Ausnet Real Estate Services Pty Ltd paid $3,286,576 of which $466,011 was a retention payment due and payable 12 months from acquisition date .

(b) Fair value of consideration transferred

Under the principles of AASB 3, the assets and liabilities of Beaufort Realty Pty Ltd are measured at fair value on the date of acquisition.

Goodwill is calculated as the difference between the fair value of consideration transferred less the fair value of the identified net assets of Beaufort Realty Pty Ltd. Details of the transaction are as follows:

Fair Value $

Consideration Provisional payment 2,896,829 Completion payment refund (76,264) 2,820,565 Retention payment 466,011 3,286,576

Fair value of assets and liabilities held at acquisition date: Cash 657,115 Trade and other receivables 248,277 Other current assets 17,893 Current tax asset 133,423 Plant and equipment 42,574 Intangible asset – rent roll 2,109,104 Trade and other payables (123,711) Deferred tax liability (580,004) Fair value of identifiable assets and liabilities assumed 2,504,671 Goodwill 781,905

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

(iii) NET CASHFLOW ON ACQUISITION OF SUBSIDIARIES June 2017 $ Beaufort Realty Pty Ltd Consideration paid in cash 2,896,829 Less: cash and cash equivalent balances acquired (657,115) Net cash paid 2,239,714

Reverse Acquisition Consideration paid in cash – Less: cash and cash equivalent balances acquired (165,082) Net cash acquired (165,082)

(iv) IMPACT OF ACQUISITION ON THE RESULTS OF THE GROUP

Included in the loss for the year is $92,000 profit attributable to the additional business generated by Beaufort Realty Pty Ltd. Revenue for the year includes $468,000 in respect to Beaufort Realty Pty Ltd.

NOTE 4: EARNINGS PER SHARE (EPS) Consolidated Entity June June 2017 2016 $ $

Loss for the year 3,804,242 1,839,173

Weighted average number of ordinary shares outstanding during the year used in the calculation of basic EPS 400,711,191 152,884,694

Basic and diluted EPS (cents per share) (0.95) (1.20)

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

At the end of the year ended 30 June 2017, the Consolidated Entity has 80,742,739 unissued shares under options (2016: Nil). The Consolidated Entity does not report diluted earnings per share on annual losses generated by the Consolidated Entity. During year ended 30 June 2017 the Consolidated Entity’s unissued shares under option were anti-dilutive.

As noted in Note 1(b), the equity structure in these consolidated financial statements following the reverse acquisition reflects the equity structure of Ausnet Financial Services Limited, being the legal acquirer (the accounting acquiree), including the equity interests issued by Ausnet Financial Services Limited to effect the business combination.

1. In calculating the weighted average number of ordinary shares outstanding (the denominator of the EPS calculation) for the year ended 30 June 2017 the number of ordinary shares outstanding for the year ended 30 June 2017 shall be the actual number of ordinary shares of Ausnet Financial Services Limited outstanding during that period. 2. The basic EPS for the year ended 30 June 2016 shall be calculated by dividing: (a) the profit or loss of Ausnet Real Estate Services Pty Ltd attributable to ordinary shareholders in each of those periods by Ausnet Real Estate Services Pty Ltd ‘s historical weighted average number of ordinary shares outstanding multiplied by the exchange ratio established in the acquisition agreement.

NOTE 5: INCOME TAX EXPENSE / (BENEFIT) Consolidated Entity June June 2017 2016 $ $ (a) Income tax expense / (benefit) Current tax – – Under/(over) provision – prior year – (2,892) Deferred tax 29,568 (35,331) 29,568 (38,223)

(b) The Prima facie tax on operating profit/ (loss) at 27.5% (2016: 30%) (1,038,035) (563,219) Tax effect of permanent differences: Non Deductible Expenses 474,442 17,579 Income tax benefit in respect of current year losses 593,161 510,309 Income tax expense/(benefit) 29,568 (35,331) Under/(over) provision for income tax in prior year – (2,892) Income tax expense/(benefit) 29,568 (38,223)

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS (c) Tax losses

Unused tax losses for which no deferred tax asset has been recognised 5,131,452 3,333,280 Potential tax benefit @ 27.5% (2016: 30%) 1,411,174 999,984

The benefit for tax losses will only be obtained if:  The Company and Consolidated Entity derive future assessable income of a nature and an amount sufficient to enable the benefit from the deductions for the losses to be realised;  The Company and the Consolidated Entity continue to comply with the conditions for deductibility imposed by Law; and  No changes in tax legislation adversely affect the ability of the Company and Consolidated Entity to realise these benefits.

NOTE 6: CASH AND CASH EQUIVALENTS Consolidated Entity June June 2017 2016 $ $

Cash at bank and on hand 2,202,655 153,978

NOTE 7: TRADE AND OTHER RECEIVABLES Trade debtors 718,847 379,517 Prepaid expenses 57,426 8,138 Commissions receivable 173,630 319,843 Recoverable commissions/wages 513,164 377,439 Deposits paid 49,169 – Other receivables 83,420 7,613 Provision for non recovery of (144,468) – commissions/wages 1,451,188 1,092,550

Ageing of receivables past due not impaired Trade receivables disclosed above include amounts that are past due at the end of the reporting period for which the Consolidated Entity has not recognised an allowance for doubtful debts because there has not been a significant change in credit quality and the amounts are still considered receivable. Refer Note 26(iii).

