CULLEN RESOURCES LIMITED — Interim / Quarterly Report 2003

Jan 30, 2003

CULLEN RESOURCES LIMITED

A.C.N. 006 045 790 A.B.N. 46 006 045 790

FACSIMILE MESSAGE :

Date	÷	31 January 2003
To		Australian Stock Exchange
Attention	÷	The Listing Manager
Fax	÷	1 300 300 021
From	÷.	John Horsburgh
Subject	÷	ASX ANNOUNCEMENT

200

Please advise the Sender if all pages are NOT received.

Attached is the Quarterly report for the period ended 31/12/02 for release to the market.

John Horsburgh Director

CULLEN RESOURCES LIMITED

ABN 46 006 045 790

QUARTERLY REPORT

31 DECEMBER 2002

HIGHLIGHTS

EXPLORATION
	Aircore drilling to date has outlined an extensive zone of anomalous gold (>100ppb) in weathered bedrock extending over $1,000 \times 400$ m in a NE-SW direction. Results include 6m @ 3.6 g/t Au on the southernmost drill line. Aircore drilling of extensions NE and SW of the main Southern Zone is planned in current Quarter. First pass RC drilling of Southern has returned significant results including: 8m @ 4.28 g/t Au; 7m @ 2.79 g/t Au; 38m @ 1.08 g/t Au; 1m @ 13.29 and 1m @ 14.43 g/t Au.
POTER LETTER	Prospect upgraded with RC drill intercept of 10m @ 2.52 g/t Au.
	EM surveying of 10km the of Western Ultramafic Complex (75% complete) has discovered five significant conductors. Drilling will follow modelling of conductor depth and orientation.
ະ 1 : 1 4 1 : 3 6 6 1 . 2 0	Soil and rock chip sampling located new anomalous zones with rock chips up to $1.23 \text{ g/t}$ .
QOPPATY V	Perth office established to be operated by newly appointed Exploration Manager, Dr Chris Ringrose.

ASX Code : CUL Level 4, 118 Christie Street ST LEONARDS NSW 2065 AUSTRALIA

Phone: +61 2 9437 4588 Fax: +61 2 9437 4599 Email: info@cullenresources.com.au Website: www.cullenresources.com.au

EXPLORATION ACTIVITIES

NORTHEAST GOLDFIELDS W.A.

GUNBARREL GOLD PROJECT (Eureka Group E 53/568, E 53/535, E 53/818, E53/837, MLAs 53/868-870, Cullen 100%, Irwin Bore Group E 53/403, ELAs 53/925 and 981, Cullen can earn 90%, ELA 53/1040, Cullen 100%)

Cullen's Gunbarrel Project covers approximately 650 sq km of granite/greenstone terrane in the northeast portion of the Archean Yilgam Block of Western Australia (Figure 1). It is located 130 km east of Wiluna and 90km east of the highly productive Yandal Greenstone Belt which includes the Bronzewing, Jundee and Darlot-Centenary gold mines. The region also hosts a number of important nickel mines. The Gunbarrel property is considered by Cullen to be highly prospective for further discoveries of gold and nickel. Cullen is exploring for gold on the Eureka and Irwin Bore Group of tenements in its own right and also for nickel on the Eureka Group through a joint venture with WMC Resources Ltd.

Summary

• Exploration activity remained high during the quarter with programmes of aircore (40 holes; 2,065m) and RC drilling (21 holes; 2,420m) completed at the Southern, Eureka Northwest, Cohra and Irwin Bore gold prospects.
• Most of the aircore drilling was at the Southern Prospect (34 vertical holes, average depth 53m) to complete a 100 x 50m drill pattern. A broad zone of anomalous gold $(>100$ ppb Au) in bedrock has been outlined extending over 1,000m NE-SW and up to 400m wide. Better intercepts include 6m @ 3.6 g/t Au (MEAC 130), 1m @ 17.0 g/t Au (MEAC 122) and 1m @ 7.7 g/t Au (MEAC 133).
• The aircore intersection of 6m $\overline{a}$ 3.6 g/t Au is on the southernmost line with nearest previous drilling 700m to the south.
• Nine RC holes in the central part of the Southern Prospect produced very significant results with gold mineralisation hosted in multiple, gently dipping shear zones linked to regional scale N-S trending structures. Better intersections included 8m @ 4.28 g/t Au (MERC 60), 7m @ 2.79 g/t Au (MERC 61), 9m @ 1.95 g/t Au and 4m @ 3.35 g/t Au (MERC 62). Separate narrower high grade intersections were made such as: 1m @ 14.43 g/t Au (MERC 65) and 1m @ 13.29 g/t Au (MERC 60).
• RC drilling at the Eureka Northwest Prospect, located along the western margin of the greenstone ۰ belt, intersected strong gold mineralisation hosted by sheared conglomerate near the contact with ultramafics - 10m @ 2.5 g/t Au (MERC 55) which is down dip of MEAC151, 8m @ 1.1 g/t Au.
• The Eureka Northwest Prospect and its northern extension, which lies beneath alluvial cover, form ٠ a significant target along the western margin of the greenstone belt. Several indications of gold mineralisation have been found in drilling over about five strike km.

