Celsius Resources Limited — Interim / Quarterly Report 2011

Jul 28, 2011

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QUARTERLY ACTIVITIES REPORT

JUNE 2011

Carnilya Hill Joint Venture

View Resources (through View Nickel Pty Ltd) has retained a 30% joint venture interest in the Carnilya Hill Joint Venture in Western Australia with Mincor Resources NL (Joint Venture). The tenements covered by the Joint Venture (JV) include tenements M26/47, M26/48, M26/49 and M26/453. The Carnilya Hill Mine has been in production for a number of years and the current mine plan anticipates that it will remain in production until the current reserves are depleted in the first quarter of 2012 depending on the nickel price and successful mining techniques being implemented.

Mincor Resources NL (“Mincor”, ASX:MCR) is the operator of the Carnilya Hill JV. Mincor has advised the Company that the mine is now in „harvest mode‟ meaning that mine development has been completed enabling access to the majority of the remaining ore reserves. Continued mining operations are focused on extracting the ore now available as a result of this mine development.

Production from Carnilya Hill is controlled by the stoping sequence which defines the order in which the remaining stopes can be mined. As a result the actual production can vary significantly on a monthly basis.

According to Mincor the current mining sequence resulted in an overall 25% increase in grade mined during the quarter compared to the previous Quarter. Mining at Carnilya Hill is expected to be completed in the first Quarter of calendar 2012. Mincor‟s production target for Carnilya Hill for FY2011/2012 is 43,000 tonnes of ore at a grade of 3.1% Ni of which 13,000 tonnes are attributable to View Resources.

Mining continued during the June Quarter with 14,052 tonnes of ore extracted with an average grade of 3.94% Ni. Of this 4,216 tonnes of ore are attributable to View. The production for the 12 months from 30 June 2010 is 76,374 tonnes of ore at an average grade of 3.08% Ni. This is approximately 4,700 tonnes of ore below forecast. The full year production attributable to View is 22,912 tonnes of ore. Ore was treated and concentrate acquired by BHP Billiton Nickel West Pty Ltd under an ore tolling and concentrate purchase agreement.

As at 30 June 2011, the Ore Reserves for the Carnilya Hill Joint Venture (as reported by Mincor Resources NL) were as set out in the table below:

Proved		Probable		Total
Tonnes	Ni (%)	Tonnes	Ni (%)	Tonnes	Ni (%)	Total Ni tonnes
47,000	3.3	0	0	47,000	3.3	1,560

Level 1, 12 Kings Park Road, West Perth WA 6005 PO Box 44, West Perth WA 6872 Ph: (08) 9226 4500 Fx: (08) 9226 4300 ACN 009 162 949

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As at 30 June 2011, the Mineral Resource for the Carnilya Hill Joint Venture (as reported by Mincor) are as set out in the table below:

Measured		Indicated		Total
Tonnes	Ni (%)	Tonnes	Ni (%)	Tonnes	Ni (%)	Total Ni tonnes
90,000	4.1	58,500	2.3	148,500	3.4	5,000

The Ore Reserves for the Carnilya Hill Joint Venture (as reported by Mincor Resources NL as at 30 June 2011) attributable to the Company‟s 30% interest (i.e. 30% of the total Carnilya Hill Ore Reserves) are as set out in the table below:

Proved		Probable		Total
Tonnes	Ni (%)	Tonnes	Ni (%)	Tonnes	Ni (%)	Total Ni tonnes
14,000	3.3	0	0	14,000	3.3	450

As at 30 June 2011, the Mineral Resource for the Carnilya Hill Joint Venture (as reported by Mincor) attritutable to the Company‟s 30% interest (i.e. 30% of the total Carnilya Hill Mineral Resource) is as set out in the table below:

Measured		Indicated		Total
Tonnes	Ni (%)	Tonnes	Ni (%)	Tonnes	Ni (%)	Total Ni tonnes
27,000	4.1	17,500	2.3	44,500	3.4	1,500

The resources above are inclusive of reserves. The total ore reserves have been reduced from 3,900 tonnes of contained nickel at 30 June 2010 to 1,560 tonnes of contained nickel at 30 June 2011 as a result of depletion through mining.

As the operator of the joint venture, Mincor manages the ongoing exploration programmes and releases results from these programmes as they are available. The exploration conducted to date has been inclusive. Only limited exploration was undertaken by Mincor in the quarter and no significant results were reported.

Regional Exploration

The Company has applied for tenement E39/1641 located in the Eastern Goldfields region of Western Australia. The tenement consists of 27 blocks and is located to the south of Minara Resources‟ Murrin Murrin mine and adjacent to the NiWest operation currently under development by GME Resources Ltd. The area is believed to have potential for both nickel laterite and nickel sulphide mineralisation.

The tenement area is underlain by rhyolite flows and acid tuffs occurring in thick interlayered beds with volcaniclastic sediments. Mapping has shown that there are a variety of mafic intrusives in the area, with the vast majority intruded as sills, and ultramafic units within the project area. Much of the tenement is covered by alluvial cover however which is likely to have hampered historical exploration.

Level 1, 12 Kings Park Road, West Perth WA 6005 PO Box 44, West Perth WA 6872 Ph: (08) 9226 4500 Fx: (08) 9226 4300 ACN 009 162 949

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The area has previously been explored for nickel as well as copper and zinc by a number of companies. Work has ranged from early stage soil sampling to auger and diamond drilling. However there has only been limited exploration in recent times and it is likely that several modern exploration techniques have not been applied in the area.

The Company is currently compiling publicly available data relating to this tenement from which it will determine the exploration strategy to be taken once tenure is granted.

Other Projects

The Company is actively seeking complementary and non-complementary assets, investments and businesses that have the potential to generate additional shareholder value. These other opportunities might include making investments in resource assets outside of nickel. The Company has been considering a number of opportunities in the coal, iron ore, potash, phosphate and other mineral sectors in recent times. As at the date of this report, no commercial discussions are at a stage that would warrant any disclosure in this report.

The information in this release that relates to Mineral Resources and Ore Reserves is taken from the Mincor Resources NL 2011 Quarterly Activities Report released on the 28[th] of July 2011 and has been reviewed by Mr Colwin Lloyd, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Lloyd is Principal Geologist of Geobase Australia Pty Ltd, consultants to the Company. Mr Lloyd has sufficient experience that is relevant to the style of mineralisation and 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 Resources and Ore Reserves. He has consented to the inclusion of the information in this Prospectus in the form and context which it appears based on the information presented by Mincor Resources NL in publicly available documents.

Level 1, 12 Kings Park Road, West Perth WA 6005 PO Box 44, West Perth WA 6872 Ph: (08) 9226 4500 Fx: (08) 9226 4300 ACN 009 162 949