GULF MINERALS CORPORATION LIMITED

Indonesian Manganese Ore and Alloy Developer

HALF YEARLY REPORTTO DECEMBER 2014

Contents

Company VisionProduce a high quality

cost-effective alloy thereby increasing shareholder value

Chairman's Report 1

Top 20 Shareholders 8

Corporate Directory 9

Chairman’s Report

Highlights

?Rights Issue success

?Smelter design completed

?Corporate Governance strengthened

?Dual listing

?Overseas interest

?Development approvals to be fast-tracked by BKPM's new "one-stop shop"

?Locking in smelter funding

1

OFF GAS PLANT

BAG-HOUSE STACK

COOLING TOWER

HYDRAULICROOM

TRANSFORMER

CONTROL ROOM

CASTING BAY

FURNACE FEED SKIPS

COMPRESSOR ROOM

FEED CONVEYOR

LOCAL MCC

WEIGHING BINSAND FEEDERS

BULK BINS

RAW MATERIALBATCHING AND FEED

2

Gulf on path to development

Furnace Module 1

Gulf Minerals Corporation is on track become an ASEAN- The 8 furnaces will be built in pairs over four years, beginning

focused high quality manganese ore and alloy producer. in 2015, for an estimated total cost of $52M. The project will

be funded by a proposed dual listing on an overseas stock Gulf is an Australian registered company (ACN 059 954 317)

exchange, modest debt and operational cashflow.listed on the Australian Securities Exchange (ASX: GMC) with

its head office in Perth, Western Australia. Gulf will export 50%-plus manganese ore during

construction to provide early cashflow, increasing to 180,000 The company has embarked on its path to develop a staged 8-

tonnes in 2018.furnace smelter facility near the West Timor capital Kupang.

Gulf is investing potential manganese exploration targets in The facility will capitalise on the anticipated growing demand

Turkey to augment the company's strategy of becoming a for manganese and will produce a premium quality 78%

fully integrated global manganese ore and alloy producer.ferromanganese alloy, thanks to the high-grade, low-

impurity Indonesian ore.

The value-adding project will benefit from Indonesia's

beneficial cost structures and Government incentives,

including a 5-year tax holiday.

Gulf will pour its first alloy in 2016

Moving Forward

3

Corporate

Gulf has strengthened its board, governance and capital Dual Listingmanagement as it develops its ASEAN-focused manganese

The company is progressing plans to apply to dual list on an ore and alloying enterprise.

overseas stock exchange. Dual listing will broaden the

shareholder base and introduce new support as the company Rights Issuedevelops its manganese ore and alloying enterprise.

Post the reporting period, Gulf's Entitlement Rights Issue

closed fully subscribed, raising $1,341,009. Corporate GovernanceFollowing a strong take-up by existing shareholders, the Gulf's strengthened Board has reviewed and implemented a directors placed the shortfall to sophisticated shareholders, as complete new set of procedures including:an Excluded Offer under Section 708D, substantially to clients

?Gulf's Constitutionof Sydney-based Paradigm Securities.

?Code of ConductAppointments ?Board and committee charters

Gulf's CEO Bruce Morrin, a mining engineer with 45 years of ?Company policies industry experience, was appointed to the board in July as

?Employee Option and Share PlansExecutive Technical Director.

These can be viewed in full on the company's website In August, Paul O'Shaughnessy was appointed as Non-

www.gulfmineralscorp.com.Executive Metallurgical Director, bringing 40 years of

international manganese industry experience to the board. Overseas InterestPost the reporting period, experienced accountant Leonard

Management attended London Mines and Money in Math was appointed to the combined roles of Chief Financial

December, generating strong interest in Gulf's manganese Officer and Company Secretary.

project through a presentation and the company's booth.

Post the reporting period, Gulf attracted further interest at the Capital ManagementSmelter Summit in Jakarta in February. The company expects

Shareholders resolved at a General Meeting on September 1 increasing interest at future international forums, including

to consolidate the capital on a 1 for 50 basis, to bolster the the Mining Investment Forum in Singapore and Mines &

company's application to dual list on an overseas stock Money Hong Kong in March.

exchange.

4

Smelter Funding Power

Post the reporting period, Gulf entered into a Terms Sheet State-owned electricity company PLN advised post the

covering a Committed Equity Funding Agreement to provide a reporting period that it can supply power, on a user-pays

total of US$20 million, by way of a 10% annual interest, 4 basis, for the first stage of development while Gulf constructs

year Senior Credit Facility loan and Preferred Shares with its own coal-fired power station.

Sigur Holdings Inc.Approvals

The proposed funding will cover development of the first Indonesia implemented its One Stop Service Centre in January stage of the smelter enterprise, together with the future IPO through BKPM, the Investment Coordinating Board, to of Gulf's subsidiary company holding the smelter project onto streamline foreign investment.the US Nasdaq Stock Market.

Gulf expects to benefit from a much shorter approvals process Gulf and Sigur have signed a non-binding Terms Sheet, which for its facility thanks to the new "one-stop shop".is subject to due diligence and final Definitive Agreements.

