HALF YEARLY REPORT by lindahy

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									16 March 2009


Australian Securities Exchange Limited
Exchange Plaza
2 The Esplanade Perth
PERTH WA 6000


Via E Lodgement

                             HALF YEARLY REPORT


Please find attached the Company’s Half Yearly Report for the period ended 31
December 2008.


For and on behalf of the Board.




Peter Landau
Executive Director


Contact

Maredi Mphahlele: mmphahlele@nkweplatinum.co.za

Peter Landau: plandau@nkweplatinum.co.za
                                                                                AUSTRALIAN OFFICE
                                                                                Level 3, 1 Havelock Street
                                                                                West Perth WA 6005
                                                                                Australia

                                                                                PO Box 684
                                                                                West Perth WA 6872
                                                                                Australia

                                                                                Tel: +61 (0)8 9488 5220
                                                                                Fax: +61 (0)8 9324 2400

                                                                                NKWE PLATINUM LIMITED
                                                                                ARBN 105 979 646


                                                                                REGISTERED OFFICE
                                                                                Clarendon House
                                                                                2 Church Street
                                                                                Hamilton HM11

                                                                                PO Box HM666
                                                                                Hamilton HMCX
                                                                                BERMUDA

                                                                                NKWE PLATINUM LIMITED
                                                                                Bermuda Regn Number 32747


                                                                                Web: www.nkweplatinum.com
NKWE PLATINUM LIMITED

HALF YEARLY REPORT FOR THE PERIOD ENDED
            31 DECEMBER 2008
                                   Nkwe Platinum Limited
                                       Financial Report
                         for the Half-Year Ended 31 December 2008




Contents                                                                            Page number

Directors Report                                                                                1

Directors’ Declaration                                                                          5

Consolidated Income Statement                                                                   6

Consolidated Balance Sheet                                                                      7

Consolidated Statement of Changes in Equity                                                     8

Consolidated Statement of Cash Flows                                                            9

Notes to the Financial Statements                                                               10

Independent Review Report                                                                       16


                                          CORPORATE DIRECTORY


        Directors                                     Auditors
Maredi Mphahlele         - Managing Director          Ernst & Young
Anton Weber              - Executive Director         Ernst & Young Building
Peter Landau             - Executive Director         11 Mounts Bay Road
Sharif Pandor            - Non-Executive Director     Perth WA 6000, Australia
Mxoleli Nkuhlu           - Non-Executive Director
                                                      Share Registry
Company Secretary                                     Computershare Investor Services Pty Ltd
Peter Landau                                          Level 2, Reserve Bank Building
                                                      45 St Georges Terrace
Australian Office                                     Perth WA 6000, Australia
Level 3, 1 Havelock Street                            Tel: +61 8 9323 2000
West Perth, WA 6005                                   Fax: +61 8 9323 2033
Tel: +61 8 9488 5220
Fax: +61 8 9324 2400                                  Home Stock Exchange
                                                      Australian Stock Exchange Limited
                                                      Level 2, Exchange Plaza
South African Office                                  2 The Esplanade
No. 6 Eastern Services Road                           Perth WA 6000, Australia
IMS Park
Sandton, Johannesburg 2148
Republic of South Africa                              ASX Code: NKP
Tel: +27 11 445 2161
Fax: +27 11 445 2166                                  Website
                                                      www.nkweplatinum.com
Registered Office
Clarendon House
2 Church Street
Hamilton HM11
Bermuda
                                       Nkwe Platinum Limited
                                                                 Directors Report
Review of Operations

Corporate
In August 2008, Nkwe Platinum Limited (“Nkwe”), and its Black Empowerment Partner (“BEE”) and major
shareholder Genorah Resources (Pty) Ltd (“Genorah”), signed a binding heads of agreement with Xstrata
South Africa (“Xstrata”). The agreement grants Xstrata an exclusive option to acquire a 50% interest in five
PGM properties (collectively the farms Hoepekrantz, Nooitverwacht, Eerste Geluk, Garatouw and De Kom)
situated on the Eastern Limb of the Bushveld Igneous Complex. A valid New Order Prospecting Right has
been granted over the Properties by the Department of Minerals and Energy.
Nkwe Flagship Project
Figure 1: Locality of Eastern Limb properties



                                                                       Clapham
                                                                        118 KT                                           Groothoek

                                                                    IMPLATS Twyfelaar                                     256 KT
                                               T k
                                            0 K oe




                                                                               119 KT
                                         25 arsh




                              Dsjate
                              249 KT
                                                                   Marula mine
                                           na
                                        Win




                                                                         Driekop                          MINING LEASE
                                                                         253 KT                           AREAS / PROPERTIES
                                                                                                                NKWE Platinum:
                                                                                                                        GARATAU Project
                           DE KOM                                                                               NKWE Platinum:
                            252 KT                                                                                      TUBATSE Project
                                                                                   UG




