Brockman Mining Limited — Interim / Quarterly Report 2015

Jul 29, 2015

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

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QUARTERLY REPORT For the quarter ended 30 June 2015

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|QUARTERLY ACTIVITIES REPORT|30 June 2015|
|TABLE OF CONTENTS|
|1.|HIGHLIGHTS|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|3|
|2.|CORPORATE REVIEW|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|4|
|3.|MARILLANA IRON ORE PROJECT (100% INTEREST)|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|4|
|3 .1|Marillana development .|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|4|
|3 .2|Marillana Infrastructure .|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|4|
|4.|OPHTHALMIA IRON ORE PROJECT (100% INTEREST)|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|5|
|4 .1|Ophthalmia exploration .|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|5|
|4 .2|Ophthalmia development .|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|5|
|5.|TENEMENTS|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|6|
|6.|DAMAJIANSHAN MINE (100% INTEREST)|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|8|
|7.|CORPORATE PROFILE|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|9|
|8.|GLOSSARY|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|10|
|9.|APPENDIX 5B|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|.|11|

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QUARTERLY ACTIVITIES REPORT 30 June 2015

1. HIGHLIGHTS

• Brockman signed a Native Title Mining Agreement with the Nyiyaparli people covering all tenements comprising the Ophthalmia Iron Ore Project. The signing of this agreement paves the way for the granting of mining leases over the project area once an infrastructure solution is established to facilitate development of the project.

• Following the victory in the Supreme Court in September 2014 (in which the Supreme Court ruled that Brockman’s Access Proposal was valid and complied with the requirements of section 8 of the Access Code), Brockman has been awarded costs which will be deposited into our legal advisers trust account awaiting the outcome of the TPI appeal.

• Brockman is carrying out cost optimisations of projected capital and operating costs for the Marillana Iron Ore Project in the current operating environment in preparation for the securing of a rail infrastructure solution for the project.

• In line with current market conditions, Company-wide cost reductions have been implemented with reduced overheads to be realised in the coming quarter.

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QUARTERLY ACTIVITIES REPORT 30 June 2015

2. CORPORATE REVIEW

Cash position

The consolidated cash position of the Group as at 30 June 2015 was HK$98.3 million .

The Company is also re-evaluating the mine plan to reduce haul distances, increase product yields in the early mine life and minimise rehandling of waste materials, all of which is anticipated to have a positive impact on mining costs.

3.2 Marillana Infrastructure

Corporate

Mr. Warren Talbot Beckwith resigned as a non-executive director of the Company on 2 July 2015, due to his other personal and family commitments. Mr Beckwith shall remain as a consultant to the Company following his resignation.

D u r i n g t h e q u a r t e r t h e C o m p a n y completed a Company-wide review of its administration, exploration and development outflows in line with current market conditions. Significant savings were secured with the full benefit to be recognised in future quarters.

3. MARILLANA IRON ORE PROJECT (100% INTEREST)

3.1 Marillana Development

Brockman has focussed its efforts on optimisation studies for the Marillana project. The current economic climate has presented cost saving opportunities and the project team is investigating the likely beneficial impact on previous capital and operating cost estimates for the Marillana project under the existing cost environment, in readiness for when an infrastructure solution is secured .

The development of the Marillana iron ore project remains dependent on securing a viable rail and port infrastructure solution .

Rail

In May 2013, Brockman commenced seeking access rights to The Pilbara Infrastructure Pty Ltd’s (“TPI’s”) belowrail infrastructure under the Western Australian Railways (Access) Code 2000 (WA) (“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 (“Access Proposal”). The access sought proposed to exit the TPI mainline at Port Hedland where North West Infrastructure (“NWI”) has a capacity allocation of 50 Mtpa at the proposed SP3 and the SP4 berths for iron ore export from South West Creek in the Inner Harbour.

As part of the Access Proposal, Brockman will 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.

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QUARTERLY ACTIVITIES REPORT 30 June 2015

Since May 2013, significant delays have occurred due to the validity challenge launched by TPI in October 2013. Since having the Supreme Court confirm that Brockman’s Access Proposal was valid for the purpose of s8 of the Code in September 2014, Brockman has continued to progress the required information for the Access Proposal under sections 14 and 15 of the Code. TPI has appealed the decision, with the appeal scheduled to be heard in August this year. Brockman has however been awarded costs for the original Supreme Court hearing, which will be deposited into a trust account with Brockman’s legal advisers until resolution of the appeal .

Brockman continues to investigate alternative infrastructure solutions for the Marillana Project.

Port

Brockman, as a foundation member of the North West Infrastructure joint venture (NWI), has a potential port solution through the Western Australian State Government conferral of 50Mtpa export capacity to NWI and the related potential port stock yards and berth locations (SP3 and SP4 in South West Creek in the Port Hedland inner harbour) set aside by the Pilbara Ports Authority. The NWI opportunity is reliant on securing a viable rail solution to connect potential users mines with the port.

