ASARA RESOURCES LIMITED — Interim / Quarterly Report 2011

Jan 30, 2012

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Quarterly Activities Report
For the period ended 31 December 2011
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Golden Rim Resources Ltd (ASX: GMR) is an exploration and mining company with a focus on copper and gold. The Company is active in West Africa, with gold resources and permits covering over 5,000km[2] in the highly prospective Birimian greenstone belts of Mali and Burkina Faso.

Abu Dhabi-based Royal Group is a substantial shareholder and strategic partner of Golden Rim. Through an alliance company, Royal Falcon Mining LLC, the companies have secured advanced copper/gold projects (Falun and Bersbo) in Sweden and are seeking further significant investments.

Golden Rim is pursuing an active drilling program in Mali and Burkina Faso and is poised to deliver significant growth and value to shareholders.

Highlights

Burkina Faso

• 30,000m RC drilling program commenced at the Balogo Project (Phase 3).

• New drill intercepts from Balogo include: 57m at 23.3 g/t gold from 40m including 8m at 131.8 g/t gold in hole BRC 071 , which is the best received to date.

• The Yako Project area was expanded with the right to acquire the Tanlili permit located immediately south of the Zanna permit. The Tanlili permit covers the Margo artisanal mining site, one of the largest in Burkina Faso.

• An agreement was signed to divest 5 permits to Riedel Resources Limited for A$0.9 million in cash and 12.5 million shares .

Mali

Head Office

Level 2 10 Outram Street WEST PERTH WA 6005 AUSTRALIA T: + 61 8 9481 5758 www.goldenrim.com.au

Exploration Office Level 1 19 Prospect Street BOX HILL VIC 3128 AUSTRALIA T: + 61 3 9890 2311

Contact

Craig Mackay Managing Director info@goldenrim.com.au

• 4,000m RC drilling program commenced at the Linnguekoto West Prospect, Sepola Project area.

• Geochemical sampling was completed over the western part of the Faraba permit in the Faraba Project. Further gold-in-soil anomalies were defined and a peak soil sample assay result of 5.72 g/t gold was obtained.

Sweden

• Golden Rim’s Abu Dhabi alliance company, Royal Falcon Mining LLC, has decided to investigate options to enhance the value of its interest in the Falun and Bersbo copper and gold projects in Sweden including by joint venture or divestment. This will allow Golden Rim to further focus on its projects in West Africa.

Directors

Rick Crabb, Non Executive Chairman Craig Mackay, Managing Director Gilbert Rodgers, Executive Director Glenister Lamont, Non Executive Director Nadir Alhammadi, Non Executive Director

Golden Rim Resources Ltd I ABN 39 006 710 774 I Level 2, 10 Outram Street, West Perth WA 6005, Australia I PO Box 378, West Perth WA 6872, Australia www.goldenrim.com.au I info@goldenrim.com.au I T + 61 8 9481 5758 I F + 61 8 9481 5759

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Balogo Project, Burkina Faso

The Balogo Project covers 791km[2] and is located in southern Burkina Faso. It covers part of a highly prospective Lower Proterozoic Birimian greenstone belt and is traversed for 25km by a significant NEtrending fault splay which is connected to the major Markoye Fault system. This fault system controls a number of major gold deposits in Burkina Faso, such as Taparko / Bouroum (1.5Moz gold), Kiaka (2.6Moz gold), Bomboré (3.5Moz gold) and Essakan (6Moz gold).

Reverse Circulation Drilling

A third program of drilling ( Phase 3 ) commenced in November 2011 to follow-up the encouraging gold and copper results from the second drilling program. A total of 61 holes for 7,658m were completed by the end of the reporting period.

