Celsius Resources Limited — Interim / Quarterly Report 2012

Apr 29, 2012

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QUARTERLY ACTIVITIES REPORT

MARCH 2012

Kyrgyzstan Coal Projects

During the Quarter the Company finalised the acquisition of a 90% interest in the Sary Mogol and Bel Alma licenses in Southern Kyrgyzstan (“the Projects”). Both Projects are close to the Chinese border (a likely end user of the coal) and the Bel-Alma project is situated near the proposed Trans-Euro railway.

The Sary-Mogol project has a development/production licence that is valid until 28 July 2016, with the renewal of the yearly works agreement pending. The production license at the Sary-Mogol project covers the area of previous mining activity and is an area 8 hectares in size. The previous owners of the SaryMogol project were producing and selling thermal coal from an open cut mine.

The Bel-Alma project has an exploration licence and works agreement that are both valid until 26 July 2013. The Bel-Alma project is potentially a large tonnage, high quality thermal coal project. The total licence area is 278 hectares.

Surface sampling during 2011 confirmed the presence of relatively high energy thermal coal at both the Bel-Alma and Sary-Mogol projects in Kyrgyzstan. 12 out of the 14 samples returned calorific values above 5,500 Kcal/kg on an “as received” basis, including 4 samples above 7,000 kcal/kg and a maximum value of 7,284kcal/kg . 11 out of 14 samples contained less than 15% ash (including 5 samples with less than 5% ash). The full sampling results are attached as Table 1.

During the quarter the Company commenced activities within Kyrgyzstan. The Company has introduced itself and its aims to several national, regional and local government agencies and looks forward to meeting more stakeholders as it commences its work programmes. The Company has also quickly built a strong technical and administrative team as well as establishing an office in the capital Bishkek.

Site visits to Sary Mogol were carried out to inspect the open pit mine and meet the district administration. The company plans to work closely with the head of administration and his deputies to provide assistance to the village population, including employment when operations commence. Sary Mogol is easily accessed from the regional capital Osh as the highway has now been sealed the entire way to Say Mogol village. Stockpiles of coal remain on site as well as earthmoving equipment. The site is secure and guarded. The Company believes that it may be able to re-establish production from Sary Mogol within a reasonably short period of time. Given the ease of access to Sary Mogol the Company is planning to commence drilling at the Project in the near future.

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

As announced on 12th March the Company has advanced the remaining amount outstanding on the loan (US$800,000) to Oshpur Limited ( Oshpur ). The remaining consideration to be paid for the acquisition consists of a cash payment of US$400,000 ( Cash Consideration ), the issue of 100,000,000 fully paid ordinary shares in the capital of View ( Initial Shares ); and the issue of 500,000 performance shares in the capital of View, divided into three separate classes (100,000 A Performance Shares, 200,000 B Performance Shares and 200,000 C Performance Shares) ( Performance Shares ).

This remaining consideration was previously going to be paid by View to the shareholders of Oshpur ( Oshpur Shareholders ) at settlement but will now only be paid by View to the Oshpur Shareholders provided the State Agency for Geology and Mineral Resources grants an extension or renewal of the development agreement (on terms satisfactory to View) relating to the Sary-Mogol licence on or before 30 April 2012 (or such later date as agreed by View) ( Renewal ).

If the Renewal is not obtained, then View will be released from its obligations to pay the Cash Consideration and allot and issue the Initial Shares and the Performance Shares to the Oshpur Shareholders. No determination has yet been made on the status of the Renewal, however the Company will keep the market informed on any future developments.

The Company continues to evaluate a number of opportunities to acquire coal projects in Kyrgyzstan and surrounding areas. As at the date of this report, no commercial discussions are at a stage that would warrant any disclosure in this report.

Carnilya Hill Joint Venture

View Resources (through View Nickel Pty Ltd) owns a 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.

As released on the 11[th] of April Mincor has advised the Company that mining at Carnilya Hill ceased during March 2012 (as forecast in the December Quarterly Report). At the completion of mining, a total of 40,900 tonnes of ore had been mined in FY2011/2012, of which 12,270 tonnes are attributable to View Resources. Mining during the March Quarter comprised 14,050 tonnes of ore at a grade of 2.42% Ni corresponding to 340 tonnes of nickel in ore.