NWI has completed a cost review and reduced outflows during this market cycle awaiting resolution of the rail solution. Brockman remains focussed on protecting its foundation shareholding position in NWI and remains vigilant to the opportunity for other aspirant Pilbara based junior developers and miners to support the future port development .

4. OPHTHALMIA IRON ORE PROJECT (100% INTEREST)

4.1 Ophthalmia exploration

Following the successful development of a substantial Mineral Resource at the Ophthalmia project (see ASX release dated 1 December 2014) exploration activities during the quarter were focussed on site rehabilitation .

4.2 Ophthalmia development

In May, the Company executed a Native Title Agreement with the Nyiyaparli people covering all tenements comprising the Ophthalmia Iron Ore Project.

The agreement was based on the existing agreement with the Nyiyaparli people covering the Marillana Iron Ore Project (signed in 2009) and takes into consideration the Nyiyaparli people’s interests with regard to the management of Cultural Heritage and Protection of the lands and environment at the Ophthalmia Project, as well as providing education and training opportunities for the local Nyiyaparli people.

The signing of this agreement paves the way for the granting of mining leases over the project area once Brockman has established an infrastructure solution to facilitate development of the project.

The PFS has been suspended pending securing of an infrastructure solution for the Company’s Marillana project.

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QUARTERLY ACTIVITIES REPORT 30 June 2015
5. TENEMENTS
Tenements disposed of during the Quarter
Tenement Tenement Interest
Project Location type number Commodity Status held
Balfour Downs East Pilbara E 46/1051 Iron Ore Application 100%
Balfour Downs East Pilbara E 46/1052 Iron Ore Application 100%
Broome North Pilbara E 04/2320 Iron Ore Granted 100%
Marillana East Pilbara L 46/0097 Iron Ore Application 100%
Marillana East Pilbara L 47/0567 Iron Ore Application 100%
Mt Stuart East Pilbara E 47/2993 Iron Ore Application 100%
Robertson Range West Pilbara E 45/4410 Iron Ore Application 100%
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Tenements acquired during the Quarter

Project	Location	Tenement type	Tenement number	Commodity	Status	Interest held
Mindy	West Pilbara	E	47/3310	Iron Ore	Application	100%
Millstream Hill	West Pilbara	E	47/3314	Iron Ore	Application	100%
Mt Maguire	West Pilbara	E	52/3307	Iron Ore	Application	100%
Mt Maguire	West Pilbara	E	52/3308	Iron Ore	Application	100%

Tenements held at end of Quarter

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Tenement Tenement Interest
Project Location type number Commodity Status held
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Project	Location	Tenement type	Tenement number	Commodity	Status	Interest held
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	47/3151	Iron Ore	Granted	100%
Duck Creek	West Pilbara	E	47/3152	Iron Ore	Granted	100%
Fig Tree	East Pilbara	E	47/3025	Iron Ore	Application	100%
Indabiddy Creek	West Pilbara	E	52/3123	Iron Ore	Application	100%
Irwin Hills	Goldfields	L	39/0232	Nickel/Cobalt	Application	40%
Irwin Hills	Goldfields	L	39/0163	Nickel/Cobalt	Granted	40%
Irwin Hills	Goldfields	M	39/1088	Nickel/Cobalt	Granted	40%
Juna Downs	West Pilbara	E	47/3276	Iron Ore	Application	100%
Marillana	East Pilbara	L	45/0238	Iron Ore	Application	100%
Marillana	East Pilbara	M	47/1414	Iron Ore	Granted	100%
Marillana	East Pilbara	E	47/3170	Iron Ore	Application	100%
Mill Stream Hill	West Pilbara	E	47/3314	Iron Ore	Application	100%
Mindy	West Pilbara	E	47/3310	Iron Ore	Application	100%
Mt Goldsworthy	North Pilbara	E	45/3931	Iron Ore	Granted	100%
Mt Grant	East Pilbara	E	45/4496	Iron Ore	Application	100%

