HalfYearlyReport

31December2019CokalLimitedACN082541437HalfYearlyReportfortheperiodended31December2019

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ContentsCorporateInformation 1

Directors'Report 2

InterimConsolidatedStatementofProfitorLossandOtherComprehensiveIncome 8

InterimConsolidatedStatementofFinancialPosition 9

InterimConsolidatedStatementofChangesinEquity 10

InterimConsolidatedStatementofCashFlows 11

NotestotheCondensedInterimConsolidatedFinancialStatements 12

DeclarationbyDirectors 25

Auditor’sIndependenceDeclaration 26

IndependentAuditor’sReviewReport 27

CompetentPersonStatement:

TheTotalCoalReserveestimateannouncedon1stAugust2017isbasedoninformationcompiledbyRobertdeJonghwhoisaMemberoftheAustralasianInstituteofMiningandMetallurgyandanemployeeofASEAMCOPtyLtd.MrdeJonghisaqualifiedminingengineerandhassufficientexperiencewhichisrelevanttothestyleofmineralizationandtypeofdepositunderconsiderationandtotheactivitywhichhe isundertaking, toqualifyasaCompetentPersonasdefined inthe2012Editionofthe“AustralasianCodeforReportingofExplorationsResults,MineralResourcesandOreReserves.

TheTotalCoalResourceestimatewasannouncedon29April2016,titled“UpdatedJORCResourceStatementforBBM”.Theinformation in the report relating toMineral Resources is based on information compiled by Yoga Suryanegarawho is aMemberof theAustralasian InstituteofMiningandMetallurgy.MrSuryanegara isaqualifiedgeologistandhassufficientexperiencewhichisrelevanttothestyleofmineralisationandtypeofdepositunderconsiderationandtotheactivitywhichheisundertaking,toqualifyasaCompetentPersonasdefinedinthe2012Editionofthe“AustralasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves”.

TheCompanyconfirmsthatitisnotawareofanynewinformationordatathatmateriallyaffectstheinformationincludedinthe announcementmadeon29April 2016and that allmaterial assumptions and technical parametersunderpinning theestimatesintheannouncementmadeon29April2016continuetoapplyandhavenotmateriallychanged.

CorporateInformation DIRECTORSPatHannaDomenicMartinoKaranBangurCOMPANYSECRETARYLouisaYouensREGISTEREDOFFICEANDPRINCIPALBUSINESSOFFICELevel5,56PittStreet,SydneyNSW2000Phone:+61288233179Fax:+61288233188

COUNTRYOFINCORPORATIONAustraliaSHAREREGISTRYAdvancedShareRegistryServices110StirlingHighwayNedlandsWA6009Phone:+61893898033Fax:+61892623723

AUDITORSHallChadwickLevel40,2ParkStreetSydneyNSW2000STOCKEXCHANGELISTINGAustralianSecuritiesExchangeLtdASXCode:CKAINTERNETADDRESSwww.cokal.com.auAUSTRALIANBUSINESSNUMBERABN55082541437

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Directors'ReportThedirectorsherebypresent the followinghalf-year report for theperiodended31December2019 forCokal Limited(“Cokal”orthe“Company”)anditssubsidiaries(the“Group”).ThefollowingpersonsweredirectorsoftheCompanyduringthewholeofthehalf-yearanduptothedateofthisreport,unlessotherwisestated:

-DomenicMartino–Non-ExecutiveDirector(appointed24December2010)andNon-ExecutiveChairman(appointed31January2017);

-PatHanna–Non-ExecutiveDirector(appointed24December2010);

-KaranBangur–Non-ExecutiveDirector(appointed10April2019);

- Gerhardus (Garry) Kielenstyn – Executive Director (appointed 27 January 2017) and Chief Operating Officer(appointed24June2016)(resigned21August2019).

PRINCIPALACTIVITIESThe principal activities of the consolidated entity during the financial period were focused on the identification anddevelopmentofcoalprojectswithinthehighlyprospectiveCentralKalimantancokingcoalbasininIndonesia.OPERATINGRESULTSFor the half-year ended 31 December 2019, the loss for the consolidated entity after providing for income tax wasUS$1,239,685(31December2018:US$2,826,492).DIVIDENDSPAIDORRECOMMENDEDTherewerenodividendspaidorrecommendedduringthefinancialperiod.CHANGESINCAPITALTherehasbeenanincreaseinsharecapitalinthecurrentfinancialperiodasdiscussedbelow.

SharePlacementDuring the period ended 31 December 2019, 94,812,055 shares were issued at AU$0.05 per share as part of theCompany’sEntitlementOffer,raisinggrossproceedsofAU$4,740,603(US$3.0million)beforecosts.

SharesIssuedonConversionofDebtDuringthehalf-yearended31December2019,4,988,099shareswereissuedinpaymentofsalariesand6,740,000shareswereissuedinpaymentofdirectors’fees.

OptionsExercisedandSharesIssuedDuring the half-year ended 31 December 2019, no ordinary shareswere issued on exercise of options (31 December2018:Nil).At31December2019therewere923,382,313sharesonissue,and96,000,000unexpiredoptions.

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Directors'Report(Continued)REVIEWOFOPERATIONS

BumiBaritoMineral(BBM)MineFive-YearMiningPlanCokalhasreviseditsfive-yearminingplantobeimplementedin2020.Themineplanincludes:

• RefurbishmentoftheexistingcampatKrajan• MinePCIcoalfromPit2(20%),cokingcoalfromPit3(80%)• Theminingof2Mt/asaleablecoalfromthethirdyearofproduction• ACoalHandlingPreparationPlant(CHPP)attheminesitetopreparecokingcoalandPCIcoalforsalebefore

haulingtotheISP• Developmentofa100kmroadtotransportproductcoalthroughanintermediatestockpile(ISP)atMuara

Lahung,165kmdownstreamfromKrajan• 1,000t/hpontoonmountedbargeloaderattheISP• Progressiverehabilitationofminedoutareasasminingadvances.

BBMPermitArea

LoggingRoadThe logging road previously identified to transport coal has been traversed, surveyed and Cokal has secured theappropriateauthorisationsforitsuse.AmoredetailedsurveyisontracktobeconcludedinQ12020.Theroadwillbereformed into an all weather road by using the existing gravel and implementing careful drainage control. A majorlateritedepositislocatedatthestartingpointoftheroadtobeconstructed.Asignificantnumberofminor,andafewmajorculvertswillbe required. Thesecond50kmsof the road isalready inuseby loggingandminingcompaniesbuttrafficisnotheavy.Cokalwillsharethemaintenanceofthisroadwithcurrentusers.IntermediateStockpileandBargeLoaderAttheendofthe100kmcoalhaulroadfromPit3BBMtoMuaraLahung,Cokal issurveyingthreeprospectivesitestodevelopanintermediatestockpile(ISP)andbargeloader.Thisloaderwillhaveacapacityof1,000t/h.CoalhandlingattheISPwillbedesignedtominimisecoalimpactandpotentialdegradation.

