Brockman Mining Limited — Interim / Quarterly Report 2013

Jan 29, 2014

==> picture [596 x 59] intentionally omitted <==

==> picture [287 x 69] intentionally omitted <==

Incorporated in Bermuda with limited liability SEHK Stock Code: 159 ASX Stock Code: BCK

==> picture [164 x 300] intentionally omitted <==

QUARTERLY REPORT For the quarter ended 31 December 2013

— 2 —

==> picture [596 x 490] intentionally omitted <==

----- Start of picture text -----

||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|QUARTERLY ACTIVITIES REPORT|DECEMBER 2013|
|TABLE OF CONTENTS|
|1.|HIGHLIGHTS|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|3|
|2.|CORPORATE REVIEW|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|4|
|3.|MARILLANA IRON ORE PROJECT (100% INTEREST)|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|4|
|3 .1|Rail and port infrastructure .|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|4|
|3 .2 Mining and Metallurgy .|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|5|
|4.|REGIONAL IRON ORE PROJECTS (100% INTEREST)|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|5|
|4 .1 Ophthalmia Project .|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|5|
|4 .2 Competent Person’s Statement .|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|11|
|5.|DAMAJIANSHAN MINE (90% INTEREST)|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|16|
|6.|TRANSPORT SERVICES BUSINESS|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|17|
|7.|CORPORATE PROFILE|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|18|
|8.|GLOSSARY|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|19|
|9.|Attachment 1 – JORC COMPLIANCE STATEMENTS|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|16|
|10.|Attachment 2 – TENEMENTS HELD AT 31 DECEMBER 2013|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|21|
|11.|APPENDIX 5B|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|24|

----- End of picture text -----

2

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

1. HIGHLIGHTS

• A program of infill reverse circulation drilling was completed at Ophthalmia, to upgrade existing Inferred Mineral Resources at the Sirius Deposit, as well as to upgrade exploration targets at Sirius, Kalgan Creek and Coondiner. Preparation of an updated Mineral Resource estimate will be carried out for Sirius during the March 2014 quarter.

• During the quarter, a total of 111 RC holes for 9,228 m have been drilled, taking the total for the programme to 207 holes for 16,844 m, of which 177 holes for 14,840 m were at Sirius, 17 holes for 1,223 m were at Coondiner and 13 holes for 781 m were at Kalgan Creek.

• • Significant intersections at Sirius include

• 176 m at 60.7% Fe from 22 m in hole SRC0137,

• 160 m at 61.7% Fe from 8 m in hole SRC0140,

• 164 m at 61.2% Fe from 28 m in hole SRC0139, and

• 116 m at 62.0% Fe from 22 m in hole SRC0131.

• Extension drilling at Coondiner has also returned significant intersections, including: — 121 m at 59.5% Fe from 24 m in hole CNRC0216,

• 86 m at 59.4% Fe from 24 m in hole CNRC0222.

• The Company issued an unsecured bond to Ocean Line with an outstanding principal amount of US$4,000,000 (equivalent to approximately HK$31,200,000 at the date of issue) to raise funds for the Group’s general working capital. The Bond is unsecured, bears an interest rate of 10% and is due on 28 November 2014.

• On 2 January 2014, the Company entered into two subscription agreements, the effect of which will see the Company issue 487,500,000 shares at an aggregate subscription price of HK$195,000,000. Both agreements are conditional upon, among other things, approval of the independent shareholders and the Stock Exchange granting listing of and permission to deal in the shares .

3

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

2. CORPORATE REVIEW

Cash position

The consolidated cash position of the Group as at 31 December 2013 was HK$211.9 million (A$30.8 million).

During the quarter, the Company issued an unsecured bond to Ocean Line (“the Bond”) with an outstanding principal amount of US$4,000,000 (equivalent to approximately HK$31,200,000 at the date of issue). The Bond was issued on 12 November 2013 to raise funds for the Group’s general working capital. The Bond is unsecured, bears an interest rate of 10% and is due on 28 November 2014.

approval of the independent shareholders and the Stock Exchange granting listing of and permission to deal in the shares . The proceeds from the issue of the shares will be used for the development of the Group’s iron ore mining projects in Western Australia and for the general working capital of the Group .

A special general meeting to approve the subscriptions and issues is scheduled on 13 February 2014.

3. M A R I L L A N A I R O N O R E PROJECT (100% INTEREST)

3.1 Rail and port infrastructure

Rail Access

On 2 January 2014, the Company and Ocean Line entered into a subscription agreement, pursuant to which the Company agreed to issue and Ocean Line agreed to subscribe for 292,500,000 shares at an aggregate subscription price of HK$117 million. The subscription is conditional upon, among other things, approval of the independent shareholders and the Stock Exchange granting listing of and permission to deal in the shares . In the event that the independent shareholders approve the Ocean Line subscription, the Bond shall be redeemed in full and the proceeds from the redemption will be applied to subscribe for the shares. The remaining proceeds from the issue of the shares will be used for the development of the Group’s iron ore mining projects in Western Australia and for the general working capital of the Group.

On the same date, the Company and China Guoyin entered into a subscription agreement, pursuant to which the Company agreed to issue and China Guoyin agreed to subscribe for 195,000,000 shares at an aggregate subscription price of HK$78 million. The subscription is conditional upon, among other things, the

Brockman is seeking access rights to The Pilbara Infrastructure Pty Ltd’s (“TPI’s”) below-rail infrastructure under the Western Australian Railways (Access) Code 2000 (“Code”), to allow it to haul up to 20 Mtpa of hematite iron ore product from its Marillana Iron Ore Project (“Marillana”), for a term of 20 years, to Port Hedland where North West Infrastructure (“NWI”) has a capacity allocation of 50 Mtpa for iron ore export from South West Creek in the Inner Harbour. The proposal does not seek access to TPI’s above-rail services, as haulage services would be provided by an experienced haulage operator. Brockman proposes to procure the necessary spur lines and associated infrastructure to connect Marillana with the TPI railway and to connect it to the proposed NWI facilities in Port Hedland, which will include unloading, stockpiling and ship loading facilities in South West Creek, Port Hedland.