                                                                                                               ANGLO Platinum
                                                                                     2c
                                                                   Mer




                   Zwemkloof
                                                                                       hro




                                                                                                               IMPALA Platinum
                    283 KT
                                                                      ens




                                                                                          mi




                                                                          Maandagshoek                         SEKHUKHUNE Farms
                                                                                            tite




                                                                             254 KT
                                                                         ky R




                                                                                              se




                      Groot Vygenboom
                                                GARA                                                             Merensky Reef outcrop
                                                                                                am
                                                                             eef




                           284 KT               TOUW                                                      Mooihoek UG2
                                                                                                           255 KT
                                                                                                                         chromitite seam
   NKWE PLATINUM                                282 KT
   GARATAU Project
                                                                                                   ANGLO PLATINUM
                                       Genoakop                                                      Modikwa mine
                                        285 KT
                                                                                                             Hendriksplaats
                                                                                                                281 KT
                         30+ k




                                         Hoogste Punt                                        Onverwacht
                                           290 KT                 HOEPA                       292 KT

                                                                  KRANTZ
                              m




                                                                   291 KT

                                                     Houtbosch
                                                      323 KT
   NKWE PLATINUM
   TUBATSE Project                                                                                             Winterveld
                                                                                                                293 KT


                                                Soupiana
                                                 325 KT
                        Geluks
                       Location                                    NOOIT-
                                                                 VERWACHT                    EERSTE
                                                                   324 KT                    GELUK
                                                                                              327 KT                          STEELPOORT



                                                                              EASTPLATS
                                                      Het Ford
                                                                                Project
                                                      329 KT
                                                                                      De Goedecerwacht




The Option is exercisable following the completion of the Bankable Feasibility Study (“BFS”), expected to be
completed by the end of 2009, and is subject to the grant of the necessary regulatory approvals. On
exercise of the Option, Xstrata will acquire a 50% participation interest in the Properties from Nkwe and
Genorah. The parties will form a joint venture, in which Xstrata’s interest will be 50%, while Nkwe and
Genorah (as Nkwe’s majority shareholder) will collectively have an interest in the remaining 50%. The joint
venture will develop the Properties, and will undertake a further feasibility study into downstream processing,
to develop an integrated mine to market business. Following the exercise of the Option, Xstrata will fund the
total development costs of the Properties from mining through to concentrating. The joint venture will extend

                                                                                                                                           1
                                    Nkwe Platinum Limited
                                              Directors Report
to any contiguous properties currently (or in the future) under the control of any of the Parties, (over and
above the Properties referred to above).
Also during August 2008, Nkwe entered into an exclusive Option Agreement with ASX listed company
International Goldfields Limited (“IGC”) in relation to IGC’s 15% interest in the three Tubatse farms which
form part of the properties subject to the Nkwe / Genorah / Xstrata joint venture referred to above (refer map
above).
Upon exercise of the option by Nkwe, Nkwe and IGC agree to facilitate the acquisition of the 15% interest in
the Tubatse Project by way of a scheme of arrangement (i.e. cash and/or share offer to acquire all of the
issued share capital of IGC). As at the date of this report the option has not yet been exercised.
Nkwe already holds an option with Genorah to acquire a 59% interest in the Tubatse Project, with
shareholders approving the exercise of this option at the Annual General Meeting held on 30 December
2008, which was exercised subsequent to 31 December 2008. The option agreement with IGC provides
Nkwe with the option to increase its participating interest in the Tubatse Project to 74%, subject to the receipt
of necessary shareholder and regulatory approvals. Genorah holds the remaining 26% interest in the Tubatse
Project.
Under the Option Agreement, which is valid for six months (with Nkwe being able to extend the option for a
further six months), Nkwe will pay IGC an Option Fee of A$100,000 and issue 2,500,000 million fully paid
ordinary Nkwe Platinum shares. Subsequent to 31 December 2008, Nkwe extended the option for a further 6
months to August 2009 by issuing an additional 2,500,000 fully paid ordinary shares.
In November 2008, Nkwe established the sponsored Level 1 American Depositary Receipts (“ADR”) facility
to assist with trading Nkwe on the US market.
Nkwe shares are now quoted in Over-The-Counter (“OTC”) market in the United States of America in the
form of American Depositary Shares (“ADS”) under the symbol NKWEY. The Company’s ordinary shares
will continue to trade on the ASX under the symbol NKP.
Deposits of underlying shares of Nkwe are being accepted for the issuance of ADRs with each ADR
representing twenty ordinary NKP shares (a ratio of 1 ADR : 20 Ordinary Shares)
The sponsoring depositary bank for the ADR facility is The Bank of New York Mellon (“BNYM”). Investors
wishing to purchase ADS’s will need to contact their US broker or The Bank of New York Mellon.
The establishment of the Nkwe ADR program and the ability to trade the Nkwe shares in the form of ADSs
on the OTC market in the United States of America is an important step for the company as it consolidates
its BFS with Xstrata throughout 2009.
Operations
Garatau Project
In July 2008 Nkwe announced an initial Mineral Resource of 18Moz (3PGE+Au) on the Garatau Project.
The Merensky resource commences from a depth of 350m below surface, with the UG2 horizon located an
additional 350m below the Merensky horizon.
                          Discounted               Reef widths                              3PGE+Au Metal
                       Resource Tonnage            applied (m)            Grade (g/t         Content (Moz)
                            (Mt) ***                                      PGE+Au)