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Directors'Report(Continued)ThestockpilesattheISPwillhaveacapacityofonemonthofcoalproduction.Itisimportantthatcokingcoalqualityisnotallowedtodeteriorateinproductstockpileseitherbyhandlingorextendedstorage.CoalEvacuationtoMarket Cokalwillhaulproductcoal100kmfromtheminetoanISPandbargeloaderatMuaraLahungtobypassthemostdifficultpartsoftheUpperBaritoRiver.Abargingcompany,HSMMarine,isbeingcontractedtouseshallowdraft,selfpropelled3,000tto3,500tbargeswhichcanoperatein2to2.5mdeepwatertodelivercoaltoapointbelowMuaraTewehbridgefromwhereitwillbetransferredto10,000triverbargesforthevoyagedownrivertoKelanis.ItisanticipatedthatfromKelanistoshipsstandingoffshorecoalwillbetransportedusingconventionalbarges.NolandcoalstorageisbeingdevelopedforBBMapartfromstockpilesatthemineandattheMuaraLahungISP.Surgesincoaldeliverymaybeaccommodatedusingmooredbarges.SomeimprovementsintheriverchannelatalaterdatewillenablebargingfromKrajan.

100kmRoadPit3toMuaraLuhung

Cokal's team is surveying threeprospectivesites inMuaraLahung for the ISPaswellas theentire100kmhaul road in preparationforfinaldesign,landacquisitionandconstruction.TheHSMMarineandCokalteamisundertakingdetailedbathymetricsurveysofeachofthethreeISPsitesbeingconsideredaswellas200kmoftheBaritoRivertowellbelowtheMuaraTewehbridge.Thiswillfirmupdataontheriverenablingthebargingcontracttobefinalised.TheroadandISPwillbesuitableforbothBBMandTBARdevelopments.TambangBenuaAlamRaya(TBAR)ProjectCokalisfinalisingitseffortstoacquireregulatoryapprovalfortheIUP(explorationlicence)upgradeprocessapplicationtoaProductionandOperationIUP,equivalenttoamininglicence.Outcropmappingoffourseamsover17kmstrikelengthindicatespotentialforasubstantialresourceofhighgradecokingcoalinthisdeposit.NoexplorationactivitywasconductedbyCokalduringthehalf-year. AnexplorationdrillingprogramforTBAR isbeingformulatedtobeundertakenassoonasBBMminedevelopmentisunderway.

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Directors'Report(Continued)MINEOPERATIONSSTAFF CokalappointedthefollowingseniormineoperationsstaffinpreparationforthecommencementofminingoperationsatitsBBMmineinCentralKalimantan.TheyhavebeenintegratedwiththeexistingteamtoplanandmanageCokal'sBBM,TBARandothermineswhichwillbeoperatedmainlybycontractors.GeneralManagerMines: MasruriYahyajoinedCokalfromPTSriwijayaBaraPriharumwherehewasOperationaland Technical Director. Masruri has 31 yearsmining experience with 17 years high level management and 14 yearsexperienceinallaspectsofminingincludingmineengineering,mineoperations,SHEandPermitting.HisdistinguishedandvariedcareerincludesChiefOperatingOfficerforPTDarmaHenwaTbk,experienceinUSAandIndonesiawithPTBHPCoalIndonesia/PTArutminIndonesia,includingSenakinMine,andasaDirectoratPTSakaTechnologyIndonesia.HewasMine Manager/Kepala Teknik Tambang at PT Arutmin Indonesia's Asam-Asam mine in South Kalimantan where hebecameRegionalMineManagerandHeadofMineEngineeringtocompleteall infrastructurefacilitiesat themineandportandthenbecameChiefOperatingOfficer.SeniorMiningEngineer: MuhamadArieCahyonojoinedCokalfromPTThiessContractorIndonesiawherehewasSeniorEngineerMinePlanTechnicalServiceinJakarta. Ariehas15yearsminingexperienceincludingsixyearswithPTGunung Bayan Resources Tbk where he worked in all aspects of themining operation including validating geologicalmodels, developing pit and dump designs and dewatering strategies and ensuringmining contractors adhered to thecompany'smineplans.HeisanexpertuserofminingandgeologicalmodelingsoftwareusedbyCokalandiscompetenttoevaluateresourcesandreserves.SeniorGeologist:LukiWiliantojoinedCokalfromPTThiessContractorsIndonesiawherehewastheSeniorReconcileGeologist.Lukihas15yearsminingexperiencewithextensiveexpertiseindepositmodelingandresourcecalculations.WhilewithPTWahanaBaratamaMininginSouthKalimantan,amemberoftheBayanResourcesgroup,hemanagedthecoalqualityofmineproductionbycontractors,createdandmaintainedgeologicalmodels, incorporated fielddata intothe model, estimated resources and reconciled reserves between model and actual. Luki is competent to evaluateresourcesforCokal.Senior Surveyor: TeeKokHui joinedCokal fromIslandandPartnersSdnBhd. Hehas41yearsexperience inmanyaspectsoftheconstructionindustry.ForCokalheismanagingsurveyteamspreparingthedataforroad,portandminedesign.CEOJimColemanwelcomedtheseexperiencedstafftojointheCokalteampreparingtoembarkonthedevelopmentofthe BBMmine and the exploration of the TBAR deposit. This addition to the Cokal technical and operational teamprovides the backbone Cokal needs to bring to fruition the development of the valuable assets it holds in CentralKalimantan.

CORPORATEACTIVITY

BTBaraMineralAsri(BMA)BMApreviouslyadviseditisworkingtowardsarevisedproposaltopartnerwithCokalforthefundinganddevelopmentoftheBBMMine.ThemannerofthisfuturecooperationwillnowchangewiththeestablishedparticipationofAahanaGlobalResourcesandInvestmentPteLtd.Todatenothinghasbeenreceived.InthepastBMAcontributedUS$2milliontoCokaltoberepaidfromthesaleofcoalwhenminingcommences.Thiswillbepaidat$10/tforcoalsalesat$100/torgreaterand10%/tforcoalsoldatlessthan$100/t.