Following determinations by the ERA, setting Floor and Ceiling Costs (“F&C Costs”) for the TPI railway and approving the conduct of negotiations between Brockman and TPI pursuant to section 10 of the Code, on 7 October, TPI commenced

4

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

legal proceedings in the WA Supreme Court for a Judicial Review of the F&C Costs determination and the section 10 approval, and contemporaneously commenced an action challenging the validity of Brockman’s access proposal.

Following the first directions hearing for both matters on 30 October 2013, the judge made orders that the parties file defences, counterclaims and position papers and attend a further strategic conference hearing on 11 December 2013. At the 11 December conference, the judge ordered discovery of relevant documents in January, before the next directions hearing on 29 January 2014.

3.2 Mining and Metallurgy

During the quarter, work has been undertaken on the “value in use” (VIU) of the Marillana Fines®, in comparison to Pilbara Blend fines. The VIU has been independently estimated using the Marx VIU model for iron-making and suggests that Marillana Fines® would attract parity or at a small discount relative to Pilbara Blend unit prices, under the current market conditions, with a focus on inland Chinese mills and alumina constrained coastal mills .

4. R E G I O N A L I R O N O R E PROJECTS (100% INTEREST)

4.1 Ophthalmia Project

Brockman is continuing to advance the preparation of submissions to satisfy TPI’s request regarding Brockman’s managerial and financial capability (section 14) and the availability of capacity (sections 15) under the Code. As part of that process, on 24 December 2013, Brockman lodged an application with the Supreme Court seeking a mandatory injunction, seeking orders that TPI properly comply with its statutory obligations under the ‘request for information’ process under the Code, to provide original data relating to train running times. A directions hearing for the application will also be heard on 29 January, with a substantive hearing following thereafter.

Work continued during the quarter on a program of infill reverse circulation drilling at Ophthalmia, to upgrade the Inferred Mineral Resources and Exploration Targets identified previously at the Sirius Deposit to the Indicated category, as well as some limited exploration drilling testing targets at Kalgan Creek and Coondiner (Figure 1).

During the quarter, a total of 111 RC holes for 9,228 m have been drilled, taking the total for the programme to 207 holes for 16,844 m, of which 177 holes for 14,840 m were at Sirius, 17 holes for 1,223 m were at Coondiner and 13 holes for 781 m were at Kalgan Creek. All of the assay results for the RC drilling have now been received.

North West Infrastructure

NWI has continued to work on the advancement of the Port Hedland lease and agreement on commercial terms with the Port Hedland Port Authority, to govern the development of the proposed NWI port facilities in the Port Hedland harbour.

5

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

==> picture [395 x 272] intentionally omitted <==

Figure 1 — Ophthalmia Project Tenements

The planned resource upgrade drilling programme has been completed at Sirius. All significant BID (Bedded-Iron-Deposit style) intersections are listed in Table 1.

A t S i r i u s , a n u m b e r o f t h e r e c e n t intersections are from holes drilled outside the existing Mineral Resource boundary (see Table 1 and Figure 2). Preparation of an updated Mineral Resource estimate will be carried out for Sirius during the March 2014 quarter.

There is limited accessibility for drill sites at Sirius and in some cases multiple holes have been drilled from a single drill site, with the result that some holes are drilled slightly down-dip. The drilling results at Sirius confirm the continuity and grade of the deposit and have demonstrated that mineralisation extends to a greater depth than previously interpreted. The cross sections in Figures 3 to 5 demonstrate the consistency of grade and the amenability of the deposit to open pit mining .

In addition to the RC drilling, a short programme of HQ and PQ diamond drilling, comprising 439 m in 8 holes, was completed at Sirius in December. Drilling was designed to provide bulk metallurgical sample, geotechnical and structural data and twin hole assay data. No results are available as yet from the diamond drilling.

At Coondiner, infill and extension drilling was carried out mainly around the existing Mineral Resource boundary of the Pallas Deposit (Figure 6). Significant intersections were recorded from most of the areas drilled, with the best results from holes CNRC0216 and CNRC0222, located 200 m and 400 m respectively to the south-east of the existing Mineral Resource boundary.

At Kalgan Creek, several RC holes were drilled to further define the identified drilling target in the east of the tenement (Figure 7). A significant intersection was recorded in hole KRC0115 (38 m at 60.50%Fe).