Merensky
Inferred                       110.4                  2.49 *                 2.84                  10.0
UG2
Indicated                       14.9                  1.03 **                5.58                   2.7
Inferred                       29.6                   1.03 **                5.58                   5.3
Total/average                  154.9                                         3.62                  18.0
Table 1: Initial resource statement for the Garatau Project – released 16 September 2008

* The resource estimates an average width of 2.49m for the Merensky reef, this being the full horizon as defined “chrome
to chrome”.



                                                                                                                      2
                                        Nkwe Platinum Limited
                                              Directors Report
** The width of the UG2 is bulked up to a minimum potential stoping width of 1m, resulting in an average width of 1.03m
for the UG2 reef.

*** After mining and geological losses.
Tubatse Project
In September 2008, the initial JORC Mineral Resource for portions of the farms Eerste Geluk and
Nooitverwacht of 12.4Moz (3PGE+Au) was upgraded to 20.4Moz (3PGE+Au). The updated resource took
into account additional assay results over the same area previously released to the market and comprised:
    •    Inferred Mineral Resource of 54.49Mt at 5.03g/t for 7.75Moz (3PGE+Au) over a Merensky average
         reef width of 1.22m.
    •    Inferred Mineral Resource of 48.09Mt at 8.17g/t for 12.62Moz (3PGE+Au) over a UG2 average reef
         width of 0.67m.
A summary of the updated resource statement is shown in table 2.
                            Discounted           Channel Width       Grade (3PGE+Au           3PGE+Au
                         Resource Tonnage            (m)                   g/t)              Ounces (Moz)
                               (Mt) *
Merensky
Inferred                         54.49                 1.22                  5.03                  7.75
UG2
Inferred                         48.09                 0.68                  8.17                 12.62
Total / average                 102.58                                                            20.37
Table 2: Updated Resource Statement for the Tubatse Project – released 4 July 2008

* After mining and geological losses.
Subsequent to Period End
As announced on 18 February 2009, further results and sampling from a 24,000m diamond drill programme
over the Garatau Project Area confirmed a JORC Mineral Resource of 23.6Moz (upgraded from 18.0Moz), at
an average grade of 5.11g/t (3PGE+Au) from 143 million tonnes comprising:
           •    Measured Resource on the UG2 Reef of 4.5Moz at 5.4g/t (3PGE+Au) from 25.6m tonnes.
           •    Indicated Resource on the Merensky Reef of 3.5Moz at 4.7g/t (3PGE+Au) from 22.9 million
                tonnes.
           •    Inferred Resource on the UG2 Reef of 8.8Moz at 5.44g/t (3PGE+Au) from 50.2 million tonnes.
           •    Inferred Resource on the Merensky Reef of 6.8Moz at 4.7g/t (3PGE+Au) from 44.9 million
                tonnes.
This upgraded resource on the Garatau Project gives an overall PGM resource across the Company’s
Tubatse-Garatau Project of 44.0Moz JORC Resource.
A summary of the updated Garatau Project resource statement is shown in table 3.
                            Discounted           Channel Width       Grade (4PGE+Au           3PGE+Au
                         Resource Tonnage            (m)                   g/t)              Ounces (Moz)
                               (Mt) *
Merensky
Indicated                        22.9                  1.20                  4.74                  3.5
Inferred                         44.9                  1.20                  4.74                  6.8
UG2
Measured                         25.6                  1.20                  5.44                   4.5
Inferred                         50.2                  1.20                  5.44                   8.8
Total / average                  143.6                 1.20                  5.11                  23.6
Table 3: Updated Resource Statement for the Garatau Project – released 18 February 2009

* After mining and geological losses



                                                                                                                     3
                                          Nkwe Platinum Limited
                                                       Directors Report



The information in this report that relates to Mineral Resources for the Tubatse Project is based on a resource estimate completed by Mr
Nico Denner who is employed by Geological and Mine Evaluation Computer Services. Mr Denner is a Geologist with 14 years
experience in the South African Mining Industry and 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 the Ore Reserves”. Mr Denner is a Member of
South African Council for Natural Scientific Professions (Membership No. 400060/98). Mr Denner consents to the inclusion of this
information in the form and context in which it appears in this report.