Ageing of impaired trade receivables As at 30 June 2017, the age of impaired trade receivables of $144,468 was past due +90 days (2016: Nil) 54

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS

NOTE 8: CURRENT TAX ASSETS Consolidated Entity June June 2017 2016 $ $

Income tax refundable 184,115 – 184,115 –

NOTE 9: PROPERTY, PLANT AND EQUIPMENT

Plant and equipment – at cost 209,064 39,163 Accumulated depreciation (130,469) (16,550) Net Book Value 78,595 22,613 Total Property Plant & Equipment 78,595 22,613

NOTE 10: INTANGIBLES

Rent Roll 2,030,013 – Goodwill 781,905 – Trademarks 152,000 – Other 237,523 – 3,201,441 –

Movement reconciliation – Rent Roll Balance at the beginning of the year – – Acquisition of subsidiary (Note 3(ii)) 2,109,104 – Amortisation charge (79,091) Net Book Value at end of year 2,030,013 –

Movement reconciliation – Goodwill Balance at the beginning of the year – – Acquisition of subsidiary (Note 3(ii) 781,905 – Net Book Value at end of year 781,905 –

Movement reconciliation – Trademarks Balance at the beginning of the year – – Additions 160,000 – Amortisation charge (8,000) – Net Book Value at end of year 152,000 –

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS Consolidated Entity June June 2017 2016 $ $ Movement reconciliation – Other intangible assets Balance at the beginning of the year – 10,000 Additions 262,884 – Amortisation Charge (25,361) (10,000) Net Book Value at end of year 237,523 –

Movement reconciliation – Total Balance at the beginning of the year – 10,000 Additions 422,884 – Acquisition of subsidiary 2,891,009 – Amortisation Charge (112,452) (10,000) Net Book Value at end of year 3,201,441 –

Amortisation charge Please refer to Note 1 k) Intangible Assets for further details Impairment charge Please refer to Note 1 f) Impairment of Assets for further details

NOTE 11: INVESTMENT IN CONTROLLED ENTITIES

Ownership Name Interest June June 2017 2016 % % Jelina Holdings Pty Ltd 100 100 Westvalley Corporation Pty Ltd 100 100 Ausnet Asset Management Pty Ltd 100 100 Ausnet Real Estate Network Pty Ltd 100 100 Ausnet Financial Planning Services Pty Ltd 100 100 Ausnet Financial Pty Ltd 100 100 Vision Capital Management Ltd 100 100 Ausnet Property Investment Fund Pty Ltd 100 100 Ausnet Opportunity Fund 55 55 Move Property Solutions Pty Ltd 100 100 Beaufort Realty Pty Ltd 100 – Empur Pty Ltd (i) 50 50 Namibian Resources Pty Ltd 100 100 Gazania Investments Thirty Two Pty Ltd(ii) 80 80

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS All the above entities are incorporated in Australia and eliminated on consolidation.

(i) The company has a 50% interest in a joint venture entity trading under the name Ausnet Property Investment Strategies. (ii) Invested through Namibian Resources Pty Ltd

NOTE 12: DEFERRED TAX ASSET/(LIABILITY) Consolidated Entity June June 2016 2015 $ $

Deferred Tax on Temporary Differences (211,433) 346,821

The balance comprises temporary differences in relation to the following amounts recognised in the statement of comprehensive income:

Deferred Tax Assets Employee benefits 144,598 185,767 Accrued expenses 194,290 197,007 Investments 55,000 60,000 Total deferred tax assets 393,888 442,774

Deferred Tax Liabilities Accrued income (47,067) (95,953) Rent Roll (558,254) – Total deferred tax liabilities (605,321) (95,953) Net deferred tax assets (211,433) 346,821

Movement Reconciliation Opening balance at 1 July 346,821 311,490 Deferred tax liability recognised in business combination (558,254) – Recognition of temporary differences – 35,331 (211,433) 346,821

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017

NOTES TO THE FINANCIAL STATEMENTS NOTE 13: TRADE AND OTHER PAYABLES Consolidated Entity June June 2017 2016 $ $

Trade creditors 391,174 215,794 Employees’ remuneration – commissions payable 542,282 467,597 Superannuation – employees 122,045 83,158 Payroll tax 148,772 133,833 Sundry creditors and accrued expenses 265,288 188,954 GST and PAYG payables 2,122,792 971,569 Retention payable 466,011 – 4,058,364 2,060,905

NOTE 14: BORROWINGS

Current Loans 6,377 15,666 Less: Unexpired interest (260) (1,193) 6,117 14,473

Convertible Notes (i) – 435,000 Total 6,117 449,473

(i) Convertible notes amounting to $285,000 were converted prior to share consolidation. Refer to Note 17. The remaining $150,000 related to Notes received by Namibian Copper Limited that has now formed part of the Consolidated Entity and is eliminated on consolidation.

NOTE 15: CURRENT PROVISIONS

Employee entitlements 276,093 441,693

NOTE 16: NON CURRENT PROVISIONS

Employee entitlements 127,673 94,371

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017

NOTES TO THE FINANCIAL STATEMENTS NOTE 17: CONTRIBUTED EQUITY Consolidated Entity June June 2017 2016 $ $

587,793,034 (2016: 109,838,870) fully paid ordinary shares 9,706,731 2,509,890

Ordinary Shares At the beginning of the reporting period 2,509,890 1,599,086 Convertible notes converted into shares 285,000 – Issue of prospectus shares 5,800,000 – Issue of shares to Ausnet Real Estate Services Pty Ltd shareholders 1,755,861 – Issue of shares to corporate advisor 100,000 – Shares issued during the year for cash – 869,804 Shares issued during the year in lieu of service 100,000 41,000 Transaction costs relating to share issues (844,019) – At reporting date 9,706,731 2,509,890

Number of Ordinary Shares At the beginning of the reporting period 109,838,870 64,298,753 Convertible notes converted into shares 14,250,000 – Balance before reverse acquisition 124,088,870 Elimination of existing legal acquire shares (124,088,870) – Shares of legal acquirer at acquisition date 87,793,034 – Issue of prospectus shares 290,000,000 – Issue of shares to Ausnet Real Estate Services Pty Ltd shareholders 200,000,000 – Issue of shares to corporate advisor 5,000,000 – Shares issued during the year for cash – 43,490,117 Shares issued during the year in lieu of service 5,000,000 2,050,000 At reporting date 587,793,034 109,838,870

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS A Performance Share in the relvant class will convert into one share upon achievement of: 1. The Consideration Performance Shares vest upon achieving a 10% growth in the mortgage and finance business loan book within 18 months of settlement (first milestone); and 2. The Incentive Performance Shares vest upon: (a) achieving a 10% growth in the mortgage and finance business loan book within 18 months of settlement; and (b) achieving a 20 day volume VWAP on the ASX which equals or exceeds 3 times the re-quotation price of $0.02, at any time within 24 months of settlement (second milestone).