6

QUARTERLY
	Hl ID	Easting	Northing	Elev.	Dip	Azim.	EOH	From	To	Width	Fe	SiO2	Al2O3	P		S	LOI
	oe	(m)	(m)	(m)	(deg)	(deg)	(m)	(m)	(m)	(m)	(%)	(%)	(%)	(%)	(%)		(%)
	Sirius Deposit
	SRC0131	780153	7429634	615	-64	360	138	22	138	116*	62.01	1 26	3 66	0.2	0.004		5 44
	SRC0132	780152	7429625	617	-60	360	102	26	98	72	60.55	2 17	4 4	0.17	0.004		5 57
	SRC0133	780580	7429459	627	-50	120	138	18	138	120*	61 13	2 67	4 23	0.18	0.003		4 87
	SRC0134	780548	7429460	627	-90	0	175	12	162	150	59 84	3 32	4 77	0.19	0.004		5 47
	SRC0135	780559	7429449	629	-55	180	138	30	120	90	59 38	3 26	4 76	0.18	0.003		5 89
	SRC0136	780562	7429452	629	-55	290	196	18	188	170	59 45	3 85	4.70	0.17	0.004		5 66
	SRC0137	780259	7429551	627	-75	360	235	22	198	176	60.66	2 73	4 12	0.20	0.005		5 49
	SRC0138	780253	7429540	627	-60	180	96	18	68	50	57 73	5 31	5 65	0.17	0.007		5 52
	SRC0139	780354	7429568	628	-70	360	192	8	168	160	61 67	2 38	3 48	0.21	0.006		5 12
	SRC0140	780342	7429487	632	-57	360	192	28	192	164*	61 17	2 58	3 64	0.18	0.005		5 22
	SRC0141	780249	7429601	613	-60	360	162	24	142	118	62 42	1 53	3 44	0.20	0.003		4 91
	SRC0142	780623	7430026	623	-50	180	120	30	120	90*	60.37	2 71	4 44	0.20	0.004		5 63
	SRC0145	780686	7429516	579	-90	—	109	24	98	74	58 17	4 64	5.10	0.18	0.004		6 19
	SRC0148 +	780767	7429873	559	-50	360	66	0	66	66*	61 47	3 19	3.01	0.16	0.006		5 15
	SRC0149 +	781078	7429786	628	-50	180	96	4	92	88	61 31	3 82	3.20	0.17	0.011		4 64
	SRC0150 +	781075	7429806	632	-60	360	96	2	78	76	59 95	3 83	4 11	0.16	0.019		5 45
	SRC0151 +	780968	7429895	632	-90	—	79	12	62	50	59 66	3 43	4 57	0.15	0.004		5.70
	SRC0152 +	780963	7429887	632	-55	180	144	0	114	114	59 84	4 83	4 14	0.14	0.007		4 74
	SRC0153 +	781132	7429798	619	-90	—	91	16	78	62	60.78	3 95	3 59	0.17	0.002		4 75
	SRC0155 +	781252	7429690	627	-90	—	67	8	52	44	61 11	3 86	3.30	0.17	0.014		4 78
	SRC0159 +	781142	7429696	628	-90	—	67	2	54	52	58 26	5.04	3 66	0.20	0.032		6 67
	SRC0160 +	781002	7429725	633	-55	290	78	0	68	68	62.03	3 49	2 61	0.15	0.027		4 47
	SRC0162 +	781053	7429723	632	-80	270	85	34	74	40	61 85	2 62	3 31	0.21	0.002		4 76
	SRC0163	780827	7429861	584	-90	—	79	0	60	60	60.16	3 19	3 84	0.21	0.054		5 85
	SRC0165	780793	7429979	631	-55	180	156	18	150	132	59 46	3 84	4 56	0.17	0.004		5 59
	SRC0168	780755	7429989	622	-55	180	156	22	152	130	59 73	3 27	4 15	0.17	0.004		6 36
	SRC0169	780739	7430013	701	-70	180	84	32	76	44	60.89	1 74	4 43	0.21	0.010		5 85
	SRC0170	780702	7430019	633	-50	180	114	44	114	70*	59 68	1 45	4 93	0.25	0.004		7 23
	SRC0171	780408	7429479	629	-50	110	155	28	146	118	57 96	3 15	6.06	0.19	0.003		6 69
	SRC0172	780403	7429483	629	-90	—	124	20	118	98	59 74	3.05	4 82	0.16	0.002		5 51
	SRC0173	780397	7429564	627	-60	110	210	14	184	170	62 29	1 75	3 73	0.17	0.003		4 79
	SRC0174	780301	7429545	629	-75	180	151	22	142	120	60.44	2 31	4 32	0.18	0.004		5 91
	SRC0175	780304	7429580	624	-90	—	199	24	164	140	61 18	2 38	3 93	0.19	0.002		5 52
	SRC0176	780348	7429545	628	-65	180	144	42	134	92	60.72	2 41	3 92	0.20	0.004		5.70
	SRC0177	780292	7429592	623	-60	360	180	24	154	130	62.04	2.10	3.40	0.21	0.006		4 95

7

QUARTERLY
	Hl ID	Easting	Northing	Elev.	Dip	Azim.	EOH	From	To	Width	Fe	SiO2	Al2O3	P		S	LOI
	oe	(m)	(m)	(m)	(deg)	(deg)	(m)	(m)	(m)	(m)	(%)	(%)	(%)	(%)		(%)	(%)
	SRC0179	780152	7429630	616	-90	—	187	20	187	167*	61 49	1 71	3 49	0.19	0.008		5 74
	SRC0191	779954	7429703	570	-55	180	75	4	70	66	60.10	2 78	4 78	0.19	0.005		5 51
	SRC0198	781236	7429301	562	-90	—	73	6	64	58	59 38	5.00	3 62	0.19	0.005		5 59
	SRC0199	780637	7429908	580	-60	360	102	0	90	90	60.67	3 35	3 99	0.18	0.008		5 11
	SRC0203	780820	7429863	583	-50	360	72	2	72	70*	60.49	2 79	4 27	0.19	0.034		5 46
	SRC0209	780857	7429462	574	-50	360	60	0	42	42	62 29	3 24	2 68	0.16	0.007		4 19
	SRC0210	780748	7429370	578	-55	360	144	0	96	96	60.84	2 32	4 37	0.21	0.006		5 28
	SRC0212	780646	7429343	579	-55	180	48	0	42	42	57 41	4 53	4 88	0.23	0.024		6 65
	SRC0213	781451	7429337	571	-90	—	73	4	64	60	58.07	7.01	4.40	0.16	0.002		4.60
	SRC0217	781248	7429690	626	-60	360	78	8	66	58	58 56	4 96	4 71	0.16	0.021		5 96
	Coondiner Deposits
	CNRC0215	766500	7441045	666	-90	—	67	12	52	40	58 12	6.06	4 64	0.18	0.007		5 39
	CNRC0216	766801	7440103	651	-90	—	145	24	145	121	59 54	3 65	4 49	0.19	0.005		5 57
	CNRC0222	767003	7440063	651	-90	—	133	24	110	86	59 45	5 56	3 36	0.11	0.006		5 37
	Kalgan Creek Deposit
	KRC0115	788605	7431443	513	-90	—	79	36	74	38	60.50	3 71	3 33	0.16	0.002		5.80

• hole outside existing Mineral Resource boundary

• hole ends in mineralisation

Notes Intersections reported at 54% Fe lower cut-off grade, minimum thickness 40 m including a maximum of 4 m of internal waste.

Analyses by Nagrom Laboratories using XRF spectrometry.

Results have previously been reported for holes up to SRC0176 at Sirius, KRC0112 at Kalgan Creek and CNRC0222 at Coondiner in the announcement dated 20 December 2014. The Company is not aware of any new information or data that materially affects the information included in that release.

