DOURADO RESOURCES LIMITED - ASX · contents dourado resources limited annual financial report 30 june 2010 page corporate information 1 directors’ report 2 auditor’s independence

DOURADO RESOURCES LIMITED ABN 84 131 090 947

ANNUAL FINANCIAL REPORT 30 June 2010

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CONTENTS

DOURADO RESOURCES LIMITED ANNUAL FINANCIAL REPORT 30 June 2010

Page

CORPORATE INFORMATION 1

DIRECTORS’ REPORT 2

AUDITOR’S INDEPENDENCE DECLARATION 12

CORPORATE GOVERNANCE STATEMENT 13

STATEMENT OF COMPREHENSIVE INCOME 20

STATEMENT OF FINANCIAL POSITION 21

STATEMENT OF CHANGES IN EQUITY 22

STATEMENT OF CASH FLOWS 22

NOTES TO THE FINANCIAL STATEMENTS 24

DIRECTORS’ DECLARATION 48

INDEPENDENT AUDITOR’S REPORT 49

ASX ADDITIONAL INFORMATION 51

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CORPORATE INFORMATION

DOURADO RESOURCES LIMITED 1 ANNUAL FINANCIAL REPORT 30 June 2010

REGISTERED OFFICE

Level 2, Spectrum

100 Railway Road

Subiaco WA 6008

PRINCIPAL PLACE OF BUSINESS

Level 2, Spectrum

100 Railway Road

Subiaco WA 6008

POSTAL ADDRESS

PO Box 8281

Subiaco WA 6008

DIRECTORS

Mr Emilio Pietro Del Fante (Executive Chairman)

Mr Daryl Smith (Non-Executive Director)

Mr Brian Maston (Non-Executive Director)

Ms Arlene M. Mendoza (Non-Executive Director)

COMPANY SECRETARY

Mr R Marusco

AUDITORS

RSM Bird Cameron Partners

8 St Georges Terrace

Perth WA 6000

LEGAL ADVISORS

Lavan Legal

1 William Street

Perth WA 6000

SHARE REGISTRY

Computershare Investor Services Pty Ltd

Level 2, 45 St Georges Terrace

Perth WA 6000

INTERNET ADDRESS

www.dourado.com.au

ASX CODES

Shares DUO

Options DUOO

COUNTRY OF INCORPORATION AND DOMICILE

Australia

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DIRECTORS’ REPORT


Your directors submit the annual financial report together with the consolidated financial statements of Dourado Resources Limited (“the Company”) and of the Group, being the Company and its controlled entities for the year ended 30 June 2010. In order to comply with the provisions of the Corporations Act, the directors report as follows:

Directors

The names of directors who held office during or since the end of the period and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

Names, qualifications, experience and special responsibilities

Emilio Pietro Del Fante (Executive Chairman)

Mr Del Fante was appointed director and chairman on 14 May 2008 and has 20 years experience in the mineral and resources sector where he is principal of Corporate Tenement Services, a company specialising in mining title management and native title issues. Peter is a current non-executive director of Prime Minerals Ltd and has been a director of two other public listed mining exploration companies one of which was Revere Mining Ltd now Enterprise Metals Ltd where he was instrumental in guiding to an ASX listing. Over the years as a consultant in the resource industry, Peter has also gained exposure and experience in may facets of the mining industry inclusive of indigenous negotiations, establishment of relationships with the corporate and banking sector and liason with governing bodies such as the Department of Mines and Petroleum and the ASX. He has also been required to address environmental issues. Peter’s wide experience in the mining industry will be a valuable asset to the company. During the past three years he has also served as a non executive director of the following ASX listed companies: � Prime Minerals Limited � Enterprise Metals Limited

Daryl Smith (Non-Executive Director)

Mr Smith was appointed director on 27 May 2009 and has experience in the mineral exploration, telecommunications and electronics sectors. During his career in the mineral exploration industry he has served on a number of private and public gold and uranium exploration companies and has knowledge of and experience in the structuring and financing of mining and exploration projects. Before joining the industry he served at senior management level in the telecommunications and electronics sector where he developed his strong corporate and business development skills. He brings to the Board a wealth of experience in strategic tenement acquisition, marketing, mergers and acquisitions. During the past three years he has not served as a director of any other ASX listed companies. Brian Maston (Non-Executive Director) Mr Maston was appointed director on 27 May 2009 and has more than 40 years experience in the resources, mineral exploration, earthworks and construction industries Australia wide. During his expansive career in these industries he has carried out roles in plant management, quarrying, drilling and logistics management and he was actively involved in the development of the Great Boulder mine site as well as other quarries. During the past three years he has not served as a director of any other ASX listed companies. F

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DIRECTORS’ REPORT (continued)


Arlene M. Mendoza, LLB (Non-Executive Director) Ms Mendoza was appointed director on 21 August 2009 and is a graduate of the University of the Philippines and a member of the Philippine Bar. She has a broad experience working over an 18 year career in the international exploration and mining industry. During her career she has held senior management positions in a number of public and private companies including a Philippines Stock Exchange listed mining and exploration company and has garnered an invaluable network of mining industry contacts in the Asia Pacific region. Her experience and expertise include corporate governance and due diligence, securities, corporate, commercial and intellectual property laws, indigenous peoples’ rights, mining and environmental law as well as strong business and management skills. Her concern for the environment is evident through her membership of a group of volunteer lawyers for the protection of the environment and she is experienced in assessment of environmental impact, sustainable development and environmental law. Ms Mendoza was instrumental in the setup and management of a gold mining and production company in the Philippines, Camarines Norte Mining and Exploration, Inc. and currently holds a position on that Board. During the past three years she has not served as a director of any other ASX listed companies.

Company secretary

R Marusco, B.Bus, CPA, SA Fin

Mr Marusco was appointed company secretary on 18 August 2009. He has been a Certified Practising Accountant for over 20 years and acts as a company secretary for a range of ASX listed companies in the resources and general business sectors. Mr Marusco is not an executive of the Company.

Interest in the shares and options of the company

As at the date of this report, the interests of the directors in the shares and options of the Company were:

Number of

Ordinary Shares

Number of Options

E Pietro Del Fante (appointed 14/5/08) 16,750,000 8,375,000 D Smith (appointed 27/5/09) - - B Maston (appointed 27/5/09) - - A M Mendoza (appointed 21/8/09) - -

• Indirect interests in shares and options shown above are as follows:

E Pietro Del Fante 2,500,000 fully paid ordinary shares and 1,250,000 options owned by Red Bluff Nominees Pty Ltd 14,250,000 fully paid ordinary shares and 7,125,000 options owned by Triumph Mining Pty Ltd

Share options Unissued shares

As at the date of this report, there were 73,764,573 unissued ordinary shares under options (73,764,573 at the reporting

date). Details of unissued ordinary shares are:

Unissued ordinary shares under options 30 June 2010 Reporting date

Listed options exercisable at $0.20 expiring on 30 November 2014 73,764,573 73,764,573

Total 73,764,573 73,764,573

Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any

related body corporate or in the interest issue of any other registered scheme.

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Dividends

No dividends have been paid or declared since the start of the period and the directors do not recommend the payment of a dividend in respect of the period.

Principal activities

The principal activities of the Company during the financial year were the pursuit of exploration opportunities for gold, copper and uranium mineralization in Western Australia’s mid-west and the central area of the Northern Territory.

No significant changes in the nature of these activities occurred during the year.

Review of operations

Sabbath / Garden Gully Gold Project (WA)

During the year results were returned from a reverse circulation drilling program conducted at the Sabbath Gold Project located 12 kilometres north of Meekatharra. Seven holes for a total of 955 metres were drilled targeting at depth the extensions to the known gold mineralised shear.

Angled holes were drilled on nominal 40-50 metre centres targeting the mineralised shear at approximately 90 metres vertical depth, below the depth of any previous drilling. A number of low grade gold intersections were returned from the drilling confirming the down dip extensions and are summarised below.

Table 1: Significant Drill Intersections

Hole No From To Intersection

2010RC09 92.00 97.00 5m @ 2.20 g/t Au

2010RC10 100.00 105.00 4m @ 0.62 g/t Au

2010RC10 105.00 106.00 1m @ 0.39 g/t Au

2010RC11 71.00 72.00 1m @ 0.33 g/t Au

2010RC11 78.00 80.00 2m @ 2.19 g/t Au

2010RC11 116.00 118.00 2m @ 0.46 g/t Au

2010RC12 75.00 80.00 5m @ 0.98 g/t Au

2010RC12 80.00 85.00 5m @ 0.30 g/t Au

2010RC12 85.00 90.00 5m @ 0.86 g/t Au

2010RC13 60.00 65.00 5m @ 0.37 g/t Au

2010RC13 80.00 85.00 5m @ 0.36 g/t Au

2010RC14 56.00 60.00 4m @ 1.32 g/t Au

Note: Analysis via Aqua Regia Digest, with FA checks.

Minor increases in silica and shearing were associated with the anomalous gold intersections.

The latest drilling results have identified the need for the Company to move forward with quantifying the near surface (0->60 metre) gold resource defined by the previous drilling programs and this latest deeper drilling program. Some samples have also been collected for metallurgical test work and will be submitted for simple bottle rolls to determine the expected recovery for the Sabbath gold mineralisation. The Company is also currently planning exploration of nearby prospective targets.

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Drill Hole collar coordinates, plan display and long section are provided below.

TABLE 2: May 2010 Reverse Circulation Drill Collars.

Hole No East North Local North Local East Nom RL Grid Azim Dip Depth

2010RC08 645994 7067439 10128 4939 496 90.5 -60 137

2010RC09 645967 7067400 10080 4934 496 89.5 -60 149

2010RC10 645906 7067337 9996 4911 496 88.5 -60 149

2010RC11 645870 7067249 9901 4922 496 87.5 -60 143

2010RC12 645888 7067300 9955 4913 496 89.5 -60 137

2010RC13 646021 7067505 10199 4932 496 87.5 -60 139

2010RC14 646186 7067811 10546 4931 496 87.5 -60 101

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Dourado Drilling Long Section: Sabbath Gold Project

Doolgunna South / Mooloogool / Diamond Well Prospect (WA)

Dourado has 7 granted exploration licences in the Doolgunna region covering approximately 1,200 km2 and a further

indirect interest in 1,100 km2 in the region via Abbotts Exploration Pty Ltd, consisting of 6 exploration licence applications

(4 of which have been granted subsequent to 30 June 2010) for a combined area of approximately 2,300 km2. These

tenements pave the way for Dourado to commence its highly anticipated exploration program.

The Mooloogool/Doolgunna region has recently received attention of the investing public due to the copper and gold results produced by Sandfire Resources NL, Thundelarra Exploration Limited, Talisman Mining Limited and Great Western Exploration Limited.

The Company, subsequent to 30 June 2010, has received all the necessary approvals to commence the first stage work program over the granted tenements which will involve a detailed auger programme to collect geochemical samples and to investigate basement geology. This methodology will enable Dourado to identify key target areas for detailed exploration and determine depth of cover and underlying basement lithologies. Low level multi-element analysis will assist in investigating the potential of the area and provide base data for the next phase of work expected to include a detailed follow up aircore program to further investigate any anomalies outlined.

The first stage program will commence late in September 2010 and be completed by mid October. The large tenement package is a prospective package of rocks that has only been lightly explored previously, offers the opportunity for a new discovery.

