FINANCIAL REPORT FOR THE YEAR ENDED 30 …...- Management services to the Ord Irrigation Co-operative, Ord Irrigation Asset Mutual Co-operative and Bunuwal Fuel Pty Ltd. The following

Cambridge Gulf Limited Shop 18, 64 Konkerberry Drive

Kununurra, Western Australia 6743

ABN: 16 026 785 781

FINANCIAL REPORT FOR THE YEAR ENDED

30 JUNE 2012

ABN: 16026785781

Financial Report For The Year Ended30 June 2012CONTENTS Page

Directors' Report 1

Auditor's Independence Declaration 4

Consolidated Statement of Comprehensive Income 5

Statement of Financial Position 6

Statement of Changes in Equity 7

Statement of Cash Flows 8

Notes to the Financial Statements 9

Directors' Declaration 25

Independent Auditor's Report 26

CAMBRIDGE GULF LIMITED AND CONTROLLED ENTITIES

Principal Activities and Significant Changes in Nature of Activities

Operating Results and Review of Operations for the yearOperating Results

Review of Operations(i) CGL Fuel Pty Ltd

Financial Position

Significant Changes in State of AffairsThe following significant changes in the state of affairs of the parent entity occurred during the financial year:

(ii) CGL Wyndham Port

The storage of nickel in the Ports transit shed ceased in June 2012 and concentrate is now delivered to Panoramic's new shed on lot 2 Barytes Road. The rehabilitation of the old shed will be undertaken in the coming year. The $10 million Commonwealth funded works program was concluded within the year. This program included upgrading the wharf's fender system from 26,000 tonne to 34,000 tonne, refurbishing the wharfs pylons, replacing the wharf's cathodic protection system, extending the ports hardstand area and replacing the jetty buildings. The port is well positioned to meet the additional demands that are likely to come from the expansion of the Ord irrigation area and a number of potential mining projects that could come on stream as early as 2014.

Your directors present their report, together with the financial statements of the Group, being the Company and its controlled entities for the financial year ended 30th June 2012.

The principal activities of the consolidated group during the financial year were:- Importation and wholesaling of diesel fuel- Management of the Wyndham Port- Management services to the Ord Irrigation Co-operative, Ord Irrigation Asset Mutual Co-operative and Bunuwal Fuel Pty Ltd.

The following significant changes in the nature of the principal activities occurred during the financial year:- The consolidated group signed an offer and acceptance to acquire land, buildings, plant and equipment at the Sugar Mill, Lot 794 Mulligans Lagoon Road, Kununurra. Settlement continues to be delayed due to conditions precedent (legal delays) not being met.There were no other significant changes in the nature of the consolidated group’s principal activities during the financial year.

The consolidated profit of the group amounted to $2,671,927 after providing for income tax. This represented a 150.22% increase on the result reported for the year ended 30 June 2011. The improvement was due to continued improvements in the resource sector within the East Kimberley which Cambridge Gulf supports through fuel sales and import and export activities over the Wyndham Port.

A review of the fuel business was undertaken through the Enterprise Connect Program which assisted in funding the employment of an international Oil Trading training company who assessed key aspects of the business. This review endorsed many of the company's existing business processes and also identified a number of opportunities to apply some alternative techniques to aspects of the company's purchasing process. This has provided improved outcomes for both shareholders and customers.

CGL Fuel Pty Ltd secured a five year contract, with a three year option to supply the diesel for the Argyle Diamond Mine.Bunuwal Fuel Pty Ltd (50% owned by Cambridge Gulf Limited) secured a five year contract with a three year option to supply diesel to Pacific Aluminium Pty Ltd on the Gove Peninsula in the Northern Territory.

CAMBRIDGE GULF LIMITED ABN: 16026785781 AND CONTROLLED ENTITIES DIRECTORS' REPORT

The net assets of the consolidated group have increased by $1,756,224 from 30 June 2011 to $12,937,637 in 2012. This increase is largely due to the following factors:

Continued profitability and efficiency gains made by the group;

The directors believe the Group is in a strong and stable financial position to expand and grow its current operations.

Continued debt reduction across the group.

CGL Wyndham Port has received notification from the Department of Transport Western Australia that its lease of the Wyndham Port will be extended beyond 2014. The extension will be for three years with two one year options.Cambridge Gulf Limited leased a hectare of 2 Barytes Road Wyndham to Savannah Nickel Mines Pty Ltd for 20 years with four, ten year options for the development of Panoramic's new nickel concentrate shed.

Maintenance was undertaken on the fuel delivery lines along the wharf, the lines were cleaned and treated with a special marine coating which carries a 30 year warranty. KMG's iron ore export program commenced in July 2011 and they have entered into a term contract with CGL to supply diesel for their mine site, logistics, stockpile and export facilities.