The information in this report that relates to Mineral Resources for the Garatau Project is based on a resource estimate completed by Dr
Carina Lemmer who is employed by Geological and Mine Evaluation Computer Services. Dr Lemmer is a Geologist with 12 years
experience in the South African Mining Industry and sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which she 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 the Ore Reserves”. Dr Lemmer is a Member of
South African Council for Natural Scientific Professions (Membership No. 400083/98). Dr Lemmer consents to the inclusion of this
information in the form and context in which it appears in this report.



All Mineral Resources stated in this Report are in accordance with the requirements of the JORC Code (2004)




Signed in accordance with a resolution of the directors.




M Mphahlele
Managing Director

16 March 2009




                                                                                                                                      4
                                 Nkwe Platinum Limited
                                       Directors’ Declaration

Directors’ Declaration

The directors declare that:

(a)     the attached consolidated financial statements and notes thereto comply with International Financial
        Reporting Standards;

(b)     the attached consolidated financial statements and notes thereto give a true and fair view of the
        financial position as at 31 December 2008, the results of operations and cashflows of the group for
        the half-year then ended; and

(c)     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.


Signed in accordance with a resolution of the directors.

On behalf of the Directors




M Mphahlele
Managing Director

16 March 2009




                                                                                                          5
                                    Nkwe Platinum Limited
                               Consolidated Income Statement
                         for the half-year ended 31 December 2008

                                                                   Half-year ended   Half-year ended
                                                                    31 Dec 2008       31 Dec 2007
                                                                          A$                A$

Interest revenue                                                         441,859           427,668
Gain on sale of prospects, rights and exploration assets       5      13,485,784                 -
Foreign currency exchange gain                                         1,302,907                 -
Other income                                                              36,906             5,000
Exploration expenses                                                  (1,433,222)         (727,942)
Administration and corporate expenses                          3      (5,638,516)       (1,374,686)
Marketing expenses                                                      (106,228)          (43,059)
Loss on sale of property, plant & equipment                                    -            (2,157)

Profit / (Loss) From Continuing Operations                             8,089,490        (1,715,176)

Finance costs                                                             (1,067)          (32,372)

Profit / (Loss) Before Tax                                             8,088,423        (1,747,548)

Income tax expense                                                      (924,223)                -

Profit / (Loss) After Tax                                              7,164,200        (1,747,548)

Net Profit/ (Loss) for the Period                                      7,164,200        (1,747,548)

Profit / (Loss) attributable to minority interests                             -                 -

Profit / (Loss) attributable to members of the parent entity           7,164,200        (1,747,548)

Gain / (Loss) per share:

   Basic (cents per share)                                                  3.87              (0.96)
   Diluted (cents per share)                                                3.30              (0.96)




                                                                                                       6
                                  Nkwe Platinum Limited
                                     Consolidated Balance Sheet
                                      as at 31 December 2008
                                                            31 Dec 2008        30 Jun 2008
                                                                A$                  A$
                                                                                (restated)
Assets
Non-current assets
  Prospects, rights and exploration assets            4       152,512,567         69,556,984
  Property, plant and equipment                                   138,152            127,186
  Other assets                                                  2,477,314             90,913
                                                              155,128,033         69,775,083

Current assets
  Cash and cash equivalents                                    14,746,142          7,708,272
  Receivables                                                   6,643,559          1,668,576
  Prepayments                                                      67,659             32,116
                                                               21,457,360          9,408,964

   Non-current assets classified as held for sale     5                 -          4,289,032
                                                               21,457,360         13,697,996

Total assets                                                  176,585,393         83,473,079

Equity
  Share capital                                       6       197,753,233       127,596,508
  Equity reserve                                                29,043,342        25,521,620
  Foreign currency translation reserve                        (13,087,773)      (24,754,693)
  Accumulated losses                                          (40,012,139)      (47,176,339)
                                                              173,696,663         81,187,096

Liabilities
Non-current liabilities
   Provision for rehabilitation                                   102,334            87,361
                                                                  102,334            87,361

Current liabilities
  Trade and other payables                                      2,739,181          2,163,005
  Provisions                                                       47,215             35,617
                                                                2,786,396          2,198,622

Total equity and liabilities                                  176,585,393         83,473,079




Signed on behalf of the Directors:




________________________                            ________________________
M.W. Mphahlele                                      P.N. Landau