If the relevant milestone is not achieved by the required date, then the total number of Performance Shares on issue to each holder will not convert into one ordinary share in the Company.

The Directors have assessed at balance date the likelihood of these milestones being met within the vesting period. The Consideration Performance Shares form part of the reverse acquisition calculations and the determination of the value of the consideration has been detailed in note 3(i).

In relation to the Incentive Performance Shares, the Directors have estimated that based on current trading results and the real estate market as a whole, there is a low probability that the second milestone in relation to the 10% growth in the mortgage and finance business loan book of Ausnet within eighteen (18) months of Settlement will be met within the vesting period. Therefore no value has been attributed to the Incentive Performance Shares at 30 June 2017.

NOTE 18: RESERVES Consolidated Entity June June 2017 2016 $ $

Options Reserve 476,195 –

June June 2017 2017 Number $ Movement At the beginning of the reporting period 24,076,072 – Issue of options to joint lead managers 51,666,667 457,365 Issue of options to corporate advisor 5,000,000 18,830 At reporting date 80,742,739 476,195

The options reserve is used to recognise the grant date fair value of options issued but not exercised.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS Valuation of Options The options were valued using the Black & Scholes option model based on the following inputs

Options to Options to corporate Joint lead advisor managers Underlying share price $0.02 $0.02 Option exercise price (post-consolidation) $0.15 $0.04 Effective date 17/12/16 17/12/16 Option expiry date 30/04/2019 16/12/2019 Share price volatility 93% 93% Risk free rate 1.83% 1.83% Fair value per option $0.0038 $0.0089

NOTE 19: CASHFLOW INFORMATION Consolidated Entity June June 2017 2016 $ $ Reconciliation of Cash Flow from Operations with Loss after Income Tax Loss after income tax (3,804,242) (1,839,177)

Income tax expense 29,568 – Share based payment 118,830 – Acquisition cost 1,439,297 – (Profit)/Loss on sale of assets (10,000) 98,182 Depreciation expense 13,490 44,466 Amortisation expense 112,452 – Trademark written off – 10,000 Doubtful debts expense 144,468 – Bad debts written off 140,816 54,605 Changes in assets and liabilities: (Increase)/Decrease in trade and other receivables (477,402) (804,927) (Increase)/Decrease in current tax asset (184,115) 81,797 (Increase)/Decrease in deferred tax asset – (35,331) Increase/(Decrease) in trade and other payables 1,765,285 965,754 Increase/(Decrease) in provisions (132,297) (1,735) Cash Flow from Operations (843,850) (1,426,366)

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS Non – Cash Financing Activities i. On 19 May 2017, 5,000,000 fully paid ordinary shares at a price of $0.02 per share were issued in lieu of consulting fees. ii. Refer to Note 3 for details of business combinations.

NOTE 20: KEY MANAGEMENT PERSONNEL COMPENSATION

1. Names and positions held of Consolidated Entity key management personnel in office at any time during the financial year are:

Philip Re (Appointed 19 December 2016) Chairman Paul Niardone (Appointed 19 December 2016) Managing Director John Kolenda (Appointed 19 December 2016) Non-Executive Director Adam Davey (Appointed 19 December 2016) Non-Executive Director Ross Cotton (Appointed 20 January 2016) Non-Executive Director Neil Warburton (Resigned 19 December 2016) Non-Executive Director Gregory Hall (Resigned 19 December 2016) Non-Executive Director Michael Curnow (Resigned 19 December 2016) Non-Executive Director

Key management personnel remuneration has been included in the Remuneration Report section of the Directors Report.

2. Key management personnel compensation June 2017 $ Short-term employee benefits 397,862 Post-employment benefits 19,616 Share-based payments – Other 46,324 463,802

NOTE 21: RELATED PARTY TRANSACTIONS

(a) Parent Entity The parent entity within the Consolidated Entity is Ausnet Financial Services Limited.

(b) Subsidiaries. Interests in subsidiaries are set out in Note 11.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS (d) Transactions with related parties Some Directors or former Directors of the Consolidated Entity hold or have held positions in other companies, where it is considered they control or significantly influence the financial or operating policies of those entities. During the year, the following entities provided exploration, accounting and corporate services to the Consolidated Entity. Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

Entity Nature of transactions Key Total Transactions Payable Balance Management Personnel 2017 2016 2017 2016 $ $ $ $

Regency Partners Professional services Philip Re 3,190 – Daring Investments Pty Ltd Licence fees John Kolenda 11,906 – – –

Furthermore as detailed in Note 23, the Company announced that it had entered into a Licence Agreement and an Option to acquire Top Level Real Estate Pty Ltd (“Top Level”) (via its wholly owned subsidiary Ausnet Real Estate Services Pty Ltd). Mr John Kolenda owns 31.65$ of Top Level on a fully diluted basis.

NOTE 22: AUDITORS REMUNERATION June June 2017 2016 $ $ Remuneration of the auditor of the entity: Audit or review of the financial report – Bentleys Audit & Corporate (WA) Pty Ltd 52,350 38,000 Other – Bentleys Audit & Corporate (WA) Pty Ltd 5,000 5,000 57,350 43,000

NOTE 23: COMMITMENTS AND CONTINGENCIES

The License Agreement allows the Company to launch The Agency on the east coast of Australia, with Top Level licenced to operate under “The Agency” brand within NSW, QLD and VIC.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS Top Level has signed agreements with an exciting team of senior real estate executives and currently has an initial 17 highly experienced sales agents.

A summary of the key terms of the Acquisition is set out below. The Option Agreement also contains warranties and indemnities granted by and to Ausnet Pty Ltd, among other terms.