The best new intersections include:	57m at 23.3 g/t gold from 40m including 8m at
(Results released on 16 January 2012)	131.8 g/t gold(Hole BRC071)
	7m at 3.0 g/t gold from 102m (Hole BRC071)
	4m at 25.0 g/t gold from 19m (Hole BRC068)
	10m at 7.5 g/t gold from 14m (Hole BRC073)
	2m at 11.4 g/t gold from 1m (Hole BRC078)

Drilling commenced 1.3km SW of the Balogo Hill Prospect area around a newly defined structure, the Netiana Shear Zone, to follow-up on previous high grade gold intercepts in holes BRC025 (8m @ 5.75 g/t gold) and BRC042 (14m @ 2.56 g/t gold and 5m @ 32.55 g/t gold, 0.14% copper).

Currently, assays have only been received for the first 13 holes (BRC068 to BRC080) out of the total 61 holes drilled to the end of the quarter.

A list of all intercepts greater than 0.5 g/t gold is provided in Table 1. Intercepts were calculated using an average gold grade, 0.5 g/t gold cut-off and a maximum of 4 metres of internal waste.

The mineralisation intersected appears to be associated with multiple sheared contact zones between metasediments and granodiorite. Quartz and carbonate veining, pyrite and magnetite are associated with the gold.

Significant grade gold intercepts have been obtained over 200m of strike (on 4, 50m spaced drill sections) and the mineralisation is believed to be open to the SW and NE. Drilling along strike has been completed and further assay results are pending.

The geometry of the higher grade gold mineralisation within this strike extent is still unclear and additional drilling along with trenching is planned to resolve this. It is suspected the higher grade zones of mineralisation may be associated with a series of plunging shoots.

Golden Rim believes it may have discovered iron oxide copper-gold (IOCG) style mineralisation at Balogo. A multi-element analyses program is currently being conducted on a number of mineralised zones at Balogo to check if there are elements in addition to gold and copper that are anomalous.

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Golden Rim is now looking to mobilise a second rig to Balogo to commence diamond drilling on the Netiana Shear Zone. The Company is currently in discussions with a number of contractors.

Geochemical Sampling

Soil sampling was completed on a number of magnetic anomalies during the quarter. A total of 4,608 soil samples were collected on the Balogo, Biaza and Sakaro permits. No significant results have been received to date.

Sebba Project, Burkina Faso

The Sebba Project is located in NE of Burkina Faso and is comprised of 9 granted exploration permits covering an area of approximately 1,787km[2] .

The permits are located on several greenstone belts which are traversed by major deep-seated shear zones and are considered highly prospective for the discovery of significant gold mineralisation.

Geochemical Sampling

Geochemical sampling continued on 7 permits in the Sebba Project area during the quarter with a total of 6,727 soil samples and 162 rock samples collected. A total of 1,307 power auger holes were also completed.

By the end of the quarter, no assay results had been received from the geochemical sampling programs at Sebba.

Yako Project, Burkina Faso

Permit Acquisition

During the quarter, Golden Rim signed an agreement giving it the right to acquire the Tanlili permit, which covers 162.1km[2 ] and is located immediately south of the Zanna permit. The permit is 14.4km south of Riverstone Resources’ Karma project (2.7 Moz gold) and 24km west of Orezone’s Sega project (0.6 Moz gold).

The significant “Margo” artisanal mining site is located on the Tanlili permit. The gold mineralisation at this artisanal working was discovered in 1986 and has been continuously worked until today. It is arguably the second largest artisanal site in Burkina Faso with historically up to 4,000 people in the area. Gold mineralisation at Margo occurs as a series of sheeted quartz veins in a corridor trending WNWESE and hosted in a sedimentary package that has been intruded by a late stage granite body. Quartz / sulphide veins are hosted in a foliated dioritic intrusive with weak pyrite / sericite alteration of the host rocks.

There are two main areas of artisanal activity at Margo.

The main workings cover an area of 500m long by 200m wide. This area was partly tested by previous explorers with drill intercepts including 15m @ 2.08 g/t gold, 13m @ 1.63 g/t gold and 4m @ 2.15 g/t gold.

It is believed that the previous drilling did not adequately test the area as holes were drilled obliquely to the main trend of mineralisation.

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A new zone of gold mineralisation is currently being mined approximately 350m to the SE of the original artisanal site. At the present time, excavations cover a roughly circular area 100m across. Mineralisation at this locality appears identical to that at the older artisanal site. This new area has not been previously drilled.