8

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

==> picture [391 x 273] intentionally omitted <==

Figure 2. Geology and Drill hole Location — Sirius Deposit

==> picture [426 x 188] intentionally omitted <==

Figure 3. Cross Section through Sirius Deposit at 780250 m E

9

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

==> picture [426 x 192] intentionally omitted <==

Figure 4. Cross Section through Sirius Deposit at 780550 m E

==> picture [426 x 191] intentionally omitted <==

Figure 5. Cross Section through Sirius Deposit at 781050 m E

10

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

==> picture [406 x 285] intentionally omitted <==

Figure 6. Geology and Drill hole Location — Pallas Deposit at Coondiner

4.2 Competent Person’s Statement

The information in this report that relates to Exploration Results is based on, and fairly represents information and supporting d o c u m e n t a t i o n c o m p i l e d b y M r A Zhang. Mr Zhang, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Brockman Mining Australia Pty Ltd, has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves’. Mr Zhang consents to the inclusion in this report of the matters based on his information in the form and context that the information appears .

The information in this report that relates to Mineral Resources at Ophthalmia is based on information compiled by Mr J Farrell and Mr A Zhang.

Mr J Farrell, who is a Chartered Professional and Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Golder Associates Pty Ltd, produced the Mineral Resource estimates based on the data and geological interpretations provided by Brockman. Mr Farrell has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that 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 Resource and Ore Reserves’. Mr Farrell consents to the inclusion in this report of the matters based on his information in the form and context that the information appears .

11

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

Mr A Zhang, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Brockman Mining Australia Pty Ltd, provided all relevant technical data including drilling data and geological interpretations used for the Mineral Resource estimation at Ophthalmia . Mr Zhang has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that 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 Resource and Ore Reserves’. Mr Zhang consents to the inclusion in this report of the matters based on his information in the form and context that the information appears .

The information in this report that relates to exploration results is based on information compiled by Mr A Zhang, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Brockman Mining Australia Pty Ltd. Mr Zhang has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results’. Mr Zhang

consents to the inclusion in this report of the matters based on his information in the form and context that the information appears .

R e f e r t o A t t a c h m e n t I f o r J O R C Compliance Statements .

5. DAMAJIANSHAN MINE (90% INTEREST)

During the quarter ended 31 December 2013, cash receipts from product sales of approximately RMB13.7 million (RMB13.3 million, September 2013 quarter) were recorded. The increase in cash receipts from product sales mainly attributed from increase in sales volume of copper concentrate .

Cash payments for production associated with mining operations during the quarter amounted to approximately RMB9.4 million (RMB8.8 million, September 2013 quarter). December 2013 quarter production was relatively stable.

Cash payments for exploration activities and development recorded at RMB1.8 million (RMB 2.3 million, September 2013).

During the quarter, drilling activities were resumed and approximately 270 m have been drilled.

	Dec’ 13 Quarter (Tonnes)	Sept’ 13 Quarter (Tonnes)	Variance %
Ore mined and delivered to stockpile	53,113	58,945	(10)%
Ore processed	56,467	56,118	1%
Concentrate produced (metal tonnes)	304	314	(3)%
Concentrate sold (metal tonnes)	337	307	10%

Note:

Recognition of copper concentrate metal tonnes is based on the most recent available information with a subsequent adjustment made upon final determination.

12

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

On 24 October 2013, the Group has entered into a series of agreements with the 10% owner of Damajianshan Mine to acquire 10% remaining interest in the copper mine at a consideration of HK$45 million. The aforesaid acquisition had not been completed at the end of this quarter.

The Directors consider that the acquisition may help to improve the profitability prospects of the Group in the long run and in the interests of the Group as a whole.

6. TRANSPORTATION SERVICES BUSINESS

Receipts from the transport services business amounted to approximately HK$28.0 million during the quarter ended 31 December 2013 (HK$28.1 million, September 2013 quarter). Stable operational performance was recorded during the quarter.

During the quarter ended 31 December 2013, the Group has entered into a sale and purchase agreement with a director of Perryville Group Limited to sell its entire interest in transportation service business. The aforesaid disposal had not been completed at the end of this quarter. The Group continued to face keen competition in the transportation industry as more companies offered similar services with more competitive pricing. By selling off the transportation services business, the Group will be able to concentrate on the mining businesses in Australia and in the PRC and the Directors considers that the mining business of the Group could help to improve the overall financial performance in the long run .

13

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

7. CORPORATE PROFILE

Branch Share Registrars and Transfer Office

— Australia

Brockman Mining Limited

ARBN 143 211 867

Non-executive Directors:

Kwai Sze Hoi (Chairman) Liu Zhengui (Vice Chairman) Ross Stewart Norgard

Executive Directors:

Luk Kin Peter Joseph (CEO) Chan Kam Kwan Jason

Warren Talbot Beckwith (redesignated 20 November 2013 from Non-executive Director)

Independent Non-executive Directors:

Lau Kwok Kuen Eddie (resigned 8 January 2014)

Uwe Henke Von Parpart Yip Kwok Cheung Danny Yap Henry Fat Suan (appointed 8 January 2014)

Company Secretary: Chan Kam Kwan Jason

Registrars

Principal Share Registrars and Transfer Office

MUFG Fund Services (Bermuda) Limited 26 Burnaby Street Hamilton HM 11 Bermuda

Branch Share Registrars and Transfer Office

Computershare Investor Services Pty Limited Reserve Bank Building Level 2, 45 St George’s Terrace Perth, Western Australia, 6000

Securities on issue at 31 December 2013 Quoted securities

7,894,482,131 fully paid shares on issue 15,000,000 options quoted, expiring 30 September 2014

Unquoted securities

454,800,000 unlisted options granted

• 7,500,000 share options, expired 17 January 2014 EX HK$1.164

• 27,000,000 share options, expiring 10 February 2014 EX HK$1.240

• 83,400,000 share options, expiring 13 December 2015 EX HK$0.72

• 88,100,000 share options, expiring 14 January 2016 EX HK$0.717

• 88,100,000 share options, expiring 14 January 2016 EX HK$0.967

• 3,750,000 share options, expiring 28 February 2016 EX HK$0.717

• 3,750,000 share options, expiring 28 February 2016 EX HK$0.967

• 76,600,000 share options, expiring 20 May 2016 EX HK$0.717

• 76,600,000 share options, expiring 20 May 2016 EX HK$0.967

There were no shares or options issued during the period .

