The information contained in this report is to be read in conjunction with Lithex Resources Limited's 2012 Annual Report and any announcements to the market by Lithex Resources Limited during the half-year period ended 31 December 2012

Your Directors submit the financial report for the company for the half-year ended 31 December 2012.

The names of the directors who held office during or since the end of the half-year:

Mr Malcolm Carson - Executive Chairman

Mr Robert Mandanici - Managing Director

Mr Steven Crabbe - Executive Director – (Resigned 11 February 2013)

Mr John Conidi – Non Executive Director (appointed 31 December 2012)

HALF YEAR REPORT TO DECEMBER 2012

During the half year, Lithex Resources Limited (Lithex) has continued to grow its project portfolio with an expansion into graphite following the successful acquisition of Far North Minerals Pty Ltd (Far North) announced in October 2012 and completed in December 2012.

In addition to the acquisition of Far North, Lithex undertook a capital raising by way of a placement along with a fully underwritten entitlement issue to existing shareholders. The placement and the entitlement issue were priced at 5 cents per share, with one attaching option (quoted) for every two shares issued.

The placement and fully underwritten entitlement issue were managed by CPS Securities.

As a consequence of the acquisition of Far North and the associated capital raising, Lithex's capital structure has expanded to 94,353,015 fully paid shares on issue, there are also a number of Listed and Unlisted share options currently on issue.

In December 2012, Mr John Conidi joined the board as a non-executive director and subsequent to the reporting period, Mr Steven Crabbe resigned from the board in accordance with the Far North acquisition.

Following the acquisition, Lithex has been focussed on its graphite exploration program across the suite of projects and in particular, advancing the Munglinup Graphite Project in Western Australia.

Competent Person Statement

Mr Brendan Borg has compiled the information in this report from exploration results supplied to Lithex Resources Ltd. Brendan Borg has sufficient experience that is relevant to the style of mineralisation, the types of deposit under consideration and to the activity that he is undertaking and qualifies as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results ("JORC Code"). Mr Borg is a Member of the AusIMM and Exploration Manager of Lithex Resources Ltd. Mr Borg consents to the inclusion in the report the matters based on the information in which it appears.

The lead auditor's independence declaration is set out below and forms part of the directors' report for the half- year ended 31 December 2012.

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

Dated this 7th Day of March 2013

Level 18, Central Park Building, 152-158 St Georges Terrace, Perth WA 6000 P.O. Box 8716, Perth Business Centre WA 6849 Phone (08) 6364 5076 www.rothsay.com.au

The Directors Lithex Resources Ltd 75 King Street Perth WA 6000

Dear Sirs

In accordance with Section 307C of the Corporations Act 2001 (the "Act") I hereby declare that to the best of my knowledge and belief there have been:

• $i)$ no contraventions of the auditor independence requirements of the Act in relation to the audit of the 31 December 2012 interim financial statements; and
• no contraventions of any applicable code of professional conduct in relation $\mathsf{ii}$ to the review.

Graham R Swan (Lead auditor)

Rothsay Chartered Accountants

Dated

March 2013

Liability limited by the Accountants Scheme, approved under the Professional Standards Act 1994 (NSW).

for the half-year ended 31 December 2012

The accompanying notes form part of these financial statements

as at 31 December 2012

The accompanying notes form part of these financial statements.

for the half-year ended 31 December 2012

The accompanying notes form part of these financial statements.

for the half-year ended 31 December 2012

The accompanying notes form part of these financial statements.

Note 1: Statement of significant accounting policies

This condensed interim financial report for the half-year reporting period ended 31 December 2012 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This condensed interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2012 and any public announcements made by Lithex Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year.

Adoption of new and revised Accounting Standards

In the half-year ended 31 December 2012, the Company has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2012.

It has been determined by the Company that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Company accounting policies.

The financial report was authorised for issue by the Directors on 7 March 2013.

The financial report is presented in the Australian currency.

a. Comparable interim period

The comparable period for this interim financial report is the Half-Year ended 31 December 2011.

b. Going concern basis of accounting

Notwithstanding the loss for the year, negative cash flow from operations and historical financial performance, the financial report has been prepared on a going concern basis. This assessment is based on cash at bank balance at balance date of \$2,474,298 cash.

Note 2: Segment reporting

The Company consists of one business segment operating predominately in Australia and investing in mineral exploration and identification of potential mining assets for acquisition and development.

Note 3: Subsequent events

There has not been in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely that has not been disclosed elsewhere in this report, in the opinion of the directors of the company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years.

The directors of the company declare that:

• 1. in the directors' opinion, the financial statements and accompanying notes are in accordance with the Corporations Act 2001 and:
• a. comply with Accounting Standards AASB 134 : Interim Financial Reporting; and
• b. give a true and fair view of the company's financial position as at 31 December 2012 and of its performance for the half year ended on that date;
• 1. in the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable;

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:

This declaration is made in accordance with a resolution of the Board of Directors.

Rob Mandanici Managing Director Dated this 7th Day of March 2013

Level 18, Central Park Building, 152-158 St Georges Terrace, Perth WA 6000 P.O. Box 8716, Perth Business Centre WA 6849 Phone (08) 6364 5076 www.rothsay.com.au

Independent Review Report to the Members of Lithex Resources Ltd

The financial report and directors' responsibility

The interim financial report comprises the statement of financial position, statement of comprehensive income, statement of changes in equity, cashflow statement, accompanying notes to the financial statements, and the directors' declaration for Lithex Resources Ltd for the period ended 31 December 2012.

The Company's directors are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Review approach

We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the interim financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the financial position as at 31 December 2012 and the performance for the half year ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As auditor of Lithex Resources LTD, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of an interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly we do not express an audit opinion.

Independence

In conducting our review we have complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim financial report of Lithex Resources Ltd is not in accordance with the Corporations Act 2001, including:

• giving a true and fair view of the financial position as at 31 December 2012 and of the performance for the period ended on that date; and
• complying with Australian Accounting Standard AASB134 Interim Financial Reporting and the Corporations Regulations 2001.

Graham R Swan

Partner

March 2013 Dated

Liability limited by the Accountants Scheme, approved under the Professional Standards Act 1994 (NSW).