Another artisanal site (Pelle South) is located on the Tanlili permit. This site consists of 2 parallel zones striking NNE, each zone is approximately 300m long and 60m wide. Pelle South is located 1.3km SSW of the Pelle North Prospect on the Zanna permit.

Each of the parallel zones at Pelle South has been drill tested with a single hole.

Reverse circulation hole TAC035 tested the eastern zone and intersected 15m @ 2.08 g/t gold from 14m, 13m @ 1.63 g/t gold from 31m and 4m @ 2.15 g/t gold from 52m.

Drilling on the western zone intersected 6m @ 1.1 g/t gold from 45m.

Sepola Project, Mali

The Sepola Project covers approximately 300km[2] and lies approximately 40km SE from the Sadiola and Yatela gold mines (containing more than 15Moz gold) and approximately 40km northwest of the Loulo gold deposit (containing more than 11Moz gold) in western Mali.

During the quarter, the Sepola camp was re-opened, trenching and RC drilling commenced at the Linnguekoto West Prospect and regolith mapping and termite mound sampling was completed on the Kenienandi East permit.

A total of three trenches were dug by the end of the reporting period with a total length of 442m. No assay results had been received to the end of the quarter.

Reverse circulation drilling commenced at the Linnguekoto West Prospect in late December 2011 to test the significant zones of stock work gold mineralisation discovered in trenching. By the end of the month, three holes were completed for an aggregate of 430m. A total of approximately 4,000m of drilling is planned.

Regolith mapping and termite mound sampling were completed over 5.5km[2] on the Keniebandi East permit. A total of 41 samples were collected and results are pending at the end of the quarter.

Faraba Project, Mali

The Faraba Project is comprised of two granted exploration permits (Faraba and Niaouleni West) covering 83.4km[2] of highly prospective Lower Proterozoic Birimian volcano-sedimentary rocks in southern Mali. These types of rocks are known to host major gold deposits throughout West Africa.

Soil sampling was completed on the western part of the Faraba permit. A total of 430 samples were collected. Gold-in-soil values up to 5.72 g/t gold were obtained.

The soil sampling outlined a number of coherent, low-level gold anomalies across the surveyed area. These areas are being prioritised for air core drilling due to commence in the next quarter.

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Royal Group Alliance and the Bergslagen Joint Venture

Royal Falcon Mining LLC ( Royal Falcon ) is a purpose specific company formed to acquire, explore and develop major mineral projects. Golden Rim holds a 35% interest in Royal Falcon while PAL Technology Services LLC, a member of the Royal Group of Companies based in Abu Dhabi, UAE, hold the remaining 65% interest.

Royal Falcon entered into a Farmin and Joint Venture Heads of Agreement in April 2009 on the advanced Falun and Bersbo poly-metallic projects located in the Bergslagen district in central Sweden ( Bergslagen Joint Venture ).

Falun Project, Sweden

The Falun Project comprises 6 permits covering 101km[2] around the historic mining centre of Falun, located 200km NW of Stockholm, and is part of the Bergslagen Joint Venture. It was first mined around 700AD and was the largest copper producer in Europe during the 17th and 18th centuries. The mine was closed in 1992 after operating for more than 1,400 years. Records show that more than 35m tonnes of high-grade ore were mined containing on average 1-3% copper, 2-6% zinc and 1-7 g/t gold. Falun is regarded as one of the world’s great, massive sulphide mineralising systems.

Royal Falcon LLC has decided to investigate options to enhance the value of its interest in the Falun and Bersbo copper and gold projects in Sweden including by joint venture or divestiture. This will allow Golden Rim to further focus on its projects in West Africa.

Corporate

During the quarter, Golden Rim entered into an agreement with Riedel Resources Ltd ( Riedel ) to divest 5 of its permits in Burkina Faso (Galgouli South, Gonsin, Keri, Moaga, and Tagou).

The divestment is part of Golden Rim’s strategy to continually acquire prospective holdings and to strategically divest others, insuring a pipeline of high quality projects.