 Consideration Shares and Performance Shares Subject to satisfaction or waiver of conditions precedent to the Acquisition (summarised in item 3 below), in consideration for acquiring 100% of issued capital of Top Level on issue at settlement of the Acquisition, Ausnet Pty Ltd has agreed to procure the issue by Ausnet, upon settlement, the following securities to the Vendors: (i) 365,999,600 Shares; and (ii) 599,996,160 Performance Shares in equal amounts of 299,998,080. Each of the Performance Shares will convert into one Share upon satisfaction of the relevant milestone in the following table. The Performance Share terms are subject to ASX’s approval, which approval is a condition precedent to completion of the Acquisition.  Milestone 1 – For the 12 months to and effective at 30 June 2018: Weighting Milestone 50% Top Level generating earnings before interest and taxes (EBIT) of at least $7,000,000 in a financial year (excluding earnings generated by any business or entity acquired by Top Level subsequent to settlement of the Acquisition but for the avoidance of doubt including The Acquisitions (as defined below) based on Top Level’s audited accounts for the relevant financial year, such EBIT being calculated in accordance with Australian accounting standards. 30% Top Level generating Gross Commission Income (GCI) of at least $70,000,000 in a financial year (excluding GCI generated by any business or entity acquired by Top Level subsequent to settlement of the Acquisition) based on Top Level’s audited accounts for the relevant financial year. 20% Top Level employing or contracting at least 85 sales agents on terms consistent with Ausnet’s standard employment agreement at the execution date of the Option Agreement.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS  Milestone 2 – for the 12 months to and effective at 30 June 2019: Weighting Milestone 50% Top Level generating EBIT of at least $10,000,000 in a financial year (excluding earnings generated by any business or entity acquired by Top Level subsequent to settlement of the Acquisition but for the avoidance of doubt including The Acquisitions (as defined below) based on Top Level’s audited accounts for the relevant financial year, such EBIT being calculated in accordance with Australian accounting standards.

Weighting Milestone 50% Top Level generating EBIT of at least $10,000,000 in a financial year (excluding earnings generated by any business or entity acquired by Top Level subsequent to settlement of the Acquisition but for the avoidance of doubt including The Acquisitions (as defined below) based on Top Level’s audited accounts for the relevant financial year, such EBIT being calculated in accordance with Australian accounting standards. 30% Top Level generating GCI of at least $80,000,000 in a financial year (excluding GCI generated by any business or entity acquired by Top Level subsequent to settlement of the Acquisition) based on Top Level’s audited accounts for the relevant financial year. 20% Top Level employing or contracting at least 100 sales agents on terms consistent with Ausnet’s standard employment agreement as at the execution date of the agreement.

 Option Term and Fee Ausnet Pty Ltd’s option to acquire Top Level pursuant to the Acquisition is currently exercisable and may be exercised at Ausnet Pty Ltd’s election at any time up until the 12 month anniversary of the execution date of the Option Agreement (or such other date as is agreed in writing between the parties) (Option Period).

Ausnet Pty Ltd may exercise the option at any time during the Option Period by delivering to Top Level a fee of $10 and a written notice stating that Ausnet wishes to exercise the option (Option Exercise Notice).

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS  Conditions Precedent Following the exercise of the option, settlement of the Acquisition is conditional upon the satisfaction (or waiver by Ausnet) of the following conditions precedent:  Ausnet Due Diligence: completion of due diligence by Ausnet Pty Ltd on Top Level to the absolute satisfaction of Ausnet Pty Ltd;  Shareholder Approvals: the shareholders of Ausnet approving the transactions contemplated by the Option Agreement;  Independent Expert’s Report: any independent expert’s concluding that the transaction is either fair and reasonable or not fair but reasonable;  Completion of acquisitions by Top Level: Top Level completing the acquisition of two real estate businesses (The Acquisitions);  Top Level Capital Raising: Top Level completing a capital raising of $1.98 million and converting all convertible securities on issue into fully paid ordinary shares in Top Level; and  Re-compliance conditions: If ASX determines that the Acquisition requires Ausnet to re-comply with Chapters 1 and 2 of the ASX Listing Rules, satisfaction of all of those items which must be satisfied in order to comply with this requirement.

If the conditions precedent to completion of the Acquisition are not all fulfilled or waived by that date which is 120 days from the date of the Option Exercise Notice (or such later date as Ausnet and the Shareholders may agree) then the Option Agreement will be at an end and the parties will be released from their obligations under the Option Agreement (other than in respect of any breaches that occurred prior to termination).

Rent for WA June June 2017 2016 $ $ Not longer than 1 year 450,025 – Longer than 1 year and not longer than 5 years 2,250,126 – Longer than 5 years – – 2,700,151 –

NOTE 24: SEGMENT REPORTING

Description of reportable segments The Consolidated Entity has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.

The Consolidated Entity is managed primarily on the basis of service offerings as the diversification of the Consolidated Entity’s operations inherently have notably different risk profiles and performance assessment criteria. Operating segments are therefore determined on the same basis.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS Types of services by segment

(i) Real Estate and Property Services This represents revenue received for provision of real estate services including selling of property, settlement agent services and property management

(ii) Mortgage Origination Services This represents revenue received for provision of mortgage broking services.

(iii) Other (includes financial planning, head office etc) This represents non-reportable segments including head office, financial planning, property investments and other services.