— Hong Kong

Tricor Secretaries Limited 26/F., Tesbury Centre 28 Queen’s Road East Wanchai, Hong Kong

The following options lapsed during the period:

• 39,000,000 share options, expired 10 November 2013 EX HK$2.00

By order of the Board of Directors of Brockman Mining Limited Chan Kam Kwan, Jason Company Secretary, Hong Kong

14

QUARTERLY ACTIVITIES REPORT DECEMBER 2013

8. GLOSSARY

ASX Limited ACN 008 624 691, or the financial products market, The Australian Securities Exchange, as the situation requires

“ASX”

“Board” the Board of Directors “Bond”

The unsecured bond due 28 November 2014, issued by the Company to Ocean Line with an outstanding principal amount of US$4,000,000 (equivalent to approximately HK$31,000,000)

Brockman Mining Limited ARBN 143 211 867 (formerly Wah Nam International Holdings Limited), a company incorporated in Bermuda and listed on the SEHK and ASX

“Brockman” or “Company”

“China Guoyin” China Guoyin Investment (HK) Ltd

“Damajianshan Mine”

“ERA”

“Group” “JORC”

“km”

“Marillana” or “Marillana Project”

“m”

The 90% owned copper mine held by the Company in the Yunnan Province, PRC

Western Australian Economic Regulation Authority

Brockman Mining Limited, its associates and subsidiaries

Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves

kilometres

The 100% owned Marillana iron ore project is Brockman’s flagship project located in the Hamersley Iron Province

metre

• “Mt” million tonnes

“NWI”

“Ocean Line”

“Ophthalmia Project”

“PHPA”

“Q”

“Stock Exchange”

“T”

North West Infrastructure, the joint venture company which represents the interests of its three shareholder companies: Brockman Mining Australia Pty Ltd; Atlas Iron Limited and FerrAus Limited, to facilitate the construction of a port facility capable of annually exporting 50 million tonnes of iron ore from the South-West Creek location at the Inner Harbour at Port Hedland, Western Australia

Ocean Line Holdings Limited

The 100% owned Ophthalmia iron ore project is located 80 km south of the Marillana Project

Port Hedland Port Authority

Quarter (financial)

The Stock Exchange of Hong Kong Limited

Tonne(s)

15

QUARTERLY
	Criteria	Explanation
	Sampling techniques	• Sampling carried out under Brockman protocols and QAQC procedures as per industry best practice. • Reverse Circulation (RC) chip samples collected via a cone splitter mounted on the side of the drill rig • For each two-metre interval the cone splitter produced two samples (A and B) collected into pre-numbered calico bags and a bulk sample collected in a pre-numbered polyweave bag. • Quality of sampling during drilling was continuously monitored by an experienced geologist and field assistant
	Drilling techniques	• Reverse Circulation (RC) drilling employed a 140 mm diameter face- sampling hammer • Drill holes are spaced on a nominal 100 m (E-W) by 50 m (N-S) grid (Sirius) and 200 m (E-W) by 100 m (N-S) grid (Coondiner and Kalgan Creek).
	Drill sample recovery	• RC sample recovery is recorded as a percentage (to the nearest 10%) by the geologist and is based on how much of the sample is returned from the cone splitter • A geologist and field assistant were present during drilling to ensure that sample recovery was maximised and that samples were representative. Any issues were immediately rectified. • No significant sample recovery issues were encountered. • Twinned RC and diamond drill holes show comparable assay results indicating that wet drilling has not adversely affected the RC samples • Previous metallurgical testing shows that assay results are similar across all size ranges.
	Logging	• Logging of all RC and diamond core holes were carried out in accordance to Brockman’s relevant technical logging procedures. Geology and sampling information were captured on paper as well as digitally using OCRIS logging software. The level of detail in logging supports appropriate Mineral Resource estimation, mining studies and metallurgical studies • Geophysical data were collected from the RC holes (natural gamma, gamma density, magnetic susceptibility & resistivity, and down- hole deviation) by Surtron Technologies and Bore Hole Geophysical Services (BHGS). Not all holes were open at depth, which precluded 100% recovery of data from all of the drill holes.

16

QUARTERLY
	Criteria	Explanation
	Sub-sampling techniques and sample preparation	Sampling technique • Samples averaging about 3 kg each were collected for each two- metre interval via a cone splitter. • Samples were kept dry where possible. • The sample size is considered appropriate for correctly characterising the mineralisation, based on the style of mineralisation (massive goethite-hematite), the thickness and consistency of intersections, the sampling methodology and percent value assay ranges for the primary elements Sample preparation • Samples were dried at 105°C and weighed. • Samples were crushed to nominal -6.3 mm, with samples in excess of 2 kg being riffle split. • Samples were pulverised to 80% passing at 75 µm. Quality control procedures • Field duplicate submitted every 25th sample (1:25). • ‘Blind’ Certified Reference Material inserted every 25th sample (1:25). • Lab duplicates were randomly generated by a laboratory program, typically about 1 in 20 samples (1:20). • Lab repeats were taken and standards inserted at a predetermined level specified by the lab.
	Quality of assay data and laboratory tests	• All samples submitted to Nagrom Laboratory in Perth were assayed for Fe, SiO2, Al2O3, TiO2, MnO, CaO, P, S, MgO, and K2O by XRF and for LOI at 1000°C by thermogravimetric analysis (TGA). • Laboratory procedures are in line with ISO9001 Quality Management System and appropriate for iron ore deposits • Samples were dried at 105°C, weighed, crushed to a nominal -6.3mm size, and then pulverised to 80% passing 75 micron. • A 0.8g sub-sample was collected and fused in 8g of 12:22 lithium borate flux with 5% lithium nitrate additive. The resultant glass bead was analysed by XRF. • Another 1-2 g sub-sample was dried and ignited at 1000°C with LOI calculated once constant mass was reached. LOI is the percentage mass change due to igniting the dry sample • There were no indications that samples were unrepresentative, with all lab duplicate samples were within 2.5% of the original sample value. • Samples have been sent to an umpire laboratory as an independent check of the assay results. These results are pending. • Certified Reference Materials (CRMs) with a range of values appropriate to the mineralisation were inserted at predefined intervals by Brockman and randomly by the lab at set levels. Results from the CRMs show that sample assay values are accurate and precise. • Analysis of field duplicate samples shows that greater than 95% of pairs have less than 5% difference. Analysis of lab pulp repeats indicates that the precision of samples is also within acceptable limits.