An initial non refundable option fee of US $25,000 dollars has been paid by Riedel to Golden Rim. Further, Riedel has completed its due diligence in accordance with the initial letter agreement between the companies. At the completion date, Golden Rim will receive a cash consideration of US$875,000 and 12,500,000 fully paid ordinary shares in Riedel (the shares to be escrowed for 12 months).

Golden Rim also held its 2011 Annual General Meeting on 17 November 2011. All of the resolutions proposed at the meeting were passed on a show of hands. Golden Rim’s Managing Director, Mr Craig Mackay, took the opportunity to present an update to shareholders.

During the quarter, the Company actively sought opportunities to present to various institutions and at conferences including some institutions in London, Zurich and Geneva. The Company has been well received and the Company’s profile continues to increase.

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For further information, please contact:

Hayley Butcher Anna Staples Golden Rim Resources AMN Corporate Company Secretary +61 (0)400 205 433 +61 8 9481 5758 anna@amncorporate.com

Mining Indaba Conference

Golden Rim will be exhibiting at the Mining Indaba conference in Cape Town South Africa 6-9 February 2012. To arrange a one-on-one briefing with the Company during the conference, please contact Anna Staples on her details listed above.

For additional information about the conference, please visit www.miningindaba.com.

About Golden Rim Resources Limited

Golden Rim Resources Ltd (ASX: GMR) is an exploration and mining company with a focus on copper and gold. The Company is active in West Africa, with gold resources and permits covering around 5,000km[2] in the highly prospective Birimian greenstone belts of Mali and Burkina Faso.

With experienced management and extensive local teams in the Company’s permanent offices in Mali and Burkina Faso, Golden Rim is able to move quickly and efficiently in order to maximise potential opportunities.

Abu Dhabi-based Royal Group is a substantial shareholder and strategic partner of Golden Rim. Through an alliance company, Royal Falcon Mining LLC, the companies have secured advanced copper/gold projects (Falun and Bersbo) in Sweden and are seeking further significant investments.

Golden Rim is pursuing an active program of drilling in Mali and Burkina Faso and is poised to deliver significant growth and value to shareholders.

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Figure 1. Location of Golden Rim’s permits and project areas in Burkina Faso. Permits in highlighted in blue are being divested.

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Figure 2. Location of new gold intersections (red text) in the Netiana Shear Zone at Balogo over an image of the ground magnetics which shows the NE-SW-trending structure.

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Table 1. Significant Gold Intercepts from the Phase 3 Drilling Program at Balogo

Hole Number	From (m)	To (m)	Gold Assay (g/t)	Repeat Gold Assay (g/t)	Average Gold Assay (g/t)	Gold Intersection
BRC068	19	20	71.141	65.487	68.314
BRC068	20	21	25.465		25.465
BRC068	21	22	4.181		4.181	4m@ 25.0
BRC068	22	23	1.968		1.968
BRC068	43	44	1.395		1.395
BRC068	44	45	10.982		10.982	3m @ 4.4
BRC068	45	46	0.787		0.787
BRC068	125	126	0.542		0.542	2m@ 0.8
BRC068	126	127	0.979		0.979
BRC068	138	139	0.62		0.62	1m@0.6
BRC068	151	152	0.731		0.731	1m@0.7
BRC069	3	4	1.523		1.523
BRC069	4	5	0.064		0.064
BRC069	5	6	0.02		0.02
BRC069	6	7	1.105		1.105	7m@ 0.8
BRC069	7	8	0.11		0.11
BRC069	8	9	1.357		1.357
BRC069	9	10	1.123		1.123
BRC070	2	3	1.765		1.765	2m@1.4
BRC070	3	4	0.98		0.98
BRC070	27	28	0.732	0.644	0.69	1m@0.7
BRC070	40	41	0.687		0.687	1m@0.7
BRC070	74	75	0.713		0.713
BRC070	75	76	3.796		3.796	3m@1.9
BRC070	76	77	1.298		1.298
BRC071	40	41	0.772		0.772
BRC071	41	42	1.857		1.857
BRC071	42	43	3.833		3.833
BRC071	43	44	4.816		4.816
BRC071	44	45	62.902		62.902
BRC071	45	46	149.554		149.554
BRC071	46	47	23.18		23.18
BRC071	47	48	190.289	298.983	244.636
BRC071	48	49	91.419		91.419
BRC071	49	50	235.999		235.999
BRC071	50	51	146.75		146.75
BRC071	51	52	100.055		100.055
BRC071	52	53	38.463		38.463
BRC071	53	54	18.778		18.778
BRC071	54	55	17.636		17.636
BRC071	55	56	16.717		16.717
BRC071	56	57	10.065		10.065
BRC071	57	58	17.352		17.352
BRC071	58	59	31.484		31.484
BRC071	59	60	18.221		18.221
BRC071	60	61	10.023		10.023

