CAZALY RESOURCES LIMITED — Interim / Quarterly Report 2015

Jan 28, 2016

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 2015 Consolidated statement of cash flows	Name of entity CAZALY RESOURCES LIMITED ABN Quarter ended (“current quarter”) 23 101 049 334 31 December 2015 Consolidated statement of cash flows	Name of entity CAZALY RESOURCES LIMITED ABN Quarter ended (“current quarter”) 23 101 049 334 31 December 2015 Consolidated statement of cash flows	Name of entity CAZALY RESOURCES LIMITED ABN Quarter ended (“current quarter”) 23 101 049 334 31 December 2015 Consolidated statement of cash flows
	CAZALY RESOURCES LIMITED
	ABN 23 101 049 334 Consolidated statement of cash flows
			31 December 2015
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 Net Operating Cash Flows		Current quarter $A’000		Year to date (6 months) $A’000
		- (163) - - (262) - 2 - - -		- (368) - - (473) - 2 - - -
		(423)		(839)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)plant & equipment (b)equity investments (c)subsidiaries (d)prospects 1.9 Proceeds from royalties and 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 1.12 Other Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - - - - 155 - - - - 123		- - - - - 155 - - - - 123
		278		278
		(145)		(561)

• 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)	(145)	(561)
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 convertible notes 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - costs of share issues Net financing cash flows	205 - 200 - - (3)	205 - 200 - - (3)
	402	402
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	257 205 -	(159) 621 -
	462	462

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 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
	-	-
	-	-

Estimated cash outflows for next quarter

• See chapter 19 for defined terms.

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4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	100
	-
	-
	125
Total	225

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)	462	205
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	462	205

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 ofquarter	Interest at end of quarter
	Managed E52/3020 E80/4774 Not Managed P46/1360 P46/1361 P46/1362 P46/1363 P46/1364 P46/1365 P46/1366 E69/2230	Robinson Ranges Halls Creek Quartz Circle Quartz Circle Quartz Circle Quartz Circle Quartz Circle Quartz Circle Quartz Circle Nebo	100% 100% 20% 20% 20% 20% 20% 20% 20% 100%	0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
	Not Managed P46/1825 P46/1826 P46/1827 P46/1828 P46/1829	Quartz Circle Quartz Circle Quartz Circle Quartz Circle Quartz Circle	0% 0% 0% 0% 0%	20% 20% 20% 20% 20%

• 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	Amount paid up per security
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	130,477,121	130,477,121		Fully paid
	(*)	(*)
7.5 +Convertible debt securities 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	2	-	$100,000	Convertible notes with a maturity date of 31 December 2016, zero % interest rate and convertible at $0.03 plus a free attaching option on the basis of one option for every two shares issued on conversion (with an exercise price of $0.04 and an expiry date of 5 January 2018).
	2	-	$100,000	Convertible notes with a maturity date of 31 December 2016, zero % interest rate and convertible at $0.03 plus a free attaching option on the basis of one option for every two shares issued on conversion (with an exercise price of $0.04 and an expiry date of 5 January 2018).

• See chapter 19 for defined terms.

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7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	100,000 3,500,000			Exercise price $0.107 $0.180	Expiry date 31 July 2016 26 November 2016
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

(*) 6,831,667 fully paid ordinary shares (issue price of $0.03) and 3,425,834 unlisted options (exercisable at $0.04 on or before 5 January 2018) were issued on 6 January 2016 as part of a share placement as announced to the ASX on 22 December 2015.

• 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: 29 January 2016 (Company Secretary)

Print name: Mike Robbins

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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