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Directors'Report(Continued)AahanaGlobalResourcesandInvestmentPteLtd(AGRI)InFebruary2019AahanaMineralResourcesSDNBHD(AMR),anassociatecompanyofAGRI,completedtheacquisitionofa substantial shareholding in Cokal Limited. AMR/AGRI is now the largest single shareholder in Cokal. AMR/AGRInominateditsfirstdirectortobeappointedtotheCokalLimitedboardtobeMr.KaranBangur.Mr.BanguristheCEOofAGRIandhasover10yearsexperienceintheSouthEastAsianregioninminingandresourcescompanies.Heisamostwelcomeandvaluableadditiontoourteam.AMR/AGRI fully underwrote the Cokal Entitlement Offer to raise approximately AU$4.7 Million (US$3.0 Million) thatcompletedinAugust2019.KrakatauNationalResources(Krakatau)Krakatau indicated its PCI capableblast furnacewill require 7,000 to 10,000t/monthPCI coal. They requested a 10kgsampleofBBMPCIcoalwhichwasprovidedandanalysedduringthehalf-year.FavourablecommentsweresubsequentlyreceivedfromKrakatauandliaisonisongoing.Krakatauhasmadesomestructuralchangesintheorganisationwhichhasresulted in the formation of a newwholly owned subsidiary Co “PT Purna Sentana Baja” (PSB) which will act as theprocurement arm for Krakatau Steel going forward. Cokal has executed a new NDA with PSB and is currently in theprocessof completing the formalities for supplier registrationwhichwillenableus toofficially supplyPCIproductasavaluedvendor. RightsIssueDuringthehalf-yeartheCompanysuccessfullycompletedafullyunderwrittennon-renounceableentitlementofferofone(1)newshare foreveryeight (8)Cokal sharesheldatan issuepriceofAU$0.05pernewshare to raiseAU$4.7million(US$3.0million)beforecosts.AnnualGeneralMeetingTheAnnualGeneralMeetingofShareholdersofCokalLimitedwasheldon27November2019withallresolutionspassedbyashowofhandswithoutamendment.

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Directors'Report(Continued)SUBSEQUENTEVENTSTO31DECEMBER2019Therehavebeennosignificanteventsafterreportingdateexceptfor:

• CompletionofanewBathymetricSurveytoenabletheCompanytoobtainadetailedknowledgeof400kmoftheBaritoRiver. Theareasurveyed includedthe threeshortlisted IntermediateStockPile (ISP)andbarge loadingsitesatMuaraLahungandthebridgeatMuaraTeweh;

• CallingoftendersforminingatBBM,particularlytoremoveoverburdenandinterburden,miningcontractandtotransportcoalfromtheBBMminetotheISPandbargeloaderatMuaraLahung;and

AUDITOR’SINDEPENDENCEDECLARATIONTheAuditor’sIndependenceDeclarationformspartoftheDirectors’Reportandcanbefoundonpage26.DomenicMartinoChairmanSydney12March2020

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CokalLimitedInterimConsolidatedStatementofProfitorLossandOtherComprehensiveIncomeForthehalf-yearended31December2019

Note

31December2019

31December2018

US$ US$

CoalSales - 417,158Otherincome 2 77,212 251

Employeebenefitsexpenses

(419,888) (1,028,504)

Depreciation

(57,795) (55,938)

Arrangementfee - (124,273)

Productionexpenses (165,554) (20,280)

Financecosts 3 (7,445) (23,564)

Legalexpenses

(4,529) -

Licencefees - (1,503,250)

Pre-tenureexplorationexpenditure (406,581) -

Administrationandconsultingexpenses

(255,105) (488,092)

Lossbeforeincometaxexpense

(1,239,685) (2,826,492)

Incometaxexpense - -

Lossfortheperiod

(1,239,685) (2,826,492)

Othercomprehensiveincome - -

Totalcomprehensivelossfortheperiod

(1,239,685) (2,826,492)

LosspershareforlossattributabletoownersofCokalLtd Note Cents Cents

BasicLossperShare 4 (0.14) (0.39)

DilutedLossperShare 4 (0.14) (0.39)

TheaboveInterimConsolidatedStatementofProfitorLossandOtherComprehensiveIncomeshouldbereadinconjunctionwiththeaccompanyingnotes.

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CokalLimitedInterimConsolidatedStatementofFinancialPositionasat31December2019

Note

31December2019

30June2019

US$ US$

CurrentAssets

Cashandcashequivalents 1,989,818 127,361

Shorttermdeposits 138,916 138,916

Othercurrentassets 55,895 19,572

TotalCurrentAssets 2,184,629 285,849

Non-CurrentAssets

Property,plantandequipment 6 193,141 186,831

Explorationandevaluationassets 7 25,067,202 25,067,202

Rightofuseassets 194,706 -

Othernon-currentassets 25,280 38,148

TotalNon-CurrentAssets 25,480,329 25,292,181

TOTALASSETS 27,664,958 25,578,030

CurrentLiabilities

Tradeandotherpayables 8 8,052,087 8,369,775

Leaseliabilities 9 135,845 -

Interestbearingloans 10 9,261,535 9,261,535

TotalCurrentLiabilities 17,449,467 17,631,310

Non-CurrentLiabilities

Leaseliabilities 9 55,297 -

TotalNon-CurrentLiabilities 55,297 -

TOTALLIABILITIES 17,504,764 17,631,310

NETASSETS 10,160,194 7,946,720

Equity

Issuedcapital 11 95,095,642 91,686,061

Reserves 12 6,167,384 6,116,687

Accumulatedlosses (91,102,832) (89,856,028)

TOTALEQUITY 10,160,194 7,946,720

TheaboveInterimConsolidatedStatementofFinancialPositionshouldbereadinconjunctionwiththeaccompanyingnotes.

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CokalLimitedInterimConsolidatedStatementofChangesinEquityForthehalf-yearended31December2019

Issuedcapital Reserves Accumulatedlosses Total

US$ US$ US$ US$

At1July2019 91,686,061 6,116,687 (89,856,028) 7,946,720

Cumulativeadjustmentsuponadoptionofnewaccountingstandard–AASB16

-

-

(7,119)

(7,119)

Balanceat1July2019(restated) 91,686,061 6,116,687 (89,863,147) 7,939,601

Totalcomprehensivelossfortheperiod

Lossfortheperiod - - (1,239,685) (1,239,685)

Othercomprehensiveincome - - - -

- - (1,239,685) (1,239,685)

Transactionswithownersintheircapacityasowners

Issueofsharecapital,netofcapitalraisingcosts

3,409,581

-

-

3,409,581

Sharebasedpayments - 50,697 - 50,697

3,409,581 50,697 - 3,460,278

At31December2019 95,095,642 6,167,384 (91,102,832) 10,160,194

At1July2018 89,727,054 5,000,143 (88,000,311) 6,726,886

Totalcomprehensivelossfortheperiod

Lossfortheperiod - - (2,826,492) (2,826,492)

Othercomprehensiveincome - - - -

- - (2,826,492) (2,826,492)

Transactionswithownersintheircapacityasowners

Issueofsharecapital 436,548 - - 436,548

Sharebasedpayments - 60,693 - 60,693

436,548 60,693 - 497,241

At31December2018 90,163,602 5,060,836 (90,826,803) 4,397,635

TheaboveInterimConsolidatedStatementofChangesinEquityshouldbereadinconjunctionwiththeaccompanyingnotes.