                                                                                               7
                                                  Nkwe Platinum Limited
                                      Consolidated Statement of Changes in Equity
                                     for the half-year ended on 31 December 2008
                                                                                                             Attributable
                                                                                                               to Equity
                                               Share          Equity        Translation       Accumulated    Holders of     Minority
                                     Note      Capital       Reserves        Reserve           Losses         the Parent    Interest         Total
                                                A$              A$               A$               A$            A$            A$            A$
Balance previously stated at
1 July 07                                   125,011,499      22,883,172      (6,725,215)      (31,948,157)   109,221,299       5       109,221,304
Impact of write down of
original assets disposed /
relinquished                           1                 -              -              -       (9,555,884)   (9,555,884)      (5)      (9,555,889)
Restated balance 1 July 07                  125,011,499      22,883,172      (6,725,215)      (41,504,041)    99,665,415        -       99,665,415
Exchange differences arising
on translation of overseas
operations                                               -              -     (167,501)                  -     (167,501)        -        (167,501)
Net loss for the period                                  -              -                 -    (1,747,548)   (1,747,548)        -      (1,747,548)
Total income & expense for
the period (restated)                                    -              -     (167,501)        (1,747,548)   (1,915,049)        -      (1,915,049)
Equity transactions
Options exercised during the
period
                                              2,100,000                 -              -                 -     2,100,000        -        2,100,000
Options issued during the
period not previously
recognised                             1                 -    2,638,448                -                 -     2,638,448        -        2,638,448
Issue expenses for the period                  (58,784)                 -              -                 -      (58,784)        -           (58,784)
Restated balance at 31
December 07                                 127,052,715      25,521,620      (6,892,716)      (43,251,589)   102,430,030        -      102,430,030


Balance previously stated at
1 July 08                                   127,596,508      22,883,172     (24,754,693)      (37,620,455)    88,104,532       5        88,104,537
Impact of write down of
original assets disposed /
relinquished                           1                 -              -              -       (9,555,884)   (9,555,884)      (5)      (9,555,889)
Options issued during the
period not previously
recognised                             1                 -    2,638,448                -                 -     2,638,448        -        2,638,448
Restated balance 1 July 08                  127,596,508      25,521,620     (24,754,693)      (47,176,339)    81,187,096        -       81,187,096
Exchange differences arising
on translation of overseas
operations                                               -              -    11,666,920                  -    11,666,920        -       11,666,920
Net profit / (loss) for the period                       -              -              -        7,164,200      7,164,200        -        7,164,200
Total income & expense for
the period                                               -              -    11,666,920         7,164,200     18,831,120        -       18,831,120
Equity transactions
Shares to be issued                          70,164,000                 -              -                 -    70,164,000        -       70,164,000
Options issued during the
period                                                   -    3,521,722                -                 -     3,521,722        -        3,521,722
Issue expenses for the period                   (7,275)                 -              -                 -       (7,275)        -            (7,275)
Balance at 31 December 08                   197,753,233      29,043,342     (13,087,773)      (40,012,139)   173,696,663        -      173,696,663




                                                                                                                                        8
                                 Nkwe Platinum Limited
                         Consolidated Statement of Cash Flows
                       for the half-year ended 31 December 2008
                                                     Half-year ended      Half-year ended
                                                       31 Dec 2008          31 Dec 2007
                                                            A$                   A$
                                                   Inflows/(Outflows)   Inflows/(Outflows)

Cash flows from operating activities
Payments to suppliers and employees                   (3,151,034)          (1,432,064)
Exploration expenditure                               (1,433,223)            (727,942)
Interest received                                        156,505              427,668
Interest and other costs of finance paid                  (1,067)             (32,372)
Tax paid in respect to sale of prospects, rights
and exploration                                         (924,223)                   -

Net cash used in operating activities                 (5,353,042)          (1,764,710)

Cash flows from investing activities
Proceeds from the sale of prospects, rights and
exploration                                          18,094,364                     -
Payments for prospects, rights and exploration       (3,250,038)           (1,131,387)
Payments for property, plant and equipment              (78,223)               (9,591)
Loans to related parties                             (2,752,915)           (1,194,459)

Net cash used in investing activities                12,013,188            (2,335,437)

Cash flows from financing activities
Proceeds from issues of equity securities                  6,000            2,250,000
Payments for equity issue costs                           (7,275)            (480,600)

Net cash (used in) / provided by financing
activities                                                (1,275)           1,769,400

Net increase / (decrease) in cash and cash
equivalents                                            6,658,871           (2,330,747)

Cash and cash equivalents at the beginning
of the half-year                                       7,708,272          15,596,927
Effects of exchange rate changes on cash and
cash equivalents                                        378,999               (33,912)
Cash and cash equivalents at the end of the
half-year                                            14,746,142           13,232,268




                                                                                             9
                                Nkwe Platinum Limited
                             Notes to the Financial Statements
1.   Accounting Policies