Mainland Project (WA)

The Company’s geologist has conducted a site visit but no further geological work has been completed on this project during the year and M21/126 is currently progressing through normal statutory processes to final approval. A further site visit and review of all past data is planned to be undertaken during the next quarter to determine potential drilling targets.

Lennonville Project (WA)

The Company’s geologist has conducted a site visit but no further geological work has been completed by Dourado on this project during the year. A further site visit and review of all past data is being planned to be undertaken during the next quarter to determine a drilling program.

Arunta Project (NT)

The Arunta Project is located approximately 400 kms north-west of Alice Springs and consists of two tenement applications. The tenement applications are proceeding through the statutory processes to final approval and therefore no work was completed on this project during the year. This project has been divested to Eclipse Uranium Ltd pursuant to a Share Subscription Agreement.

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Top End Project (NT)

The Top End Project consists of four tenement applications and one granted tenement. The tenement applications are proceeding through the statutory processes to final approval and therefore no work was completed on this project during the year. Exploration Licence 27702 was granted in June 2010 and Exploration Licences 27851 and 27853 were granted subsequent to 30 June 2010. It is also expected that Exploration Licence 27701 will be granted in the next quarter.

Arnhem Project (NT)

The Arnhem Project consists of two tenement applications. The tenement applications are proceeding through the statutory processes to final approval and therefore no work was completed on this project during the year. This project has been divested to Eclipse Uranium Ltd pursuant to a Share Subscription Agreement.

The information in this report that relates to Exploration and Geological Work and Concepts is based on information compiled by Simon Coxhell, who is a member of the Australian Institute of Mining and Metallurgy and is a consultant of the Company. Mr Coxhell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Coxhell consents to the inclusion in the report of the matters based on information in the form and context in which it appears.

Operating results for the period The statement of comprehensive income shows a net loss attributable to members of $2,957,809 (2009: $19,897).

Significant changes in state of affairs

On 10 September 2009 as a pre-cursor to ASX Listing, the Company issued a Prospectus for the issue of 15 million Shares at an issue price of 20 cents each together with a free attaching Option for every one (1) Share to raise a total of $3 million.

After successfully completing the Prospectus, issuing the Securities and providing the required pre-admission documentation, Dourado Resources Limited was admitted to the Official ASX List.

On 29 April 2010 the Company issued 25,000,000 shares and 25,000,000 Options in consideration for all of the shares and options on issue in North Minerals Pty Ltd as previously approved by Shareholders in a General Meeting.

In early May 2010 the Company announced the acquisition of 100% of the issued capital of Zelta Holdings Ltd, an unlisted public company that owns a series of tenements and other mining assets. The acquisition costing $1.2 million was designed to be strategic to the existing holdings of the Company.

Zelta Holdings Ltd is now a fully owned subsidiary of Dourado Resources Limited.

On 20 May 2010 the Company completed a capital raising issuing 7,317,073 shares at an issue price of $0.205 each to raise $1,500,000 together with the issue of one (1) free attaching option for every share.

The Company also announced that it would be divesting its uranium assets, via a spin-out into a new Initial Public Offering by Eclipse Uranium Ltd which is currently wholly owned by Dourado Resources Limited. Eclipse Uranium Ltd is seeking listing on Official ASX List.

Significant events after the reporting date

On 7 July 2010 the Company announced it had acquired 27.5% of the capital of Abbotts Exploration Pty Ltd (‘Abbotts”) for the consideration of $700,000 cash and 13,000,000 fully paid ordinary shares.

The Company made an ASX announcement on 16 July 2010 in relation to it’s off market takeover offer to acquire 100% of the shares in Aurium Resources Limited.

The takeover offer comprises 1 cent in cash and 1 Dourado Resources Limited share for every 10 Aurium Resources Limited fully paid shares and 1 Dourado Resource Limited share for every 2,000 Aurium partly paid shares.

The takeover bid is also subject to the following conditions:

- Dourado Resources Limited having a relevant interest in at least 51% of all shares on issue in Aurium Resources Limited.

- Aurium Resources Limited having net tangible assets not less than $2,500,000.

The Company has called a Shareholders General Meeting on 6 October 2010 to seek approval to complete the acquisition of the remaining 62.5% of the shares and all of the options on issue in Abbotts by issue of 48,500,000 shares and 30,000,000 options.

Other than the above, there has not been any matter or circumstance that has arisen after reporting date that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods.

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Likely developments and future results

The management team and Board of Directors (“the Board”) of the Company are continuing to review opportunities available to the Company, which includes the exploration of the Group’s existing tenements and assessment of new opportunities.

Environmental regulation and performance

The Company’s operations are subject to environmental regulations under Commonwealth and State legislation. The Board believes that the Company has adequate systems in place for the management of its environmental requirements and is not aware of any breach of those environmental requirements as they apply to the Group.

Indemnification and insurance of officers and auditors

During the period, the company paid a premium in respect of a contract insuring the directors of the company (as named

above), the company secretary, Mr R Marusco, and all executive officers of the company and of any related body corporate

against a liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act

2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

The Company has not otherwise, during or since the period, except to the extent permitted by law, indemnified or agreed to

indemnify an officer or auditor of the company or of any related body corporate against a liability incurred as such an officer

or auditor. Proceedings on behalf of the company

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

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

Remuneration report (audited) This report outlines the remuneration arrangements in place for the directors and executives of the Company.

The following persons acted as directors during or since the end of the financial year:

Mr E Pietro Del Fante Director (executive) – appointed 14 May 2008

Mr D Smith Director (non-executive) – appointed 27 May 2009

Mr B Maston Director (non-executive) – appointed 27 May 2009

Ms A M Mendoza Director (non-executive) – appointed 21 August 2009

The term ‘senior management’ is used in this remuneration report to refer to the following persons. Except as noted the

named persons held their current position for the whole of the financial year and since the end of the financial year:

Mr E Pietro Del Fante is the Company’s Managing Director and has been since the Company listed on the ASX on 1

December 2009 until the date of this report.

Remuneration philosophy

The performance of the Company depends upon the quality of the directors and executives. The philosophy of the

Company in determining remuneration levels is to:

- set competitive remuneration packages to attract and retain high calibre employees;

- link executive rewards to shareholder value creation; and

- establish appropriate, demanding performance hurdles for variable executive remuneration.

The Board of Directors of the Company is responsible for determining and reviewing compensation arrangements for the

directors.

The Board of Directors assesses the appropriateness of the nature and amount of remuneration of directors and senior

executives on a periodic basis by reference to relevant employment market conditions with an overall objective of ensuring

maximum stakeholder benefit from the retention of a high quality Board and executive team.

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Remuneration report (audited) (continued)

Remuneration structure

In accordance with best practice Corporate Governance, the structure of non-executive director and executive

remuneration is separate and distinct.

Non-executive director remuneration

The Board seeks to set aggregate remuneration at a level that provides the company with the ability to attract and retain

directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.

The ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time to

time by a general meeting. As the Company listed on 1 December 2009 shareholders have not been asked to determine

directors fees but this will be completed at the Annual General Meeting to be held in November 2010.

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

amongst directors is reviewed annually. The Board considers advice from external advisors as well as the fees paid to

non-executive directors of comparable companies when undertaking the annual review process.

Each director receives a fee for being a director of the company.

The remuneration of non-executive directors for the period ended 30 June 2010 is detailed in the ensuing pages.

Senior Management and Executives

Remuneration consists of fixed remuneration and variable remuneration (comprising short-term and long-term incentive

schemes).

Fixed remuneration

Fixed remuneration is reviewed annually by the Board. The process consists of a review of relevant comparative remuneration in the market and internally and, where appropriate, external advice on policies and practices. The Board has access to external, independent advice where necessary.

The fixed remuneration component of the 5 most highly remunerated Company executives is detailed in Table 2.

Variable remuneration

The objective of the short term incentive program is to link the achievement of the Company's operational targets with the remuneration received by the executives charged with meeting those targets. The total potential short term incentive available is set at a level so as to provide sufficient incentive to the senior manager to achieve the operational targets and such that the cost to the Company is reasonable in the circumstances.

The Company has not yet fixed the short term incentive program due to the limited number of employees.

Employment contracts

The Company had only one executive with an employment contract in place as at 30 June 2010. Mr E Pietro Del Fante

was appointed Chief Executive Officer on 14 May 2008, his employment conditions are governed by an Executive Service

Agreement.

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Remuneration report (continued)

Remuneration of directors and named executives

Table 1: Directors’ remuneration for the year ended 30 June:

Primary Benefits Post Employment

Salary & Fees

Cash STI LTI

Non Monetary Benefits

Super- annuation

Retirement Equity Options

Other Total % Performance

Related

D Smith**

Director

2009 2010

- 15,581

- -

- -

- -

- -

- -

- -

- -

- 15,581

- -

B Maston**

Director

2009 2010

- 14,581

- -

- -

- -

- -

- -

- -

- -

- 14,581

- -

A M Mendoza***

Director

2009 2010

- 14,581

- -

- -

- -

- -

- -

- -

- -

- 14,581

- -

Total

2009 2010

- 44,743

- -

- -

- -

- -

- -

- -

- -

- 44,743

- -

** Appointed 27 May 2009 *** Appointed 21 August 2009

Remuneration of directors and named executives

Table 2: Executive Directors’ remuneration for the year ended 30 June:

Primary Benefits Post Employment

Salary & Fees

Cash STI LTI

Non Monetary Benefits

Super- annuation

Retirement Equity Options

Other Total % Performance

Related

E Pietro Del Fante*

Executive Director

2009 2010

- 92,600

- -

- -

- -

- -

- -

- -

- -

- 92,600

- -

Total

2009 2010

- 92,600

- -

- -

- -

- -

- -

- -

- -

- 92,600

- -

Grand Total

2009 2010

- 137,343

- -

- -

- -

- -

- -

- 137,343

- -

* Appointed 14 May 2008

The only Company executive employed during the year ended 30 June 2010 was E Pietro Del Fante.

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Directors’ meetings

The number of meetings of directors (including meetings of committees of directors) held during the period and the number of meetings attended by each director were as follows:

Directors’ meetings held

Directors’ meetings attended

Mr E Pietro Del Fante 4 4 Mr D Smith 4 4 Mr B Maston 4 2 Ms A M Mendoza 4 2

Auditors Independence Declaration The lead auditor’s independence declaration for the year ended 30 June 2010 has been received and can be found on within this financial report.

Non-audit services

The Board of Directors 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:

- all non-audit services are reviewed and approved by the directors prior to commencement to ensure they do not

adversely affect the integrity and objectivity of the auditor; and

- the nature of the services provided does not compromise the general principles relating to auditor independence

in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional

and Ethical Standards Board.

Non audit services that have been provided by the entity’s auditor, RSM Bird Cameron Partners, have been disclosed at Note 15.

Signed in accordance with a resolution of the Board of Directors.

Emilio Pietro Del Fante Director

30 September 2010

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8 St Georges Terrace Perth WA 6000

GPO Box R1253 Perth WA 6844

T +61 8 9261 9100 F +61 8 9261 9111

www.rsmi.com.au

Liability limited by a scheme approved under Professional Standards Legislation

Major Offices in: Perth, Sydney, Melbourne, Adelaide and Canberra ABN 36 965 185 036

RSM Bird Cameron Partners is an independent member firm of RSM International, an affiliation of independent accounting and consulting firms. RSM International is the name given to a network of independent accounting and consulting firms each of which practices in its own right. RSM International does not exist in any jurisdiction as a separate legal entity.