17

QUARTERLY
	Criteria	Explanation
	Verification of sampling and assaying	• Significant intersections have been independently verified by company geologists and approved by the Competent Person. • The Competent Person has visited site and inspected the sampling process in the field, and has also inspected the laboratory. • Twinned RC and diamond drill holes show equivalent assay results. • Primary data are captured on Toughbook laptops using OCRIS software. The software has validation routines to prevent data entry errors • All field data were sent by the geologist present during drilling to a database management company (Expedio) in Perth and stored in a secure SQL database. • Assay data were sent by the laboratory direct to Expedio and uploaded into a SQL database (GBIS). • No adjustments or calibrations were made to any assay data used in the estimate
	Location of data points	• All collars were initially surveyed by Brockman personnel using a hand held GPS, and later by BHGS using a differential GPS with an nominal horizontal and vertical accuracy of 15 cm. • Down-hole deviation surveys were conducted on most of the holes by Surtron Technologies and BHGS using a conventional magnetic susceptibility tool due to low magnetic property of the host rocks of the BID mineralisation in the Boolgeeda Iron Formation. • The grid system for Sirius is MGA_GDA94 Zone 50 and the vertical datum is AHD. • A DEM for the project area was acquired by Fugro Spatial Solutions with a quoted horizontal accuracy of 60 cm and a vertical accuracy of 30 cm.
	Data spacing and distribution	• Drill holes are spaced on a nominal 100 m (E-W) by 50 m (N-S) grid (Sirius) and 200 m (E-W) by 100 m (N-S) grid (Coondiner and Kalgan Creek). • This drill spacing is sufficient to establish the degree of geological and grade continuity required under the 2012 JORC code. • Samples were collected at 2 m intervals.
	Orientation of data in relation to geological structure	• Lithological units strike east-southeast and are folded about a series of upright to slightly inclined, open to close folds. The mineralisation envelope is also folded. The majority of holes were either drilled vertically or at 50-75° to the north or south in order to be oriented perpendicular to mineralisation • Owing to the rugged topography at Sirius, a small number of holes were drilled either partly along strike or down-dip in order to provide appropriate drill spacing • Due to the varying intersection angles all results are defined as down- hole widths.

18

QUARTERLY
	Criteria	Explanation
	Mineral tenement and land tenure status	• Exploration Prospects are located wholly within Exploration Leases E47/1598 and E47/1599 which are 100% owned by Brockman. • The tenement lies within the Nyiyaparli Native Title Claim (WC05/06). • At the time of reporting, there are no known impediments to obtaining a licence to operate in the area, and the tenement is in good standing
	Exploration done by other parties	• No substantive previous exploration with the prospect area was identified by Brockman.
	Geology	• Mineralisation at Sirius and Coondiner consists of hematite-goethite ore hosted within shaly BIF of the c. 2.49 Ga Boolgeeda Iron Formation (upper Hamersley Group). • The prospects are located within the Ophthalmia Fold Belt about 20- 35 km northwest of Newman.
	Drill hole information	• Refer to the figures and Table of Significant Results
	Data aggregation methods	• A nominal 55% Fe lower cut-off grade was used with a 40 m minimum width (including up to 4 m internal waste) for reporting of significant intercepts
	Relationship between mineralisation widths and intercept lengths	• Mineralisation at both Coondiner and Sirius defines a folded sub- horizontal sheet. Overall, most holes were drilled perpendicular to mineralisation, but because of the folding some holes are slightly or moderately oblique to mineralisation. Therefore, all results are defined as down-hole widths rather than true widths.

19

QUARTERLY
	Criteria	Explanation
	Diagrams	• Cross sections through the deposits with interpretations of the stratigraphy and mineralisation are shown in Figures 3-5.
	Balanced reporting	• Only significant results are reported in detail, but representative cross sections with all drill intersections are provided as Figures 3-5.
	Other substantive exploration data	• Detailed geological and structural mapping of the prospect has been completed by Brockman geologists. • Cross-sections through Sirius have been constructed in order to determine the structural and stratigraphic controls on mineralisation • Logging of diamond drill core has been undertaken to determine the nature and relative timing of the mineralisation. • Preliminary metallurgical test work (size assaying and a single sinter test) has been undertaken.
	Further work	• Infill drilling will be undertaken on the basis of successful results being received. • Further metallurgical test work on HQ and PQ diamond drill core is planned • A more detailed examination of the stratigraphy will be undertaken using recently acquired diamond drill core at Sirius.