     Basis of Preparation
     This general purpose condensed financial report for the half-year ended 31 December 2008 has been
     prepared in accordance with IAS 134 Interim Financial Reporting.
     The half-year financial report does not include all notes of the type normally included within the annual
     financial report and therefore cannot be expected to provide as full an understanding of the financial
     performance, financial position and financing and investing activities of the consolidated entity as the
     full financial report.
     It is recommended that the half-year financial report be read in conjunction with the annual report for
     the year ended 30 June 2008 and considered together with any public announcements made by Nkwe
     Platinum Limited during the half-year ended 31 December 2008 in accordance with the continuous
     disclosure obligations of the ASX listing rules.
     Apart from the changes in accounting policy noted below, the accounting policies and methods of
     computation are the same as those adopted in the most recent annual financial report.
     The financial report is presented in Australian Dollars.
     Comparative information has been restated, specifically:
         (i) Prospects, rights and exploration assets have been written down by $9,555,884 as at 30 June
             2007 to reflect the value assigned to the assets that were part of the original investment in
             Nkwe South Africa Pty Ltd at the time of listing on the ASX that have either been disposed of
             or relinquished;
         (ii) During the period ended 31 December 2007, under the option agreement with Genorah
              Resources (Pty) Ltd over the Tubatse Project (subsequently approved at the 2008 Annual
              General Meeting (“AGM”) and exercised post period end), 7,500,000 options were due to be
              issued to Genorah Resources (Pty) Ltd on execution of the agreement. These options were
              valued using black scholes method as at the date of execution of agreement and $2,638,448
              has been added to prospects rights and exploration, with a corresponding addition to equity
              reserves; and
         (iii) $2,194,816 has been reclassified from prospects, rights and exploration assets to non-current
               assets held for sale as at 30 June 2008 to reflect the value assigned to the De Wildt Project
               that was part of the original investment in Nkwe South Africa Pty Ltd at the time of listing on
               the ASX (refer to (i) above)..
     There was no impact on the Income Statement or on basic or diluted earnings per share for the six
     months to 31 December 2007 (or for the twelve months to 30 June 2008) as a result of the above
     restatements.
     Changes in accounting policy
     From 1 July 2008 The Group has adopted the following Standards and Interpretations, mandatory for
     annual periods beginning on or after 1 July 2008.
     -   Reclassification of Financial Assets (amendments to IAS 39 Financial Instruments: Recognition
         and Measurement and IFRS 7 Financial Instruments Disclosures)
     -   Interpretation 12 Service Concession Arrangement and consequential amendment to other
         International Accounting Standards
     -   SIC 29 Service Concession Arrangements: Disclosures
     -   IFRIC 4 (revised) Determining whether an arrangement contains a lease
     -   IFRIC 13 Customer Loyalty Programmes
     -   IFRIC 14 The Limit on Defined Benefit Asset, Minimum Funding Requirements an their Interaction
     Adoption of these standards and interpretations did not have any effect on the financial position or
     performance of the Group.
     The Group has not elected to early adopt any new standards or amendments.



                                                                                                          10
                                Nkwe Platinum Limited
                             Notes to the Financial Statements


2.    Segmental Information
      The Group has one business segment, namely the acquisition and development of platinum
      properties. The Group’s primary geographic segment is the Republic of South Africa.
3.    Administration and Corporate Expenses

                                                                31 December 2008         31 December 2007
                                                                      A$                        A$

       Directors’ fees                                                       (370,757)           (390,177)
       Corporate management                                                  (420,000)           (478,962)
       Consultants equity based payments                                   (3,515,723)                   -
       Other                                                               (1,332,036)           (505,547)

                                                                           (5,638,516)         (1,374,686)

4.    Prospects, Rights and Exploration Assets

                                                                                         31 December 2008
                                                                                               A$

       Balance at 1 July 2008                                                                  69,556,984
       Prospects and rights acquired via share based payments (Note 6(i))                      67,914,000
       Exploration costs incurred                                                                3,250,038
       Exploration costs expensed                                                              (1,433,223)
       Effect of exchange variance                                                             13,224,768

       Closing balance                                                                         152,512,567

5.    Disposal of Non Current Assets Held for Sale

      On 22 February 2008, the Company entered into an agreement with Xstrata Alloys whereby Xstrata
      Alloys would acquire the new order prospecting rights for the Western Limb De Wildt Project for
      US$12million (A$18,094,364). As at 30 June 2008, the value of this asset held for sale was
      $4,289,032 (restated – refer note 1).

                                                                31 December 2008         31 December 2007
                                                                       A$                       A$

       Proceeds from sale of De Wildt Project                              18,094,364                    -
       Value of De Wildt Project at date of sale                           (4,608,580)                   -

       Gain on sale of De Wildt Project                                    13,485,784                    -

6.    Issuance of Equity Securities

 Ordinary Fully Paid Shares
 The Company has on issue 185,247,680 (30 June 2008 185,247,680) ordinary fully paid shares.

