ALTECH BATTERIES LTD — Interim / Quarterly Report 2016

Jul 28, 2016

Altech Chemicals

Limited

QUARTERLY REPORT June 2016

Quarterly Report June 2016

Altech secures another quality cornerstone investor

During the quarter the Company secured another quality cornerstone investor, MAA Group Berhad (MAAG). MAAG is a Malaysian publicly listed insurance, investment, credit and finance group with total assets of RM1.45 billion and annual turnover of RM484 million. MAAG has agreed to subscribe to $1 million of Altech shares, subject to the approval of Altech shareholders. Altech had previously agreed with MAAG for participation in the March 2016 share placement, however its participation was subject to the completion by MAAG of internal governance requirements and due diligence processes, which have now been satisfied.

A total of 11,627,907 shares will be issued to MAAG at $0.086 per share, which was the March 2016 share placement price. The issu e of the shares is subject to the approval of Altech shareholders because Tunku Ya'acob bin Tunku Tan Sri Abdullah (a non-executive director of Altech) is the executive chairman and a majority shareholder of MAAG.

Upon approval of the share issue, MAAG will hold approximately 6% of the issued shares of Altech. Melewar International Investment Company Limited, a company also controlled by Tunku Ya'acob bin Tunku Tan Sri Abdullah, will hold approximately 9% of the Company.

The share issue to MAAG will bring the total amount raised by the Company during the quarter to approximately $5 million (including $2 million from the sale of an exploration licence E70/3923). All funds raised will be applied towards finalising the detailed design of Altech's proposed Malaysia high purity alumina (HPA) plant, finalising debt funding for the HPA project, and for general working capital purposes.

Altech managing director, Mr Iggy Tan said, “We are very excited to have a cornerstone investor with the pedigree of MAAG join our share register. Altech continues to be most appreciative of the support for the Company and its HPA project by Tunku Ya'acob bin Tunku Tan Sri Abdullah and his associated companies” , Mr Tan concluded.

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Altech presents at the 3rd International Sapphire Industry Technology Expo

During the quarter the Company attended the 3rd International Sapphire Industry Technology Exhibition (Sapphire Expo) in Shenzhen, China. The Sapphire Expo is an annual trade show held over three days (22-24 June 2016) , which attracts hundreds of sapphire industry participants from around the world. Participants included sapphire glass and wafer manufacturers, sapphire substrate producers, high purity alumina suppliers, and importantly, representatives from the LED lighting and lithium-ion battery manufacturing sectors. Altech's attendance and presentation at the Sapphire Expo was an opportunity to showcase the advanced stage of its Malaysian high purity alumina (HPA) project, and build international brand awareness for Altech's proposed HPA product – the key ingredient to synthetic sapphire production. As previously announced, Altech executed a 10year off-take sales arrangement with Mitsubishi Corporation's Australian subsidiary, Mitsubishi Australia Ltd (Mitsubishi) for 100% of HPA production from its proposed Malaysian HPA plant. The current forecast demand growth profile for HPA indicates that near term future demand is well in excess of current and known planned supply capacity increases.

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Figure 1. Altech's exhibition at the 3rd International Sapphire Industry Technology Exhibition

