Corporate Governance

King River Copper Limited has adopted comprehensive systems of control and accountability as the basis for the administration of corporate governance. The Board is committed to administering the policies and procedures with openness and integrity, pursuing the true spirit of corporate governance commensurate with the Company's needs.

To the extent they are applicable; the Company has adopted the Ten Essential Corporate Governance Principles and Best Practice Recommendations ("Recommendations") as published by ASX Corporate Governance Council.

As the Company's activities develop in size, nature and scope, the size of the Board and the implementation of additional corporate governance structures will be given further consideration.

The Board sets out below its "if not, why not" report in relation to those matters of corporate governance where the Company's practices depart from the Recommendations.

Please refer to the Company's most recent Annual Report below for further details.

Principle 2 Recommendation 2.2

Notification of Departure

The Board does not have an independent Chairman.

Explanation for Departure

The existing structure is considered appropriate given the small scale of the Company's enterprise and the associated economic restrictions this place on the Company.  The existing structure is aimed at maximising the financial position of the Company by keeping its operating costs to a minimum.

Principles 2 and 9 Recommendations 2.4 and 9.2

Notification of Departure

Separate nomination and remuneration committees have not been formed.  However, the Company has adopted Nomination and Remuneration Committee Charters.

Explanation of Departure

The role of the nomination and remuneration committees is carried out by the full Board in accordance with the appropriate charters.  The Board considers that at this stage, no efficiencies or other benefits would be gained by establishing separate committees.

Principle 3 Recommendation 3.2 and 3.3

Notification of Departure

The Company has not established a policy concerning diversity.

Explanation for Departure

Due to the small scale of the Company's operations and the limited number of employees, the Company has not yet set a formal policy for achieving gender diversity. The Company will monitor its position and consider establishing a formal policy as and when the Company develops over time to address equal opportunities in the hiring, training and career advancement of directors, officers and employees.

Principle 4 Recommendation 4.2 and 4.3

Notification of Departure

A separate audit committee has not been formed.

Explanation for Departure

The role of the audit committee is carried out by the full Board.  The Board considers that given its size, no efficiencies or other benefits would be gained by establishing a separate audit committee.