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the audit of the financial report of Dourado Resources Limited for the year ended 30 June 2010, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

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

RSM BIRD CAMERON PARTNERS

Chartered Accountants

Perth, WA TUTU PHONG

Dated: 30 September 2010 Partner

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CORPORATE GOVERNANCE STATEMENT


The Board of Directors of Dourado Resources Limited is responsible for the corporate governance of the Group. The Board guides and monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected and to whom they are accountable. To ensure that the Board is well equipped to discharge its responsibilities, it has established guidelines and accountability as the basis for the administration of corporate governance. Corporate governance disclosures

The Board and management are committed to corporate governance and to the extent that they are applicable to the Company have followed the “Principles of Good Corporate Governance and Best Practice Recommendations” issued by the Australian Securities Exchange (“ASX”) Corporate Governance Council. In summary, at the date of this report the Company departs from the Guidelines in five (4) key areas:

• The Chairperson is not deemed to be Independent. This is a departure from Recommendation 2.2;

• The roles of the Chairperson and Chief Executive Officer should not be exercised by the same individual. This is a departure from recommendation 2.3;

• The Company does not have a separate Nomination Committee. This is a departure from Recommendation 2.4

• The Company does not have a separate Audit and Risk Management Committee. This is a departure from recommendation 4.1; and

• The Company does not have a separate Remuneration Committee. This is a departure from Recommendation 8.1.

Also the Company does not have a full time Chief Financial Officer but all assurances as to the integrity of the Financial Accounts are provided by the externally appointed Senior Accountant.

Role of the board

The key responsibilities of the Board include: • Appointing, evaluating, rewarding and if necessary the removal of the Chief Executive Officer ("CEO") and senior

management;

• Development of corporate objectives and strategy with management and approving plans, new investments, major capital and operating expenditures and major funding activities proposed by management;

• Monitoring actual performance against defined performance expectations and reviewing operating information to understand at all times the state of the health of the company;

• Overseeing the management of business risks, safety and occupational health, environmental issues and community development;

• Satisfying itself that the financial statements of the Company fairly and accurately set out the financial position and financial performance of the Company for the period under review;

• Satisfying itself that there are appropriate reporting systems and controls in place to assure the Board that proper operational, financial, compliance, risk management and internal control process are in place and functioning appropriately. Further, approving and monitoring financial and other reporting;

• Assuring itself that appropriate audit arrangements are in place;

• Ensuring that the Company acts legally and responsibly on all matters and assuring itself that the Company has adopted, and that the Company’s practice is consistent with, a number of guidelines, being:

- Directors and Executive Officers Code of Conduct;

- Dealings in Securities; and

- Reporting and Dealing with Unethical Practices.

• Reporting to and advising shareholders.

Trading Policy

The Company has developed a policy regarding directors and employees trading in its securities. The policy restricts directors and employees from acting on material information until it has been released to the market and adequate time has been given for this to be reflected in the security’s prices

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CORPORATE GOVERNANCE STATEMENT (Continued)


Ethical Standards

The Board acknowledges and emphasises the importance of all directors and employees maintaining the highest standards of corporate governance practice and ethical conduct.

A code of conduct has been established requiring directors and employees to:

• act honestly and in good faith;

• exercise due care and diligence in fulfilling the functions of office;

• avoid conflicts and make full disclosure of any possible conflict of interest;

• comply with the law;

• encourage the reporting and investigating of unlawful and unethical behaviour; and

• comply with the share trading policy outlined in the Code of Conduct.

Directors are obliged to be independent in judgment and ensure all reasonable steps are taken to ensure due care is taken by the Board in making sound decisions.

Structure of the board

Directors of the Company are considered to be independent when they are independent of management and free from any business or other relationship that could materially interfere with or could reasonably be perceived to materially interfere with the exercise of their unfettered and independent judgment. An independent director is a non-executive director (i.e. is not a member of management) and:

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

• within the last three years has not been employed in an executive capacity by the Company or its subsidiaries, or been a director after ceasing to hold any such employment;

• is not a principal or employee of a professional adviser to the Company or its subsidiaries whose billings exceed a material amount of the adviser's total revenue;

• is not a significant supplier or customer of the Company or its subsidiaries, or an officer of or otherwise associated directly or indirectly with a significant supplier or customer. A significant supplier is defined as one whose revenues from the Company are a material amount of the supplier's total revenue. A significant customer is one whose amounts payable to the Company are a material amount of the customer's total operating costs;

• has no material contractual relationship with the Company or its subsidiaries other than as a director of the Company;

• has not served on the Board for a period which could, or could reasonably be perceived to, materially interfere with the director's ability to act in the best interests of the Company;

• is free from any interest and any business or other relationship which could, or could reasonably be perceived to, materially interfere with the director's ability to act in the best interests of the Company.

In accordance with the definition of independence above, the following directors of the Company are considered to be independent: Name Position D Smith Non-Executive Director B Maston Non-Executive Director AM Mendoza Non-Executive Director There are procedures in place, agreed by the Board, to enable the Directors in furtherance of their duties to seek independent professional advice at the Company’s expense. The term in office held by each director is as follows: Name Term E Pietro Del Fante 2 years D Smith 1 year B Maston 1 year AM Mendoza 1 year

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CORPORATE GOVERNANCE STATEMENT (continued)


When a Board vacancy exists, through whatever cause, or where it is considered that the Board would benefit from the service of a new director with particular skills, the Board will document the process behind a recommendation for a candidate or panel of candidates with the appropriate expertise. The Board then appoints the most suitable candidate who must stand for election at the next general meeting of shareholders. Remuneration and Nomination Committee

The Board has not established a formal Remuneration and Nomination Committee. The full Board attends to the matters normally attended to by a Remuneration and Nomination Committee. Remuneration levels are set by the Company in accordance with industry standards to attract suitable qualified and experienced Directors and senior executives. For full discussion of the Company’s remuneration philosophy and framework and the remuneration received by Directors and executives in the current period please refer to the Remuneration Report, which is contained within the Directors’ Report. There is no scheme to provide retirement benefits to Non-Executive Directors. The Board is responsible for determining and reviewing compensation, arrangements and performance of Directors for the Directors themselves. Audit and Risk Management Committee

The Board has not established an Audit and Risk Management Committee. The full Board attends to the matters normally attended to by such a Committee.

The Board acknowledges that the when the size and nature of the Company warrants an Audit and Risk Management Committee that the Committee will operate under a Charter approved by the Board. It is the Board’s responsibility to ensure that an effective internal control framework exists within the Company. This includes internal controls to deal with both the effectiveness and efficiency of significant business processes, the safeguarding of assets, the maintenance of proper accounting records, and the reliability of financial information as well as non-financial considerations such as the benchmarking of key performance indicators.

The Board will delegate responsibility for establishing and maintaining a framework of internal control and ethical standards to the Audit and Risk Management Committee.

The Company’s Policy is to appoint external auditors who clearly demonstrate independence. The performance of the external auditor is reviewed annually by the Audit and Risk Management Committee. The auditors have a policy of rotating the audit partner at least every 5 years.

RISK MANAGEMENT

The Board recognises that the identification and management of risk, including calculated risk taking, is an essential part of creating long term shareholder value.

Management reports directly to the Board on the Company’s key risks and is responsible, through the CEO for designing, maintaining, implementing and reporting on the adequacy of the risk management and internal control systems.

The Audit and Risk Management Committee monitors the performance of the risk management and internal control systems and reports to the Board on the extent to which it believes the risks are being managed and the adequacy and comprehensiveness if risk reporting from management.

The Board must satisfy itself, on a regular basis, that risk management and internal control systems for the company have been fully developed and implemented.

The Company has identified specific risk management areas being strategic, operational and compliance. The Board has reviewed risks faced by the Company on a regular basis due to the potential impact of the global financial crisis.

A detailed risk identification matrix has been prepared by management. High and very high risk issues are reported to the Board. The CEO is responsible for ensuring the Company complies with its regulatory obligations.

The CEO and CFO (or equivalent) also provide written assurance to the Board on an annual basis that to the best of their knowledge and belief, the declaration provided by them in accordance with Section 295A of the Corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in relation to financial reporting risks.

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The assurances from the CEO and CFO (or equivalent) can only be reasonable rather than absolute due to factors such as the need for judgement and possible weaknesses in control procedures.

Any material changes in the Company’s circumstances are released to the ASX and included on the Company’s website.

BEST PRACTICE RECOMMENDATION

Outlined below are the 8 Essential Corporate Governance Principles as outlined by the ASX and the Corporate Governance Council as they applied for the period ended 30 June 2010. The Company has complied with the Corporate Governance Best Practice Recommendations except as identified below.

Corporate Governance Policy Comment

Principle 1 Lay solid foundation for management and oversight

Adopted

1.1 Formalise and disclose the functions reserved to the Board and those delegated to management.

The Company’s Corporate Governance Polices includes a Board Charter, which discloses the specific responsibilities of the Board.

1.2 Disclose the process for evaluating the performance of senior executives.

The Board monitors the performance of senior management including measuring actual performance against planned performance.

1.3 Provide the information indicated in 'Guide to reporting on Principle 1’.

The Company will provide details of any departures from best practice recommendation Principle 1 in its Annual Report.

Principle 2 Structure the board to add value

Adopted except for Recommendations 2.2, 2.3 and

2.4

2.1 A majority of the Board should be independent. The Company is in compliance with this recommendation as three (3) of the four (4) Directors are defined as being independent.

2.2 The chairperson should be an independent director. The current chairperson is currently the holder of Shares which classifies him as a Substantial Shareholder of the Company.

2.3 The roles of chairperson and chief executive officer should not be exercised by the same individual.

Due to the size and nature of the Company’s operations; the chairperson has been assigned the role of CEO.

2.4 The board should establish a nomination committee.

No formal nomination committee or procedures have been adopted as yet given the size of the Company and the Board. The Board, as a whole, will serve as a nomination committee.

Where necessary, the nomination committee seeks advice of external advisers in connection with the suitability of applicants for Board membership.

2.5 Disclose the process for evaluating the performance of the board, its committees and the individual directors.

The Board will conduct an annual performance review of itself that compares the performance of the Board with the requirements of the Board Charter, critically reviews the mix of the Board and suggests and amendments to the Board Charter as are deemed necessary or appropriate.

2.6 Provide the information indicated in 'Guide to reporting on Principle 2’.

The Company will provide details of each director, such as their skills, experience and expertise relevant to their position, together with an explanation of any departures from best practice recommendations 2.1, 2.2, 2.3, 2.4 and 2.5 in its future annual reports.

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Principle 3 Actively promote ethical and responsible decision-making

Adopted

3.1 Establish a code of conduct and disclose the code or a summary of the code as to:

3.1.1 the practices necessary to maintain confidence in the Company's integrity

3.1.2 the practices necessary to take into account their legal obligations and reasonable expectations of their stakeholders

3.1.3 the responsibility and accountability of individuals for reporting or investigating reports of unethical practices.

The Company’s Corporate Governance Policies include a Directors and Executive officers’ Code of Conduct Policy, which provides a framework for decisions and actions in relation to ethical conduct in employment.

3.2 Establish a policy concerning trading in Company securities by directors, senior executives and employees and disclose the policy or a summary of that policy.

The Company’s Corporate Governance Policies includes Dealing in Securities which provides comprehensive guidelines on trading in the Company’s securities.