Basis of accounting for purposes of reporting by operating segments

a. Accounting policies adopted Unless stated otherwise, all amounts reported to the Board of Directors, being the chief operating decision makers with respect to operating segments, are determined in accordance with accounting policies that are consistent with those adopted in the annual financial statements of the Consolidated Entity.

b. Intersegment transactions An internally determined transfer price is set for all intersegment sales. This price is reset quarterly and is based on what would be realised in the event the sale was made to an external party at arm’s length. All such transactions are eliminated on consolidation of the Consolidated Entity’s financial statements. Corporate charges are allocated to reporting segments based on the segments’ overall proportion of revenue generation within the Consolidated Entity. The Board of Directors believes this is representative of likely consumption of head office expenditure that should be used in assessing segment performance and cost recoveries. Intersegment loans payable and receivable are initially recognised at the consideration received/to be received net of transaction costs. If intersegment loans receivable and payable are not on commercial terms, these are not adjusted to fair value based on market interest rates. This policy represents a departure from that applied to the statutory financial statements.

c. Segment assets Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of the economic value from the asset. In most instances, segment assets are clearly identifiable on the basis of their nature and physical location.

d. Segment liabilities Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Consolidated Entity as a whole and are not allocated. Segment liabilities include trade and other payables and certain direct borrowings.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS e. Unallocated items The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment: – head office and corporate costs; – net gains on disposal of available-for-sale investments; – impairment of assets and other non-recurring items of revenue and expense; – income tax expense; – current and deferred tax assets and liabilities; – other financial assets; – intangibles assets; and – discontinued operations.

f. Segment information The Consolidated Entity’s operations are from Australian sources and therefore no geographical segments are disclosed.

Assets and liabilities have not been reported on a segmented basis as the Board of Directors is provided with consolidated information.

2017 Real Estate Mortgage Total Property Origination Reportable Other Consolidated Services Services Segments Segments Total $ $ $ $ $ External revenues 6,149,904 3,203,064 9,352,968 174,500 9,527,468 Inter-segment revenues – – – 1,764,000 1,764,000 Segment revenue 6,149,904 3,203,064 9,352,968 1,938,500 11,291,468 Unallocated revenue 63,072 Eliminations (1,764,000) Consolidated revenue 9,590,540

Segment loss before interest, tax, depreciation (1,800,080) 363,171 (1,436,909) (91,126) (1,528,035) and amortisation Unallocated corporate costs (2,120,697) EBITDA (3,648,732) Depreciation/amortisation (119,242) (4,393) (123,635) – (123,635) Unallocated corporate (2,307) depn/amort Net finance costs – Loss before income tax (3,774,674)

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS 2016 Real Estate Mortgage Total Property Origination Reportable Other Consolidated Services Services Segments Segments Total $ $ $ $ $ External revenues 2,722,670 3,540,012 6,262,681 357,064 6,619,746 Inter-segment revenues – – – 1,248,000 1,248,000 Segment revenue 2,722,670 3,540,012 6,262,681 1,605,064 7,867,746 Unallocated revenue 11,693 Eliminations (1,248,000) Consolidated revenue 6,631,439

Segment loss before interest, tax, (1,516,521) 521,027 (995,494) (137,905) (1,133,399) depreciation and amortisation Unallocated corporate costs (689,531) EBITDA (1,822,930) Depreciation/amortisation (20,113) (9,108) (29,221) (557) (29,778) Unallocated corporate depn/amort (24,688) Net finance costs – Loss before income tax (1,877,396)

NOTE 25: AFTER BALANCE DATE EVENTS

NOTE 26: FINANCIAL RISK MANAGEMENT

The Consolidated Entity’s has financial instruments comprising of cash and cash equivalents, trade and other receivables, trade and other payables.

The Consolidated Entity’s activities expose it to a variety of financial risks, including, credit risk, liquidity risk and cash flow interest rate risk. The Consolidated Entity’s is not exposed to foreign exchange or price risk.

This note presents information about the Consolidated Entity’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Management monitors and manages the financial risks relating to the operations of the Consolidated Entity through regular reviews of the risks. 69

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS (i) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Consolidated Entity’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. (a) Cashflow and interest rate risk The Consolidated Entity’s only interest rate risk arises from cash and cash equivalents held and the convertible notes at fixed interest rates. Current accounts held with variable interest rates expose the Consolidated Entity to cash flow interest rate risk and this risk is managed by regular monitoring of the fluctuations of the interest rates. The following sets out the Consolidated Entity’s exposure to interest rate risk, including the effective weighted average interest rate by maturity periods:

Floating Interest Fixed Interest Rate Non Interest Weight Effective Total Rate 1 Year or Less 1 to 5 Years Bearing Interest Rate 2017 2017 2017 2017 2017 2017 $ $ $ $ $ % Financial Assets Cash 2,202,655 – – – 2,202,655 1.1 Trade and other – – – – 1,393,762 1,393,762 receivables Total Financial Assets 2,202,655 – – 1,393,762 3,596,417

Financial Liabilities Trade and other – – – 4,058,364 4,058,364 – payables Borrowings – 6,117 – – 6,117 7.8 Total Financial Liabilities – 6,117 – 4,058,364 4,064,481

Floating Interest Fixed Interest Rate Non Interest Weight Effective Total Rate 1 Year or Less 1 to 5 Years Bearing Interest Rate

2016 2016 2016 2016 2016 2016 $ $ $ $ $ % Financial Assets Cash 153,978 – – – 153,978 0.1 Trade and other – – – – 1,084,412 1,084,412 receivables Total Financial Assets 153,978 – – 1,084,412 1,238,390

Financial Liabilities Trade and other – – – 2,060,905 2,060,905 – payables Borrowings – 14,473 435,000 – 449,473 7.8 Total Financial Liabilities – 14,473 435,000 2,060,905 2,510,381

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS The Consolidated Entity’s policy is to monitor the interest rate yield curve out to six months to ensure a balance is maintained between the liquidity of cash assets and the interest rate return. Cash at bank and in hand earns interest at floating rates based on daily bank deposit rates. The Consolidated Entity does not have any receivables or payables that may be affected by interest rate risk.

Sensitivity analysis At 30 June 2017, if interest rates had changed by -/+100 basis points from the weighted average rate for the year with all other variables held constant, post-tax loss would have been $22,027 (2016: 1,540) lower/higher as a result of lower/higher interest income from cash and cash equivalents and lower/higher interest expense applicable to loans. Management have deemed a movement of 100 basis points to be an appropriate measure for this sensitivity analysis.

(ii) Credit risk

Credit risk is the risk of financial loss to the Consolidated Entity if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from receivables from customers and cash and cash equivalents. For the Consolidated Entity, it primarily relates to cash and cash equivalents and trade and other receivables. All cash balances are held with recognised institutions limiting the exposure to credit risk. There are no formal credit approval processes in place.

