BANNERMAN ENERGY LTD — Interim / Quarterly Report 2009

Jan 20, 2010

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001

Name of entity

Name of entity	Name of entity	Name of entity	Name of entity
BANNERMAN RESOURCES LIMITED ABN Quarter ended (“current quarter”) 34 113 017 128 31 December 2009 Consolidated statement of cash flows
		31 December 2009
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and 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 NetOperating Cash Flows	Current quarter A$’000		Year to date (6 months) A$’000
	(4,736) - - (1,892) - 239 - - -		(10,315) - - (3,505) - 471 - - -
	(6,389)		(13,349)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) deposits (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 Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (24) - - - - - -		- - (237) - - - - - -
	(24)		(237)
	(6,413)		(13,586)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(6,413)	(13,586)
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 - costs of equity issues Other – interest paid Net financing cash flows	- - - - - - (191)	- - - - - (341) (390)
	(191)	(731)
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	(6,604) 29,868 (22)	(14,317) 37,578 (19)
	23,242	23,242

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
		213
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Item 1.23 includes salaries and fees for executive and non-executive directors.

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 Nil

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

Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities/Convertible Notes 3.2 Credit standby arrangements	Amount available A$’000	Amount used A$’000
		10,000	10,000
		-	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	A$’000
	6,000
	-
Total	6,000

Reconciliation of cash

	Current quarter	Previous quarter
	A$’000	A$’000
	625	525
	22,617	29,343
	-	-
	-	-
	23,242	29,868

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.

		625
5.1	Cash on hand and at bank
5.2	Deposits at call	22,617
5.3	Bank overdraft	-
5.4	Other (provide details)	-
	Total: cash at end of quarter(item 1.22)	23,242

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note(2))	Interest at beginning of quarter	Interest at end of quarter
	Nil
	Nil

• See chapter 19 for defined terms.

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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 note 3) (cents)	Amount paid up per security (see note 3) (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	201,710,934	201,710,934
7.5 +Convertible debt securities(description)	1 Convertible Note	Nil	A$10,000,000
	Amount - A$10,000,000. Conversion price - A$0.612 per Share. Date for Conversion: - If conversion option is exercised by holder (Resource Capital Fund IV L.P.), then at any time prior to 16 December 2011. - If conversion option is exercised by issuer (Bannerman Resources Limited), then within 90 days from the date the rolling 20 day volume weighted average price of shares in the issuer is equal to or more than 3 times the conversion price but this option may only be exercised after 16 December 2009. Coupon – 8% per annum payable quarterly in arrears on 31 March, 30 June, 30 September and 31 December of each year. At Bannerman’s election, interest can be satisfied by the issue of new Bannerman shares at the VWAP over the five trading days ending the trading day immediately before the relevant interest payment date. Repayment – If not converted, repayment will be required by a single bullet repayment on 16 December 2011. Security – Fixed and floating charge over the assets of Bannerman including a share mortgage over Bannerman’s 80% shareholding in Bannerman Mining Resources (Namibia) (Pty) Ltd.

• See chapter 19 for defined terms.

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7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	200,000 2,725,000 2,250,000 2,250,000 100,000 200,000 250,000 1,000,000 1,000,000 250,000 250,000 2,500,000 () 1,500,000 () 1,500,000 () 600,000 () 600,000 () 600,000 () 600,000 () 250,000 () 250,000 () 600,000 () 600,000 () 600,000 () 500,000 () 500,000 () 500,000 (*) 200,000 602,100		Exercise price A$2.40 A$0.20 A$6.50 A$7.50 C$4.12 A$3.64 A$2.80 A$2.51 A$3.00 A$2.44 A$4.00 A$0.434 A$0.543 A$0.678 A$0.91 A$1.14 A$1.43 A$0.83 A$1.51 A$1.89 A$1.46 A$1.82 A$2.28 A$1.45 A$1.81 A$2.26 A$1.40 A$1.45	Expiry date 27 December 2011 13 December 2010 30 November 2010 30 November 2011 1 November 2012 25 January 2013 3 June 2013 1 September 2011 1 September 2012 1 September 2011 1 September 2012 17 November 2012 17 November 2013 17 November 2014 2 February 2013 2 February 2014 2 February 2015 16 February 2013 20 August 2014 20 August 2015 31 August 2013 31 August 2014 31 August 2015 25 November 2013 25 November 2014 25 November 2015 27 July 2012 25 November 2012
	500,000 () 500,000 () 500,000 (*) 200,000 602,100		A$1.45 A$1.81 A$2.26 A$1.40 A$1.45	25 November 2013 25 November 2014 25 November 2015 27 July 2012 25 November 2012
	150,000		A$3.64	Cancelled
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

(*) Vesting conditions include performance hurdles related to the development and progression of the Etango Project.

• See chapter 19 for defined terms.

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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 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ................................................................. Date: 21 January 2010 (Company Secretary)

Print name: Andrew Steers

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 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 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting 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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