• A 2,142 line km aeromagnetic survey with flight lines at 50m spacings was completed for Cullen during the quarter over approximately 100 km². It covers the Irwin Bore, Southern, Eureka North and Eureka Northwest prospect areas (Figure 2). These new data will assist interpretation of the structural controls to mineralisation in the project area.

• A very substantial strike length of prospective shear zones along NNW, N-S, NNE and NE trends (Figure 2) is indicated by current interpretation of the greenstone belt geology and the location of known gold prospects. Incorporation of the aeromagnetic survey images into the database will enable prioritisation of drill targets along these structures. Drilling is planned to commence in March 2003.

• The recognition of gently dipping (30°), mineralised structures at Southern is a significant breakthrough and upgrades the prospectivity of the Gunbarrel Project.

Southern

Aircore drilling at the Southern Prospect (Figure 3) tested the western and southern extensions of the known mineralisation and the prospective eastern ultramafic contact shear. Drill holes were spaced at 100 x 50m intervals to an average depth of 53m. Several significant intersections were returned (Table 1) including $6m$ @ 3.6 $g/t$ Au in MEAC 130, on the southernmost drill line. This result in particular indicates further significant exploration potential to the south, with the nearest previous drilling (Pegasus RAB hole) being some 700m away. The mineralised trend at Southern is also open to the north.

First pass RC drilling (14 holes for 1,668m) was also completed at Southern. Nine holes were drilled in three fences on 50m spaced sections oriented NW-SE and angled at 60 degrees to the NW to test the central portion of the bedrock anomaly (Figure 4). The drilling returned several significant intersections (Table 2) including 8m @ 4.28 g/t Au (MERC 60), 7m @ 2.79 g/t Au (MERC 61), 9m @ 1.95 g/t Au and 4m $@$ 3.35 g/t Au (MERC 62). Separate narrower high grade intersections were made such as 1m @ 14.43 g/t Au (MERC 65) and 1m @ 13.29 g/t Au (MERC 60). Broad envelopes of lower grade mineralisation are also present (e.g. $38m$ @ 1.08 g/t Au from $45m$ in MERC 62).

Of the five holes drilled to test mineralisation on the eastern ultramafic contact that was interpreted to dip easterly, the best intercept was 9m @ 1.04 g/t Au from 50m in MERC 67. Other holes returned only low gold values. The drilling did not confirm the interpreted east dipping attitude and future exploration will test for possible west dipping structures.

These drill results, together with an interpretation of a recently completed ground magnetic survey over the Southern Prospect, indicate structurally complex geology with gold mineralisation related to multiple, oxidised quartz-sulphide lodes in NNE striking shear zones which dip to the SE at approximately 30°. Mineralisation appears to be focussed in mafic and felsic host rocks sandwiched between ultramafic units. Hydrothermal alteration, including silicification, is intense and weathering is deep (locally $> 100$ m). These features indicate potential for a significant shear hosted, gold lode system at the Southern Prospect.

On-going exploration will target strike extensions to the north and south, the interpreted intersection of mineralised shears and NE trending ultramatic contact shears.

3

Eureka Northwest

This prospect is marked by a base-of-hardpan gold geochemical anomaly which extends N-S for approximately 3km. Limited previous RAB and aircore drilling has intersected gold mineralisation associated with quartz veins in sheared conglomerate and ultramafic schist.

