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## 35. CONTINGENT ASSETS AND LIABILITIES 

## (a) Royalties 

At the Bluestone Mines Tasmania Joint Venture Renison Tin Project the following royalties apply: 

• Bluestone Mines Tasmania Pty Ltd has an obligation to pay a State Government Royalty on tin production at the rate of: 1.6% of Net sales + (profit x 0.4 x profit/net sales). This royalty is capped at 5% of Net Sales. 

At the Collingwood Tin Project the following royalties apply (the project is currently under care and maintenance): 

• Bluestone Nominees Pty Ltd has an obligation to pay a private royalty of 2% of the Net Smelter Return from the sale of ores, concentrates or other mineral products produced. 

• A State Government royalty of 2% of the value of the mineral produced is applicable. 

## 36. EVENTS AFTER THE BALANCE SHEET DATE 

On 16 June 2011 the Company announced its intention to conduct an on-market buy-back of up to 10% of its issued capital over a twelve month period commencing on 1 July 2011. As at the date of this report the Company had acquired 25,208,407 shares for a total value of $5,740,356.48 and an average price of $0.228 per share. 

## 37. AUDITOR'S REMUNERATION 

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## 38 INTEREST IN A JOINTLY CONTROLLED OPERATION 

In 2010 the subsidiary Bluestone Mines Tasmania Pty Ltd sold 50% of the assets at its Renison Tin Project and entered into a jointly controlled operation called the Bluestone Mines Tasmania Joint Venture. The Consolidated Entity is entitled to 50% of the operation's production. The Consolidated Entity's interest in the assets and liabilities of the jointly controlled operation are included in the consolidated statement of financial position. 

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Share of operating lease commitments (refer to note 34(b)) 

Future minimum rentals payable under non-cancellable operating leases as at 30 June are as follows: 

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