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 Company will continue to receive proceeds from sale of ore mined in the March Quarter during the June Quarter.

Current operations on site at Carnilya Hill consist of tidying up of areas affected by operations and securing of the mine site and equipment owned by the Joint Venture. Assets may be disposed of during this process and the proceeds split between the Participants in the Joint Venture. Should exploration be successful or should nickel prices increase substantially there may be the opportunity to re-commence mining. Therefore, access to the decline and other mine infrastructure is anticipated to be maintained for the present. 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.

The Company would like to thank all those involved in the Joint Venture, especially those on site, who helped make Carnilya Hill a safe and successful operation.

Regional Nickel Exploration

The Company has been advised that it has been granted tenement E39/1641 located in the Eastern Goldfields region of Western Australia. The tenement is located to the south of Minara Resources’ Murrin Murrin mine and adjacent to the NiWest operation currently under development by GME Resources Ltd and is believed to have potential for both nickel laterite and nickel sulphide mineralisation. The Company aims to commence exploration activities on this tenements shortly following a review of the recently compiled historical data. The exploration expenditure commitment for this tenement in its first year is $70,000.

The Company has also applied for tenement E39/1684, which covers 29 blocks in the same region as E39/1684. The tenement is to the west of the Murrin Murrin mine and north of the NiWest deposit, as well as to the south of the Waite Kauri laterite nickel deposit. While the primary target on this tenement is laterite-hosted nickel mineralisation there has been limited modern day exploration to identify whether ultramafic units occur within the tenement boundary. Should these be present then there may be potential for nickel sulphide occurrences as well. There may also be potential for gold and copper mineralisation as well. 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.

In due course, the Company may consider spinning out its nickel interests into a new pubic vehicle listed on the ASX.

Corporate

During the Quarter the Company announced the appointment of Mr Peter O’Malley as Non-Executive Chairman and Mr Grant Thomas as Executive Technical Director. In addition, View Resources has appointed Kenosis Capital Partners ( Kenosis ) as financial adviser and investment banker and Cunningham Peterson Sharbanee Securities Pty Ltd ( CPS Securities ) as corporate adviser.

The Company also successfully completed a placement to raise $1.5 million during the Quarter. The Company is fully funded to carry out its exploration activites.

Mr Peter O’Malley – Non-Executive Chairman

Peter O’Malley is the Founding Partner of Kenosis Capital Partners, an international merchant banking and advisory firm focused on the global natural resources sector. Mr. O’Malley is responsible for managing Kenosis Capital Partners’ advisory engagements, direct investments and government relations.

Prior to founding Kenosis Capital Partners, Mr. O’Malley was Head of the Asian Natural Resources investment banking practice at Deutsche Bank and more recently at HSBC.

Prior to joining Deutsche Bank and HSBC, Mr. O’Malley was a senior energy and natural resources sector banker at Credit Suisse First Boston based in New York and Johannesburg.

During more than 21 years in investment banking, Mr. O’Malley led the origination and execution of major mergers and acquisitions, equity and debt capital markets, and structured finance transactions in the metals and mining and oil and gas and sectors.

Mr. O’Malley is also Chairman of The Leadership Forum and a Member of the Bar in the State of New York and the State of New Jersey. Mr. O’Malley is a graduate of the University of St John’s School of Law and Siena College.

Mr O’Malley will be paid a salary of $75,000 per annum and will be issued, subject to shareholder approval, 50 million Class A Options (on the terms set out in the annexure to this announcement).

Mr Grant Thomas – Executive Technical Director

Mr Grant Thomas is an Executive Technical Director of View Resources Limited, appointed in March 2012.

His 29 years’ professional experience covers exploration and resource evaluation and valuations for many minerals, including gold, copper, lead, zinc, uranium, fluorspar and coal in Australia, China, South Africa, Tajikistan, Kazakhstan, Brazil and Mongolia.

As Managing Director of Tianshan Goldfields Limited, an ASX listed mineral resource company, Mr Thomas led teams that discovered the 2.4M oz Xinjiang Gold Mountain deposit (China), its evaluation and completion of a positive pre-feasibility study. He also completed capital raisings in London, Sydney, Hong Kong and Singapore.

Prior to Tianshan Goldfields Limited, Mr Thomas held senior positions with Rio Tinto Exploration (Australia, Brazil and China) and Hamersley Iron (Australia).