3.3 Provide the information indicated in 'Guide to Reporting on Principle 3'.


Principle 4 Safeguard integrity in financial reporting

Adopted except for Recommendation 4.1

4.1 The Board should establish an audit committee. The Board considers that it is not of sufficient size at this stage to require a separate audit committee. Until the audit committee has been established, its functions, roles and responsibilities will be undertaken by the Board.

4.2 Structure the audit committee so that it consists of:

� Only non-executive directors

� A majority of independent directors

� An independent chairperson who is not the chairperson of the Board

� At least three members.

The composition, roles and responsibilities of the audit committee when it is established will be set out in the Corporate Governance Plan.

4.3 The audit committee should have a formal operating charter. The Audit and Risk Committee will adopt a formal Charter when established.

4.4 Provide the information indicated in the 'Guide to reporting on Principle 4'.


Principle 5 Promote timely and balanced disclosure

Adopted

5.1 Establish written policies and procedures designed to ensure compliance with ASX Listing Rule disclosure requirements and to ensure accountability at a senior management level for that compliance.

The Company has a Continuous Disclosure program in place which is designed to ensure compliance with the ASX Listing Rules requirements on disclosure and to ensure accountability at a board level for compliance and factual presentation of the Company’s financial position.



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Principle 6 Respect the rights of shareholders

Adopted

6.1 Design and disclose a communications policy to promote effective communication with shareholders and encourage effective participation at general meetings and disclose the policy or a summary of the policy

The Company’s Corporate Governance Policies includes a Shareholder Communications Policy which aims to ensure that the shareholders are informed of all material developments affecting the Company’s state of affairs.



Principle 7 Recognise and manage risk

Adopted

7.1 The Board or appropriate Board committee should establish policies on risk oversight and management.

The Company’s Corporate Governance Policies includes a Risk Management Policy which aims to ensure that all material business risks are identified and mitigated.

The Board determines and identifies the Company’s “risk profile” and is responsible for overseeing and approving risk management strategies and policies, internal compliance and internal controls.

7.2 The Board should require management to design and implement the risk management and internal control system to manage the Company’s material business risks and report to it on whether those risks are being managed effectively. The Board should disclose that management has reported to it as to the effectiveness of the Company’s management of its material business risks.

The Board will design and implement continuous risk management and internal control systems and provides reports at the relevant time.

7.3 The Board should disclose whether it has received assurance from the chief executive officer (or equivalent) and the chief financial officer (or equivalent) that the declaration provided in accordance with section 295A of the Corporations Act is founded on a sound risk management and internal control and that the system is operating effectively in all material respects in relation to the financial reporting risks.

The Board seeks, at the appropriate times, the relevant assurances from the individuals appointed to perform the role of Chief Executive Officer and the Chief Financial Officer.



Principle 8 Remunerate fairly and responsibly

Adopted except for Recommendation 8.1

8.1 The Board should establish a remuneration committee The Company’s remuneration committee comprises the Board acting without the affected director participating in the decision making process

8.2 Clearly distinguish the structure of non-executive directors' remuneration from that of executives

The Board will distinguish the structure of non executive director’s remuneration from that of executive directors and senior executives. Relevantly, the Company’s Constitution provides that the remuneration of non-executive Directors will be not be more than the aggregate fixed sum determined by a general meeting.

The Board is responsible for determining the remuneration of the Managing Director and senior executives (without the participation of the affected director).

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8.3 Provide the information indicated in the 'Guide to reporting on

Principle 8'. The Company will provide details of any departures from best practice recommendation Principle 8 in its Annual Report.

Further information on the Corporate Governance Policies that have been adopted by the Company can be referenced at the Company’s website: www.dourado.com.au

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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010


Notes CONSOLIDATED

2010 $

2009 $

Revenue 2(a) 111,150 -

Depreciation (3,004) -

Exploration expenditure written off (4,522) (2,247)

Due diligence costs (287,053) (9,701)

Impairment of exploration expenditure (2,126,570) -

Other expenses 2(b) (647,810) (7,949)

Loss before income tax expense (2,957,809) (19,897)

Income tax expense 3 - -

Net loss for the year (2,957,809) (19,897)

Other comprehensive income - -

Total comprehensive loss for the year (2,957,809) (19,897)

Earnings per share 4

Basic earnings per share (cents) (6.86) (2.22)

Diluted earnings per share (cents) (6.86) (2.22)

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

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STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010


Notes CONSOLIDATED

2010 $

2009 $

Current Assets

Cash and cash equivalents 5 3,000,264 17,590

Trade and other receivables 6 102,944 -

Other assets 7 53,768 -

Total Current Assets 3,156,976 17,590

Non-Current Assets

Deferred exploration and evaluation expenditure 8 6,897,573 12,688

Plant and equipment 9 23,347 -

Total Non-Current Assets 6,920,920 12,688

Total Assets 10,077,896 30,278

Current Liabilities

Trade and other payables 10 240,977 125

Total Current Liabilities 240,977 125

Total Liabilities 240,977 125

Net Assets 9,836,919 30,153

Equity

Contributed equity 11 12,814,625 50,050

Accumulated (losses) (2,977,706) (19,897)

Total Equity 9,836,919 30,153

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

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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2010


Contributed equity

$

Accumulated (losses)

$

Total Equity

$

Balance at 1 July 2008 50 - 50

Total comprehensive loss for the year - (19,897) (19,897)

Share issued (net of costs) 50,000 - 50,000

At 30 June 2009 50,050 (19,897) 30,153

Balance at 1 July 2009 50,050 (19,897) 30,153

Total comprehensive loss for the year - (2,957,809) (2,957,809)

Shares issued (net of costs) 11,514,575 - 11,514,575

Options issued 1,250,000 - 1,250,000

At 30 June 2010 12,814,625 (2,977,706) 9,836,919

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

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2010


Notes CONSOLIDATED

2010 $

2009 $

Cash flows from operating activities

Interest income 102,532 -

Payment to suppliers and employees (847,980) (17,650)

Net cash flows used in operating activities 5 (745,448) (17,650)

Cash flows from investing activities

Payments for exploration and evaluation expenditure (1,720,977) (14,810)

Payments for plant and equipment (26,351) -

Net cash used in investing activities (1,747,328) (14,810)

Cash flows from financing activities

Proceeds from issue of shares and options 5,817,000 50,000

Repayment of loans (125) -

Share issue costs (357,425) -

Application funds received in advance 16,000

Net cash flows provided by financing activities 5,475,450 50,000

Net increase in cash and cash equivalents 2,982,674 17,540

Cash and cash equivalents at beginning of year 17,590 50

Cash and cash equivalents at the end of the year 5 3,000,264 17,590

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

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010


This financial report includes the consolidated financial statements and notes of Dourado Resources Limited and controlled

entities (‘Group’).

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting

Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards

Board and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report

containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting

Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.

Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently

applied unless otherwise stated.

The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by

the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

a. Principles of Consolidation

The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Dourado

Resources Limited at the end of the reporting period. A controlled entity is any entity over which Dourado Resources

Limited has the power to govern the financial and operating policies so as to obtain benefits from the entity’s activities.

Control will generally exist when the parent owns, directly or indirectly through subsidiaries, more than half of the voting

power of an entity. In assessing the power to govern, the existence and effect of holdings of actual and potential voting

rights are also considered.

Where controlled entities have entered or left the Group during the year, the financial performance of those entities are

included only for the period of the year that they were controlled. A list of controlled entities is contained in Note 14 to

the financial statements.

In preparing the consolidated financial statements, all inter-group balances and transactions between entities in the

Group have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where

necessary to ensure consistency with those adopted by the parent entity.

Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are shown

separately within the equity section of the consolidated statement of financial position and statement of comprehensive

income. The non-controlling interests in the net assets comprise their interests at the date of the original business

combination and their share of changes in equity since that date.

Business Combinations

Business combinations occur where an acquirer obtains control over one or more businesses and results in the

consolidation of its assets and liabilities.

A business combination is accounted for by applying the acquisition method, unless it is a combination involving

entities or businesses under common control. The acquisition method requires that for each business combination one

of the combining entities must be identified as the acquirer (ie parent entity). The business combination will be

accounted for as at the acquisition date, which is the date that control over the acquiree is obtained by the parent

entity. At this date, the parent shall recognise, in the consolidated financial statements, and subject to certain limited

exceptions, the fair value of the identifiable assets acquired and liabilities assumed. In addition, contingent liabilities of

the acquiree will be recognised where a present obligation has been incurred and its fair value can be reliably

measured.

The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The method adopted for

the measurement of goodwill will impact on the measurement of any non-controlling interest to be recognised in the

acquiree where less than 100% ownership interest is held in the acquiree.

The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair

value of any previously held equity interest shall form the cost of the investment in the separate financial statements.

Consideration may comprise the sum of the assets transferred by the acquirer, liabilities incurred by the acquirer to the

former owners of the acquiree and the equity interests issued by the acquirer.

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NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2010


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

a. Principles of Consolidation (continued)

Business Combinations (continued)

Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive income.

Where changes in the value of such equity holdings had previously been recognised in other comprehensive income,

such amounts are recycled to profit or loss.

Included in the measurement of consideration transferred is any asset or liability resulting from a contingent

consideration arrangement. Any obligation incurred relating to contingent consideration is classified as either a

financial liability or equity instrument, depending upon the nature of the arrangement. Rights to refunds of

consideration previously paid are recognised as a receivable. Subsequent to initial recognition, contingent

consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.

Contingent consideration classified as an asset or a liability is remeasured each reporting period to fair value through

the statement of comprehensive income unless the change in value can be identified as existing at acquisition date.

All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive

income.

b. Income Tax

The income tax expense (revenue) for the year 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 the end of the reporting period. 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

year 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 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 the end of the reporting

period. Their measurement also reflects the manner in which management expects to recover or settle the carrying

amount of the related asset or liability.

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.

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.

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.

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c. Plant and Equipment

Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated

depreciation and impairment losses.

Plant and equipment are measured on the cost basis.

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 net cash

flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have

been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the Group includes the cost of materials, direct labour, borrowing costs and

an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only

when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item

can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income

during the financial period in which they are incurred.

Depreciation

The depreciable amount of all fixed assets are depreciated on a diminishing value basis over the asset’s useful life to

the Group commencing from the time the asset is held ready for use.

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

Class of Fixed Asset Depreciation Rate

Plant and equipment 13.33% - 50%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting

period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is

greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and

losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in

the revaluation surplus relating to that asset are transferred to retained earnings.

d. Exploration and Development Expenditure

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of

interest. These costs are only carried forward to the extent that they are expected to be recouped through the

successful development of the area or where activities in the area have not yet reached a stage that permits

reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision

to abandon the area is made.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the

area according to the rate of depletion of the economically recoverable reserves.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward

costs in relation to that area of interest.

Costs of site restoration are provided over the life of the facility from when exploration commences and are included in

the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and

building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such

costs have been determined using estimates of future costs, current legal requirements and technology on an

undiscounted basis.

Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site

restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and

future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within

one year of abandoning the site.

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e. Financial Instruments

Recognition and initial measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to

the instrument. For financial assets, this is equivalent to the date that the company commits itself to either the purchase

or sale of the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is

classified ‘at fair value through profit or loss’, in which case transaction costs are expensed to profit or loss

immediately.