 Movements in ordinary fully paid         31 December      31 December       31 December     31 December
 shares                                       2008             2007              2008            2007
                                               A$               A$                No.             No.
 Balance at the beginning of the
 period                                     127,596,508     127,011,499        185,247,680    180,395,425
 Shares to be issued (i) (ii)                70,164,000                -        71,800,000              -
 Exercise of Options                                   -      2,100,000                  -      4,155,555
 Less cost of share issues                       (7,275)        (58,784)                 -              -

 Balance at the end of the period           197,753,233     127,052,715        257,047,680    184,550,980
                                                                                                       11
                                               Nkwe Platinum Limited
                                       Notes to the Financial Statements
       Shares to be issued
       (i)         The shares to be issued are in relation to the acquisition of the prospecting rights on the Garatouw 282KT
                   and De Kom 252KT Platinum Farms and relate to milestone payments upon the establishing a compliant
                   resource of 20 million 5PGE + Au ounces on the Farms as defined by Joint Ore Reserves Committee Code
                   (refer note 8). The directors determined that as at 31 December 2008 it was probable that this resource
                   target would be met and therefore the shares to be issued have been recognised in the current period. In
                   accordance with IFRS 2, these shares due to be issued have been valued at the date in which the
                   agreement to acquire the Farms from Genorah Resources (Pty) Ltd (“Genorah”) was signed, being 13
                   September 2006. Total shares issued were 63,000,000 to Genorah and 6,300,000 for facilitation fees on
                   the Genorah transaction.
       (ii)        Shares to be issued also includes 2,500,000 shares to be issued to International Goldfields Limited (“IGC”)
                   in respect of an option agreement over the Tubatse project entered into on 6 August 2008. These shares
                   have been valued at A$2.25 million based on the shares price on 6 August 2008.
  Options
  The Company has on issue 38,072,387 (30 June 2008: 23,072,387) options over un-issued shares.

                                                                                31 December 2008              31 December 2007
                                                                                     No.                           No.
                                                                                                                (restated)
  Movements in options
  Balance at the beginning of the period                                                30,572,387                   31,912,942
  Options to be issued not previously recorded (Note 1)                                          -                     7,500,000
  Options issued during the period (i)                                                  15,000,000                             -
  Options expired during the period                                                              -                   (4,685,000)
  Options exercised during the period                                                            -                   (4,155,555)

  Balance at the end of the period                                                      45,572,387                   30,572,387

(i)     The 15 million options issued for corporate advisory services during the period are exercisable at A$0.90, on or
        before 31 December 2010. The fair value of the options are measured at the grant date using the black scholes
        methodology taking into account the terms and conditions upon which the instruments were granted, and the timing
        of when the corporate advisory services were provided.
7.            Controlled Entities
                                                                Proportion of      Proportion of   Proportion of   Proportion of
                                                   Place of      ownership         voting power     ownership      voting power
                                                incorporation      interest                           interest
                                                and operation       2008              2008             2007           2007
      Name of subsidiary                                             %                  %               %               %
      Parent Entity
      Nkwe Platinum Ltd                         Bermuda
      Controlled Entities
      Nkwe Platinum (South Africa) (Pty) Ltd    South Africa        70%                70%             70%              70%
      Nkwe Platinum (De Wildt) (Pty) Ltd        South Africa        70%                70%              70%             70%
      Nkwe Platinum (De Wildt - 2) (Pty) Ltd    South Africa        70%                70%              70%             70%
      Nkwe Platinum (Bokfontein) (Pty) Ltd      South Africa        70%                70%             70%             70%
      8 Mile Investments 226 (Pty) Ltd          South Africa        70%                70%             70%             70%
      Nkwe Platinum (Rooderand) (Pty) Ltd       South Africa        70%                70%             70%             70%
      8 Mile Investments 213 (Pty) Ltd          South Africa        70%                70%             70%             70%
      Nkwe Platinum (Management) (Pty) Ltd      South Africa        70%                70%             70%              70%
      Nkwe Platinum (Ruighoek) (Pty) Ltd        South Africa         67%                67%             67%             67%
      Ruighoek Platinum (Pty) Ltd               South Africa        70%                70%             70%             70%
      Nkwe Platinum (Scarlet) (Pty) Ltd         South Africa        70%                70%             70%              70%
      Nkwe Platinum (Tinderbox) (Pty) Ltd       South Africa        70%                70%             70%             70%
      Masedi Platinum (Pty) Ltd                 South Africa         67%                67%             67%             67%
      Nkwe Platinum (East) (Pty) Ltd            South Africa        70%                70%             70%              70%
      Nkwe Platinum (Northam) (Pty) Ltd         South Africa        70%                70%             70%              70%
      Nkwe Platinum Eastern Limb (Pty) Ltd      South Africa        100%               100%               -               -
      Nkwe Platinum (Australia) Pty Ltd         Australia           100%               100%            100%            100%


