CASSIUS MINING LIMITED — Interim / Quarterly Report 2011

Jul 28, 2011

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

Name of entity
Gulf Industrials Limited
ABN 13 115 027 033	Quarter ended (“current quarter”)
13 115 027 033	30 June 2011

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (12 months) $A’000
	783 (171) (316) (1,184) (360) 17	1,690 (1,027) (1,477) (3,560) (824) 56
	(1,231)	(5,142)
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 Advances from other entities 1.11 Loans repaid by other entities 1.12 Distribution Fee Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (849) - - - 50 -	(817) - (1,873) - 4 58 296 103 1,140
	(799)	(1,089)
	(2,030)	(6,231)

• 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)	(2,030)	(6,231)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	2,693	7,159
	2,693	7,159
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 of quarter	663 504	928 239
	1,167	1,167

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
		120
		-
1.25 Explanation necessary for an understanding of the transactions Since the end of the quarter the company has announced a 3 for 5 fully underwritten rights issue at $0.04 per new share which closes on 9 August 2011. 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 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest	Explanation necessary for an understanding of the transactions
	Since the end of the quarter the company has announced a 3 for 5 fully underwritten rights issue at $0.04 per new share which closes on 9 August 2011.
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

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Amount available Amount used
$A’000 $A’000
3.1 Loan facilities
- -
3.2 Credit standby arrangements
- -
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• 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 4.3 Production 4.4 Administration	$A’000
	200
	300
	1,000
	150
**Total **	*1,650 **

* Represents specified outflows only. Does not include cash inflows such as sales receipts and interest income.

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 accountsis asfollows.	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)	1,167	504
Total: cash at end of quarter(item 1.22)	1,167	504

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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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	493,604,729	493,604,729
	64,000,000	64,000,000	$0.045	- -
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	52,629,028 12,000,000 6,000,000 32,315,000 6,000,000 2,750,000 15,000,000 20,000,000	52,629,028 - - - - - - -	Exercise price $0.10 $0.05 $0.03 $0.05 $0.079 $0.094 $0.05 $0.086	Expiry date 31 March 2013 31 May 2012 11 November 2012 20 July 2015 10 March 2016 10 March 2016 31 March 2014 31 March 2014
	15,000,000 20,000,000	- -	$0.05 $0.086	31 March 2014 31 March 2014
	-	-	-	-
	25,449,072	25,449,072	$0.20	30 June 2011
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

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

Sign here: ............................................................ Date: 29 July 2011 (Director/Company secretary)

Print name: Wayne Kernaghan

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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