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Quarterly Report June 2016

Altech generates interest at International Battery Fair

During the quarter the Company generated strong interest as an emerging high purity alumina (HPA) producer at the 12th China International Battery Fair (CIBF) in Shenzhen, China (May 24-26, 2016). The CIBF is held every two years and is a significant event for the lithium-ion battery industry. There is a growing application for HPA in lithium-ion batteries, where it is used as a coating on the ceramic separator sheets that divide the cathode and anode electrodes within the battery. The lithium-ion battery separator sheet membrane acts as a critical safety barrier inside the battery. HPA-coated separators withstand unusually high temperature incursions, increase battery separator shrinkage temperatures, reduce flammability during thermal runaways and thus make lithium-ion batteries much safer. HPA-coated separators also increase battery discharge rates, lower self-discharge, and lengthen battery life cycles. Based on discussions with various lithium-ion battery separator sheet manufacturers at the CIBF, electric vehicle manufacturers are demanding lithium-ion batteries with 99.99% (4N) HPA-coated separators. These manufacturers are reporting usage of between 40-120g of HPA per battery kilowatt-hour (kWh). According to CIBF delegate sources, 99.99% (4N) HPA is currently being supplied to Chinese lithium-ion battery separator sheet manufacturers at RMB180 to RMB200/kg (US$27 to US$30/kg). This supports the long-term price assumption for HPA used in Altech's bankable feasibility study (BFS), which is a conservative estimate of US$23/kg. The particle size of the HPA product for lithium-ion battery separator sheets is required to be ultra-fine, less than 2 microns, which Altech's proposed HPA plant in Malaysia is designed to achieve.

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Figure 2. 12th China International Battery Fair

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HPA demand driven by lithium-ion batteries

Following its announcement regarding the strong interest shown in the Company as an emerging high purity alumina (HPA) producer during the 12th China International Battery Fair, the Company announced its 10-year forecast of global demand for HPA used in the lithium-ion battery manufacturing sector.

Altech estimated that demand for HPA from lithium-ion battery manufacturers will grow significantly over the next decade from forecast usage of ~1,000tpa in 2016 to ~15,000tpa in 2025; representing an annual year-on-year demand growth of approximately 30% per year. In order to meet this demand, additional HPA production capacity equivalent to four (4) of Altech's proposed HPA plant would need to be constructed and commissioned during the forecast period, as illustrated in Figure 3 below .

Figure 3. Global separator high purity alumina demand forecast

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Quarterly Report June 2016

Meckering mining lease granted

Altech's mining lease (ML) M70/1334 at its Meckering kaolin deposit was granted by the Department of Mines and Petroleum (DMP) on 19 May 2016. The grant of M70/1334 allows the Company to progress to the next stage of mine development, which is the submission of a mining proposal and a mine closure plan.

Altech managing director Mr Iggy Tan said, “The Company is delighted with the grant of the Meckering mining lease.

" Altech can now progress to the next stage in preparation for mine development, the submission of what will be a relatively straightforward mining proposal and mine closure plan.

“Upon approval of these items, the site at Meckering will be ready for the development of the campaign mining and container loading operation to supply feedstock for Altech's proposed Malaysian HPA plant.

This marks another significant milestone in the advancement of the Company's HPA project”, Mr Tan concluded.

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Altech sells EL for $2 million cash

Altech executed an agreement with Dana Shipping and Trading S.A. (Dana) for the sale of its exploration licence (EL) E70/3923 (excluding mining lease M70/1334, owned by Altech) at Meckering for two million dollars. Having already received a non-refundable cash deposit of $250,000, the balance of $1.75m was paid upon the grant of Altech's M70/1334, which occurred during the quarter.

The EL is surplus to Altech's feedstock requirements for its proposed HPA plant. Feedstock for the plant will be sourced from within M70/1334, which contains an 11Mt Indicated Mineral Resource , representing in excess of 250 years of supply for the HPA plant. Altech continues to hold tenements E70/4852, 4856 and 4857 (pending) at Meckering.

Execution of the agreement also settled the dispute with Dana over the Company's termination of the Kaolin Mining Rights Deed (refer ASX announcement dated 29 March 2016 for details ).

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Figure 4. Proposed site layout at Meckering
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Quarterly Report June 2016

Altech updates kaolin resource for Meckering mining lease

Subsequent to quarter end, the Company announced an updated Indicated Mineral Resource of 11 million tonnes (Mt) of kaolin at 82.7% ISO brightness for its Meckering deposit, which sits within its 100%-owned mining lease (ML) M70/1334. The ML, which was granted on 19 May 2016 is estimated to contain sufficient kaolin mineral resources for over 250 years of feedstock supply for the Company's proposed high purity alumina (HPA) plant at Johor, Malaysia. The updated Mineral Resource for M70/1334 allows the Company to finalise the mine development, which includes the submission of a mining proposal and a mine closure plan. The estimation of a mineral reserve is currently being finalised following grade control drilling that commenced on 1 April 2016. At Meckering, Altech is planning to mine approximately 120,000 tonnes of kaolin once every three years in short two-month mining campaigns. The resultant raw kaolin ore will be stockpiled, then containerised into standard shipping containers at the rate of around 40,000tpa (770t per week) and transported to Johor, Malaysia via the port of Fremantle, Western Australia for processing into HPA at the Company's proposed plant.