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QUARTERLY
	Project	Location	Tenement type	Tenement number	Commodity	Status	Interest held
	Mt Lockyer	East Pilbara	E	47/3235	Iron Ore	Application	100%
	Mt Lockyer	East Pilbara	E	47/3236	Iron Ore	Application	100%
	Mt Stevenson	West Pilbara	E	47/3105	Iron Ore	Application	100%
	Mt Maguire	West Pilbara	E	52/3307	Iron Ore	Application	100%
	Mt Maguire	West Pilbara	E	52/3308	Iron Ore	Application	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	47/2994	Iron Ore	Application	100%
	Mt Stuart	West Pilbara	E	47/3285	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	47/2280	Iron Ore	Granted	100%
	Ophthalmia	East Pilbara	E	47/2291	Iron Ore	Granted	100%
	Ophthalmia	East Pilbara	E	47/2594	Iron Ore	Granted	100%
	Ophthalmia	East Pilbara	P	47/1715	Iron Ore	Granted	100%
	Pannawonica	West Pilbara	E	47/2409	Iron Ore	Granted	100%
	Pannawonica	West Pilbara	E	47/2410	Iron Ore	Granted	100%
	Phils Bore	West Pilbara	E	47/2904	Iron Ore	Granted	100%
	Phils Bore	West Pilbara	E	47/2905	Iron Ore	Application	100%
	Parson George	East Pilbara	E	47/3217	Iron Ore	Application	100%
	Port Hedland	North Pilbara	L	45/0296	Iron Ore	Application	100%
	Shovelanna	East Pilbara	E	46/0781	Iron Ore	Granted	100%
	Soansville	North Pilbara	E	45/4465	Iron Ore	Application	100%
	Tom Price	West Pilbara	E	47/2098	Iron Ore	Granted	100%
	Tom Price	West Pilbara	E	47/2455	Iron Ore	Application	100%
	Tom Price	West Pilbara	E	47/2699	Iron Ore	Application	100%
	Tom Price	West Pilbara	E	47/3216	Iron Ore	Application	100%
	West Hamersley	West Pilbara	E	47/1603	Iron Ore	Granted	100%

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QUARTERLY ACTIVITIES REPORT 30 June 2015

6. DAMAJIANSHAN MINE (100% INTEREST)

During the quarter, concerns about the growth of the Chinese economy and lower oil prices continue to weigh on copper prices. The company is reviewing the mine plan under current market conditions to ensure that this project generates maximum shareholder returns throughout the life of the mine .

During the quarter ended 30 June 2015, cash receipts from product sales of

approximately RMB5.8 million (RMB7.0 m i l l i o n , M a r c h 2 0 1 5 q u a r t e r ) w e r e recorded .

Cash payments for production associated with mining operations during the quarter amounted to approximately RMB3.3 million (RMB4.6 million, March 2015 quarter).

Cash payments for exploration activities and development recorded at RMB1.4 million (RMB1.9 million, March 2015 quarter). Drilling activities were continued during the quarter with approximately 798m recorded (210m, March 2015 quarter).

	Jun’ 15 Quarter (Tonnes)	Mar’ 15 Quarter (Tonnes)	Variance %
Ore mined and delivered to stockpile	12,802	13,895	(8)%
Ore processed	—	15,639	(100)%
Concentrate produced (metal tonnes)	—	61	(100)%
Concentrate sold (metal tonnes)	—	144	(100)%

Note:

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

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QUARTERLY ACTIVITIES REPORT 30 June 2015

7. CORPORATE PROFILE

Brockman Mining Limited

Securities on issue at 30 June 2015 Quoted securities

8,381,982,131 fully paid shares on issue

ARBN 143 211 867

Unquoted securities

Non-executive Directors:

Kwai Sze Hoi (Chairman) Liu Zhengui (Vice Chairman) Ross Stewart Norgard Warren Talbot Beckwith (Resigned 2 July 2015)

Executive Directors:

Chan Kam Kwan Jason (Company Secretary)

Kwai Kwun Lawrence Colin Paterson

Independent Non-executive Directors:

Uwe Henke Von Parpart Yip Kwok Cheung Danny Yap Henry Fat Suan Choi Yue Chun Eugene

Registrars

Principal Share Registrars and Transfer Office

MUFG Fund Services (Bermuda) Limited The Belvedere Building 69 Pitts Bay Road Pembroke HM 08 Bermuda

316,500,000 unlisted options granted

• 61,400,000 share options, expiring 13 December 2015 EX HK$0.72

• 46,600,000 share options, expiring 14 January 2016 EX HK$0.717

• 46,600,000 share options, expiring 14 January 2016 EX HK$0.967

• 3,600,000 share options, expiring 28 February 2016 EX HK$0.717

• 3,600,000 share options, expiring 28 February 2016 EX HK$0.967

• 73,350,000 share options, expiring 20 May 2016 EX HK$0.717

• 73,350,000 share options, expiring 20 May 2016 EX HK$0.967

• 8,000,000 share options, expiring 18 January 2018 EX HK$0.45

There were no shares or options issued during the period.