              The principal activities of Nkwe Platinum Ltd and the South African subsidiary companies are the
              acquisition, exploration, development and commercialisation of platinum group and associated base metal
              projects in the Republic of South Africa. The principal activities of Nkwe Platinum (Australia) Pty Ltd is to
              provide corporate, consultancy and administration services to the Group.
                                                                                                                               12
                                Nkwe Platinum Limited
                            Notes to the Financial Statements
8.    Related Party Transactions
      In July 2008, Nkwe Platinum (Australia) Pty Ltd entered into an operational loan agreement with
      Genorah Resources (Pty) Ltd (“Genorah”), a company of which Mr Mphahlele and Mr Pandor are
      directors, in which US$2.5 million (A$3,608,543) was advanced to Genorah. The loan is interest
      bearing and repayable on 30 June 2009.
      In addition Nkwe Platinum Limited has a commitment under a binding Heads of Agreement to issue
      63,000,000 common fully paid shares to Genorah upon Nkwe Platinum Limited establishing a
      compliant resource of 20 million contained 5PGE+Au ounces, as defined by the Joint Ore Reserves
      Committee Code, in respect of certain farms. A further 6,300,000 common fully paid ordinary shares
      are to be issued to an unrelated party as facilitation fees for the Genorah transaction upon reaching
      the 20 million contained 5PGE+Au ounce milestone. The cost of these shares to be issued has been
      recognised at 31 December 2008.
      In May 2008, Nkwe Platinum South Africa Pty Ltd entered into a loan agreement with Continental
      Capital Limited (“Continental”), a company of which Mr Landau is a Director, in which ZAR6 million
      (A$917,796) was advanced to Continental. The loan is interest bearing and repayable on 30 June
      2009. Nkwe South Africa Pty Ltd received 5 million options in Continental (A$0.20, 30 June 2010) as
      part of the loan agreement.
      A$182,865 (Rand 1,244,862) has been incurred for Genorah expenses during the period and this has
      been reimbursed by Genorah during the half-year.
9.    Commitments and Contingencies
      During the year ended 30 June 2007, the Company entered into a Heads of Agreement with Genorah
      Resources (Pty) Ltd to acquire the prospecting rights on the Garatouw 282KT and De Kom 252KT
      platinum farms. Under the terms of the agreement, Nkwe issued 63,000,000 shares to Genorah.
      Nkwe has a commitment under the terms of the Heads of Agreement with Genorah to issue a further
      69,300,000 common fully paid shares as discussed in Note 8 above.
      In August 2008, the Board of Nkwe announced that it had entered into an option agreement with ASX
      listed company International Goldfields Limited (“IGC”) in relation to IGC’s 15% interest in the three
      Tubatse farms which form part of the properties subject to the Nkwe / Genorah / Xstrata joint venture.
      Upon exercise of the option by Nkwe, Nkwe and IGC have agreed to facilitate the acquisition of the
      15% interest in the Tubatse Project by way of a scheme of arrangement (i.e. cash and/or share offer to
      acquire all of the issued share capital of IGC).
10.   Subsequent Events
      On 10 February 2009, the Company took up its right under the Option Agreement with IGC detailed in
      Note 9 and extended the agreement for a further six months. Under the Option Agreement, the
      Company issued a further 2,500,000 ordinary fully paid shares to IGC for extending the agreement.
      Following shareholder approval to acquire a 59% interest in the Tubatse Project from Genorah at the
      Annual General Meeting, the option was exercised on 7 January 2009. The Company issued
      250,000,000 ordinary fully paid shares to Genorah Resources as consideration for the acquisition.
      These ordinary fully paid shares are subject to a 12 month escrow period in accordance with the
      Australian Stock Exchange Listing Rules.




                                                                                                        13
To the members of Nkwe Platinum Limited

Report on the Condensed Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Nkwe Platinum Limited, which
comprises the balance sheet as at 31 December 2008, and the income statement, statement of changes
in equity and cash flow statement for the period ended on that date, other selected explanatory notes and
the directors’ declaration of the consolidated entity comprising the company and the entities it controlled
at the half-year and or from time to time during the half-year.
Directors’ Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation and fair presentation of the half-year
financial report in accordance with International Accounting Standards. This responsibility includes
establishing and maintaining internal controls relevant to the preparation and fair presentation of the
half-year 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.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review
of Interim and other Financial Reports 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 accompanying financial report is not presented fairly, in all material respects, in
accordance with IAS 134 Interim Financial Reporting. As the auditor of Nkwe Platinum Limited, ASRE
2410 also requires that we comply with the ethical requirements relevant to the audit of the annual
financial report.
A review of a half-year 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 Australian
professional ethical pronouncements.
Conclusion
Based on our review, which is not an audit, nothing has come to our attention that causes us to believe
that the financial report of Nkwe Platinum Limited for the half-year ended 31 December 2008 does not
present fairly, in all material respects, the consolidated entity’s financial position as at 31 December 2008
and its financial performance and its cash flows for the half-year then ended in accordance with
International Accounting Standard 34 “Interim Financial Reporting.”




Ernst & Young




T S Hammond
Partner
Perth
16 March 2009

TH;HG;Nkweplat;006                                                        Liability limited by a scheme approved
                                                                          under Professional Standards Legislation

								
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