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Dividends Paid or RecommendedDividends paid or declared for payment during the financial year are as follows:

Events after the Reporting Period

Information on Directors

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GAICDMrs Judith A Hughes Non Executive Director

Interest in Shares and Options 48,699

Qualifications Dip.Sci GAICDExperience Director (Chairman) of Ord Irrigation Co-

operative.

Mr David Menzel Non Executive Director

Qualifications

Interest in Shares and Options

Interest in Shares and Options 181,121

Qualifications GAICDExperience Founding Director and Chairman of the Ord

Irrigation Asset Mutual Co-operative since 2005, served as a Ministerial Director appointed on the Perth Market Authority (2000-2002) Founding Director Ord Irrigation Co-Operative (1996-2009) Director of Ord River Cane Growers Pty Ltd. Director 1988 - 1991, reappointed 2001 and Chairman since 2003. Chairman Bunuwal Fuel Pty Ltd 2012.

Interest in Shares and Options 190,370

Mr Lindsay A Innes Chairperson, Non Executive Director

- The consolidated group changed it's bankers from National Australia Bank to the Commonwealth Bank of Australia in July 2012.

Qualifications B.Ag (Hons) GAICDExperience Former Director of Rural Industries Research

and Development Council (2002-2008), current Directorships Odeum Produce and Ord River Canegrowers Pty Ltd. Director since 2002.

Interest in Shares and Options 192,056

- At a General Meeting held on the 19th July 2012 shareholders passed a special resolution authorising the company to introduce a selective buyback of Cambridge Gulf Limited ordinary shares from shareholders with 10,001 ordinary shares or less. The offer period closed on the 23rd August 2012 and 65,313 shares were purchased from willing shareholders for $248,189.40.

Mr Robert J Boshammer Non Executive Director

Dr Gabriele Bloecker Non Executive Director

- CGL Fuel Pty Ltd commissioned a retail fuel bowser at the Wyndham Port. The bowser will offer a 24 hour supply of diesel to account customers and also has a credit card facility. - CGL Fuel Pty Ltd undertook the 7 year clean, non destructive testing and painting of tank 10 which is the largest tank within the bunded fuel storage site in Wyndham.

Experience School Business Manager for Halls Creek DHS.

CAMBRIDGE GULF LIMITED ABN: 16026785781 AND CONTROLLED ENTITIES DIRECTORS' REPORT

Interim ordinary dividend of $0.20 per share paid on the 15th March 2012

The consolidated group has disposed of it's shareholding in Wesfarmers and Rural Co on the 16th August 2012, the funds will be used to purchase the old Sugar Mill land and assets on Mulligans Lagoon Road, Kununurra.

Final ordinary dividend of $0.20 per share paid on 27th October 2011

Qualifications Dr.sc.agr MAICDExperience Appointed Director of Cambridge Gulf in

November 2007. Founding Director of East Kimberley Co-Operative in 2006. Chair of Ord River District Co-Operative since 2006.

285,772

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Proceedings on Behalf of Company

20122,671,927$

1.27$

843,873$

0.20$

*

6.13$ 20.65%

Dated:

Interim dividend per ordinary share 0.10$ -$ 0.115$

-$

* Final dividned for the period 1 July 2011 - 30 June 2012 has not been declared.

Net Profit 854,162$ 1,016,516$ 974,515$ Basic EPS 0.40$ 0.48$ 0.46$

2008 2009 2010 20111,067,829$

0.51$

664,551$

0.200$

5.30$ 9.55%

Net Assets per share4.18$ 4.18$ 4.85$

Return on capital employed

9.69% 11.25% 9.53%

Ordinary dividends paid433,033$ 316,452$ -$

Final Dividend per ordinary share

0.21$

0.05$ -$

8/10/2012

Mr Lindsay A Innes

This Directors’ Report is signed in accordance with a resolution of the Board of Directors.

Shareholder Returns

The lead auditor's independence declaration for the year ended 30 June 2012 has been received and can be found on page 4 of the Annual Report.

Auditor’s Independence Declaration

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

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

Indemnifying Officers or Auditor

During the year the consolidated entity has paid premiums to insure Directors and Officers against proceedings arising out of their conduct while acting in the capacity of Director / Officer for the company.

Mr Robert J BoshammerMrs Judith A HughesMr David Menzel

Company Secretary

Mr Lindsay A InnesDr Gabriele Bloecker

Meetings of DirectorsDuring the financial year, 13 meetings of directors were held.Attendances by each director during the year were as follows:

Directors' MeetingsNumber

eligible to attend

Numberattended

CAMBRIDGE GULF LIMITED ABN: 16026785781 AND CONTROLLED ENTITIES DIRECTORS' REPORT

The following person held the position of company secretary at the end of the financial year:Yale J Bolto — B.Bus, CPA, GAICD, ACSA.Yale was appointed Company Secretary in January 2010.

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