Classification and subsequent measurement

Finance instruments are subsequently measured at either of fair value, amortised cost using the effective interest rate

method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled,

between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair

value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as:

a. the amount at which the financial asset or financial liability is measured at initial recognition;

b. less principal repayments;

c. plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and

the maturity amount calculated using the effective interest method; and

d. less any reduction for impairment.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is

equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction

costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the

contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability.

Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential

recognition of an income or expense in profit or loss.

The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the

requirements of accounting standards specifically applicable to financial instruments.

i. Financial assets at fair value through profit or loss

Financial assets are classified at ‘fair value through profit or loss’ when they are either held for trading for the

purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as

such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is

managed by key management personnel on a fair value basis in accordance with a documented risk

management or investment strategy. Such assets are subsequently measured at fair value with changes in

carrying value being included in profit or loss.

ii. Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not

quoted in an active market and are subsequently measured at amortised cost.

Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting period. (All other loans and receivables are classified as non-current assets.)

iii. Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or

determinable payments, and it is the Group’s intention to hold these investments to maturity. They are

subsequently measured at amortised cost.

Held-to-maturity investments are included in non-current assets, except for those which are expected to mature

within 12 months after the end of the reporting period. (All other investments are classified as current assets.)

If during the period the Group sold or reclassified more than an insignificant amount of the held-to-maturity

investments before maturity, the entire held-to-maturity investments category would be tainted and reclassified

as available-for-sale.

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e. Financial Instruments (continued)

Classification and subsequent measurement (continued)

iv. Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified

into other categories of financial assets due to their nature, or they are designated as such by management.

They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or

determinable payments.

Available-for-sale financial assets are included in non-current assets, except for those which are expected to

mature within 12 months after the end of the reporting period. (All other financial assets are classified as current

assets.)

v. Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised

cost.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to

determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar

instruments and option pricing models.

Impairment

At the end of each reporting period, the Group assesses whether there is objective evidence that a financial instrument

has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the

instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the

statement of comprehensive income.

Financial guarantees

Where material, financial guarantees issued, which require the issuer to make specified payments to reimburse the

holder for a loss it incurs because a specified debtor fails to make payment when due, are recognised as a financial

liability at fair value on initial recognition.

The guarantee is subsequently measured at the higher of the best estimate of the obligation and the amount initially

recognised less, when appropriate, cumulative amortisation in accordance with AASB 118: Revenue. Where the entity

gives guarantees in exchange for a fee, revenue is recognised under AASB 118.

The fair value of financial guarantee contracts has been assessed using a probability weighted discounted cash flow

approach. The probability has been based on:

- the likelihood of the guaranteed party defaulting in a year period;

- the proportion of the exposure that is not expected to be recovered due to the guaranteed party defaulting; and

- the maximum loss exposed if the guaranteed party were to default.

De-recognition

Financial assets are de-recognised where the contractual rights to receipt of cash flows expires or the asset is

transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and

benefits associated with the asset. Financial liabilities are de-recognised where the related obligations are either

discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or

transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or

liabilities assumed, is recognised in profit or loss. For

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f. Impairment of Assets

At each the end of each reporting period, the Group assesses whether there is any indication that an asset may be

impaired. The assessment will include the consideration of external and internal sources of information including

dividends received from subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits.

If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the

asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying value. Any

excess of the asset’s carrying value over its recoverable amount is expensed to the statement of comprehensive

income.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable

amount of the cash-generating unit to which the asset belongs.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

g. Employee Benefits

Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to

reporting date. Employee benefits that are expected to be settled within 1 year have been measured at the amounts

expected to be paid when the liability is settled. Employee benefits payable later than 1 year have been measured at

the present value of the estimated future cash outflows to be made for those benefits. In determining the liability,

consideration is given to employee wages increases and the probability that the employee may satisfy vesting

requirements. Those cash outflows are discounted using market yields on national government bonds with terms to

maturity that match the expected timing of cash flows.

Equity-settled compensation

The Group operates equity-settled share-based payment employee share and option schemes. The fair value of the

equity to which employees become entitled is measured at grant date and recognised as an expense over the vesting

period, with a corresponding increase to an equity account. The fair value of shares is ascertained as the market bid

price. The fair value of options is ascertained using a Black–Scholes pricing model which incorporates all market

vesting conditions. The number of shares and options expected to vest is reviewed and adjusted at the end of each

reporting date such that the amount recognised for services received as consideration for the equity instruments

granted shall be based on the number of equity instruments that eventually vest.

h. Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it

is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

i. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid

investments with original maturities of 12 months or less, and bank overdrafts. Bank overdrafts are shown within short-

term borrowings in current liabilities on the statement of financial position.

j. Revenue and Other Income

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the

rate inherent in the instrument.

Revenue recognition relating to the provision of services is determined with reference to the stage of completion of the

transaction at the end of the reporting period and where outcome of the contract can be estimated reliably. Stage of

completion is determined with reference to the services performed to date as a percentage of total anticipated services

to be performed. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent that

related expenditure is recoverable.

All revenue is stated net of the amount of goods and services tax (GST)

k. Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services

received by the Group during the reporting period which remains unpaid. The balance is recognised as a current

liability with the amount being normally paid within 30 days of recognition of the liability.

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l. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a

substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such

time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in income in the period in which they are incurred.

m. Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred

is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition

of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are

shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing

and financing activities, which are disclosed as operating cash flows.

n. Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in

presentation for the current financial year.

When the Group applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items

in its financial statements, a statement of financial position as at the beginning of the earliest comparative period will be

disclosed.

o. Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial statements 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 Group.

Key judgments

(ii) Exploration and Evaluation Expenditure

The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be

recoverable or where the activities have not reached a stage which permits a reasonable assessment of the

existence of reserves. While there are certain areas of interest from which no reserves have been extracted,

the directors are of the continued belief that such expenditure should not be written off since feasibility studies in

such areas have not yet concluded. Such capitalised expenditure is carried at the end of the reporting period at

$6,897,573.

p. Adoption of New and Revised Accounting Standards

During the current year the Group adopted all of the new and revised Australian Accounting Standards and

Interpretations applicable to its operations which became mandatory.

The adoption of these standards has impacted the recognition, measurement and disclosure of certain transactions.

The following is an explanation of the impact the adoption of these standards and interpretations has had on the

financial statements of Dourado Resources Limited.

AASB 3: Business Combinations

In March 2008 the Australian Accounting Standards Board revised AASB 3 and as a result, some aspects of business

combination accounting have changed. The changes apply only to business combinations which occur from 1 July

2009. The following is an overview of the key changes and the impact on the Group’s financial statements in relation to

the acquisition of subsidiaries during the year.

Recognition and measurement impact

Recognition of acquisition costs - The revised version of AASB 3 requires that all costs associated with a business

combination be expensed in the period in which they were incurred. Previously such costs were capitalised as part of

the cost of the business combination.

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p. Adoption of New and Revised Accounting Standards (continued)

AASB 3: Business Combinations (continued)

As such all costs associated with the acquisition of subsidiaries were expensed during the current financial year.

Measurement of contingent considerations - The revised AASB 3 requires that contingent considerations associated

with a business combination be included as part of the cost of the business combination. They are recognised at the

fair value of the payment calculated having regard to probability of settlement. Any subsequent changes in the fair

value or probability of payment are recognised in the statement of comprehensive income except to the extent where

they relate to conditions or events existing at acquisition date, in which case the consideration paid is adjusted. The

previous version of AASB 3 allowed such changes to be recognised as a cost of the combination impacting goodwill.

Measurement of non-controlling interest - For each business combination, the acquirer must measure any non-

controlling interest in the acquiree either at the fair value of the non-controlling interest (the full goodwill method) or at

the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets. Under the previous version of

AASB 3 only the latter option was permitted.

Recognition of contingencies - The revised AASB 3 prohibits entities from recognising contingencies associated with a

business combination, unless they meet the definition of a liability.

Disclosure impact

The revised AASB 3 contains a number of additional disclosure requirements not required by the previous version of

AASB 3. The revised disclosures are designed to ensure that users of the Group’s financial statements are able to

understand the nature and financial impact of any business combinations on the financial statements.

AASB 8: Operating Segments

In February 2007 the Australian Accounting Standards Board issued AASB 8 which replaced AASB 114: Segment

Reporting. Below is an overview of the key changes and the impact on the Group’s financial statements.

Measurement impact

Identification and measurement of segments - AASB 8 requires the ‘management approach’ to the identification

measurement and disclosure of operating segments. The ‘management approach’ requires that operating segments

be identified on the basis of internal reports that are regularly reviewed by the entity’s chief operating decision maker,

for the purpose of allocating resources and assessing performance. This could also include the identification of

operating segments which sell primarily or exclusively to other internal operating segments. Under AASB 114,

segments were identified by business and geographical areas, and only segments deriving revenue from external

sources were considered.

The adoption of the ‘management approach’ to segment reporting has resulted in the identification of reportable

segments largely consistent with the prior year.

Disclosure impact

AASB 8 requires a number of additional quantitative and qualitative disclosures, not previously required under AASB

114, where such information is utilised by the chief operating decision maker. This information is now disclosed as part

of the financial statements.

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p. Adoption of New and Revised Accounting Standards (continued)

AASB 101: Presentation of Financial Statements

In September 2007 the Australian Accounting Standards Board revised AASB 101 and as a result, there have been

changes to the presentation and disclosure of certain information within the financial statements. Below is an overview

of the key changes and the impact on the Group’s financial statements.

Disclosure impact

Terminology changes - the revised version of AASB 101 contains a number of terminology changes, including the

amendment of the names of the primary financial statements.

Reporting changes in equity - the revised AASB 101 requires all changes in equity arising from transactions with

owners, in their capacity as owners, to be presented separately from non-owner changes in equity. Owner changes in

equity are to be presented in the statement of changes in equity, with non-owner changes in equity presented in the

statement of comprehensive income. The previous version of AASB 101 required that owner changes in equity and

other comprehensive income be presented in the statement of changes in equity.

Statement of comprehensive income - the revised AASB 101 requires all income and expenses to be presented in

either one statement, the statement of comprehensive income, or two statements, a separate income statement and a

statement of comprehensive income. The previous version of AASB 101 required only the presentation of a single

income statement.

The Group’s financial statements now contain a statement of comprehensive income.

Other comprehensive income - The revised version of AASB 101 introduces the concept of ‘other comprehensive

income’ which comprises of income and expenses that are not recognised in profit or loss as required by other

Australian Accounting Standards. Items of other comprehensive income are to be disclosed in the statement of

comprehensive income. Entities are required to disclose the income tax relating to each component of other

comprehensive income. The previous version of AASB 101 did not contain an equivalent concept.

q. New Accounting Standards for Application in Future Periods

The AASB has issued new and amended accounting standards and interpretations that have mandatory application

dates for future reporting periods. The Group has decided against early adoption of these standards. A discussion of

those future requirements and their impact on the Group follows:

• AASB 9: Financial Instruments and AASB 2009-11: Amendments to Australian Accounting Standards arising

from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and

Interpretations 10 & 12] (applicable for annual reporting periods commencing on or after 1 January 2013).

These standards are applicable retrospectively and amend the classification and measurement of financial

assets. The Group has not yet determined the potential impact on the financial statements.