Smelter DesignSmelter SiteGulf finalised the conceptual smelter design in the Post the reporting period, Gulf was granted a 30-hectare September quarter. The full engineering design plans and block of land 10km from Kupang to build its ferromanganese final costings are being completed.smelter facility.

The land is covered by a 50-year lease and is in the West

Timor industrial area Bolok, just 5km from the Port of Tenau.

The land was granted following a successful series of

presentations and meetings between Gulf management and

Indonesian authorities.

Manganese Ore and Alloying Enterprise Gulf locking in smelter funding

5

Smelter Specifics Mining and Environmental Consultants?Staged build of 8 furnaces over 4 years Gulf appointed global integrated mining services group

Golder Associates and their Indonesian group Marston ?Modular components allow staged expansionConsultants in the December quarter.

?Construction to begin in 2015The group will provide environmental consulting and coal

?First two 20,000tpa smelters online in early 2016procurement services to progress the ore and alloying

?Full production capacity of 150,000tpa of high quality facility.78% ferromanganese alloy

?Kupang offers a good port and associated infrastructure

Development and Expansion Plans

Manganese Ore and Alloying Enterprise continued

Smelter Construction

Construction will begin in 2015 on the first two smelters of

the 8-furnace facility at Kupang.

The company aims to pour its first premium quality 78%

ferromanganese alloy in 2016.

Manganese

Gulf will further investigate the potential manganese

prospects it has already identified in the promising

Tethyan Metallogenic Belt in Turkey.

Gulf will produce a premium quality ferromanganese alloy, thanks to the high-grade, low-impurity Indonesian ore.

6

Modular smelter design

7

Top 20 Shareholders 6 March 2015

LEPRECHAUN HOLDINGS PTY LTD

MR EDUARDO SIAO & MRS EVELYN SIAO <ES EXEC FUND EDUARDO A/C>

AUREL PTY LTD <PR & EA WILLIAMS FAMILY A/C>1

LEET INVESTMENTS PTY LTD <SUPERANNUATION FUND>

MICHAEL WALTERS

MR SAMUEL JOHN MCPHEE

PERLA BAILEY

MR NEIL FRANCIS STUART

BWS PTY LTD

GRAHAM DOUGLAS ANDERSON <KUDU TRUST A/C>

FAIROAK HOLDINGS PTY LTD

ROJAN TRADING PTY LTD

GORAN LATKOVICH

UBS WEALTH MANAGEMENT AUSTRALIA NOMINEES PTY LTD

MR ELLIS AUSTIN SMITH & MRS IRIS LORRAINE SMITH

SOFEW PASTORAL PTY LTD

NORTH SHORE ADVISORY PTY LTD

ALCARDO INVESTMENTS LIMITED <STYLED 102501 A/C>

MR JOHN KIROU <JOHN KIROU FAMILY A/C>

GOLDFIRE ENTERPRISES PTY LTD

20,100,000

4,000,000

3,346,667

3,000,000

1,493,533

1,315,000

1,150,000

1,000,000

1,000,000

1,000,000

1,000,000

850,000

800,000

740,001

680,000

675,000

675,000

610,000

600,000

600,000

27.25

5.42

4.53

4.06

2.02

1.78

1.56

1.36

1.36

1.36

1.36

1.15

1.08

1.00

0.92

0.91

0.91

0.83

0.81

0.81

44,635,201 60.51 %

TOTAL 73,770,638 100.00 %

8

Registered Office Auditors

78 Mill Point Road South Perth, WA 6151 Somes Cooke

Telephone: +61 8 9367 9228Corporate Advisors

Facsimile: +61 8 9367 9229GDA Corporate

www.gulfmineralscorp.comTaxation Advisors

Postal Address RSMAAJ (Indonesia)PO Box 884 South Perth, Western Australia 6951

Project ManagersLegal Advisors Como EngineeringChristian Teo Purwono (Indonesia)

Pyrometallurgical EngineersLemonis Tantiprasut Lawyers (Australia)

Xram Engineering (South Africa)Steinepries Paganin (Australia)

Industry AssociationsBankers Australian Indonesian Business CouncilANZ Banking Group Indonesian Chamber of CommercePT ANZ Indonesia Indonesian Mining Association

Indonesia InstituteAustralian Securities Exchange

ASX Code: GMC Investor Relations

Bourse CommunicationsShare Registry

Automic Registry Services

Corporate Directory

Board of Directors

Graham Anderson - Executive Chairman

Peter Williams - Non executive Exploration Director

Michael Walters - Non executive Marketing Director

Paul O'Shaughnessy - Non executive Metallurgical Director

Leonard Math - Company Secretary

Management

Michael Kiernan - Director PT Gulf Mangan Grup

Jacques Beylefeld - Director of Operations PT Gulf Mangan Grup

Helen Halliday - Commercial Manager

Kevin Parker - Consultant Advisor - Indonesia

Nukantini Putri - Consultant Advisor - Land Administration

9

78 Mill Point Road South Perth Western Australia Phone + 618 9367 9228 Facsimile + 618 9367 9229

www.gulfmineralscorp.com

GULF MINERALS CORPORATION LIMITED Developing Premium Indonesian Manganese Alloys

ASX : GMC