Exposure to credit risk The carrying amount of the Consolidated Entity’s financial assets represents the maximum credit risk exposure. The Consolidated Entity’s maximum exposure to credit risk at the end of the reporting period was:

The ageing of the Consolidated Entity’s trade and other receivables are as follows:

Consolidated Entity June June 2017 2016 $ $ Not past due 873,443 579,267 Past due 0-30 days 83,379 81,205 Past due 31-90 days 258,730 145,171 Past due 90+ days 235,638 286,907 Total 1,451,189 1,092,550 Average age (days) 50 65

Financial assets that are neither past due and not impaired are as follows:-

Cash and cash equivalents 2,202,655 153,978

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS (iii) Liquidity risk

Liquidity risk is the risk that the Consolidated Entity will not be able to meet its financial obligations as they fall due. The Consolidated Entity’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Consolidated Entity’s reputation.

The Consolidated Entity manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and actual cash flows.

The Consolidated Entity has no access to credit standby facilities or arrangements for further funding or borrowings in place. The financial liabilities the Consolidated Entity had at the end of the reporting period were trade and other payables incurred in the normal course of the business. These were non-interest bearing and were due within the normal 30-60 days terms of creditor payments.

Maturities of financial liabilities and assets The table below analyses the Consolidated Entity’s financial liabilities and assets into relevant maturity groupings based on the remaining period at the end of the reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Carrying Total Less than 6 6-12 Over 5 amount 2017 1-2 years 2-5 years contractual months months years assets/ cash flows (liabilities) $ $ $ $ $ $ $ Financial liabilities Trade and other payables (4,058,364) – – – – (4,058,364) (4,058,364) Borrowings – (6,117) – – – (6,117) (6,117)

Financial assets Trade and other receivables 1,451,188 – – – – 1,451,188 1,504,866 Cash and cash equivalents 2,202,655 – – – – 2,202,655 2,202,655 Net cash outflow (404,521) (6,117) – – – (410,638) (356,960)

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017

NOTES TO THE FINANCIAL STATEMENTS Carrying Total Less than 6 6-12 Over 5 amount 2016 1-2 years 2-5 years contractual months months years assets/ cash flows (liabilities) $ $ $ $ $ $ $ Financial liabilities Trade and other payables (2,060,905) – – – – (2,060,905) (2,060,905) Borrowings – (14,473) (435,000) (449,473) (449,473)

Financial assets Trade and other receivables 1,084,412 – – – – 1,084,412 1,084,412 Cash and cash equivalents 153,978 – – – – 153,978 153,978 Net cash outflow (822,515) (14,473) (435,000) – – (1,271,988) (1,271,988)

(iv) Fair value estimation

All financial assets and liabilities recognised in the Statement of Financial Position are recognised at amounts that represent a reasonable approximation of fair value.

(v) Risk Management

Capital is defined as the combination of contributed equity, reserves and net debt (borrowings less cash). The Board is responsible for monitoring and approving the capital management framework within which management operates. The Consolidated Entity’s objective when managing capital is to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders such as employees. The Consolidated Entity focuses on interrelated financial parameters, including its gearing ratio, earnings growth, average cosy of debt, gearing, weighted average debt maturity and borrowing capacity. These are taken into account when the Consolidated Entity makes decisions on how to invest its capital and evaluate its existing investments.

The capital structure of the Consolidated Entity can be changed by paying distributions to shareholders, returning capital to shareholders, issuing new shares or selling assets.

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 NOTES TO THE FINANCIAL STATEMENTS NOTE 27: PARENT ENTITY DISCLOSURES

(i) Financial Position June June 2017 2016 $ $ Assets Current Assets 3,265,846 604,998 Non-Current Assets – (207) 3,265,846 604,791 Liabilities Current Liabilities 827,532 149,334 Non-Current Liabilities – – 827,532 149,334 Equity Contributed Equity 13,359,846 16,385,215 Reserves 480,530 4,335 Accumulated Losses (11,402,062) (15,934,093) 2,438,314 455,457

(ii) Financial Performance Profit/(loss) for the year (3,347,152) (625,774) Other Comprehensive income – – (3,347,152) (625,774)

(iii) Contingent Liabilities of the Parent Entity There are no such contingencies

(iv) Commitments of the Parent Entity June June 2017 2016 $ $ Not longer than 1 year – – Longer than 1 year and not longer than 5 years – – Longer than 5 years – – – –

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017

NOTES TO THE FINANCIAL STATEMENTS

NOTE 26: CONSOLIDATED ENTITY DETAILS

The registered office of the Consolidated Entity is: Suite 1, 437 Roberts Road Subiaco WA 6008

The principal place of business of the Consolidated Entity is: 254 Scarborough Beach Road Doubleview WA 6018

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 DIRECTORS’ DECLARATION

The directors of the company declare that: 1. The consolidated financial statements and notes set out on pages 31 to 75 are in accordance with the Corporations Act 2001, including: a. comply with Accounting Standards which as stated in accounting policy Note 1 to the financial statements constitutes compliance with International Financial Reporting Standards (IFRS); and b. give a true and fair view of the Consolidated Entity’s financial position as at 30 June 2017 and of its performance for the year ended on that date. 2. The Chief Executive Officer and the Company Secretary have declared that: a. the financial records of the Company for the financial year have been properly maintained in accordance with s295A of the Corporations Act 2001; b. the financial statements and notes for the financial year comply with Accounting Standards; and c. the financial statements and notes for the financial year give a true and fair view; and 3. In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:

Paul Niardone Managing Director

Dated this 29th day of September 2017

Independent Auditor’s Report To the Members of Ausnet Financial Services Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Ausnet Financial Services Limited (“the Company”) and its subsidiaries (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion:

a. the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.