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Hole Number	From (m)	To (m)	Gold Assay (g/t)	Repeat Gold Assay (g/t)	Average Gold Assay (g/t)	Gold Intersection
BRC071	61	62	4.624		4.624
BRC071	62	63	1.695		1.695
BRC071	63	64	7.226		7.226
BRC071	64	65	3.631		3.631	57m@ 23.3
BRC071	65	66	14.143		14.143	inc 8m @ 131.8 from 44m
BRC071	66	67	5.034		5.034
BRC071	67	68	1.623	2.114	1.868
BRC071	68	69	0.448		0.448
BRC071	69	70	0.149		0.149
BRC071	70	71	0.104		0.104
BRC071	71	72	0.096		0.096
BRC071	72	73	0.934		0.934
BRC071	73	74	0.468		0.468
BRC071	74	75	0.337		0.337
BRC071	75	76	1.105		1.105
BRC071	76	77	0.883		0.883
BRC071	77	78	0.591		0.591
BRC071	78	79	2.483		2.483
BRC071	79	80	1.838		1.838
BRC071	80	81	0.844		0.844
BRC071	81	82	14.294		14.294
BRC071	82	83	3.725		3.725
BRC071	83	84	1.542		1.542
BRC071	84	85	4.844		4.844
BRC071	85	86	0.407		0.407
BRC071	86	87	0.667		0.667
BRC071	87	88	1.391	0.924	1.157
BRC071	88	89	0.735		0.735
BRC071	89	90	0.566		0.566
BRC071	90	91	3.254		3.254
BRC071	91	92	0.281		0.281
BRC071	92	93	0.058		0.058
BRC071	93	94	0.653		0.653
BRC071	94	95	0.728		0.728
BRC071	95	96	0.242		0.242
BRC071	96	97	0.71		0.71
BRC071	102	103	1.034		1.034
BRC071	103	104	0.115		0.115
BRC071	104	105	0.209		0.209
BRC071	105	106	0.242		0.242	7m@ 3.0
BRC071	106	107	3.572		3.572
BRC071	107	108	12.435	16.98	14.707
BRC071	108	109	1.095		1.095
BRC072	0	1	1.045		1.045
BRC072	1	2	0.153		0.153	3m@ 0.7
BRC072	2	3	0.769		0.769
BRC072	28	29	0.531		0.531	1m@0.5
BRC072	37	38	0.526		0.526	1m@0.5