Altech managing director Mr Iggy Tan said, “The Company is delighted with the updated resource statement for our recently granted ML. Altech can now progress to the next stage in preparation for mine development, the submission of what will be a relatively straightforward mining proposal and mine closure plan. Upon approval of these items, the site at Meckering will be ready for the development of the campaign mining and container loading operation to supply feedstock for Altech's proposed Malaysian HPA plant. This marks another significant milestone in the advancement of the Company's HPA project”, Mr Tan concluded.

Table 1. Table showing Indicated Mineral R esource M70/1334

	Tonnage	1 % - 45 micron	2 Brightness
Indicated Resource	10,998,127	45.0%	82.7%
TOTAL	10,998,127	45.0%	82.7%
1 30% minus 45um cut-off

2 80% brightness cut-off (ISO standard)

Figure 5. Indicated Mineral R esource area within M70/1334 (shaded yellow)

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Figure 6 . Grade control drilling at Altech's Meckering deposit

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Quarterly Report June 2016

Altech raises $10 million in oversubscribed share placement

Subsequent to quarter end the Company welcomed a number of institutional investors onto its share register as a result of a AU$10 million oversubscribed share placement (the Placement). Placement shares will be issued at 14 cents per share, which represents a 14% discount to the price of the Company's shares at the close of trade on the Australian Securities Exchange (ASX) on 21 July 2016.

Funds raised from the Placement will be applied to finalising the detailed design of the Company's proposed Malaysian high purity alumina (HPA) plant, completion of independent due diligence associated with finalising debt financing, closure of debt financing and for general working capital purposes.

Approximately 71.4 million new shares will be issued under the Placement in two tranches. An initial tranche of approximately 39.2 million shares, in accordance with the Company's residual placement capacity under ASX Listing Rules 7.1 and 7.1A, will be settled on 3 August 2016. A second tranche for the balance of the shares will be subject to shareholder approval at a general meeting of the Company to be convened in midSeptember 2016.

The Company is delighted that high-quality investment institutions predominantly from Australia, New Zealand, Hong Kong and Asia have participated in the Placement and now join the Company's share register. The Company will continue to focus on building institutional support for its HPA project in preparation for a project finance equity raising that will be required once debt funding arrangements have been finalised.

Altech managing director, Mr Iggy Tan said, “The Company is extremely pleased with the quality and calibre of institutions that have joined our share register as part of the Placement. Most of the participants were surprised as to how advanced the Company is with its HPA project, with the bankable feasibility study completed, off-take in place and the advanced nature of debt funding, all of which has transferred directly into demand for the Placement, which was subsequently heavily oversubscribed.

“Institutional investor representation on the Company's share register has increased from around 9% to closer to 23% following the Placement, with plans to grow it over time”, Mr Tan concluded.

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Figure 7 . Altech's exhibition at the AMEC Convention

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Perth stockbroking firm DJ Carmichael Pty Ltd and Empire Capital Partners with offices in Hong Kong and Perth were the respective lead and co-manager of the Placement. As the Company has already conducted a share purchase plan (SPP) during the proceeding 12-months (March 2016), the Company is unable to offer an SPP to existing shareholders as part of this capital raising (ASIC regulation of not more than $15,000 per shareholder via an SPP each 12 month period).

Breakaway Research Report

Altech featured in a research report titled “Excellent Progress on the Finance and Offtake Front” by Breakaway Research, which was released during the quarter and is available for viewing and download from the Company's website. In the report, Breakaway provide an updated indicative valuation of Altech, with a risked Company valuation of between $40.5m and $137.8m, with a midpoint of $89.1m, which is an increase of around 100% from its August 2015 valuation. The valuation equates to an undiluted share price range of $0.23 to $0.78 per share, with a midpoint of $0.50/share.