Five aircore holes (for 172m) and three RC drill holes (for 327m) were completed to test Cullen's previous RAB and aircore drilling intersections. Hole MERC 55 intersected 10m @ 2.5 g/t Au (Table 2), down dip of 8m $@$ 1.1 g/t Au in MEAC 151.

Approximately 2km of the geochemical anomaly remain largely untested. The anomaly is broadly related to the granite-greenstone contact and targets for further aircore drilling will be identified from the interpretation of the recent aeromagnetics together with the geochemical data.

Prospect/Hole ID	East AMG	North AMG	From (m)	$\overline{To}$ (m)	Intersection & Grade $(g/t \text{ Au})$
Eureka NW
$\overline{\text{MEAC}}$ 105	353520	7062382	35	$\overline{36}$	1 m (Q 0.37)
Southern
$\overline{\text{MEAC}}$ 107	354290	7056600	43	49	6m (Q 0.17)
			$\overline{62}$	$81*$	$\overline{19m\ (\omega\ 0\ 18)}$
MEAC110	354350	7056700	54	58	$\frac{1}{4}$ ( a ) 0.37
MEAC 115	353800	7056300	4	9	5m @ 0.47
MEAC116	353850	7056200	7	Ï0	3m (a) 0.20
MEAC117	353800	7056200	7	10	3m (Q) 0.23
MEAC121	353950	7056100	29	$\overline{30}$	$1\overline{\text{m} \omega}$ 2.59
$\overline{\text{MEAC}}$ 122	353900	7056100	$\overline{25}$	$\overline{26}$	$\overline{1}$ m @ 16.99
MEAC130	353900	7055900	$\overline{27}$	29	$2m \overline{Q}$ 0.62
			38	$\overline{40}$	2m (a) 2.86
			40	42	2m (a) 0.62
			42	48	$6m$ $@$ 3.64
			49	$\overline{52}$	3m (20.27)
			58	59	$\overline{1m\ (\hat{a})\ 1.58}$
MEAC132	353800	7055900	22	30	8m (20.23)
MEAC133	353750	7055900	35	$\overline{36}$	1 m @ 7.72
			38	42	4m (a) 0.12
$\overline{\text{MEAC}}$ 134	353700	7055900	$\overline{26}$	30	$\overline{4m}$ (a) 0.21
Cobra
MEAC141	354952	7051915	64	68	$\frac{4m (a) 0.33}{2}$
			$\overline{74}$	78	$\frac{1}{4m}$ (a) 0.14

TABLE 1: GUNBARREL GOLD - SIGNIFICANT AIRCORE DRILL INTERSECTIONS (>0.1g/t Au)

* denotes end of drillhole

TABLE 2: GUNBARREL GOLD - RC DRILL INTERSECTIONS (>1 g/t Au)