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CokalLimitedInterimConsolidatedStatementofCashFlowsForthehalf-yearended31December2019

Note

31December2019

31December2018

US$ US$

CashFlowsfromOperatingActivities

Receiptsfromcustomers - 160,615

Paymentstosuppliersandemployees (1,080,744) (1,654,942)

Interestandotherincomereceived 7,968 251

Financecostspaid - (36,451)

Paymentofarrangementfee - (124,273)

Netcashoutflowfromoperatingactivities (1,072,776) (1,654,800)

CashFlowsfromInvestingActivities

Paymentforproperty,plantandequipment 9,616 -

Netcashoutflowfrominvestingactivities (9,616) -

CashFlowsfromFinancingActivities

Redemptionofconvertiblenotes - (186,251)

Proceedsfromtheissueofshares,netofcapitalraisingcosts

3,004,445 73,363

Proceedsinadvanceofsharesissued - 115,551

Repaymentofborrowingsandleaseliabilities (59,596) (270,916)

Proceedsfromborrowings - 2,000,000

Netcashinflowfromfinancingactivities 2,944,849 1,731,747

Netincreaseincashandcashequivalents 1,862,457 76,947

Cashandcashequivalentsatbeginningofperiod 127,361 15,502

Cashandcashequivalentsatendofperiod 1,989,818 92,449

TheaboveInterimConsolidatedStatementofCashFlowsshouldbereadinconjunctionwiththeaccompanyingnotes.

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CokalLimitedNotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019NOTE1 GENERALINFORMATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESa)GeneralInformationThe consolidated financial statements of Cokal Limited for the half-year ended31December 2019were authorised for issue inaccordance with a resolution of the directors on 12 March 2020 and cover the consolidated entity (the “Group”, “Cokal” or“Company”)consistingofCokalLimitedanditssubsidiaries.Cokal Limited (the parent and ultimate parent of the Group) is a company limited by shares, incorporated and domiciled inAustralia,whosesharesarepubliclytradedontheAustralianSecuritiesExchange.ThenatureoftheoperationsandprincipalactivitiesoftheGrouparedescribedinthedirector’sreport.b)BasisofpreparationThis interimfinancialreport forthehalf-yearended31December2019hasbeenprepared inaccordancewithAASB134 InterimFinancialReportingandtheCorporationsAct2001.The interimconsolidated financial statementsdonot includeall the informationanddisclosures required in theannual financialstatements,andshouldbereadinconjunctionwiththeannualreportfortheyearended30June2019togetherwithanypublicannouncementsmadebytheGroupduringthehalf-yearended31December2019inaccordancewiththecontinuousdisclosureobligationsoftheASXlistingrules.Inaddition,resultsforthehalf-yearended31December2019arenotnecessarilyindicativeoftheresultsthatmaybeexpectedforthefinancialyearending30June2020.ThefinancialstatementsarepresentedintheUSDollars.Apartfromthechangesinaccountingpoliciesnotedbelow,theaccountingpoliciesandmethodsofcomputationarethesameasthoseadoptedinthemostrecentannualfinancialreport.c)GoingconcernAt31December2019,theGroup’scurrentliabilitiesexceedthecurrentassetsbyUS$15,264,838(30June2019:US$17,345,461).Thispositionisinlargepartdueto:

• TheclassificationoftheGroup’sdebtwithPlatinumPartners(refernote9)ofUS$9,261,535asacurrentliability;

• TheclassificationoftheGroup’sliabilitywithPTBaraMineralAsri(BMAGroup)(refernote8)of$2,000,000asacurrentliability;and

• TheGroup’sarrearsoftradeandotherpayables.AsignificantnumberoftheGroup’screditors,includingthedirectors,areprovidinginformalfinancialsupporttothegroup.

On22July2016,CokalannouncedithadreachedanagreementwithPlatinumPartnersfortheconversionofalloutstandingloansowingtothemtoproductionroyalties.Theroyaltieswillbepayableon1%oftherealisedsellingpriceofcoal(FOB)fromtheBumiBaritoMineralProject(BBM)andPTTambangBenuaAlamRaya(TBAR)projectsuptoamaximumofUS$40million.Underthearrangement,nominimumroyaltyispayableandtheroyaltyisonlypayableasandwhencoalisminedandsold.

On29April2017,theGroupenteredintoaRoyaltyDeedwithPlatinumPartners(refernote10)toconvertalloutstandingloansowing to them toproduction royalties (this formalised theagreementon22 July2016) subject to certain conditionsprecedent.Duringtheyearended30June2019,theCompanyenteredintoafurtheragreementwithPlatinumPartners,theeffectofwhichconfirmedCokal’ssatisfactionwithanumberoftheconditionsprecedenttotheRoyaltyDeedandextendedthedateformeetingalloftheremainingconditionsprecedent(the“SubsequentConditions”)undertheRoyaltyDeedforconversionoftwo-thirdsofthePlatinumLoans(being$9,261,535)to31July2020. Inaddition,undertheagreement itwasagreedthatwhenCokalcancelsandreissues37.5millionoptionstoPlatinumPartners,one-thirdoftheGroup’sdebtwithPlatinumPartnersisdischargedandreleased.Thecancellationandreissueofthe37.5millionoptionsoccurredon10January2019.

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CokalLimitedNotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019

NOTE1 GENERALINFORMATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)Thefinancialreporthasbeenpreparedonagoingconcernbasiswhichcontemplatesthecontinuityofnormalbusinessactivitiesandtherealisationofassetsanddischargeofliabilitiesintheordinarycourseofbusiness.TheabilityoftheGrouptocontinuetoasagoingconcernisimpactedbyanumberofmattersincluding:

• ThecontinuedfinancialsupportofmanagementanddirectorswhohaveprovidedshorttermloanstotheGroupand/orhaveagreedtonotrequiretheGrouptopayamountsowingtothemuntilsuchtimeascashflowsaregeneratedbytheBBMprojectorhaveotherwiseagreedtohavetheamountspayabletothemsatisfiedbywayofashareissue(subjecttoshareholderapproval);

• ThecontinuedwillingnessofcreditorstoextendpaymenttermstotheGroupuntilsuchtimeascashflowaregeneratedbytheBBMproject;

• TheabilityoftheCompanytoadheretoorre-negotiateagreementsinrespectofcurrentfunding;and

• Thesuccessfulraisingofsufficientfunding,throughdebt,equityorotherarrangements(oracombinationoftransactions)toprogressthedevelopmentofthelargerBBMprojectandforworkingcapitalrequirements,untilsuchtimeastheprojectisinproductionanditsrevenuesfromcoalsalesaresufficienttomeetitscashoutflows.