Altech participation at the AMEC

The Company exhibited at the Association of Mining and Exploration Companies (AMEC) Convention, which was held over two days (8 – 9 June 2016) in Perth. The conference attracted over 500 delegates from the Australian mining and exploration investment sector.

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Quarterly Report June 2016

Figure 8 . Altech at the Canary Stocks to Watch Roadshow in Sydney

Corporate

Finance News Network conducted an interview with Altech managing director Mr Iggy Tan during the quarter. Mr Tan discussed the results from the recently optimised bankable feasibility study (BFS) for the Company's proposed Malaysian high purity alumina (HPA) project, as well as project financing progress, the 100% off-take sales agreement with Mitsubishi and the recently completed capital raising.

Altech participated in the Canary 'Stocks to Watch' Roadshows in Sydney and Melbourne during the quarter. During the Sydney roadshow, Canary Networks conducted an exclusive interview with Altech chief financial officer and company secretary, Mr Shane Volk. In the interview Mr Volk discusses the HPA project, project financing, as well as market opportunities for the Company's HPA product in general. Both interviews are available for viewing and download from the Company's website.

On 30 June 2016 the Company had approximately $1.6 million cash on hand.

During the quarter 2,500,000 unlisted options to acquire fully paid shares were exercised at $0.10 per option.

Schedule of Tenements

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Figure 9 . Proposed site layout at Malaysia

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Kaolin calcination
Kaolin filtration
Demin plant
unloading
Kaolin
slurrying
Cooling towers
Fire water
MCC building
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As per ASX Listing Rule 5.3.3, the Company held the following tenements (exploration and mining leases) as at 30 June 2016:

Tenement ID	Registered Holder	Location	Project	Grant Date	Interest start of quarter	Interest end of quarter
EPM18375	Altech Chemicals Ltd	QLD Australia	Constance Range	27/04/2012	100%	100%
E70/4718	Canning Coal Pty Ltd	WA Australia	Kerrigan	01/12/2015	100%	100%
E70/3923	Altech Meckering Pty Ltd	WA Australia	Meckering	30/1 1/2010	100%	0%
M70/1334	Altech Meckering Pty Ltd	WA Australia	Meckering	19/05/2016	100%	100%
E70/4784	Altech Meckering Pty Ltd	WA Australia	Meckering		100%	0%
E70/4785	Canning Coal Pty Ltd	WA Australia	Meckering		100%	0%
E70/4786	Canning Coal Pty Ltd	WA Australia	Meckering		100%	0%
E70/4852	Altech Meckering Pty Ltd	WA Australia	Meckering		0%	100%
E70/4856	Canning Coal Pty Ltd	WA Australia	Meckering		0%	100%
E70/4857	Altech Meckering Pty Ltd	WA Australia	Meckering		0%	100%
E70/4713	Altech Chemicals Ltd	WA Australia	Southdown	09/06/2015	100%	100%
E70/4341	Australian Mineral Sands Pty Ltd	WA Australia	SW Titanium	16/01/2013	100%	100%
E70/4643	Australian Mineral Sands Pty Ltd	WA Australia	SW Titanium	25/03/2015	100%	100%

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Altech Chemicals

Limited

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Company Snapshot

Altech Chemicals Limited (ASX:ATC) ABN 45 125 301 206

FINANCIAL INFORMATION :

FINANCIAL INFORMATION:
(as at June 2016)
Share Price:	$0.185
Shares:	180m
Unlisted Options:	3.6m
Performance Rights:*	17.2m
Market Cap:	$33.12m
Cash:	$1.6m

DIRECTORS:

