CONNECTED MINERALS LIMITED — Interim / Quarterly Report 2012

Jul 31, 2012

Leopard Resources NL

==> picture [58 x 63] intentionally omitted <==

PO Box 8 • West Perth • Western Australia • 6872 T: +61 (0)8 9381 2517 F: +61 (0)8 9381 5853 ABN 99 009 076 233

Quarterly Activities Report For the Quarter Ended 30 June 2012

Lithium Project, Argentina

The Company has executed an agreement to acquire an advanced stage lithium project located in the Salta province of North Western Argentina on the border with Chile. During the quarter the company has sent representatives to site to meet the local technical people as part of the due diligence process. Part of their visit included the establishment of the Special Purpose Vehicle (SPV) for the transaction. The company is currently collating the necessary documentation to complete its due diligence. The company has paid the €200,000 deposit and forwarded funds for legal statutes that are being established in Argentina through engaged company representatives.

The due diligence is progressing and it is anticipated that the final documentation will be completed by the end of August 2012.

==> picture [125 x 11] intentionally omitted <==

----- Start of picture text ----- Lithium Project Location----- End of picture text -----

==> picture [375 x 284] intentionally omitted <==

Global Lithium Market Overview

Lithium is commercially produced by two methods, one through mining and processing and the other more economical and significant method through evaporation of brine ponds or salt flats where lithium is detected. This type of lithium production is based on the chemical reaction between the purified solutions of lithium chloride with a saturated solution of soda ash, which generates a precipitate lithium carbonate.

The global lithium market is dominated by producers in Chile, Argentina and Australia that are responsible for over 85% of world production. Lithium has applications for ceramics, aluminium, pharmaceutical and battery technologies. The use of lithium in the portable battery market has been growing by more than 20% per year since 2000. This historic rate of growth is entirely related to small format batteries used in a variety of electronic applications. The advent of lithium-ion hybrids, plug-in hybrids and all electric vehicles will require large format batteries. These batteries will require kilos of lithium, rather than the grams used today in portable electronic applications.

Nacimiento Copper Uranium Project

The Company is continuing the desk top review of proposed exploration programs through its American geological group. Budgets have been prepared by Geologist engaged by Leopard Resources and the first stage will incur approximately USD $144,000.00 of expenditure during the next quarter. The Los Pinos claim block is regarded as the most interesting of the claim blocks in terms of exploration potential for copper and uranium. The Nacimiento Uplift region also contains a number of mostly small copper occurrences and two historic mines. The deposits are sandstone hosted red bed-type, hosted by the Aqua Zarca Sandstone Member formation of the Triassic Chinle Formation. The Los Pinos claim block could be viewed as the starting point for a more extensive evaluation of the potential of the eastern side of the San Juan Basin for uranium and copper. It has also been identified that 80km’s to the southwest of the Nacimiento area significant uranium mineralisation has occurred in the Grants District. The Company holds three blocks of lode mining claims, namely,

Coyote Lode Mining Claims, Sandoval County, New Mexico

The property comprises 53 lode mining claims covering 1,100 acres, in two blocks. The claims were staked to cover a cluster of copper prospects and a cluster of uranium occurrences.

Aranda Lode Mining Claims, Rio Arriba County, New Mexico

The property comprises 50 lode mining claims covering 1,000 acres. The claims were staked to cover a cluster of copper and uranium occurrences.

Los Pinos Lode Mining Claims, Sandoval County, New Mexico

The property comprises 51 unpatented lode mining claims covering 1,120 acres. The claims were staked to cover a cluster of copper and uranium occurrences.

During the coming quarter lease fees of the company’s claims will need renewal. The amount is USD $ 24,000.00

Corporate

The Company has raised $ 879,000 via converting loans during the quarter.

The Company has executed a formal agreement with Truestone Capital Specialised Investments (Jersey) Limited ( Truestone) , a European equity group, to provide up to $4 million by way of an equity drawdown facility.

The facility will provide the Company with the ability to place up to a maximum of $1 million per drawdown with a 3% commitment fee (payable in shares) for the first $2 million drawn down, plus the issue of 10,000,000 options exercisable at $0.01 cents expiry at 31[st] December 2013. A second capital implementation fee of 3% is payable once the Company has drawn down $2 million under the facility. The facility utilises an average trading value over 20 days, priced to 85% of the market price. The facility also requires the payment of a $10,000 fee for legal and administrative costs.

The Lithium Project acquisition and Truestone agreements are subject to shareholder approval prior to settlement. To date the Board has made a number of submissions to the ASX for the proposed shareholders meeting and will convene as soon as ASX approval has been provided.

By approval of the Board

Jamie Scoringe Company Secretary