20

QUARTERLY
	Project	Location	Tenement type	Tenement number	Commodity	Status	Interest held
	Bruten Hill	West Kimberley	E	04/2190	Iron Ore	Application	100%
	Canning Basin	West Kimberley	E	04/2036	Coal	Granted	100%
	Canning Basin	West Kimberley	E	04/2037	Coal	Granted	100%
	Canning Basin	West Kimberley	E	04/2038	Coal	Granted	100%
	Canning Basin	West Kimberley	E	04/2039	Coal	Granted	100%
	Canning Basin	West Kimberley	E	04/2040	Coal	Granted	100%
	Canning Basin	West Kimberley	E	04/2258	Coal	Application	100%
	Canning Basin	West Kimberley	E	04/2302	Coal	Granted	100%
	Canning Basin	West Kimberley	E	04/2320	Coal	Application	100%
	Cheela Plains	West Pilbara	E	08/2264	Iron Ore	Granted	100%
	Chichester Range	East Pilbara	E	45/3693	Iron Ore	Granted	100%
	Duck Creek	West Pilbara	E	47/1725	Iron Ore	Granted	100%
	Duck Creek	West Pilbara	E	47/1936	Iron Ore	Granted	100%
	Duck Creek	West Pilbara	E	47/1937	Iron Ore	Granted	100%
	Ethel Creek	East Pilbara	E	46/0921	Iron Ore	Granted	100%
	Ethel Creek	East Pilbara	E	46/0979	Iron Ore	Application	100%
	Fig Tree	East Pilbara	E	47/3023	Iron Ore	Application	100%
	Fig Tree	East Pilbara	E	47/3024	Iron Ore	Application	100%
	Fig Tree	East Pilbara	E	47/3025	Iron Ore	Application	100%
	Fitzroy River	West Kimberley	E	04/2066	Iron Ore	Granted	100%
	Fitzroy River	West Kimberley	E	04/2067	Iron Ore	Granted	100%
	Irwin Hills	Goldfields	E	39/1284	Nickel/Cobalt	Granted	40%
	Irwin Hills	Goldfields	E	39/1307	Nickel/Cobalt	Granted	40%
	Irwin Hills	Goldfields	E	39/1471	Nickel/Cobalt	Granted	40%
	Irwin Hills	Goldfields	L	39/0163	Nickel/Cobalt	Granted	40%
	Irwin Hills	Goldfields	P	39/4594	Nickel/Cobalt	Granted	40%
	Irwin Hills	Goldfields	P	39/4595	Nickel/Cobalt	Granted	40%
	Irwin Hills	Goldfields	P	39/4682	Nickel/Cobalt	Granted	40%
	Irwin Hills	Goldfields	M	39/1088	Nickel/Cobalt	Application	40%
	Lalla Rookh	North Pilbara	E	45/3144	Iron Ore	Granted	100%
	Lalla Rookh	North Pilbara	E	45/3379	Iron Ore	Granted	100%
	Lalla Rookh	North Pilbara	E	45/3380	Iron Ore	Granted	100%
	Marillana	East Pilbara	E	47/1408	Iron Ore	Granted	100%

21

QUARTERLY
	Project	Location	Tenement type	Tenement number	Commodity	Status	Int	erest held
	Marillana	East Pilbara	L	45/0236	Iron Ore	Application	100%
	Marillana	East Pilbara	L	45/0238	Iron Ore	Application	100%
	Marillana	East Pilbara	L	46/0097	Iron Ore	Application	100%
	Marillana	East Pilbara	L	47/0369	Iron Ore	Application	100%
	Marillana	East Pilbara	L	47/0389	Iron Ore	Application	100%
	Marillana	East Pilbara	L	47/0408	Iron Ore	Application	100%
	Marillana	East Pilbara	L	47/0544	Iron Ore	Application	100%
	Marillana	East Pilbara	L	47/0566	Iron Ore	Application	100%
	Marillana	East Pilbara	L	47/0567	Iron Ore	Application	100%
	Marillana	East Pilbara	L	52/0124	Iron Ore	Application	100%
	Marillana	East Pilbara	M	47/1414	Iron Ore	Granted	100%
	Marillana	East Pilbara	E	47/2176	Iron Ore	Application	100%
	Millstream Hill	East Pilbara	E	47/2766	Iron Ore	Application	100%
	Mt Goldsworthy	North Pilbara	E	45/3931	Iron Ore	Granted	100%
	Mt Lockyer	North Pilbara	E	47/2650	Iron Ore	Application	100%
	Mt Stuart	West Pilbara	E	47/1845	Iron Ore	Granted	100%
	Mt Stuart	West Pilbara	E	47/1850	Iron Ore	Granted	100%
	Mt Stuart	West Pilbara	E	47/2215	Iron Ore	Granted	100%
	Mt Stuart	West Pilbara	E	47/2976	Iron Ore	Application	100%
	Mt Stuart	West Pilbara	E	47/2993	Iron Ore	Application	100%
	Mt Stuart	West Pilbara	E	47/2994	Iron Ore	Application	100%
	Mt Stuart	West Pilbara	P	47/1711	Iron Ore	Application	100%
	Mt Stuart	West Pilbara	P	47/1712	Iron Ore	Application	100%
	Mt Stuart	West Pilbara	P	47/1713	Iron Ore	Application	100%
	Mt Stuart	West Pilbara	P	47/1714	Iron Ore	Application	100%
	Nimingara	North Pilbara	E	45/4051	Iron Ore	Application	100%
	Ophthalmia	East Pilbara	E	47/1598	Iron Ore	Granted	100%
	Ophthalmia	East Pilbara	E	47/1599	Iron Ore	Granted	100%
	Ophthalmia	East Pilbara	E	47/2621	Iron Ore	Application	100%
	Ophthalmia	East Pilbara	E	47/2622	Iron Ore	Application	100%
	Ophthalmia	East Pilbara	E	47/2623	Iron Ore	Application	100%
	Ophthalmia	East Pilbara	E	47/2280	Iron Ore	Granted	100%
	Ophthalmia	East Pilbara	E	47/2291	Iron Ore	Granted	100%
	Ophthalmia	East Pilbara	E	47/2594	Iron Ore	Application	100%
	Ophthalmia	East Pilbara	P	47/1715	Iron Ore	Application	100%
	Pannawonica	West Pilbara	E	47/2409	Iron Ore	Granted	100%
	Pannawonica	West Pilbara	E	47/2410	Iron Ore	Granted	100%