Basis for Opinion

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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independent Auditor’s Report To the Members of Ausnet Financial Services Limited (Continued)

Material Uncertainty Related to Going Concern

We draw attention to Note 1 in the financial report, which indicates that the Consolidated Entity incurred a net loss after tax of $3,804,242 during the year ended 30 June 2017. As stated in Note 1(c), these events or conditions, along with other matters as set forth in Note 1(c), indicate that a material uncertainty exists that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matter How our audit addressed the key audit matter Accounting for Reverse Acquisition

As disclosed in note 3(i) of the Consolidated Our procedures amongst others included: Financial statements, on the 16th of December 2016, Ausnet Financial Services Limited (formerly  Evaluation of management’s assessment of the Namibian Copper Limited) completed the reverse combining entities to determine who obtained acquisition of Ausnet Real Estate Services Pty Ltd control as a result of the transaction. via the issue of shares and performance shares.  Review of signed contractual agreements This resulted in Ausnet Real Estate Services Pty Ltd relating to the acquisition and understanding the becoming the accounting acquirer in the business key terms and conditions of the transaction; combination although Ausnet Financial Services  Assessment of the calculation of the deemed Limited is the legal parent. consideration with underlying information inputs including share price with the terms of the This is a key audit matter due to the size of the acquisition agreement; acquisition with a deemed purchase consideration of  Review of acquisition date balance sheet to $1,755,861 and complexities inherent in a reverse acquisition agreement and underlying acquisition. supporting documentation;  Assessment of the fair value of assets and Management has completed a process to allocate liabilities acquired to the fair value assessment the purchase consideration to tangible assets and conducted by management. goodwill has been recognised as corporate  Review of consolidation of the combining transaction accounting expense. This process entities in line with reverse acquisition involved estimation and judgement of future accounting requirements. performance of the business.  We assessed the appropriateness of the disclosures included in Notes 1(w) and 3(i) to the financial report.

Independent Auditor’s Report To the Members of Ausnet Financial Services Limited (Continued)

Key Audit Matter How our audit addressed the key audit matter Accounting for Business Combination The acquisition of Beaufort Realty as disclosed in Our procedures amongst others included: note 3(ii) of the consolidated financial statements is a key audit matter due to the size of the acquisition  Reviewing the acquisition agreement to (purchase consideration of $3.29m) and understand the key terms and conditions, and complexities inherent in a business acquisition. confirming our understanding of the transaction with management; Management has completed a process to allocate  Assessed the deemed consideration with the the purchase consideration to tangible assets, terms of the acquisition agreement; goodwill and separately identifiable intangible assets  Reviewed acquisition date balance sheet to including a rent roll. This process involved acquisition agreement and underlying estimation and judgement of future performance of supporting documentation; the business and discount rates applied to future  Assessed the fair value of assets and liabilities cash flows forecasted. acquired to the fair value assessment conducted by management, which included an estimation of the fair value of rent roll intangible assets recorded at the date of acquisition.  For the rent roll intangible assets we performed the following: o Assess reasonableness of the factors that used in the valuation of rent roll such as the annualised management fees and rent roll multiples; and o Assess whether the rent roll multiples used in the valuation were reasonable compared to active market; and o Recalculate the mathematical accuracy of the valuation.  We assessed the appropriateness of the disclosures included in Notes 1(w) and 3(ii) to the financial report.

Revenue Recognition – Commission Income A substantial amount of the Group’s revenue is Our procedures amongst others included: derived from mortgage finance and real estate sale.  Assessing the Group accounting policy for Refer Note 2 of the consolidated financial commission revenue as set out in Note statements for the breakdown of revenue. 1(h), for compliance with the revenue recognition requirements of Australian The recognition of the commission revenue is Accounting Standards (AASBs) ; considered a key audit matter given the materiality  We performed audit procedures over the of the revenue to the overall financial statements recognition and accuracy of the revenue and the judgement required in terms of timing of the transactions on a sample basis; revenue recognition.  Evaluating the design and operating effectiveness of controls over the capture and measurement of revenue transactions;

Independent Auditor’s Report To the Members of Ausnet Financial Services Limited (Continued)

Key Audit Matter How our audit addressed the key audit matter  Performing analytical procedures on the revenue to ensure reasonableness.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2017, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors 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 gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial report complies with International Financial Reporting Standards.

In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Independent Auditor’s Report To the Members of Ausnet Financial Services Limited (Continued)

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Independent Auditor’s Report To the Members of Ausnet Financial Services Limited (Continued)

Report on the Remuneration Report

We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2017. The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with s 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 Ausnet Financial Services Limited, for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001.

BENTLEYS MARK DELAURENTIS CA Chartered Accountants Director

Dated at Perth this 29th day of September 2017

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 SHAREHOLDER INFORMATION The following additional information is required by the Australian Securities Exchange Ltd in respect of listed public companies only.

Shareholdings as at 27 September 2017 (a) Distribution of Shareholders Spread of Holdings Number of Holders Number of Units % Issued Capital 1 – 1,000 122 103,965 0.02% 1,001 – 5,000 85 228,330 0.04% 5,001 – 10,000 22 197,373 0.03% 10,001 – 100,000 177 9,476,753 1.61% 100,001 – 999,999,999 428 577,786,613 98.30% TOTAL 834 587,793,034 100%