The changes made to accounting requirements include:

- simplifying the classifications of financial assets into those carried at amortised cost and those carried at

fair value;

- simplifying the requirements for embedded derivatives;

- removing the tainting rules associated with held-to-maturity assets;

- removing the requirements to separate and fair value embedded derivatives for financial assets carried

at amortised cost;

- allowing an irrevocable election on initial recognition to present gains and losses on investments in

equity instruments that are not held for trading in other comprehensive income. Dividends in respect of

these investments that are a return on investment can be recognised in profit or loss and there is no

impairment or recycling on disposal of the instrument; and

- reclassifying financial assets where there is a change in an entity’s business model as they are initially

classified based on:

a. the objective of the entity’s business model for managing the financial assets; and

b. the characteristics of the contractual cash flows.

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q. New Accounting Standards for Application in Future Periods (continued)

• AASB 124: Related Party Disclosures (applicable for annual reporting periods commencing on or after 1

January 2011).

This standard removes the requirement for government related entities to disclose details of all transactions with

the government and other government related entities and clarifies the definition of a related party to remove

inconsistencies and simplify the structure of the standard. No changes are expected to materially affect the

Group.

• AASB 2009-4: Amendments to Australian Accounting Standards arising from the Annual Improvements Project

[AASB 2 and AASB 138 and AASB Interpretations 9 & 16] (applicable for annual reporting periods commencing

from 1 July 2009) and AASB 2009-5: Further Amendments to Australian Accounting Standards arising from the

Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136 & 139] (applicable for annual reporting

periods commencing from 1 January 2010).

These standards detail numerous non-urgent but necessary changes to accounting standards arising from the

IASB’s annual improvements project. No changes are expected to materially affect the Group.

• AASB 2009-8: Amendments to Australian Accounting Standards - Group Cash-settled Share-based Payment

Transactions [AASB 2] (applicable for annual reporting periods commencing on or after 1 January 2010).

These amendments clarify the accounting for group cash-settled share-based payment transactions in the

separate or individual financial statements of the entity receiving the goods or services when the entity has no

obligation to settle the share-based payment transaction. The amendments incorporate the requirements

previously included in Interpretation 8 and Interpretation 11 and as a consequence, these two Interpretations

are superseded by the amendments. These amendments are not expected to impact the Group.

• AASB 2009-10: Amendments to Australian Accounting Standards - Classification of Rights Issues [AASB 132]

(applicable for annual reporting periods commencing on or after 1 February 2010).

These amendments clarify that rights, options or warrants to acquire a fixed number of an entity’s own equity

instruments for a fixed amount in any currency are equity instruments if the entity offers the rights, options or

warrants pro-rata to all existing owners of the same class of its own non-derivative equity instruments. These

amendments are not expected to impact the Group.

• AASB 2009-12: Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 119, 133, 137,

139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] (applicable for annual reporting periods

commencing on or after 1 January 2011).

This standard makes a number of editorial amendments to a range of Australian Accounting Standards and

Interpretations, including amendments to reflect changes made to the text of International Financial Reporting

Standards by the IASB. The standard also amends AASB 8 to require entities to exercise judgment in

assessing whether a government and entities known to be under the control of that government are considered

a single customer for the purposes of certain operating segment disclosures. These amendments are not

expected to impact the Group.

• AASB 2009-13: Amendments to Australian Accounting Standards arising from Interpretation 19 [AASB 1]

(applicable for annual reporting periods commencing on or after 1 July 2010).

This standard makes amendments to AASB 1 arising from the issue of Interpretation 19. The amendments

allow a first-time adopter to apply the transitional provisions in Interpretation 19. This standard is not expected

to impact the Group.

• AASB 2009-14: Amendments to Australian Interpretation — Prepayments of a Minimum Funding Requirement

[AASB Interpretation 14] (applicable for annual reporting periods commencing on or after 1 January 2011). For

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q. New Accounting Standards for Application in Future Periods (continued)

This standard amends Interpretation 14 to address unintended consequences that can arise from the previous

accounting requirements when an entity prepays future contributions into a defined benefit pension plan.

• AASB Interpretation 19: Extinguishing Financial Liabilities with Equity Instruments (applicable for annual

reporting periods commencing on or after 1 July 2010).

This Interpretation deals with how a debtor would account for the extinguishment of a liability through the issue

of equity instruments. The Interpretation states that the issue of equity should be treated as the consideration

paid to extinguish the liability, and the equity instruments issued should be recognised at their fair value unless

fair value cannot be measured reliably in which case they shall be measured at the fair value of the liability

extinguished. The Interpretation deals with situations where either partial or full settlement of the liability has

occurred. This Interpretation is not expected to impact the Group.

CONSOLIDATED

2010

$ 2009

$ 2. REVENUES AND EXPENSES

(a) Revenue

Finance revenue – bank interest 111,150 -

111,150 -

(b) Other expenses

Corporate & administration costs 572,478 6,739

Other expenses 75,332 1,210

647,810 7,949

3. INCOME TAX EXPENSE

The prima facie tax on profit/(loss) from continuing operations before income tax is reconciled to the income

tax expense as follows:

Prima facie (benefit)/expense on profit/(loss) from continuing operations (30%) (887,343) (5,969)

Add tax effect of non-allowable items 616,027 -

(271,316) (5,969)

Deferred Tax Asset (DTA) on temporary differences and tax losses not

brought to account 271,316 5,969

Income tax expense for the year - -

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CONSOLIDATED

2010

$ 2009

$

3. INCOME TAX EXPENSE (continued)

Deferred tax assets not brought to account at reporting date

Tax losses not brought to account 271,316 5,969

Other temporary differences 101,082 3,769

372,398 9,738

The deferred tax asset not brought to account will only be obtained if:

(a) future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;

(b) the conditions for deductibility imposed by tax legislation continue to be complied with; and

(c) the company is able to meet the continuity of business tests and or continuity of ownership.

CONSOLIDATED

2010 2009

Cents per share Cents per share 4. EARNINGS PER SHARE

Basic earnings per share:

Total basic earnings per share (6.86) (2.22)

Diluted earnings per share

Total diluted earnings per share (6.86) (2.22)

The earnings and weighted average number of ordinary shares used in the calculation of basic per share is as follows: $ $

Earnings (2,957,809) (19,897)

Number Number

Weighted average number of ordinary shares for the purposes of basic earnings per share 43,098,836 896,489

Effect of dilution: - -

Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share 43,098,836 896,489

Diluted earnings per share is not reflected as the result is anti-dilutive in nature.

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CONSOLIDATED

2010

$ 2009

$ 5. CASH AND CASH EQUIVALENTS

Reconciliation of cash

Cash at the end of the financial year as shown in the statement of cash

flows is reconciled to items in the statement of financial position as

follows:

Cash at bank and cash in hand 1,127,823 17,590

Deposits at call 1,872,441 -

3,000,264 17,590

Cash at bank earns interest at floating rates based on daily bank deposit rates. Deposits at call earns interest at a fixed rate of 5.6% for a 1 month maturity. The Group has no credit standby arrangements, loan or overdraft facilities.

Reconciliation of net loss after tax to net cash flows from

operations

Net loss (2,957,809) (19,897)

Adjustments for:

Depreciation on property, plant and equipment 3,004 -

Exploration expenditure written off 4,522 2,247

Impairment of exploration expenditure 2,126,570 -

Changes in assets and liabilities:

Trade and other receivables (92,944) -

Other assets (69,768) -

Trade payables and accruals 240,977 -

Net cash used in operating activities (745,448) (17,650)

Non-cash financing and investing activities

Settlement of subsidiary purchase with equity 6,875,000 -

Acquisition of tenements through issue of equity 420,000 -

7,295,000 -

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CONSOLIDATED

2010

$ 2009

$

6. TRADE AND OTHER RECEIVABLES

Current

Accrued income 8,618 39

Other receivables (i) 94,326 12,320

102,944 12,359

(i) Other receivables are non-interest bearing and expected to be

received in 30 days.

7. OTHER ASSETS

Current

Prepayments 53,768 -

8. EXPLORATION AND EVALUATION EXPENDITURE

Costs carried forward in respect of :

Exploration and evaluation phase – at cost

Balance at beginning of year/period 12,688 -

Additions 9,015,977 14,935

Impairment of exploration expenditure (2,126,570) -

Expenditure written off (4,522) (2,247)

Total deferred exploration expenditure 6,897,573 12,688

The ultimate recoupment of costs carried forward in respect of areas of interest in the exploration and evaluation phases is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas. The Company has an interest in certain exploration tenements and the amounts shown above include amounts expended to date in the acquisition and/or exploration of those tenements.

Impairment

During the year a review was undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Exploration and evaluation expenditure of $4,522 (2009: $2,247) was written off to the consolidated statement of comprehensive income. The major Impairment of exploration expenditure of $2,126,570 related to group of tenements acquired in the acquisition of North Minerals Pty Ltd.

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CONSOLIDATED

2010

$ 2009

$ 9. PROPERTY, PLANT AND EQUIPMENT

Plant and equipment

At 1 July 2009 - -

Additions 26,351 -

Disposals - -

Depreciation charge for the year/period (3,004) -

At 30 June 2010 23,347 -

Cost 26,351 -

Accumulated depreciation and impairment (3,004) -

Net carrying amount 23,347 -

10. TRADE AND OTHER PAYABLES

Current

Unsecured Liabilities

Trade payables 199,321 125

Accrued expenses 25,656 -

Share application funds 16,000 -

240,977 125

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CONSOLIDATED

2010

$ 2009

$ 11. CONTRIBUTED EQUITY

Ordinary shares issued and fully paid (i) 11,564,625 50,050

Options issued (ii) 1,250,000 -

Ordinary shares issued and fully paid (i) 12,814,625 50,050

Fully paid ordinary shares carry one vote per share either in person or by proxy at a meeting of the Company and carry the right to dividends.

CONSOLIDATED

Number $

(i) Movement in ordinary shares on issue

At 1 July 2008 500,000 50

Issued on 20 February 2009 for cash pursuant to placement 1,250,000 50,000

At 1 July 2009 1,750,000 50,050

Issued on 13 July 2009 for acquisition of tenements 37,875,000 420,000

Issued on 16 October 2009 for cash pursuant to placement 21,635,000 4,327,000

Issued on 29 April 2010 for acquisition of subsidiary 25,000,000 5,625,000

Issued on 20 May 2010 for cash pursuant to placement 7,317,073 1,500,000

Share issue costs - (357,425)

At 30 June 2010 93,577,073 11,564,625

(ii) Movement in options on issue

At 1 July 2008 - -

Issued on 20 February 2009, free attaching options on placement 875,000 -

At 1 July 2009 875,000 -

Issued on 13 July 2009 for acquisition of tenements, free attaching options 19,437,500 -

Issued on 16 October 2009, free attaching options on placement 21,135,000

Issued on 29 April 2010 for acquisition of subsidiary 25,000,000 1,250,000

Issued on 20 May 2010, free attaching options on placement 7,317,073 -

At 30 June 2010 73,764,573 1,250,000

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11. CONTRIBUTED EQUITY (contined)

(a) Capital management

Management controls the capital of the Group in order to provide the shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going concern. The group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets. There are no externally imposed capital requirements. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

There have been no changes in the strategy adopted by management to control the capital of the group since the prior year.

12. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group’s principal financial instruments comprise of cash and short-term deposits.

The main purpose of these financial instruments is to finance the Group’s operations. The Group has other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. The main risks arising from the Group’s financial instruments are cash flow interest rate risk, liquidity risk and credit risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below.

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1 to the financial statements.