Prospect/Hole	East	North	From	To	Intersection &	Repeat gold
ID	AMG	AMG	(m)	(m)	Grade (g/t Au)	assay
Southern						$\overline{2.71}$
$MERC$ 58	354036	7056400	$\overline{34}$	$\overline{35}$	$1m$ $\overline{Q}$ $2.52$	$\overline{145}$
			$\overline{42}$	43	1m (2) 1.49	1.86
			53	$\overline{54}$	$\overline{\text{Im} (a)}$ 1.56
						$\overline{313}$
MERC59 o	354069	7056356	55	57	2m (a) 3.18 2m (Q 2.08)	1.78
			59	$\overline{61}$	$1m\omega$ 2.81	$\overline{2.82}$
			$\overline{\mathbf{83}}$	84		$\overline{\text{N.A.}}$
			$\overline{97}$	98	1m (a) 1.25 $\overline{5m}$ $\overline{w}$ $\overline{1.90}$	$\overline{2.15}$
			100	105
		7056324	$\overline{45}$	46	1m (213.29)	11.6
MERC60	354105		$\overline{86}$	94	8m (a) 4.28	3.39
			$\overline{\textbf{88}}$	92	4m (2) 6.95	5.82
Incl			$\overline{132}$	133	$\ln$ $\omega$ 1.24	$\overline{\text{N.A.}}$
MERC61	353970	7056360	$\overline{35}$	42	7m (a) 2.79	3.15
Incl.			$\overline{38}$	39	1m (2) 11.09	11.68
MERC62	354000	7056328	45	$\overline{\textbf{33}}$	38m @ 1.08
lncl.			4 0	55	9m $(a)$ 1.95	2.12
Incl.			51	$\overline{55}$	4m (a) 3.35	3.66
Incl			63	71	8m (a) 1.95	$\overline{2.17}$
Incl			$\overline{65}$	$\overline{68}$	3m (2) 3.21	3.55
Incl			75	$\overline{76}$	1 m (a) 1.44	0.78, 2.79
Incl			$\overline{32}$	$\overline{83}$	1 m (a) 1.80	2.33
Incl
$\overline{\text{MERC63}}$ $\bullet$	354038	7056290	42	$\overline{43}$	$1m$ $\overline{a}$ 3.18	2.15
			$\overline{90}$	94	4m (a) 1.26	1.29
MERC64 •	353935	7056321	44	45	1 m (2) 1.70	1.79
			54	$\overline{55}$	1 m (a) 1.22	1.19
			59	60	1 m (a) 1.06	1.10 2.40
MERC65	353971	7056279	$\overline{44}$ 48	$\overline{46}$ 49	2m (2.03) 1m (22.67)	2,39
			65	66	1 m (a) 2.70	2.83
				69		13.83
			68		$\overline{1m(0)}$ 14.43
$MERC$ 66	354000	7056247	54	55	1 m (a) 2.48	2.96
			$\overline{16}$	$\overline{117}$	1 m (a) 3.99	4,47
$MERC$ 67	353980	7056000	$\overline{88}$	90	1 m (a) 1.58	1.42

Table continued overleaf.

Cullen Resources Limited - Quarterly Report

Prospect/Hole	East	North	From	Ŧо	Intersection &	Repeat gold
ID	AMG	AMG	(m)	(m)	Grade (g/t Au)	assay
$MERC68 \odot$	354160	7056368	50	51	1m (2) 3.03	3.07
			53	59	6m $(2, 0.95)$	0.92
			85	86	$1m$ @1.09	1.17
			100	101	1 m (a) 1.77	3.34, 5.82
Irwin Bore
MERC51@	353130	7043080	110	$\overline{112}$	$2m$ @ $2.14\overline{2}$	$\overline{247}$
MERC53 ©	353056	7042852	29	30	$1m$ (a) $1.22\%$	1.14
Eureka NW
MERC $55$ $\odot$	353410	7061400	69	79	$\overline{10m}$ $\overline{a}$ 2.52	2.04
lnc			71	$\overline{76}$	$5m$ (a) $3.79$	3.27
MERC56@	353450	7061500	50	51	1m (a) 3.66	$\overline{3.60}$

All Im samples. Assay Method: $\circled{1}$ Fire assay 50gm charge, AAS finish; All other assays are aqua regia digest with AAS finish, N.A. not assayed. All holes inclined at 60°, $\odot$ towards 270°; $\bullet$ towards 315°.

Irwin Bore

Cullen can earn 90% of the Irwin Bore tenements from Revesco Group Ltd.

Four RC holes (for 425m) were drilled to test a mineralised chert in the vicinity of an intersection in IBRC 3 of 6m $(0, 3.3)$ g/t Au from exploration by previous tenement holders. Drilling intersected gold mineralisation (maximum $2m (a) 2.5 g/t$ Au, MERC 51) in quartz-sulphide veins in black shale down dip of IBRC 3.

Although these assay results are subeconomic, the geological setting is similar to that of the Mt Fisher gold deposit located 14km to the south. There are several hundred metres of untested chert at the Irwin Bore Prospect and the newly acquired aeromagnetic data may generate drill targets along this prospective chert trend.

GUNBARREL GOLD PROJECT - WHITE WELL (E 53/645, ELAs 53/1030, /1069 and /1046 Cullen 100%)

No fieldwork was carried out. Application E 53/1069 was lodged to cover extensions of greenstones to the north of E 53/645 and E 53/1030. Compilation of previous exploration results is in progress.

GUNBARREL NICKEL PROJECT (Eureka Group E 53/568, E 53/535, E 53/818, E53/837, Cullen 100%, WMC can earn a 75% interest in nickel and base metal rights)

WMC is planning to drill two diamond holes, each to 230m depth. One is to be drilled into the AK47 target and the other into the 303 target. The holes will test coincident cumulate ultramafic and conductors from ground TEM geophysical surveys. They are to be drilled in the June Quarter 2003.