Luke Atkins LLB Chairman

Iggy Tan B.Sc MBA GAICD Managing Director

Peter Bailey B.Sc(Hons) Elect.Eng MIEE C.Eng Non-executive Director

D an Tenardi Non-executive Director

P rince Ya'acob Bin Tunku Tan Sri Abdullah Non-executive Director

Uwe Ahrens Alternate Director

Shane Volk BBus (ACC) GradDip (ACG) CSA Company Secretary & CFO

HEAD OFFICE :

Suite 8, 295 Rokeby Road, Subiaco, Western Australia, 6008

T: +61 8 6168 1555 F: +61 8 6168 1551 E. info@altechchemicals.com W. www.altechchemicals.com

*Subject to vesting conditions

Appendix
5B Mining
exploration
entity
and
oil
and
gas
exploration
entity
quarterly
report

Rule
5.5

Appendix 5B

Mining exploration entity and oil and
gas exploration entity quarterly
report

Introduced
01/07/96
Origin
Appendix
8
Amended
01/07/97,
01/07/98,
30/09/01,
01/06/10,
17/12/10,
01/05/2013

Name
of
entity

	ALTECH CHEMICALS LIMITED	ALTECH CHEMICALS LIMITED
	ABN 45 125 301 206 Consolidated statement of cash flows
			30 June 2016
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – R & D tax incentive Other – deposit paid Net Operating Cash Flows		Current quarter $A’000		Year to date (12 months) $A’000
		- - (1,264) - (1,204) - 7 - - - (151)		- (42) (2,682) - (2,236) - 22 - - 851 (151)
		(2,612)		(4,238)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - (1) 2,000 - - - - -		- - (10) 2,000 - - - - -
		1,999		1,990
		(613)		(2,248)

• See
  chapter
  19
  for
  defined
  terms.

01/05/2013
Appendix
5B
Page
1

Appendix
5B Mining
exploration
entity
and
oil
and
gas
exploration
entity
quarterly
report

1.13 Total operating and investing cash flows (brought forward)	(613)	(2,248)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	1,612 - - - - -	3,273 - - - - -
	1,612	3,273
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	999 601	1,025 575
	1,600	1,600

Payments
to
directors
of
the
entity,
associates
of
the
directors, related
entities
of
the
entity
and
associates
of
the
related
entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		294
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Director remuneration

**Non-­‐cash

financing
and
investing
activities**

• 2.1 Details
  of
  financing
  and
  investing
  transactions
  which
  have
  had
  a
  material
  effect
  on consolidated
  assets
  and
  liabilities
  but
  did
  not
  involve
  cash
  flows

• See
  chapter
  19
  for
  defined
  terms. Appendix
  5B
  Page
  2

01/05/2013

Appendix
5B

Mining
exploration
entity
and
oil
and
gas
exploration
entity
quarterly
report

• 2.2 Details
  of
  outlays
  made
  by
  other
  entities
  to
  establish
  or
  increase
  their
  share
  in
  projects
  in which
  the
  reporting
  entity
  has
  an
  interest

**Financing

facilities
available**

Add
notes
as
necessary
for
an
understanding
of
the
position.

• 3.1 Loan
  facilities 3.2 Credit
  standby arrangements

	Amount available	Amount used
	$A’000	$A’000

**Estimated

cash
outflows
for
next
quarter**

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	-
	3,000
	-
	850
Total	3,850

**Reconciliation

of
cash**

Total Reconciliation of cash		3,850
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other –Security Deposit (Exploration Tenement) Deposit – other	1,446	598
	-	-
	-	-
	3 151	3 -
Total: cash at end of quarter(item 1.22)	1,600	601

• See
  chapter
  19
  for
  defined
  terms.