(b) The number of shareholders held in less than marketable parcels is 279. (c) Voting Rights The voting rights attached to each class of equity securities are as follows: Ordinary Shares – Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at the meeting or by proxy has one vote on a show of hands. (d) 20 Largest Shareholders – Ordinary Shares as at 27 September 2017 Rank Shareholder Total Units % Issued Capital 1 FINSURE HOLDINGS PTY LTD 42,718,332 7.27 2. COAST EQUITY PTY LTD <THE COAST INVESTMENT A/C> 25,275,000 4.3 3. SEMC 2 PTY LTD <THE CHEN ASSET A/C> 21,150,000 3.6 4. RIVECK NOMINEES PTY LTD <RUTH PANETH SUPER FUND A/C> 13,571,429 2.31 5. EARL BG PTY LTD <EARL BG A/C> 12,500,000 2.13 6. TRINDIS PTY LTD 10,461,292 1.78 7. MR JOHN COLIN LOOSEMORE + MRS SUSAN MARJORY LOOSEMORE 10,000,000 1.7 <LOOSEMORE SUPER FUND A/C> 8. QUEBEC HOLDINGS PTY LTD 9,967,778 1.7 9. MURRAY DAVID JOSEPH + SANDRA LYNN JOSEPH 9,779,075 1.66 10. BEN COLLIER INVESTMENTS PTY LTD <BEN COLLIER INVESTMENTS P/L> 8,500,000 1.45 11. MAK PROPERTY GROUP PTY LTD <MAK A/C> 8,500,000 1.45 12. FRESH COMMODITY TRADERS PTY LTD <THE HOLDSWORTH S/FUND A/C> 7,000,000 1.19 13. NUTSVILLE PTY LTD <INDUST ELECTRIC CO S/F A/C> 6,783,580 1.15 14. RAYMOND GROGAN + LOLITA GROGRAN <GROGAN FAMILY SUPER A/C> 6,697,301 1.14 15. MS DEBORAH LEE WEST 6,000,000 1.02 16. MR MURRAY DAVID JOSEPH + MRS SANDRA LYNN JOSEPH <MURRAY JOSEPH 5,502,322 0.94 SMSF A/C> 17. MR JONATHAN MARTIN ADAMS 5,468,833 0.93 18. MR ALLAN GRAHAM JENZEN + MRS ELIZABETH JENZEN <AG & E JENZEN P/L NO2 5,067,811 0.86 SF A/C> 19. FURORE PTY LTD <THE O’BRIEN A/C> 5,000,000 0.85 20. TELDAR REAL ESTATE PTY LTD <MJ LAHOOD FAMILY A/C> 5,000,000 0.85 TOTAL 224,942,753 38.27

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 Option holdings as at 27 September 2017

(d) Distribution of Shareholders Spread of Holdings Number of Holders Number of Units % Issued Capital 1 – 1,000 4 1,808 0.01% 1,001 – 5,000 14 42,000 0.14% 5,001 – 10,000 4 30,910 0.11% 10,001 – 100,000 24 1,254,715 4.32% 100,001 – 999,999,999 43 22,746,656 95.43% TOTAL 91 24,076,089 100%

(e) 20 Largest Option holders –as at 27 September 2017 Rank Shareholder Total Units % Issued Capital 1 MR ROBERT JESSE HUNT 3,600,000 15.0% 2. MR NATHAN JAMES KEMEYS 2,000,000 8.3% 3. RIVECK NOMINEES PTY LTD <RUTH PANETH SUPER FUND A/C> 1,428,572 5.9% 4. BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT DRP> 1,065,151 4.4% 5. MR ALFREDO VARELA 1,000,000 4.2% 6. MS DEBORAH LEE WEST 1,000,000 4.2% 7. CITICORP NOMINEES PTY LIMITED 813,684 3.4% 8. VYNBEN PTY LTD <MARK HOHNEN SUPER FUND A/C> 811,801 3.4% 9. A CHAMPION INVESTMENTS PTY LTD 800,000 3.3% 10. MICHLANGE PTY LTD <WARBURTON SELF ADMIN S/F A/C> 714,286 3.0% 11. MR JOHN VIEIRA + MRS TRACEY VIEIRA <BAYVIEW RETIREMENT PLAN A/C> 714,286 3.0% 12. RIVECK NOMINEES PTY LTD 600,000 2.5% 13. GREGORACH PTY LTD 563,529 2.3% 14. FERBER HOLDINGS PTY LTD <SCOTT SUPER FUND A/C> 433,025 1.8% 15. RIVECK NOMINEES PTY LTD <RUTH PANETH SUPER A/C> 410,000 1.7% 16. FLUE HOLDINGS PTY LTD 407,993 1.7% 17. CONTINENTAL GLOBAL INVESTMENT LIMITED 390,321 1.6% 18. HAMMERHEAD HOLDINGS PTY LTD <HHH S/F A/C> 357,498 1.5% 19. MR ARTUR GILLER 350,000 1.5% 20. MR DANIEL RICHARD CHITTENDEN + MISS SANDRA KHERRAT 300,000 1.2% TOTAL 17,760,146 73.8%

Substantial Shareholders An extract of the Company’s register of substantial shareholders is as follows:

Number of Fully Paid Name Ordinary Shares

FINSURE HOLDINGS PTY LTD 42,718,332

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017 Unlisted Options

Number of Exercise Exercise date Options Price $ 5,000,000 $0.15 30-Apr 2019 51,666,667 $0.04 19-Dec-2019

The names of option holders who hold 20% or more of each class of unlisted options are as follows:

Number of Percentage Name Options

Options expiring 30 April 2019 Exercise Price $0.15 Richmond Food Systems PTY LTD <MONTERY A/C> 2,500,000 50% Kioraku PTY LTD <KIORAKU A/C> 2,500,000 50%

Options expiring 19 April 2019 Exercise Price $0.04 Nil

Performance Shares A total of 46,666,667 performance shares are on issue. The holders are as follows:

Number of Name Performance Shares

Paul Niardone 12,333,334 Philip Re 10,333,333

Voting Rights The voting rights attached to each class of equity security are as follows: Ordinary Shares – Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a how of hands. Performance Shares – These shares have no voting rights. 85

AUSNET FINANCIAL SERVICES LIMITED (FORMERLY NAMIBIAN COPPER LIMITED) ABN 52 118 913 232 And its Controlled Entities Annual Report June 2017

Restricted securities There are 44,563,622 fully paid ordinary shares subject to voluntary escrow on issue.

Use of Cash During the reporting period, the use of cash has been consistent with the Company’s business objectives.

2. The name of the Company Secretary is Stuart Usher.

i. The address of the principal registered office in Australia is: Suite 1 GF, 437 Roberts Road Subiaco WA 6008 Tel: 08 6380 2555 Fax: 08 9381 1122

ii. Registers of securities are held at the following address: Advanced Share Registry Services 150 Stirling Highway NEDLANDS WA 6008

iii. Australian Securities Exchange Listing Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian Securities Exchange Limited.