CAZALY RESOURCES LIMITED — Interim / Quarterly Report 2011

Jan 30, 2012

Appendix 5B Mining exploration entity quarterly report

101Rule 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 CAZALY RESOURCES LIMITED ABN Quarter ended (“current quarter”) 23 101 049 334 31 December 2011 Consolidated statement of cash flows	Name of entity CAZALY RESOURCES LIMITED ABN Quarter ended (“current quarter”) 23 101 049 334 31 December 2011 Consolidated statement of cash flows	Name of entity CAZALY RESOURCES LIMITED ABN Quarter ended (“current quarter”) 23 101 049 334 31 December 2011 Consolidated statement of cash flows	Name of entity CAZALY RESOURCES LIMITED ABN Quarter ended (“current quarter”) 23 101 049 334 31 December 2011 Consolidated statement of cash flows
	CAZALY RESOURCES LIMITED
	ABN 23 101 049 334 Consolidated statement of cash flows
			31 December 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes received 1.7 Other – Tenement bonds NetOperating Cash Flows		Current quarter $A’000		Year to date (6 months) $A’000
		(336) - - (495) - 34 - - -		- (1,540) - - (1,522) - 77 - 537 -
		(797)		(2,045)
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 (d) subsidiaries 1.10 Loans to other entities 1.11 Loans repaid by other entities (recoupment of exploration and evaluation expenditure from Joint Venture participant) 1.12 Other (Joint Venture Management Fees) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- (14) (6) 150 2 - - - - -		- (42) (68) 585 27 - - - 414 35
		132		951
		(665)		(1,094)

• See chapter 19 for defined terms.

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1.13 Total operating and investing cash flows (brought forward)	(664)	(1,094)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - costs of share issues Net financing cash flows	125 - - - - -	425 - - - - -
	125	425
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	(540) 3,820 -	(669) 3,949 -
	3,280	3,280

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
		97
		-
1.25	Explanation necessaryfor an understandingof the transactions
	1.23 includes directors fees and salaries and superannuation for executive and non-executive directors.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 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

Financing facilities available

Add notes as necessary for an understanding of the position.

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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	650
	-
	-
	250
Total	900

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 $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)	195	658
	3,085	3,162
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	3,280	3,820

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
	E45/3346 E46/0956 E69/2605	100% Owned 100% Owned 100% Owned	100% 100% 100%	0% 0% 0%
	E09/1821 E31/0982 E31/0983 P77/4046 P77/4047	100% Owned 100% Owned 100% Owned 100% Owned 100% Owned	0% 0% 0% 0% 0%	100% 100% 100% 100% 100%

• See chapter 19 for defined terms.

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Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	122,589,125	122,589,125
	500,000	500,000	25 cents	25 cents
7.5 +Convertible debt securities 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

• See chapter 19 for defined terms.

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7.7 Options (description and conversion factor)	250,000 75,000 225,000 100,000 100,000 925,000 100,000 500,000 2,550,000 500,000 1,000,000 250,000		Exercise price 86 cents 39 cents 45 cents 30 cents 40 cents 33 cents 49 cents 40 cents 53 cents 52 cents 55 cents 28 cents	Expiry date 19 June 2012 14 September 2012 26 October 2012 22 May 2013 14 September 2013 11 January 2015 4 February 2015 11 February 2012 18 October 2012 18 March 2014 30 June 2012 15 December 2013
	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	250,000	-	Exercise price 28 cents	Expiry date 15 December 2013
	500,000		25 cents	6 October 2011
	100,000 750,000 750,000		80.36 cents 30 cents 40 cents	5 October 2011 6 July 2013 6 July 2016
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 give a true and fair view of the matters disclosed.

Sign here: ................................................................. Date: 31 January 2012 (Company secretary)

Print name: Julie Hill

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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