Shouldtheseavenuesbedelayedorfailtomaterialize,theGrouphassomeabilitytoscalebackitsactivitiestohelptheGrouptomanage tomeet itsdebtsas andwhen they fall due in the short term.However, should theabovemattersnotbe successfullyresolved,theGroupmaynotbeabletocontinueasagoingconcern.Importantly, the Group’s significant arrears of trade and other payables means it’s ability to continue as a going concern isdependentoncreditors, includingmanagementandthedirectors,extendingpaymentterms,providinginformalfinancialsupportandnotdemandingpaymentofamountsowedtothem inexcessof theGroup’savailable fundsat thetime.At thedateof thisreport,nocreditororlenderoftheGroup,hasmadedemandsforpayment.Duringthehalf-yeartheCompanycompletedanentitlementoffertoraiseUS$3.5million(beforeissuecosts)throughtheissueof101,552,055sharesatan issuepriceofAU$0.05per share. The funds raised fromthisofferhasenabled theGroup tomeet itsrequiredcashoutflowstothedateofthisreportbutarrearsoftradeandotherpayablesremains.Thedirectorsbelieve that the commencementofoperationsat theBBMproject (and the forecast generatingofoperating cashinflows)inconjunctionwithfundingthroughdebt,equityorotherarrangements(oracombinationofthese)willenableittosatisfyits working capital requirements (including its arrears of trade and other payables). This being the case, the directors have areasonableexpectationthatgiventhestatusofthecurrentpermittingandfinancingprocesses,theGroup’screditorswillcontinuetoextendpaymentterms,provideinformalfinancialsupportandnotdemandpaymentofamountsowedtotheminexcessoftheGroup’savailablefunds.Asaresult,thefinancialreporthasbeenpreparedonagoingconcernbasis.ThefinancialreportdoesnotincludeanyadjustmentsrelatingtotherecoverabilityandclassificationofrecordedassetamountsortotheamountsandclassificationofliabilitiesshouldtheGroupbeunsuccessfulinraisingfundstoenableittorealiseitsassetsanddischargeitsliabilitiesintheordinarycourseofbusiness.d)NewAccountingStandardsImplementedTheGrouphasimplementedonenewAccountingStandardthatisapplicableforthecurrentreportingperiod.TheGrouphadtochangeitsaccountingpoliciesandmakeadjustmentsasaresultofadoptingAASB16:Leases.Theimpactoftheadoptionofthestandardandtherespectiveaccountingpoliciesisdisclosedbelow.

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CokalLimitedNotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued) NOTE1 GENERALINFORMATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)e)LeasesAtinceptionofacontract,theGroupassessesifthecontractcontainsorisalease.Ifthereisaleasepresent,aright-of-useassetand a corresponding lease liability is recognised by the Group where the Group is a lessee. However, all contracts that areclassifiedas short-term leases (iea leasewitha remaining lease termof12monthsor less) and leasesof low-valueassetsarerecognisedasanoperatingexpenseonastraight-linebasisoverthetermofthelease.Initially, the lease liability ismeasuredat thepresentvalueof the leasepayments still tobepaidat commencementdate.Theleasepaymentsarediscountedattheinterestrateimplicitinthelease.Ifthisratecannotbereadilydetermined,theGroupusestheincrementalborrowingrate.Leasepaymentsincludedinthemeasurementoftheleaseliabilityareasfollows:

• fixedleasepaymentslessanyleaseincentives;

• variableleasepaymentsthatdependonanindexorrate,initiallymeasuredusingtheindexorrateatthecommencementdate;

• theamountexpectedtobepayablebythelesseeunderresidualvalueguarantees;

• theexercisepriceofpurchaseoptions,ifthelesseeisreasonablycertaintoexercisetheoptions;

• leasepaymentsunderextensionoptions,iflesseeisreasonablycertaintoexercisetheoptions;and

• paymentsofpenaltiesforterminatingthelease,iftheleasetermreflectstheexerciseofanoptiontoterminatethelease.

The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above, any leasepaymentsmadeatorbefore the commencementdate, aswell as any initial direct costs. The subsequentmeasurementof theright-of-useassetsisatcostlessaccumulateddepreciationandimpairmentlosses.Right-of-useassetsaredepreciatedovertheleasetermorusefullifeoftheunderlyingasset,whicheveristheshortest.Wherealease transfers ownership of the underlying asset, or the cost of the right-of-use asset reflects that the Group anticipates toexerciseapurchaseoption,thespecificassetisdepreciatedovertheusefullifeoftheunderlyingasset.

f)InitialapplicationofAASB16TheGrouphasadoptedAASB16:LeasesretrospectivelywiththecumulativeeffectofinitiallyapplyingAASB16recognisedat1July2019.InaccordancewithAASB16,thecomparativesforthe30June2019reportingperiodhavenotbeenrestated.TheGroup has recognised a lease liability and right-of-use asset for all leases (with the exception of short-term and low-valueleases)recognisedasoperatingleasesunderAASB117:LeaseswheretheGroupisthelessee.Theleaseliabilitiesaremeasuredatthepresentvalueoftheremainingleasepayments.TheGroup'sincrementalborrowingrateasat1July2019wasusedtodiscounttheleasepayments.Theright-of-useassetformanufacturingequipmentwasmeasuredatitscarryingamountasifAASB16hadbeenappliedsincethecommencementdate,butdiscountedusingtheGroup'sincrementalborrowingrateperleasetermasat1July2019.Theright-of-useassetsfortheremainingleasesweremeasuredandrecognisedinthestatementoffinancialpositionasat1July2019bytakingintoconsiderationtheleaseliabilityandprepaidandaccruedleasepaymentspreviouslyrecognisedasat1January2019(thatarerelatedtothelease).ThefollowingpracticalexpedientshavebeenusedbytheGroupinapplyingAASB16forthefirsttime:

• foraportfolioofleasesthathavereasonablysimilarcharacteristics,asinglediscountratehasbeenapplied;

• leasesthathavearemainingleasetermoflessthan12monthsasat1July2019havebeenaccountedforinthesamewayasshort-termleases;

• theuseofhindsighttodetermineleasetermsoncontractsthathaveoptionstoextendorterminate;

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CokalLimitedNotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued)

NOTE1 GENERALINFORMATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)• applyingAASB16toleasespreviouslyidentifiedasleasesunderAASB117andInterpretation4:Determiningwhetheran

arrangementcontainsaleasewithoutreassessingwhethertheyare,orcontain,aleaseatthedateofinitialapplication;and

• notapplyingAASB16toleasespreviouslynotidentifiedascontainingaleaseunderAASB117andInterpretation4.

