PENNANT ENERGY INC. CONDENSED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2013 NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsectio n 4.3 (3) (a), if an auditor has not performed a re view of the condensed interim financial statements, they must b e accompanied by a notice indicating that an audito r has not reviewed the financial statements. The accompanying unaudited condensed interim financ ial statements of the Company have been prepared by and are the responsibility of the Company’s management. The Company’s independent auditor has not performed a review of these condensed interim financial stat ements in accordance with standards established by the Can adian Institute of Chartered Accountants for a revi ew of condensed interim financial statements by an entity ’s auditor. PENNANT ENERGY INC. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) AS AT Notes September 30, 2013 June 30, 2013 ASSETS Current Cash $ 110,169 $ 431,024 Receivables 4 11,718 50,703 Prepaids 5 19,351 7,714 141,238 489,441 Deposits 6 85,673 56,196 Property and equipment 7 3,325,038 3,340,122 Exploration and evaluation assets 8 307,455 2 $ 3,859,404 $ 3,885,761 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Accounts payable and accrued liabilities 9 $ 73,82 6 $ 74,114 Due to related parties 13 4,000 9,762 77,826 83,876 Decommissioning provision 10 211,028 209,734 288,854 293,610 Shareholders’equity Share capital 12 14,973,390 14,973,390 Subscription received in advance 11 and 20 5,025 - Share-based payment reserve 1,420,439 1,420,439 Deficit (12,828,304) (12,801,678) 3,570,550 3,592,151 $ 3,859,404 $ 3,885,761 Nature and continuance of operations (Note 1) Commitments (Note 15) Subsequent events (Note 20) “Garth Braun” Director “Ron Schmitz” Director The accompanying notes are an integral part of thes e condensed interim financial statements. PENNANT ENERGY INC. CONDENSED INTERIM STATEMENTS OF OPERATIONS AND COMP REHENSIVE LOSS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) Notes Three Months Ended September 30, 2013 Three Months Ended September 30, 2012 REVENUES Petroleum and natural gas $ 148,818 $ 394,939 Royalties (13,331) (22,556) 135,487 372,383 EXPENSES General and administration 14 51,871 130,438 Depletion and depreciation 15,406 17,222 Production and transportation 93,741 160,438 (161,018) (308,098) OPERATING INCOME (LOSS) (25,531) 64,285 OTHER ITEMS Decommissioning costs 10 - 188 Net finance income (expense) 14 (1,228) 2,546 Gain on sale of petroleum and gas property 7 - 357,231 Recovery of royalties previously paid 133 - (1,095) 359,965 Income (loss) and comprehensive income (loss) for the period $ (26,626) $ 424,250 Basic and diluted income (loss) per common share $ (0.01) $ 0.01 Weighted average number of common shares outstanding 68,259,456 68,259,456 The accompanying notes are an integral part of thes e condensed interim financial statements.
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