22

QUARTERLY
	Project	Location	Tenement type	Tenement number	Commodity	Status	Int	erest held
	Paraburdoo	West Pilbara	E	47/1942	Iron Ore	Granted	100%
	Paraburdoo	West Pilbara	E	47/2081	Iron Ore	Granted	100%
	Pippingarra	North Pilbara	E	45/3948	Iron Ore	Granted	100%
	Port Hedland	North Pilbara	E	45/3939	Iron Ore	Application	100%
	Port Hedland	North Pilbara	L	45/0296	Iron Ore	Application	100%
	Red Hill	West Pilbara	E	08/2011	Iron Ore	Granted	100%
	Red Hill	West Pilbara	E	08/2297	Iron Ore	Granted	100%
	Red Hill	West Pilbara	P	08/0628	Iron Ore	Granted	100%
	Red Hill	West Pilbara	P	08/0629	Iron Ore	Granted	100%
	Shovelanna	East Pilbara	E	46/0781	Iron Ore	Granted	100%
	Shovelanna	East Pilbara	E	52/2238	Iron Ore	Granted	100%
	West Hamersley	West Pilbara	E	47/1603	Iron Ore	Granted	100%
	West Hamersley	West Pilbara	E	47/2667	Iron Ore	Application	100%
	West Hamersley	West Pilbara	E	47/2904	Iron Ore	Application	100%
	West Hamersley	West Pilbara	E	47/2905	Iron Ore	Application	100%
	Tom Price	West Pilbara	E	47/2098	Iron Ore	Granted	100%
	Tom Price	West Pilbara	E	47/2353	Iron Ore	Application	100%
	Tom Price	West Pilbara	E	47/2354	Iron Ore	Application	100%
	Tom Price	West Pilbara	E	47/2355	Iron Ore	Application	100%
	Tom Price	West Pilbara	E	47/2698	Iron Ore	Application	100%
	Tom Price	West Pilbara	E	47/2699	Iron Ore	Application	100%
	Tom Price	West Pilbara	E	47/2700	Iron Ore	Application	100%
	Western Gate Well	West Pilbara	E	45/4240	Iron Ore	Application	100%
	Yeeda	West Kimberley	E	04/2148	Iron Ore	Granted	100%

23

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

BROCKMAN MINING LIMITED

ABN ARBN 143 211 867

Quarter ended (“current quarter”) 31 December 2013

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 1.3 1.4 1.5 1.6 1.7 Payments for (a) exploration & evaluation (b) development (c) production (d) administration Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid or refund Other (provide details if material) 1.7 (a) Receipts from transport services 1.7 (b) Net advance from related parties Net Operating Cash Flows	Current quarter HK$’000	Restated Year to date (6 months) HK$’000
	17,341 (26,270) — (11,846) (45,374) — 1,437 (55) — 28,040 1,785	34,069 (46,847) — (22,965) (89,544) — 3,499 (90) — 56,138 1,158
	(34,942)	(64,582)
Cash flows related to investing activities 1.8 1.9 1.10 1.11 1.12 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material) Net investing cash flows	— — (1,024) 177 — 529 — — —	— — (1,493) 177 — 529 — — —
	(318)	(787)

• See chapter 19 for defined terms.

Appendix 5B Page 24

17/12/2010

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(35,260)	(65,369)
Cash flows related to financing activities 1.14 1.15 1.16 1.17 1.18 1.19 Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other (provide details if material) 1.19(a) Release of restricted bank deposit 1.19(b) Acquisition of additional interest in BRM 1.19(c) Cash backed performance bond guarantee 1.19(d) Proceeds from issue of bond Net financing cash flows	— — — (1,891) — — — — (166) 31,200	— — — (4,360) — — — — 2,010 31,200
	29,143	28,850
1.20 1.21 Net decrease in cash held Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(6,117) 225,232 (7,227)	(36,519) 252,564 (4,157)
	211,888	211,888

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 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter HK$’000
	1,923
	—

• 1.25 Explanation necessary for an understanding of the transactions

• 1.23 Being payment of executive directors’ salary and non-executive directors’ fees. 1.2(d) Includes the human resources service fees of HK$96,000 paid to a company in which a director of the company has beneficial interest.

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

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 25

Appendix 5B Mining 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

Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available HK$’000	Amount used HK$’000
	22,800	6,460
	—	—

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	HK$’000
	(18,687)
	—
	(11,194)
	(44,816)
Total	(74,697)

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 HK$’000	Restated Previous quarter HK$’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	92,863	83,408
	119,025	141,522
	—	—
	—	302
Total: cash at end of quarter (item 1.22)	211,888	225,232

• See chapter 19 for defined terms.

Appendix 5B Page 26

17/12/2010

Appendix 5B Mining exploration entity quarterly report

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
	E45/3253 E47/2446 L45/225 E47/1738 E47/1937	Tenement surrendered Tenement surrendered Application withdrawn Tenement surrendered Tenement disposed	100% 100% 100% 100% 100%	0% 0% 0% 0% 0%
	E47/3023 E47/3024 E47/3025 E47/2976 E47/2993 E47/2994 P47/1711 P47/1712 P47/1713 P47/1714 P47/1715	Application lodged Application lodged Application lodged Application lodged Application lodged Application lodged Application lodged Application lodged Application lodged Application lodged Application lodged	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%	100% 100% 100% 100% 100% 100% 100% 100% 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.

	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	7,894,482,131	7,894,482,131

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 27

Appendix 5B Mining exploration entity quarterly report

7.5 +Convertible debt securities (description) 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	7,500,000 27,000,000 15,000,000 83,400,000 176,200,000 7,500,000 153,200,000	15,000,000	Exercise price HK$1.164 HK$1.240 A$0.2 HK$0.72 HK$0.717-HK$0.967 HK$0.717-HK$0.967 HK$0.717-HK$0.967	Expiry date 17 January 2014 10 February 2014 30 September 2014 13 December 2015 14 January 2016 28 February 2016 20 May 2016
	39,000,000		HK$2.000	10 November 2013
7.11 Debentures (totals only)
7.12Unsecured 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.

Sign here:

==> picture [120 x 78] intentionally omitted <==

Date: 30 January 2014

(Company secretary)

Print name: Chan Kam Kwan, Jason

• See chapter 19 for defined terms.

Appendix 5B Page 28

17/12/2010

Appendix 5B Mining 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 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 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.

17/12/2010 Appendix 5B Page 29