Adjustmentsrecognisedinthebalancesheetasat1July2019

ThefollowingsummaryindicatestheadjustmentsandreclassificationsoffinancialstatementlineiteminthebalancesheetduetotheimplementationofAASB16.

CarryingamountunderAASB117 Adjustments

Carryingamountunder

AASB16

US$ US$ US$

Property,plantandequipment 186,831 (36,154) 150,677

Rightofuseassets - 249,195 249,195

Leaseliabilities - (243,663) (243,663)

Tradeandotherpayables (8,369,775) 23,503 (8,346,272)

Accumulatedlosses (89,856,028) (7,119) (89,863,147)

Measurementofleaseliabilities

US$

Operatingleasecommitmentsdisclosedasat30June2019 158,694

Discountedusingthelessee’sincrementalborrowingrateofatthedateofinitialapplication 61,466

Add:financeleaseliabilitiesrecognisedasat30June2019 23,503

Leaseliabilitiesrecognisedasat1July2019 243,663

Measurementofrightofuseassets

Theassociatedrightofuseassetsforpropertyleasesweremeasuredonaretrospectivebasisasifthenewruleshadalwaysbeenapplied.Otherright-of-useassetsweremeasuredattheamountequaltotheleaseliability,adjustedbytheamountofanyprepaidoraccruedleasepaymentsrelatingtothatleaserecognisedinthebalancesheetasat30June2019.

NOTE2 OTHERINCOME

31December2019 31December

2018

US$ US$

Interestincome 7,968 251

Gainondischargeandreleaseoftradepayables 69,244 -

Totalotherincome 77,212 251

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CokalLimitedNotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued)

NOTE3LOSSFORTHEPERIOD

31December2019 31December2018

US$ US$

Lossbeforeincometaxincludesthefollowingspecificexpenses:

Depreciationonplantandequipment 3,306 55,938

Depreciationonrightofuseassets 54,489 -

Salariesandwages 329,759 770,653

Share-basedpayments(options)–toemployees 50,697 60,693

Operatingleaseexpense–minimumleasepayment - 10,043

Financecosts

Interestonborrowings - 34,009

CapitalraisingandConvertibleNotecosts - (10,445)

Interestonleaseliabilities 7,445 -NOTE4LOSSPERSHARE

31December2019 31December2018

LossattributabletoownersofCokalLimitedusedtocalculatebasicanddilutedlosspershare(US$)

(1,239,685) (2,826,492)

Weightedaveragenumberofordinarysharesusedasthedenominatorincalculatingbasiclosspershare

899,039,248 719,856,465

Adjustmentsforcalculationofdilutedearningspershare:- Options*

-

-

Weightedaveragenumberofordinarysharesandpotentialordinarysharesusedasthedenominatorincalculatingdilutedlosspershare

899,039,248 719,856,465

Basiclosspershare(centspershare) (0.14) (0.39)

Dilutedlosspershare(centspershare) (0.14) (0.39)* Options are considered anti-dilutive as the Group is lossmaking. Options could potentially dilute earnings per share in the future. As at 31December2019,therewere96,000,000(31December2018:131,000,000)unlistedoptionsonissue.

NOTE5DIVIDENDSANDFRANKINGCREDITS

Therewerenodividendspaidorrecommendedduringthehalf-yearperiodended31December2019(31December2018:Nil).TherewerenofrankingcreditsavailabletotheshareholdersoftheGroup.

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CokalLimitedNotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued)

NOTE6 PROPERTY,PLANTANDEQUIPMENT

31December2019Land Computer

equipment

Furnitureandofficeequipment

MotorVehicle

Total

US$ US$ US$ US$ US$

Balanceat1July2019(restated)*

31,526 3,826 150,198 1,281 186,831

Additions - 3,074 6,542 - 9,616

Disposals/write-off - - - - -

Depreciationexpense - (752) (2,554) - (3,306)

Carryingamountat31December2019

31,526 6,148 154,186 1,281 193,141

* Seenote1(f)foradjustmentsrequiredonadoptionofAASB16on1July2019

NOTE7 EXPLORATIONANDEVALUATIONASSETS

31December2019US$

30June2019US$

Non-CurrentExplorationandevaluationexpenditurecapitalised 25,067,202 25,067,202- explorationandevaluationphasesMovementsincarryingamountsBalanceatthebeginningoftheperiod 25,067,202 25,067,202Carryingamountattheendoftheperiod 25,067,202 25,067,202

Thecarryingamountofexplorationandevaluation(E&E)assetsat31December2019and30June2019representsonlyPTBumiBuritoMineral(BBM),includingTBAR.

The ultimate recoupment of expenditure above relating to the exploration and evaluation phase is dependant upon successfuldevelopmentandcommercialexploitation,oralternatively,saleoftherespectiveareasofinterest.

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CokalLimitedNotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued)

NOTE8TRADEANDOTHERPAYABLES

31December

2019US$

30June2019US$

Current

Tradeandotherpayables 6,052,089 6,369,775Loan 2,000,000 2,000,000 8,052,087 8,369,775LoanOn 21 September 2018, Cokal signed a Key Principles of Agreementwith PT BaraMineral Asri (BMAGroup) to develop andoperatePCIandCokingCoaloperationsattheBBMProject.CokalreceivedUS$2.0millionloanfromBMAGrouptosecurethetransactionbuttheBMAGroupfailedtocompletetheotherfundingconditionssetoutintheKeyPrinciplesofAgreementandhasalsofailedtodocumenttheloanarrangementwiththeGroup.Therefore,theGrouphasassessedtheloanisrepayableondemandandhasbeendisclosedatthefacevalueoftheamountsreceived.

TheGrouphasagreedanarrangementwiththeBMAGroupinrespectofthe$2.0millionoffundingreceived.TheUS$2millionprovided toCokal is tobe repaid from the saleof coalwhenmining commences. Thiswill bepaidat$10/t for coal sales at$100/torgreaterand10%/tforcoalsoldatlessthan$100/t.

NOTE9LEASES

31December

2019US$

1July2019*US$

a)Rightofuseassets

Leasepayablesandmotorvehicles 194,706 249,195 194,706 249,195b)Leaseliabilities Current 135,845 130,844Noncurrent 55,297 112,819 191,142 243,663

*Inthepreviousyear,theGrouponlyrecognisedleaseassetsandleaseliabilitiesinrelationtoleasesthatwereclassifiedas“financeleases”underAASB117:Leases.Theassetswerepresentedinproperty,plantandequipmentandtheliabilitiesaspartofthegroup’stradeandotherpayables.ForadjustmentsrecognisedonadoptionofAASB16on1July2019,pleaserefertoNote1(f).

