BRIGHTSTAR RESOURCES LIMITED — Interim / Quarterly Report 2012

Jan 29, 2012

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, 01/06/10.

Name of entity

STONE RESOURCES AUSTRALIA LIMITED

	ABN 44 100 727 491 Consolidated statement of cash flows	ABN 44 100 727 491 Consolidated statement of cash flows	Quarter ended (“current quarter”) 31STDecember 2011	Quarter ended (“current quarter”) 31STDecember 2011
			31STDecember 2011
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
		1,682 (129) (12,286) (1,885) (641) - 10 (707) - -		8,679 (325) (13,669) (6,362) (1,190) - 17 (734) - -
		(13,964)		(13,584)
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 (carriedforward)		- - (31) - - 23 500 - 76		- - (91) - - 23 500 - (17)
		568		415
		(13,396)		(13,169)

• See chapter 19 for defined terms.

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1.13 Total operating and investing cash flows (broughtforward)	(13,396)	(13,169)
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 - Share Issue Costs Net financing cash flows	13,868 - 274 (214) - (376)	13,868 - 274 (321) - (376)
	13,552	13,445
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	156 353 -	276 233 -
	509	509

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

Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 98 1.24 Aggregate amount of loans to the parties included in item 1.10 - 1.25 Explanation necessary for an understanding of the transactions During the quarter a convertible note together ($12.0m) with a placement of shares was secured from Stone Resources Limited. This raised approximately $13.250m which was used to repay the major creditor, Watpac. Stone Resources Limited converted $11.5m of the convertible note into ordinary shares.

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

Financing facilities available

Add notes as necessary for an understanding of the position.

• See chapter 19 for defined terms.

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

Estimated cash outflows for next quarter

	4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration			$A’000
				2,500
				150
				1,500
				450
	Total			4,600
	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)	(59)		(24)
		568		377
		-		-
		-		-
	Total: cash at end of quarter(item 1.22)	509		353

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginnin g of quarter	Interest at end of quarter

• See chapter 19 for defined terms.

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6.2 Interests in mining tenements acquired or increased	P38/3951 P38/3952 L38/185	Granted Granted Granted	0% 0% 0%	100% 100% 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.

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	623,969,854	623,969,854
	94,730,000	94,730,000	2.5 cents	2.5 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
	328,571,429	328,571,429	3.5 cents	3.5 cents

• See chapter 19 for defined terms.

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7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	Director Options 9,500,000 2,500,000 Employee options 1,800,000 1,000,000 1,050,000	- - - -	Exercise price 35 cents 20 cents 20 cents 30 cents 30 cents	Expiry date 30 Nov 2012 29 Nov 2013 23 Feb 2012 8 Jun 2012 8 Jun 2013
	Director Options 2,000,000 6,000,000	- - -	Exercise price 20 cents 20 cents	Expiry date 30 Nov 2011 29 Nov 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 4).

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

Sign here: (Company secretary)

... ...................Date:31 December 2011.

Print name .Albert Longo..................................................

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.

• See chapter 19 for defined terms.

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• 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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