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Hole Number	From (m)	To (m)	Gold Assay (g/t)	Repeat Gold Assay (g/t)	Average Gold Assay (g/t)	Gold Intersection
BRC073	0	1	1.879		1.879
BRC073	1	2	2.076		2.076	3m@1.9
BRC073	2	3	1.798		1.798
BRC073	14	15	0.702		0.702
BRC073	15	16	0.094		0.094
BRC073	16	17	0.024		0.024
BRC073	17	18	0.058		0.058	10m @ 7.5
BRC073	18	19	64.512		64.512
BRC073	19	20	1.14		1.14
BRC073	20	21	0.274		0.274
BRC073	21	22	0.535		0.535
BRC073	22	23	5.041		5.041
BRC073	23	24	2.72		2.72
BRC073	105	106	4.699		4.699	1m@4.7
BRC073	112	113	1.015		1.015
BRC073	113	114	3.4		3.4	2m@2.2
BRC074	1	2	0.525		0.525	1m@0.5
BRC074	34	35	0.522		0.522	1m@0.5
BRC074	45	46	0.538		0.538	1m@0.5
BRC074	76	77	1.286		1.286	1m@1.3
BRC074	111	112	0.799		0.799	1m@ 0.8
BRC075	0	1	0.779		0.779	1m@0.8
BRC075	22	23	2.491		2.491
BRC075	23	24	2.379	2.075	2.227	4m@ 2.7
BRC075	24	25	5.343		5.343
BRC075	25	26	0.685		0.685
BRC076B	53	54	1.14		1.14	1m@1.1
BRC078	1	2	21.98		21.98	2m@ 11.4
BRC078	2	3	0.711		0.711
BRC079	16	17	3.07		3.07
BRC079	17	18	0.348		0.348	3m @ 1.4
BRC079	18	19	0.34	0.918	0.629
BRC080	57	58	2.02		2.02	1m@2.0

Note: Intercepts were calculated with a 0.5 g/t gold cut-off and with a maximum of 4m internal dilution

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The information in this public report that relates to exploration results and mineral resources is based on information compiled by Mr Craig Mackay who is a member of The Australasian Institute of Mining and Metallurgy. Mr Mackay is an employee of Golden Rim Resources Ltd. Mr Mackay has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mackay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Further Company Information

E: info@goldenrim.com.au W:goldenrim.com.au

Capital Structure

Issued Shares: 359,396,731 Unlisted Options: 29,950,000

Major Shareholders

Royal Group, Abu Dhabi 13.10% Rick Crabb Group 5.71% Acorn Capital 5.71%

Share Registry

Security Transfer Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6153 AUSTRALIA

T: + 61 8 9315 2333 F: + 61 8 9315 2233 E: registrar@securitytransfer.com.au W: securitytransfer.com.au

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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining 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

Name of entity

GOLDEN RIM RESOURCES LIMITED

ABN 39 006 710 774	Quarter ended (“current quarter”)
39 006 710 774	31 DECEMBER 2011

Consolidated statement of cash flows

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 (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (6 months) $A’000
	(2,402) (594) 54 27	(3,118) (1,307) 137 27
	(2,915)	(4,261)
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)	(207) (3)	(304) (8)
	(210)	(312)
	(3,125)	(4,573)

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(3,125)	(4,573)
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
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	(3,125) 3,782 51	(4,573) 5,230 51
	708	708

Payments to directors of the entity and associates of the directors Payments to 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
		183
		NIL
1.25	Explanation necessaryfor an understandingof the transactions

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 N/A

• 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 N/A

• See chapter 19 for defined terms.

Appendix 5B Page 2

17/12/2010

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		NIL	NIL
		NIL	NIL

Estimated cash outflows for next quarter

• 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration Total

$A’000 1,000 500 1,500

Reconciliation of cash

Reconciliation of cash
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 (provide details)	708	1,722
	-	2,060
Total: cash at end of quarter(item 1.22)	708	3,782

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interes t at beginn ing of quarte r	Interest at end of quarter
	N/A

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased	Balogo	Acquisition of licence	0%	100%

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.

	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	359,396,731	359,396,731
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	600,000 (Class E) 7,000,000 (Class F) 1,000,000 (Class G) 15,000,000 (Class H) 3,900,000 (ESOP)		Exercise price $0.21 $0.27 $0.21 $0.29 $0.29	Expiry date 5 October 2014 22 November 2014 10 July 2015 21 November 2015 21 November 2015
	12,150,000 (Class D)		Exercise price $0.15	Expiry date 31 December 2011
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 give a true and fair view of the matters disclosed.

Sign here:

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Date: 31/01/2012
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(Director/)

Print name: GILBERT RODGERS

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 acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

will change its percentage interest in a mining 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.

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