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CokalLimitedNotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued)NOTE10INTERESTBEARINGLOANS

31December2019US$

30June2019US$

Current

Loanspayabletoemployee - 270,916PlatinumPartnersfacility(a) 6,710,000 6,710,000BlumontGroupfacility(b) 2,551,535 2,551,535TotalInterestbearingloans 9,261,535 9,261,535(a)PlatinumPartner/NorthrockFacilityUnder the terms of various short-term loan facility agreements and a bridging loan facility agreement dated August 2015, theGroup has borrowed a total of US$10,065,000 from various subsidiaries of Platinum Partners. At 31 December 2019, the fullamountoftheloanisdueandpayabletoNorthrockFinancialLLC(“Northrock”),beingasubsidiaryofPlatinumPartners.(b)BlumontGroupFacilityOn5November2013,theGroupenteredintoaloanfacilityagreementwithBlumontGroupLimited(Blumont).Underthisfacility,the Group has drawn down US$3.4 million (30 June 2019: US$3.4m). The loan was repayable on demand on the third (3rd)anniversary of the loan drawdown date, being 5November 2016. On 7 April 2016,Wintercrest Advisors LLC (“Wintercrest”), asubsidiaryofPlatinumPartners,agreedaSettlementAgreementwithBlumont,pursuanttowhichtheBlumontloanwasassignedinfulltoWintercrest.Asaresult,WintercrestreplacedBlumontasthelenderunderitsfacilityagreement.ConversionofloansfromNorthrockandWintercresttoroyaltiesOn22July2016,CokalannouncedithadreachedanagreementwithPlatinumPartnersfortheconversionofalloutstandingloansowingundertheWintercrestandNorfolkfacilitiesasoutlinedabovetoproductionroyalties.Theroyaltieswillbepayableon1%ofthe realised selling price of coal (FOB) from the Bumi BaritoMineral Project (BBM) and PT Tambang Benua Alam Raya (TBAR)projectsuptoamaximumofUS$40million.Underthearrangement,nominimumroyaltyispayableandtheroyaltyisonlypayableas andwhen coal isminedand sold.On29April 2017, theGroupentered intoaRoyaltyDeedwithWintercrest andNorthrock(collectivelythe“Lenders”)toconvertofalloutstandingloansowingtothemtoproductionroyalties.TheRoyaltyDeedissubjecttoanumberofsubstantiveconditionsprecedent,includingthecommencementofcoalproductionatBBM.

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CokalLimitedNotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued)

NOTE10INTERESTBEARINGLOANS(Continued)

On20February2018,theCompanyissued75millionOptionstothePlatinumEntitieswithanexpirydateof20February2023andanexercisepriceof1.6cents(ExistingPlatinumOptions).EachExistingPlatinumOptioncurrentlyvestsonceallthePlatinumLoanshavebeenreleasedanddischarged.

InNovember2018,CokalconcludedandexecutedanamendedagreementwithNorthrockFinancialLLCandWintercrestAdvisorsLLC(thePlatinumEntities) inrespectof loansoutstandingtotallingUS$13.89million(PlatinumLoans).TheagreementconfirmedCokal’ssatisfactionwithorwaiverofsomeconditionsprecedentandextendedthedateformeetingalloftheremainingconditionsprecedent (the “SubsequentConditions”)under theRoyaltyDeed for conversionof two thirdsof thePlatinumLoans to31 July2020. In addition, the amended agreement provided that when Cokal cancels and reissues 37.5 million options to PlatinumPartners,onethirdoftheoftheGroup’sdebtwithPlatinumPartners isdischargedandreleased.Thecancellationandreissueofthe37.5millionoptionsoccurredon10January2019,atwhichtimeonethirdofthedebtwasdischargedandreleased.

NOTE11 ISSUEDCAPITAL

31December2019

30June2019

US$ US$923,382,313authorisedandfullypaidordinaryshares(30June2019:816,842,159)

95,095,642 91,686,061

31December2019Number US$

Atthebeginningoftheperiod 816,842,159 91,686,061

Shareissuefromcapitalraising(netofcapitalraisingcosts) 94,812,055 3,004,445

Sharesissuedinpaymentofcreditors 11,728,099 405,136

Sharesissuedonconversionofconvertiblenotes - -

Sharesissuedonconversionofloan - -

Sharesissuedonconversionofoptions - -

SharesissuedonsettlementofTBARdebt - -

Attheendoftheperiod 923,382,313 95,095,642

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CokalLimited

NotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued)NOTE12RESERVES

31December

2019 30June2019

US$ US$

ShareBasedPaymentsOptionReserve 7,622,839 7,572,142

TranslationReserve (1,455,455) (1,455,455)

6,167,384 6,116,687

OptionReserveThe option reserve records the value of options issued as part of capital raisings, and consultant services as well as expensesrelatingtodirector,executiveandemployeeshareoptions.Duringthehalf-yearended31December2019,proportionalexpensingofoptionsissuedtotheCEO,MrJamesColemaninDecember2018wasrecorded,totallingUS$50,697.Theseoptionsareasfollows:

• 3,000,000optionswithanexercisepriceofUS$0.03andexpirydateof20December2021,vestingonproductionof20,000tonnespermonthofcoal(includingPCI)forthreeconsecutivemonths;

• 3,000,000optionswithanexercisepriceofUS$0.04andexpirydateof20December2021,vestingonproductionof40,000tonnespermonthofcoal(includingPCI)forthreeconsecutivemonths;

• 3,000,000optionswithanexercisepriceofUS$0.05andexpirydateof20December2021,vestinguponcommencementofshallowriverbarging;and

• 5,000,000optionswithanexercisepriceofUS$0.07andexpirydateof20December2021,vestinguponfirstshipmentofcokingcoalfromBBM.

TranslationReserveTranslationreserverepresentsnetexchangedifferencesarisingfromthetranslationasaresultofchangeinpresentationcurrencytoUSDollarsfromAUDeffective1July2014.

NOTE13CONTINGENTLIABILITIESANDCONTINGENTASSETS

TheGrouphasanumberofcontingentliabilitiesinrespectofdeferredpurchaseconsiderationfortheacquisitionofitsminingandexplorationtenements.

At31December2019,theGroup’scontingentliabilitiestotalUS$17.95m(30June2019:US$17.95m)inrespectofitsBBMandPTBorneoBaraPrima(BBP)tenements.Theamountsarepayableontheachievementofcertainmilestones,includingbutnotlimitedto the establishment of certain JORC Inferred Coal Resources and the issuance of production operation IUPs (licences) andproductionforestrypermit.