Cash flow interest rate risk

The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s cash and short-term deposits. Since the Group does not have any long-term debt obligations, the Group’s exposure to this risk is nominal.

Credit risk

The Group’s policy is to trade only with recognised, creditworthy third parties.

It is the Group’s policy that all customers who wish to trade on credit terms will be subject to credit verification procedures.

In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.

There are no significant concentrations of credit risk within the Group.

Liquidity risk

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans and capital raising.

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13. FINANCIAL INSTRUMENTS

Fair values

Set out below is a comparison by category of carrying amounts and fair values of all of the Group’s financial instruments recognised in the financial statements. The fair values of financial assets have been calculated using market interest rates.

Carrying amount Fair value

2010

$ 2009

$ 2010

$ 2009

$

Financial assets

Cash 3,000,264 17,650 3,000,264 17,650

Trade and other receivables 102,944 - 102,944 -

Financial liabilities

Trade and other payables 240,977 125 240,977 125

Interest rate risk

The following table sets out the carrying amount, by maturity, of the financial instruments:

2010 2009

<1 year

$ Total

$

Weighted average effective

interest rate %

<1 year $

Total $


interest rate %

FINANCIAL ASSETS

Floating rate

Cash assets 3,000,264 3,000,264 3.49% - 17,650 17.650 0.00%


interest rate 3.49% 3.49% - 0.00% 0.00%

Fixed rate

Trade & other receivables 102,944 102,944 0.00% - - - 0.00%


interest rate 0.00% 0.00% - 0.00% 0.00%

FINANCIAL LIABILITIES

Fixed rate

Trade & other payables 240,977 240,977 0.00% - 125 125 0.00%


interest rate 0.00%

0.00% - 0.00% 0.00%

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14. CONTROLLED ENTITIES

Subsidiaries of Dourado Resources Limited:

Percentage Owned (%)

Country of Incorporation

2010

2009

North Minerals Pty Ltd (a) Australia 100% 0%

Eclipse Uranium Ltd (b) Australia 100% 0%

Zelta Holdings Ltd (c) Australia 100% 0%

Tower Group Pty Ltd (c) Australia 100% 0%

(a) North Minerals Pty Ltd

On 3 March 2010, the Company acquired 100% of North Minerals Pty Ltd (“North Minerals”).

The acquisition of North Minerals was treated as an asset purchase. It was impractical to determine the fair value of

North Minerals using other methods; management of the Group therefore measured them based on the fair value of the

shares and options issued in acquiring the company. The total cost of the acquisition was $6,875,000 and comprised an

issue of equity instruments attributable to the acquisition. The Company issued 25,000,000 ordinary shares with a fair

value of $0.225 each and 25,000,000 listed options with a fair value of $0.05 each, based on the quoted price of the

shares and options of Dourado on 21 April 2010 the date control was obtained.

The investment in North Minerals was subsequently sold to Dourado Resources Limited’s wholly owned subsidiary

Eclipse Uranium Ltd.

Recognised

on acquisition $

Exploration and evaluation expenditure 6,875,000

Net assets acquired 6,875,000

Cost of the acquisition:

Shares issued at fair value 5,625,000

Options issued at fair value 1,250,000

6,875,000

(b) Eclipse Uranium Ltd

On 3 March 2010, the Company incorporated in Australia, a wholly owned subsidiary named Eclipse Uranium Ltd

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14. CONTROLLED ENTITIES (continued)

(c) Zelta Holdings Ltd

On 28 April 2010, the Company acquired 100% of Zelta Holdings Ltd (“Zelta Holdings”) and its wholly owned subsidiary Tower Group Pty Ltd (“Tower”).

The acquisition of the acquired subsidiaries was treated as an asset purchase. It was impractical to determine the fair

value of the acquired subsidiaries using other methods; management of the Group therefore measured them based on

the fair value of the consideration paid in acquiring the company. The total cost of the acquisition was the cash payment

of $1,200,000.

Recognised

on acquisition $

Cash at Bank 331

Exploration and evaluation expenditure 1,199,669

Net assets acquired 1,200,000

Cost of the acquisition:

Cash payment 1,200,000

CONSOLIDATED

2010

$ 2009

$ 15. AUDITOR’S REMUNERATION

The auditor of Dourado Resources Limited is RSM Bird Cameron Partners.

Amounts received or due and receivable by RSM Bird Cameron

Partners for:

An audit or review of the financial report of the entity and any other

entity in the Group 31,500 -

Independent accountants report for prospectus – Dourado Resources 7,500

Independent accountants report for prospectus – Eclipse Uranium 11,000 -

50,000 -

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16. SEGMENT INFORMATION

The directors have considered the requirements of AASB 8-Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Board) in allocating resources and have concluded that at this time there are no separately identifiable segments. Following adoption of AASB 8, the identification of the company’s reportable segments has not changed. During the year, the company considers that it has only operated in one segment, being mineral exploration within Australia. The group is domiciled in Australia. All revenue from external customers is generated from Australia only. Segment revenues are allocated based on the country in which the customer is located. No operating revenue was derived during the year (2009 – nil). All the assets are located in Australia only.

17. CONTINGENT ASSETS AND LIABILITIES

There are no contingent assets or liabilities at the reporting date.

18. CAPITAL AND OTHER COMMITMENTS

Exploration and other commitments

In order to maintain current rights of tenure to exploration of exploration licences, the Group is required to perform a minimum exploration work to meet the minimum expenditure requirements specified by various governments. These obligations are subject to renegotiation when application for a mining lease is made and at other times. For the exploration licences held at period end, the aggregate minimum expenditure requirement per annum is $872,107 (2009: $Nil).

Other commitments

As disclosure in Note 19, subsequent to the reporting date the Company committed to pay consideration of $700,000 cash and 13,000,000 fully paid ordinary shares in respect of the Abbotts Exploration Pty Ltd acquisition.

There are no other capital or lease commitments at the reporting date.

19. EVENTS AFTER THE REPORTING PERIOD

On 7 July 2010 the Company announced it had acquired 27.5% of the capital of Abbotts Exploration Pty Ltd (‘Abbotts”) for the consideration of $700,000 cash and 13,000,000 fully paid ordinary shares.

The Company made an ASX announcement on 16 July 2010 in relation to it’s off market takeover offer to acquire 100% of the shares in Aurium Resources Limited.

The takeover offer comprises 1 cent in cash and 1 Dourado Resources Limited share for every 10 Aurium Resources Limited fully paid shares and 1 Dourado Resource Limited share for every 2,000 Aurium partly paid shares.

The takeover bid is also subject to the following conditions:

- Dourado Resources Limited having a relevant interest in at least 51% of all shares on issue in Aurium Resources Limited.

- Aurium Resources Limited having net tangible assets not less than $2,500,000.

The Company has called a Shareholders General Meeting on 6 October 2010 to seek approval to complete the acquisition of the remaining 62.5% of the shares and all of the options on issue in Abbotts by issue of 48,500,000 shares and 30,000,000 options.

Other than the above, there has not been any matter or circumstance that has arisen after reporting date that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods. F

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20. RELATED PARTY DISCLOSURES

(a) Details of key management personnel

(i) Directors

E Pietro Del Fante Chairman (Executive Director) Appointed 14 May 2008

D Smith (Non Executive Director) Appointed 27 May 2009 B Maston (Non Executive Director) Appointed 27 May 2009 A M Mendoza (Non Executive Director) Appointed 21 August 2009 (ii) Executives

E Pietro Del Fante (Executive Director) Appointed 14 May 2008

Remuneration of Directors and Named Executives

Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Group’s key management personnel for the year ended 30 June 2010.

The total remuneration paid to KMP of the Group during the year is as follows:

CONSOLIDATED

2010

$ 2009

$

Short-term benefits 137,343 -

Post-employment benefits - -

Share-based payments - -

137,343 -

(b) Compensation of directors

Remuneration Philosophy

The performance of the Company depends upon the quality of its directors and executives. To prosper, the Company must attract, motivate and retain highly skilled directors and executives.

Remuneration Committee

The Company does not have a formal Remuneration Committee. The full Board attends to the matters normally attended to by a Remuneration Committee.

Director Remuneration

Shareholder approval is obtained in relation to the overall limit set for directors’ fees. The directors must set individual Board fees within the limit approved by shareholders. The level of fees is not linked to directors’ performance. Shareholders approve the maximum aggregate remuneration for non-executive directors. The maximum aggregate remuneration has not been approved for directors as the Company has not held an AGM as required by the Corporations Act 2001 for a listed entity. Further, Shareholders must approve the framework for any equity schemes and if a director is recommended for being able to participate in an equity scheme, this participation must be approved by the shareholders. Senior Management and Executives

The Company does not have any senior management or executives, and does not have any employment contracts in place.

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2010

Balance at beginning of

year 01 July 2009

Exercised options

Net change Other

Balance of date of

resignation

Reorganisation of capital

Balance at 30 June

2010

E Pietro Del Fante* 16,750,000 - - N/A - 16,750,000D Smith** - - - N/A - -B Maston** - - - N/A - -A M Mendoza*** - - - N/A - -Total 16,750,000 - - - - 16,750,000

2009


year 01 July 2008

Exercised options

Net change Other

Balance of date of

resignation


Balance at 30 June

2009

E Pietro Del Fante* - - 16,750,000 N/A - 16,750,000D Smith** - - - N/A - -B Maston** - - - N/A - -A M Mendoza*** - - - N/A - -Total - - 16,750,000 - - 16,750,000

* Appointed 14 May 2008 ** Appointed 27 May 2009 *** Appointed 21 August 2009

(d) Option holdings of directors

2010


year 01 July 2009

Options Issued

Options Expired

Balance of date of

resignation


Balance at 30 June

2010

E Pietro Del Fante* 8,375,000 - - N/A - 8,375,000 D Smith** - - - N/A - - B Maston** - - - N/A - - A M Mendoza*** - - - N/A - - Total 8,375,000 - - - - 8,375,000

2009


year 01 July 2008

Options issued

Options Expired

Balance of date of

resignation


Balance at 30 June

2009

E Pietro Del Fante * - 8,375,000 - N/A - 8,375,000 D Smith** - - - N/A - - B Maston** - - - N/A - - A M Mendoza*** - - - N/A - - Total - 8,375,000 - - - 8,375,000

21. SHARE BASED PAYMENTS

The Company made the following share and option issues on 13 July 2009 under the terms of existing tenement Option Deeds, on exercise of the Company’s option to purchase the contracted tenement interests:

- 20,000,000 shares at $0.01 each and 10,000,000 free attaching options exercisable at $0.20 on or before 30 November 2014, to Whitvista Pty Ltd;

- 11,000,000 shares at $0.01 each and 6,500,000 free attaching options exercisable at $0.20 on or before 30 November 2014, to Triumph Mining Pty Ltd;

- 2,500,000 shares at $0.01 each and 1,250,000 free attaching options exercisable at $0.20 on or before 30 November

2014, to Red Bluff Nominee Pty Ltd;

- 3,000,000 shares at $0.01 each and 1,500,000 free attaching options exercisable at $0.20 on or before 30 November

2014, and 1,375,000 shares at $0.04 each and 687,500 free attaching options on the same terms, to Ian Black.

As disclosed in Note 14(a) the Company acquired North Minerals Pty Ltd through the issue of 25,000,000 ordinary shares

with a fair value of $0.225 each and 25,000,000 listed options with a fair value of $0.05 each, based on the quoted price

of the shares and options of Dourado on 21 April 2010 the date control was obtained.

