Celsius Resources Limited — Interim / Quarterly Report 2012

Jul 30, 2012

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QUARTERLY ACTIVITIES REPORT

JUNE 2012

Kyrgyzstan Coal Projects

During the Quarter, the Company entered into an agreement to acquire an 80% interest in the TuyukKargasha, Kokkia and Min-Teke licenses in Central Kyrgyzstan (the Uzgen Basin Projects). The Uzgen Basin Projects have a Exploration Target[1] of 501 to 700 million tonnes of thermal and coking coal (detailed below) and are located within 6 kilometres of the route of the proposed Trans-Asia railway.

The Company has engaged seven (7) drilling rigs for the 2012 field season. Earthmoving is progressing well and access tracks and first drill pads are nearing completion. Commencement of drilling is imminent.

During the Quarter, the Company entered into a conditional agreement (the Agreement ) to acquire interests in three prospective coking and thermal coal tenements (Tuyuk-Kargasha, Kokkia and Min-Teke) (collectively the Tenements ) located in the Uzgen coal basin in Kyrgyzstan ( Uzgen Basin Projects ). The details of the Agreement can be found in the ASX announcement dated 18[th] June 2012.

Key Highlights of the Uzgen Basin Projects include:

• Three adjacent tenements covering an area of 9,763ha (97.6km[2] ); with the Tuyuk-Kargasha and Kokkia tenements being contiguous.

• Almost all of the Project area is underlain by Jurassic sediments, the principal host of coal mineralisation in Kyrgyzstan.

• Outcropping coal can be found in all tenements, along with several small scale adits and open pits.

• The coal bearing formation is up to 250m thick. The formation contains around 50 layers of coal with individual layers up to 8.7m thick. These layers have been grouped into 4 main groups/seams. Interbedded waste layers are on the order of 0.1-0.3m thick.

• Four prospects (the Prospects ) have been delineated within the Tenements – Tuyuk, Kargasha, Kokkia and Min-Teke (Figure 1).

• Extensive exploration was completed on the Project in the Soviet era, including drilling of 60 cored drillholes at the Tuyuk and Kargasha Prospects for 28,920m, approximately 15,000 metres of trenching and adits and construction of a semi-industrial scale plant to test coking properties.

1 Note, the potential quantity is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

The Company has derived an Exploration Target for the Project of between 500 and 700 million tonnes of coal.[2] This Exploration Target is a total of the Exploration Targets for the individual Prospects as shown in Table 1. The Exploration Target is based on the results of historical exploration (including drilling) carried out between 1941 and 1953 which is reported in Kashirin, Ibraimov and Karabalaev (1975)[3] amongst other sources. The Company is about to commence a drilling and sampling programme which, if successful, may result in the definition of a JORC compliant resource for one or more of the Prospects contained within the Tenements. This drilling programme will also provide important detail on the quality of the coal present at the Project and will be used to validate the extensive drilling results from Soviet era exploration programmes.

Table 1. Exploration Targets and Summary Information for the Prospects

Prospect	Exploration Target (millions of tonnes of coal)	Coal Seam Total Thickness	Expected Coal Type
Tuyuk	267 – 335	8.3 metres (across 9 seams)	Bituminous Coking Coal
Kargasha	115 – 140	15.3 metres (across 14 seams)	Bituminous Coking Coal
Kokkia	114 – 198	11.2 metres (across 11 seams)	Thermal and Coking Coal
Min-Teke	5 – 27	To be determined	Thermal
Total	501 - 700

Earthmoving activities commenced at the Uzgen Basin Projects during the quarter and are currently well advanced, despite 3 days being lost due to storms and significant rainfall. Access to the Tuyuk and Kargasha Prospects has been completed along with first drilling pads. The road to Min Teke is anticipated to be completed this week, and once completed will be extended to the Kokkia Prospect to allow drill rig access and support trenching activities.

Once the Min Teke road is completed, the contractor (KAB International) will also commence pre-stripping a portion of the coal deposit to enable the Company to commence small scale production.

Seven core drilling rigs have been contracted for the 2012 field season including 3 track mounted drill rigs, for which significantly less earthmoving is required. These rigs are also to access sites in more difficult terrain. Mobilising of drilling rigs to site will commence this week. A drilling camp has been established at Tuyuk-Kargasha and drillhole sampling personnel have been recruited. Five drill rigs will arrive on site over the next month, with the remaining rigs being added when access to Kokkia has been completed.

During the quarter, trenching was carried out at the Tuyuk, Kargasha and Kokkia Prospects. Samples have been taken from coal seams intersected and will be submitted for analysis. Samples from drilling at the Project will be analysed at internationally accredited laboratories in Russia, and routine check assays will be carried out at internationally accredited laboratories in China or Australia as part of the QA/QC programme.