PaymentswhichmaybetriggeredbythecommencementofdevelopmentatBBMDeferredpurchaseconsiderationAspartoftheGroup’sacquisitionofitsinterestintheBBMproject,itwasagreedanamountofUS$10.0millionwouldbepayablewithin30daysoftheissueoftheProduction/OperationsIUP(mininglicensegrantedundertheIndonesianNewMiningLaw).On1May2013,theProduction/OperationsIUPwasgrantedbutthepaymenttothevendorwasdeferredpendingtheissuanceoftheForestryProductionPermit (required tocommencetheconstructionandproduction).On15August2015,Cokal receivedBBM’sForestryProductionPermit. On 3March 2016, the Group executed a variation letter with the vendorwhereby the parties agreed the obligation for $10.0millionpaymentwouldtriggeredwhenCokalhadsufficientfundstocommencementoftheconstruction/developmentoftheBBMproject. Noliabilityisrecognisedasat31December2019(30June2019:nil)inrespectthisdeferredpurchaseconsiderationastheGrouphadnotsecuredfundingtocommencetheconstruction/developmentoftheBBMproject. Given the potential uncertainty, the Company engagedwith the vendors of the BBMproject to clarify its interpretation of theagreement of 3March 2016. The clarification to the 3March 2016 agreement confirmed the Company’s view that no furtherpayments, including theabovementionedUS$10.0million,aredueorpayableuntil theCompanyhadentered intoa substantialfundingarrangementand/orcommencedsubstantialproduction.Noliabilityisrecognisedasat31December2019inrespectthisdeferredpurchaseconsiderationastheGrouphadnotsecuredfundingtocommencetheconstruction/developmentoftheBBMproject.

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NOTE14OPERATINGSEGMENTS

AASB 8 requires operating segments to be identified on the basis of internal reports that are used by the chief operatingdecisionmakers(CODM)inordertoallocateresourcestothesegmentandtoassessitsperformance.TheCODMoftheGroupare the Board of Directors. For management purposes, the Group is organised into two main operating segments, whichinvolvestheexplorationofcoal in IndonesiaandAustralia. TheSingaporeoperationwasconsideredseparatelyforcorporateservices.

Australia Indonesia Singapore Total

US$ US$ US$ US$

Segmentperformanceforthehalf-yearended31December2019

Revenue

Interestrevenue 7 43 7,917 7,967

Gainondischargeandreleaseoftradepayables 69,245 - - 69,245

Totalsegmentincome 69,252 43 7,917 77,212

Productionexpenses (70,645) (75,547) (19,362) (165,554)

Depreciationexpense - (57,795) - (57,795)

Financecosts - (7,445) - (7,445)

Feesforgiven - - 91,917 91,917

Otherexpenses (369,299) (778,146) (30,575) (1,178,020)

Totalsegmentexpenses (439,944) (918,933) 41,980 (1,316,896)

Segmentnetlossbeforetax (370,692) (918,890) 49,897 (1,239,685)

CokalLimited

NotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued)

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CokalLimited

NotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued) NOTE15OPERATINGSEGMENTS(CONTINUED) Australia Indonesia Singapore Total

US$ US$ US$ US$

Segmentassetsandliabilitiesasat31December2019

Cashandcashequivalents 73,974 58,218 1,857,625 1,989,818

Property,plantandequipment 102,306 90,835 - 193,141

Explorationandevaluationassets - 25,067,202 - 25,067,202

Othersegmentassets 73,694 341,103 - 414,797

Totalsegmentassets 249,974 25,557,358 1,857,625 27,664,958

Totalsegmentliabilities 10,326,633 7,150,792 27,340 17,504,765

Capitalexpenditureforthehalf-yearended31December2019

Property,plantandequipment - 9,616 - 9,616

Explorationandevaluationassets - - - -

Australia Indonesia Singapore Total

US$ US$ US$ US$

Segmentperformanceforthehalf-yearended31December2018

Revenue

Otherrevenue - 417,158 - 417,158

Interestrevenue - 251 - 251

Totalsegmentincome - 417,409 - 417,409

Licencefees - (1,503,250) - (1,503,250)

Productionexpenses - (20,280) - (20,280)

Arrangementfee - (124,273) - (124,273)

Depreciationexpenses (47,556) (8,382) - (55,938)

Financecosts (23,564) - - (23,564)

Otherexpenses (639,311) (771,816) (105,469) (1,516,596)

Totalsegmentexpenses (710,431) (2,428,001) (105,469) (3,243,901)

Segmentnetlossbeforetax (710,431) (2,010,592) (105,469) (2,826,492)

Segmentassetsandliabilitiesasat31December2018

Property,plantandequipment 120,522 1,252,351 - 1,372,873

Explorationandevaluationassets - 25,067,202 - 25,067,202

Othersegmentassets 4,638 319,184 8,231 332,053

Totalsegmentassets 125,160 26,638,737 8,231 26,772,128

Totalsegmentliabilities (15,211,676) (6,896,382) (266,435) (22,374,493)

Capitalexpenditureforthehalf-yearended31December2018

Property,plantandequipment - - - -

Explorationandevaluationassets - - - -

Theaccountingpoliciesappliedforinternalreportingpurposesareconsistentwiththoseappliedinthepreparationofthesefinancialstatements.

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CokalLimited

NotestotheCondensedInterimConsolidatedFinancialStatementsforthehalf-yearended31December2019(Continued)

NOTE16EVENTSAFTERTHEREPORTINGPERIOD

Therehavebeennosignificanteventsafterreportingdateexceptfor:• Completion of a newBathymetric Survey to enable the Company to obtain a detailed knowledge of 400kmof the

BaritoRiver.TheareasurveyedincludedthethreeshortlistedIntermediateStockPile(ISP)andbargeloadingsitesatMuaraLahungandthebridgeatMuaraTeweh;and

• Calling of tenders formining at BBM, particularly to remove overburden and interburden,mining contract and totransportcoalfromtheBBMminetotheISPandbargeloaderatMuaraLahung.

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DeclarationbyDirectorsInaccordancewitharesolutionofthedirectorsoftheCokalLimited,Istatethat:Intheopinionofthedirectors:

a) ThefinancialstatementsandnotesoftheGroupforthehalf-yearended31December2019areinaccordancewiththeCorporationsAct2001,including:

i. givingatrueandfairviewoftheconsolidatedentity’sfinancialpositionasat31December2019andofitsperformanceforthehalf-yearendedonthatdate;and

ii. complyingwithaccountingstandardsandtheCorporationsRegulations2001

b) Thereare reasonablegrounds tobelieve that theCompanywillbeable topay itsdebtsasandwhen theybecomedueandpayable.

OnbehalfoftheboardDomenicMartinoChairmanSydney12March2020

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