The following Unlisted Employee share options lapsed during the period:

• 18,000,000 share options, expiring 14 January 2016 EX HK$0.717

• 18,000,000 share options, expiring 14 January 2016 EX HK$0.967

Branch Share Registrars and Transfer Office

— Hong Kong

Tricor Secretaries Limited Level 22, Hopewell Centre 183 Queen’s Road East Hong Kong

Branch Share Registrars and Transfer Office

— Australia

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

Computershare Investor Services Pty Limited Level 11 172 St Georges Terrace Perth WA 6000

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QUARTERLY ACTIVITIES REPORT 30 June 2015

8. GLOSSARY

“Board”

the Board of Directors

“Brockman Mining Australia”

Brockman Mining Australia Pty Ltd (formerly Brockman Resources Limited ACN 009 372 150), the principal wholly-owned subsidiary of the Company

“Brockman” or “Company”

Brockman Mining Limited ARBN 143 211 867, a company listed on the SEHK and ASX

• “Damajianshan Mine”

The 100% owned copper mine held by the Company in the Yunnan Province, PRC

• “Group”

Brockman Mining Limited, its associates and subsidiaries

“JORC”

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

• “km” kilometres

• “Marillana Project”

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

• “m”

metre

• “Mt”

million tonnes

“NWI” 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 SouthWest Creek location at the Inner Harbour at Port Hedland, Western Australia

“Ophthalmia Project”

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

“PFS”

Pre Feasibility Study

• “PPA”

Pilbara Port Authority

• “Q” Quarter (financial)

• “Stock Exchange”

The Stock Exchange of Hong Kong Limited

“T” Tonne(s)

10

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

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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

Name of entity

BROCKMAN MINING LIMITED

ABN ARBN 143 211 867	Quarter ended (“current quarter”)
ARBN 143 211 867	30 June 2015

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) 1.7 (a) Net advance from/(repayment to) related parties Net operating cash flows	Current quarter HK$’000	Year to date (12 months) HK$’000
	7,343 (9,232) — (4,218) (10,202) — 159 — — 63	42,133 (80,954) — (28,848) (51,682) — 1,031 — — (533)
	(16,087)	(118,853)
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	— — (509) — — — — — —	— — (685) — — — — — —
	(509)	(685)

• See chapter 19 for defined terms.

Appendix 5B Page 11

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

1.13 Total operating and investing cash flows (brought forward)	(16,596)	(119,538)
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) a) cash backed performance bond guarantee of BRM Net financing cash flows	— — — — — — —	— — — — — — (47)
	—	(47)
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	(16,596) 114,950 (57) —	(119,585) 223,698 (5,816) —
	98,297	98,297

Payments to directors of the entity, associates of the directors, 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
	1,309
	—

• 1.25 Explanation necessary for an understanding of the transactions

• 1.23 Being payment of executive directors’ salary and non-executive directors’ fees.

• See chapter 19 for defined terms. Appendix 5B Page 12

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

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 3.2 Credit standby arrangements	Amount available HK$’000	Amount used HK$’000
	—	—
	—	—

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	HK$’000
	(8,163)
	—
	(6,921)
	(13,785)
Total	(28,869)

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$’000	Previous quarter HK$’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	29,255	26,026
	69,042	88,924
	—	—
	—	—
Total: cash at end of quarter (item 1.22)	98,297	114,950

• See chapter 19 for defined terms.

Appendix 5B Page 13

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

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased	Tenement reference and location	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	E46/1051 E46/1052 E04/2320 L46/0097 L47/0567 E47/2993 E45/4410	Application withdrawn Application withdrawn Tenement surrendered Application withdrawn Application withdrawn Application withdrawn Application withdrawn	100% 100% 100% 100% 100% 100% 100%	0% 0% 0% 0% 0% 0% 0%
	E47/3310 E47/3314 E52/3307 E52/3308	Application lodged Application lodged Application lodged Application lodged	0% 0% 0% 0%	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	8,381,982,131	8,381,982,131

• See chapter 19 for defined terms.

Appendix 5B Page 14

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Appendix 5B

Mining exploration entity and oil and gas 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 61,400,000 conversion factor) 93,200,000 7,200,000

• 146,700,000 8,000,000

• 7.8 Issued during quarter 7.9 Exercised during quarter

• 7.10 Expired during quarter 36,000,000

Exercise price Expiry date HK$0.72 13 December 2015 HK$0.717-HK$0.967 14 January 2016 HK$0.717-HK$0.967 28 February 2016 HK$0.717-HK$0.967 20 May 2016 HK$0.45 18 January 2018 HK$0.717-HK$0.967 14 January 2016

• 7.11 Debentures (totals only)

• 7.12 Unsecured notes (totals only)

Compliance statement

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

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

• See chapter 19 for defined terms. Appendix 5B Page 15

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

Sign here:

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Date: 30 July 2015

(Company secretary)

Print name: Chan Kam Kwan, Jason

Notes

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

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

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

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

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

• See chapter 19 for defined terms. Appendix 5B Page 16

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