More recently, Mr Thomas has consulted for AsiaMin Consulting Limited (HK) primarily as a Competent Person and Valuer to various international and Chinese coal companies listing on the Hong Kong Stock Exchange. In this role, Mr Thomas completed Technical and Valuer reports, including JORC conversions, for several coal projects in Inner Mongolia and Xinjiang provinces China and Tajikistan.

Mr Thomas’ expertise includes exploration and mining tenement acquisition; mineral resource evaluations and valuations, budgets and strategy plans; liaising with Australian and international Mines Departments, negotiating with foreign governments and joint venture partners; statutory and Stock Exchange reports; and presentations to companies, stockbrokers and financial institutions.

Mr Thomas will be paid a salary of $275,000 per annum (plus super) and will be issued, subject to shareholder approval, 25 million Class A Options (on the terms set out in the annexure to this announcement).

Other Directors

Mr Ranko Matic and Mr Simon MacKinnon resigned as directors of the Company during the Quarter and the Board thanks them for their service.

Mr Bill Oliver will continue as a Non-Executive Director of the Company and Mr Matic will continue as company secretary of the Company.

Kenosis Capital Partners

Kenosis Capital Partners is an international merchant banking and advisory firm focused on the global natural resources sector. The Kenosis Capital Partners team comprises experienced investment banking and senior management professionals from the natural resources sector in in the Americas, Asia-Pacific, the Middle East and Europe.

Kenosis Capital Partners provides clients with financial and strategic advice in mergers, acquisitions, divestitures and capital raising transactions. Kenosis Capital Partners also assists clients in expanding their investor bases to include a broader range of global investors including institutional investors, private equity and sovereign wealth funds.

As a merchant banking firm, Kenosis Capital Partners takes equity interests in certain advisory clients. This equity participation model allows Kenosis Capital Partners to contribute to the growth of its advisory clients and directly aligns Kenosis Capital Partners’ interests with those of its advisory clients.

CPS Securities

CPS Securities is a Perth based boutique corporate advisory and broking firm, holding an Australian Financial Services Licence. It specialises in advising small to medium sized resource companies which operate domestically and throughout the world.

CPS Securities has a focus on listing international assets on the Australian Securities Exchange, leveraging off price differentials between overseas and Australian projects whilst affording its clients with the protection offered by a well regulated market.

CPS Securities will be paid a fee of $5,000 per month (ex GST( for its services and the Company will pay Kenosis a fee of $10,000 per month and, subject to shareholder approval, will issue Kenosis 50,000,000 Class B Options (on the terms set out in the annexure to this announcement).

Table 1. Coal quality data from surface sampling at the Bel Alma (samples BA01-10) and Sary Mogol (samples CM01-03) Projects (“as received” basis).

Sample Number	Total Moisture (%)	Ash (%)	Volatile Matter (%)	Fixed Carbon (%)	Total Sulphur (%)	Calorific Value (cal/g)
BA01	2.89	5.13	28.52	63.46	0.46	6649
BA02	3.64	23.36	23.12	49.88	0.35	5240
BA03	3.12	6.46	28.31	62.10	0.58	6674
BA04	3.28	3.12	29.06	64.54	0.68	7075
BA05	3.81	3.61	27.83	64.76	0.59	6942
BA06	2.68	2.50	28.05	66.77	0.56	7171
BA07	1.77	1.95	28.92	67.36	0.69	7284
BA08	2.29	3.63	29.99	64.08	0.80	7060
BA09	2.38	5.14	30.80	61.67	0.92	6872
BA10	3.98	6.59	29.21	60.22	0.88	6625
CM01	5.30	16.58	29.98	48.14	0.61	5710
CM02	8.70	9.61	32.49	49.20	0.46	6086
CM02/1	6.57	8.09	34.06	51.27	0.50	6356
CM03	8.11	32.43	27.00	32.46	0.35	4336

The information in this announcement that relates to exploration results relating to the Kyrgyzstan coal projects is based on information compiled by Graeme Hewitt of Micromine Pty Ltd who is a Fellow of the Australasian Institute of Mining and Metallurgy. Graeme Hewitt has sufficient experience which 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’. Graeme Hewitt consents to the inclusion in this announcement of the matters based on his information n the form and context in which it appears.