01/05/2013
Appendix
5B
Page
3

Appendix
5B Mining
exploration
entity
and
oil
and
gas
exploration
entity
quarterly
report

**Changes

in
interests
in
mining
tenements
and
petroleum
tenements**

Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed E70/3923 100% holder of exploration licence 100% 0% 6.2 Interests in mining tenements and petroleum tenements acquired or increased Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed E70/3923 100% holder of exploration licence 100% 0% 6.2 Interests in mining tenements and petroleum tenements acquired or increased Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location	Tenement reference and location	Nature of interest (note (2))	Nature of interest (note (2))	Interest at beginning of quarter	Interest at beginning of quarter	Interest at end of quarter
		E70/3923		100% holder of exploration licence		100%		0%
	Total number		Number quoted		Issue price per security (see note3) (cents)		Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	179,781,733		179,781,733
	25,415,951		25,415,951		2,500,000 at $0.10 per share (Ex. of unlisted options) 22,915,951 at $0.086 per share (Placement and SPP)		Fully paid Fully paid
7.5 +Convertible debt securities (description)

• See
  chapter
  19
  for
  defined
  terms. Appendix
  5B
  Page
  4

01/05/2013

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Mining
exploration
entity
and
oil
and
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exploration
entity
quarterly
report

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) Performance Rights (employees & directors) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,000,000 1,000,000 1,000,000 600,000 17,300,000	- - - - -		Exerciseprice $0.20 $0.25 $0.30 $0.20 nil		Expirydate 18-Dec-2017 18-Dec-2017 18-Dec-2017 31-Jan-2017
	2,500,000	-		$0.10	9-27 June 2016
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

1 This
statement
has
been
prepared
under
accounting
policies
which
comply
with accounting
standards
as
defined
in
the
Corporations
Act or
other
standards acceptable
to
ASX
(see
note
5).

• 2 This
  statement
  does
  / ~~does not~~ * (delete
  one) give
  a
  true
  and
  fair
  view
  of
  the matters
  disclosed.

29
July
2016 Sign
here: ............................................................
Date:
............................ ~~(Director/~~ Company
Secretary)

Shane
Volk Print
name: .........................................................

• See
  chapter
  19
  for
  defined
  terms.

01/05/2013
Appendix
5B
Page
5

Appendix
5B Mining
exploration
entity
and
oil
and
gas
exploration
entity
quarterly
report

Notes

• 1 The
  quarterly
  report
  provides
  a
  basis
  for
  informing
  the
  market
  how
  the
  entity’s activities
  have
  been
  financed
  for
  the
  past
  quarter
  and
  the
  effect
  on
  its
  cash position.
  An
  entity
  wanting
  to
  disclose
  additional
  information
  is
  encouraged
  to do
  so,
  in
  a
  note
  or
  notes
  attached
  to
  this
  report.

• 2 The
  “Nature
  of
  interest”
  (items
  6.1
  and
  6.2)
  includes
  options
  in
  respect
  of interests
  in
  mining
  tenements
  and
  petroleum
  tenements
  acquired,
  exercised
  or lapsed
  during
  the
  reporting
  period.
  If
  the
  entity
  is
  involved
  in
  a
  joint
  venture agreement
  and
  there
  are
  conditions
  precedent
  which
  will
  change
  its
  percentage interest
  in
  a
  mining
  tenement
  or
  petroleum
  tenement,
  it
  should
  disclose
  the change
  of
  percentage
  interest
  and
  conditions
  precedent
  in
  the
  list
  required
  for items
  6.1
  and
  6.2.

• 3 Issued
  and
  quoted
  securities The
  issue
  price
  and
  amount
  paid
  up
  is
  not required
  in
  items
  7.1
  and
  7.3
  for
  fully
  paid
  securities .

• 4 The
  definitions
  in,
  and
  provisions
  of, AASB
  6:
  Exploration
  for
  and
  Evaluation
  of Mineral
  Resources and AASB
  107:
  Statement
  of
  Cash
  Flows apply
  to
  this
  report.

• 5 Accounting
  Standards ASX
  will
  accept,
  for
  example,
  the
  use
  of
  International Financial
  Reporting
  Standards
  for
  foreign
  entities.
  If
  the
  standards
  used
  do
  not address
  a
  topic,
  the
  Australian
  standard
  on
  that
  topic
  (if
  any)
  must
  be
  complied with.

==
==
==
==
==

• See
  chapter
  19
  for
  defined
  terms. Appendix
  5B
  Page
  6

01/05/2013