The Company also continues to progress its 90% owned Alai Range Projects in Southern Kyrgyzstan (Sary Mogol and Bel Alma). At Sary Mogol work is focusing on the re-commencement of small scale production, with mining and support staff recruited and upgrade of facilities and pit dewatering to commence shortly. At Bel Alma, work concentrated on determining the best route for an access road to site, with construction likely to commence in this Quarter following discussions with local government and receipt of tenders from local contractors.

2 Note, the potential quantity is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

3 Kashirin F.T., Ibraimov I.M. Karabalaev K.K., 1975. Uzgen Coal Basin. llim, Frunze, 167 pp.

Figure 1: Geology Map of the northern Uzgen Basin showing the location of the Kargasha, Tuyuk, Min-Teke and Kokkia Prospects. The Tenements are shown in red.

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Min-Teke
Kargasha
Kokkia
Tuyuk
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Min Teke road construction work

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Outcropping coal seam
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Carnilya Hill Joint Venture

View Resources (through View Nickel Pty Ltd) owns a 30% joint venture interest in the Carnilya Hill Joint Venture in Western Australia with Mincor Resources NL ( Joint Venture ). Mincor Resources NL ( Mincor , ASX:MCR) is the operator of the Carnilya Hill JV. The tenements covered by the Camilya Hill Joint Venture (JV) include Mining Licences M26/47, M26/48, M26/49 and M26/453.

During the Quarter, the Company received the final payments from the ore parcels treated in the March Quarter. All ore from Carnilya Hill is treated and the resultant concentrate acquired by BHP Billiton Nickel West Pty Ltd under an ore tolling and concentrate purchase agreement.

The Carnilya Hill site has been placed on care and maintenance during the quarter. The Joint Venture will incur nominal running costs to ensure the site is kept secure, safe and well maintained.

Exploration will continue on the tenements comprising the Joint Venture, managed by Mincor as the Operator of the Joint Venture. Results from exploration programmes will be released as they become available.

Regional Nickel Exploration

The Company continues to carry out data compilation and target generation works on its granted tenement E39/1641 and application E39/1684 in the Eastern Goldfields region of Western Australia. The tenements are located near to Minara Resources’ Murrin Murrin mine and the NiWest operation currently under development by GME Resources Ltd and are believed to have potential for both nickel laterite and nickel sulphide mineralisation. The Company aims to commence exploration activities on the tenements shortly following a review of the historical data. In due course, the Company may consider spinning out its nickel interests into a new public vehicle listed on the ASX.

Corporate

The Company is currently carrying out an investor roadshow through Australia, Hong Kong and Singapore, in collaboration with its Australian corporate advisor CPS Securities. An Investor Presentation was released to the ASX on 17[th] July. In addition, Breakaway Research completed a research report on the Company, commissioned by the Company.

The Company has also proposed a change of name to Celsius Coal Limited to better reflect its current activities. This will be put to a shareholder meeting for approval, to be held in the near future.

The Company has recruited Alistair Muir as its Country Manager. Mr Muir is an experienced coal geologist with over 15 years experience in all aspects of exploration and development of coal projects and is a Competent Person for coal under the JORC Code. He will be primarily responsible for managing the Company’s work programmes in country

In addition, Mr Aaron Raddock has been seconded from Kokkia Coal Ltd (the vendors of the Uzgen Basin Projects) to work with the Company’s geologists in the design and implementation of work programmes at the Uzgen Basin Projects. Mr Raddock has a wealth of experience in bulk commodities and in combination with Mr Muir means the Company has significantly strengthened its in country technical team.

Field offices / drilling camp

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ABOUT CELSIUS COAL

View Resources (to be renamed Celsius Coal) is an Australian-based exploration company that was initially focused on the exploration, evaluation and exploitation of nickel deposits and other minerals located in Western Australia.

View recently acquired a 90% interest in the Sary Mogol and Bel Alma coal licences located in Alai Range region of southern Kyrgyzstan and has a right to acquire an 80% interest in the Tuyuk-Kargasha, Kokkia and Min Teke licences in the Uzgen Basin in Kyrgyzstan.

In addition to its existing assets, the Company continues to actively pursue new projects in the resources sector, not only in Australia and Kyrgyzstan, but elsewhere in the world, with the hope of subsequently developing mining operations on those projects.

For more information, please visit www.viewresources.com.au or contact Mr Ranko Matic, Company Secretary on +61 (08) 9226 4500.

Competent Person’s Statement

The information in this report that relates to Exploration Results, Exploration Targets, Mineral Resources or Ore Reserves is based on information compiled by Mr Grant Thomas, who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Thomas is the Managing Director of View Resources Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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. Mr Thomas consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

Exploration Targets

It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this announcement relating to Exploration Targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) and Reserve(s) have not been used in this context in this announcement. The potential quantity of coal presented in this announcement as Exploration Targets are conceptual in nature. It should be noted that there has been insufficient exploration to define a Mineral Resource which complies with the JORC code, and it is uncertain if further exploration will result in the determination of a Mineral Resource. View Resources intends to carry out an exploration programme to systematically test the Exploration Targets detailed in Table 1 above for each of the Prospects.