Celsius Resources Limited — Interim / Quarterly Report 2011

May 31, 2011

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QUARTERLY ACTIVITIES REPORT

MARCH 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 (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 focussed on extracting the ore available as a result of this mine development.

Mining continued during the March Quarter with 15,685 tonnes of ore extracted at an average grade of 3.15% Ni. The production for the 9 months from 30 June 2010 is 62,322 tonnes of ore at an average grade of 2.89% Ni. Ore was treated and concentrate acquired by BHP Billiton Nickel West Pty Ltd under an ore tolling and concentrate purchase agreement.

According to Mincor mining rates were reduced in the months of February and March to optimise usage of the underground mining fleet. This strategy is expected to continue throughout the June quarter. Mincor advises that the current production target is 4,000 tonnes of ore per month however due to the status of the mine the actual production can vary significantly on a monthly basis. As a result the Company is unable to make detailed forecasts as to future mine production or cash flows since cash flows will be dependent on the amount of ore mined as well as the prevailing nickel price and exchange rates

As at 30 June 2010, 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
74,000	3.5	43,000	3.1	117,000	3.3	3,900

Mincor prepares resource and reserve statements at the end of the financial year (i.e. as at 30 June each year) and therefore the Company is unable to provide a resource and reserve statement current as at 31 March 2011.

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

The Ore Reserves for the Carnilya Hill Joint Venture (as reported by Mincor Resources NL as at 30 June 2010) 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 Nitonnes
22,000	3.5	13,000	3.1	35,000	3.3	1,200

As at 30 June 2010, 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 Nitonnes
21,000	5.0	42,000	3.5	63,000	4.0	2,500

The resources above are inclusive of reserves.

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

During the quarter the Company 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. There are a variety of mafic intrusives in the area, with the vast majority intruded as sills, and ultramafic units have been mapped within the project area. Much of the tenement is covered by alluvial cover which is likely to have hampered historical exploration.

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.

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Corporate

Prior to the March quarter the Company and View Nickel Pty Ltd obtained the approval of their creditors to enter into a varied Deed of Company Arrangement so that all claims of creditors (secured and unsecured) against the Company and View Nickel Pty Ltd will be comprised and released following a cash payment to a creditors' trust. As part of this process a new board of directors was appointed on 20[th] December 2010 to manage the Company‟s interests.

On 9 February 2011, the recapitalisation of the Company and the effectuation of the Deed of Company Arrangement were completed and control of the Company was passed back to the Board.

As at 31[st] March the Company had A$3.5 million in cash available.

The information in this release that relates to Mineral Resources and Ore Reserves is taken from the Mincor Resources NL 2010 Annual Report 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