20. RELATED PARTY DISCLOSURES (continued)

(c) Shareholdings of directors

Shares held in the Company (number)

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2010

$ 2009

$ 22. PARENT ENTITY DISCLOSURES

Financial position

Assets

Current assets 3,121,984 17,590

Non-current assets 6,939,912 12,688

Total assets 10,061,896 30,278

Liabilities

Current liabilities 224,977 125

Non-current liabilities - -

Total liabilities 224,977 125

Equity

Issued capital 12,814,625 50,050

Accumulated losses (2,977,706) (19,897)

Total equity 9,836,919 30,153

Financial performance

Loss for the year (2,957,809) (19,897)

Other comprehensive loss - -

Total comprehensive loss (2,957,809) (19,897)

Contingent liabilities of the parent entity

The parent entity did not have any contingent liabilities as at 30 June 2010 or 30 June 2009.

Contractual commitments for the acquisition of property, plant or equipment

As at 30 June 2010 (30 June 2009 – $Nil), the parent entity did not have any contractual commitments for the acquisition of property, plant

or equipment.

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DIRECTORS’ DECLARATION FOR THE YEAR ENDED 30 JUNE 2010


The directors of the Company declare that, in the opinion of the directors:

(a) the financial statements and notes thereto are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2010 and of their performance for the year then ended; and

(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001;

(b) the financial statements and notes thereto also comply with International Financial Reporting Standards, as disclosed in Note 1;

(c) the directors have been given the declarations required by s.295A of the Corporations Act 2001; and

(d) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001.

On behalf of the Directors:

Emilio Pietro Del Fante Director

30 September 2010

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8 St George’s Terrace Perth WA 6000

GPO Box R1253 Perth WA 6844

T +61 8 9261 9100 F +61 8 9261 9111

www.rsmi.com.au

Liability limited by a scheme approved under Professional Standards Legislation

Major Offices in: Perth, Sydney, Melbourne, Adelaide and Canberra ABN 36 965 185 036

RSM Bird Cameron Partners is an independent member firm of RSM International, an affiliation of independent accounting and consulting firms. RSM International is the name given to a network of independent accounting and consulting firms each of which practices in its own right. RSM International does not exist in any jurisdiction as a separate legal entity.

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF DOURADO RESOURCES LIMITED

Report on the Financial Report We have audited the accompanying financial report of Dourado Resources Limited, which comprises the statement of financial position as at 30 June 2010, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, a summary of significant accounting policies, other explanatory notes and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year. Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards ensures that the financial report, comprising the consolidated financial statements and notes, complies with International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

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

opinions.

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Auditor’s Independence Declaration In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. Auditor’s Opinion In our opinion: (a) the financial report of Dourado Resources Limited is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2010 and of their performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and

the Corporations Regulations 2001; and (b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1. Report on the Remuneration Report We have audited the Remuneration Report which is included within the directors’ report for the financial year ended 30 June 2010. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Auditor’s Opinion In our opinion the Remuneration Report of Dourado Resources Limited for the financial year ended 30 June 2010 complies with section 300A of the Corporations Act 2001.

RSM BIRD CAMERON PARTNERS

Chartered Accountants

Perth, WA TUTU PHONG

Dated: 30 September 2010 Partner

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ASX ADDITIONAL INFORMATION


Additional information required by the Australian Securities Exchange Ltd, and not shown elsewhere in this report is as follows. The information is current as at 31 August 2010.

(a) Distribution of equity securities (i) Ordinary share capital

� 106,577,073 fully paid shares held by 550 shareholders. All issued ordinary shares carry one vote per share and carry the rights to dividends.

Analysis of numbers of equity security holders by size of holding are:

Class of Equity Security

Number of Fully Paid Ordinary Shares

Number of Listed Options

1 – 1,000 2 1 - -

1,001 – 5,000 28 92,901 - -

5,001 – 10,000 106 1,030,324 118 1,180,000

10,001 – 100,000 308 13,000,101 258 11,997,636

100,001 and over 107 92,453,746 94 60,586,937

551 106,577,073 470 73,764,573

75 Shareholders holding less than a marketable parcel

(b) Largest holders of quoted equity securities (fully paid ordinary shares)

Number held Percentage

%

Lennonville Explorations Pty Ltd <Lennonville Exploration A/c> 16,750,000 15.72

Triumph Mining Pty Ltd 14,250,000 13.37

Mr Ian Adair Black 5,375,000 5.04

Mr Luke Connor <L C A/c> 5,000,000 4.69

Mr Cameron Thomas Hardie <Jecama A/c> 3,898,334 3.66

Cape Lambert Resources Limited 2,550,000 2.39

Red Bluff Nominees Pty Ltd 2,500,000 2.35

Tockan Investments Pty Ltd <Tockan Investments A/c> 1,977,949 1.86

Othna Holdings Pty Ltd <Othna Holdings A/c> 1,977,930 1.86

Ulnor Minerals Pty Ltd <Ulnor Minerals A/c> 1,977,930 1.86

Lake Mina Holdings Pty Ltd <lake Mina A/c> 1,923,333 1.80

Pt Radinka Jaya Arthaprima 1,666,667 1.56

CST Corporation 1,666,667 1.56

Boambee Bay Pty Ltd <Boambee Bay A/c> 1,500,000 1.41

Hornet Minerals Pty Ltd <Hornet Minerals A/c> 1,500,000 1.41

News Minerals Pty Ltd <News Minerals A/c> 1,500,000 1.41

Riverside Mining Pty Ltd <Riverside Mining A/c> 1,500,000 1.41

Geographe Mining Pty Ltd <Geographe Mining A/c> 1,244,286 1.17

Greek Mining Pty Ltd 1,244,286 1.17

Raptor Mining Pty Ltd <Raptor Mining A/c> 1,244,286 1.17

71,246,668 66.87

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(c) Largest holders of quoted equity securities (listed options)

Number held Percentage

%




Lake Mina Holdings Pty Ltd <lake Mina A/c> 4,583,333 6.21

Mr Ian Adair Black 2,687,500 3.64

Pt Radinka Jaya Arthaprima 1,666,667 2.26

Mr Luke Connor <L C A/c> 1,666,667 2.26

CST Corporation 1,666,667 2.26

Cape Lambert Resources Limited 1,500,000 2.03

Hornet Minerals Pty Ltd <Hornet Minerals A/c> 1,500,000 2.03

News Minerals Pty Ltd <News Minerals A/c> 1,500,000 2.03

Riverside Mining Pty Ltd <Riverside Mining A/c> 1,500,000 2.03

Red Bluff Nominees Pty Ltd 1,250,000 1.69

Gazump Resources Pty Ltd 1,191,000 1.61

Mr Noel David McEvoy & Mrs Shelley Dawn McEvoy <The ND

McEvoy Super Fund A/c>

1,000,000

1.36

Nirranda Pty Ltd <Wittensleger Family A/c> 808,642 1.10

Mr Robert Thomas Baker <RTB A/c> 666,667 0.90

Western Corporate Holdings Pty Ltd <BTL Mining A/c> 600,000 0.81

Mr Raymund McManus 588,386 0.80

Peter Treen Electrical Discounter Pty Ltd <Peter Treens Emp S/F

A/c>

500,000

0.68

44,958,862 60.92

(d) Substantial holders

Substantial holders in the company are set out below:

Number

held Percentage Ordinary shares



Mr Ian Adair Black 5,375,000 5.04 Options




Lake Mina Holdings Pty Ltd <lake Mina A/c> 4,583,333 6.21 (e) Voting rights

All ordinary shares carry one vote per share without restriction.

(f) Restricted Securities

The Company has 38,875,000 Ordinary Shares and 9,437,500 Listed Options (held in escrow until 1 December 2011) on issue.

(g) Business Objective

The Company has used its cash and assets that are readily convertible to cash in a way consistent with its business objectives.

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(h) Schedule of Tenements as at 27 September 2010

WESTERN AUSTRALIA

Project

Tenement Area

(sq km)

Grant

Date

Expiry

Date

Holder

Mooloogool E51/1185 145.70 03/08/2010 02/08/2015 Triumph Mining Pty Ltd

E51/1186 213.90 03/08/2010 02/08/2015 Triumph Mining Pty Ltd




E51/1340 210.00 25/03/2010 24/03/2011 Sacculus Pty Ltd




Diamond Well ELA51/1187 217.00 03/08/2010 02/08/2015 Triumph Mining Pty Ltd

ELA51/1214 127.10 03/08/2010 02/08/2015 Triumph Mining Pty Ltd

ELA51/1435 189.00 N/A N/A Anuman Holdings Pty Ltd

ELA51/1436 210.00 N/A N/A Anuman Holdings Pty Ltd

Garden Gully MLA51/550 4.26 N/A N/A St Barbara Ltd

MLA51/588 5.96 N/A N/A St Barbara Ltd

PLA51/2619 1.55 N/A N/A Dourado Resources Ltd

ELA51/1343 45.00 N/A N/A Zelta Holdings Pty Ltd

PLA51/2622 1.54 N/A N/A Zelta Holdings Pty Ltd

ELA51/1343 45.00 N/A N/A Zelta Holdings Pty Ltd

ELA51/1433 15.00 N/A N/A Abbotts Exploration Pty Ltd

Garden Gully South P51/2697 1.20 N/A N/A Dourado Resources Ltd

P51/2698 0.17 N/A N/A Dourado Resources Ltd

MLA51/633 2.40 N/A N/A AN Brosnan


Garden Gully North ELA51/1427 210.00 N/A N/A Abbotts Exploration Pty Ltd



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(h) Schedule of Tenements (continued)

WESTERN AUSTRALIA (continued)

Project

Tenement Area

(sq km)

Grant

Date

Expiry

Date

Holder

Sabbath M51/322 1.20 25/08/1989 24/08/2031 Triumph Mining Pty Ltd


PLA51/2699 1.14 N/A N/A Dourado Resources Ltd

Mainland P21/589 0.88 22/02/1996 21/02/2000 Ian Black

MLA21/126 1.07 N/A N/A Ian Black

Lennonville P58/1343 0.96 13/04/2007 12/04/2011 Ian Black

P58/1376 1.15 09/06/2009 08/06/2013 Melva Joan Walsh



Gabanintha Polelle ELA51/1275 24.00 N/A N/A Triumph Mining Pty Ltd

Barrambie P57/1226 1.95 20/11/2008 09/11/2012 Triumph Mining Pty Ltd

P57/1227 1.93 20/11/2008 09/11/2012 Triumph Mining Pty Ltd

Lake Nabberu ELA69/2809 108.00 N/A N/A Dourado Resources Ltd

NORTHERN TERRITORY

Project

Tenement Area

(sq km)

Grant

Date

Expiry

Date

Holder

North Arunta ELA26283 832.70 N/A N/A Whitvista

ELA26284 747.80 N/A N/A Whitvista

Top End ELA27701 261.52 N/A N/A North Minerals Pty Ltd

EL27702 150.95 08/06/2010 07/06/2016 North Minerals Pty Ltd



ELA27930 490.00 N/A N/A North Minerals Pty Ltd

Anthem ELA27584 100.45 N/A N/A North Minerals Pty Ltd

ELA27703 9.53 N/A N/A North Minerals Pty Ltd

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Documents

DOURADO RESOURCES LIMITED - ASX · contents dourado resources limited annual financial report 30 june 2010 page corporate information 1 directors’ report 2 auditor’s independence