EASTERN GOLDFIELDS W.A.

KILLALOE NICKEL PROJECT (E 63/722*, E 63/765*, P 63/1131, 1132, 1133, 1172, 1173 1174, Cullen 100%, *7.5% NPI to Xplore Pty Ltd applies to these tenements; Sipa Resources International NL (Sipa) can earn 70% in nickel and base metal rights)

Sipa may earn 70% in nickel, base metals and associated platinum group element rights at Killaloe, situated about 25 kilometres northeast of Norseman in the Kambalda-Widgiemooltha Nickel Province.

Exploration by Sipa over the last year has comprised geological mapping and airborne magnetic data interpretation, ground/down-hole electromagnetic (EM) surveying, and RAB/RC/diamond drilling, mostly along the 20 km "Eastern Ultramafic Complex" (Figure 5). Exploration by Sipa over the past quarter has comprised drilling of two deep RC holes (KLC 019 and 020, for 290m) and 1 diamond core hole (KLD 008, for 276m, with 207m RC precollar and 69.5m core).

The first ever EM survey over the 10 km of strike of "Western Ultramafic Complex" commenced in January this year and is about three quarters complete. Five conductors, each significantly stronger than those found in the Eastern Ultramafic Complex, have been detected. Four are situated close to the "basal ultramafic contact", a favourable position for massive nickel sulphide deposits. Drilling will test all five conductors after more detailed EM surveying to model depth and orientation of targets and any other new targets from the rest of the survey.

In the Eastern Ultramafic Complex, five targets were selected for drilling and had down-hole EM surveys run. One target for follow-up drilling resulted, a strong off-hole EM conductor was interpreted to lie beyond the limit of KLD 2. This hole was deepened last Quarter and the conductor was found to be a carbonaceous sediment.

Two diamond drill holes (KLD 6 and 8) tested geological targets in the "Western Ultramafic Complex". KLD 6 (drilled the previous Quarter) intersected 5m from 57m of iron sulphides (pyrite and marcasite) with significant copper sulphide (chalcopyrite) mineralisation which assayed up to 0.55% Cu over 0.4m from 63.7m, with another 1.85m at 0.3% Cu from 61m. Downhole EM indicated sulphide mineralisation extending to the north and downdip and also another conductive body to the south.

Two RC holes (KLC 19 and 20) were recently targeted in the Western Ultramafic Complex 40 metres north and south respectively of KLD 6. KLC 20 intersected 2m of massive pyrite with anomalous copper (1m at 0.1% Cu from 75m) 40 m north of KLD 6, whilst the off-hole conductor to the south was not explained in KLR 19.

KILLALOE GOLD PROJECT (E 63/722*, E 63/765*, P 63/1131, 1132, 1133, 1172, 1173 1174, Cullen 100%, *7.5% NPI to Xplore Pty Ltd applies to these tenements)

Cullen has combined the results of Sipa's geological mapping, RAB, RC and diamond drilling and Cullen's gold/arsenic geochemistry from auger sampling and aeromagnetic interpretation to identify new target areas.

Sipa's RAB and RC drilling located two high priority targets in the Duke Prospect and Big Bend Prospect areas (Figure 6). In the western part of the Duke Prospect, RAB drilling tested the basal contact of the Eastern Ultramafic Complex and KLR 52 intersected 10m @ 0.12g/t Au in a zone of weak to moderate quartz veining. The nearest RAB drilling is 200m to the south, whereas the nearest RAB to the north is 800m away.

In the Big Bend Prospect area, KLD 004 intersected a 20m zone of intense quartz veining with strong alteration and sulphide mineralisation including galena. One of the characteristics of the Norseman quartz lodes is a strong galena/gold association. Assays of the interval by Sipa returned low gold values.

Stream sediment sampling by Cullen during the previous quarter identified the western Peninsula Prospect area with anomalous gold assays of up to 30ppb, adjacent to quartz veins. Prior auger sampling by Australasian Gold Mines (AGM) located anomalous gold values of up to 25 ppb nearby.

Prior rock chip sampling in the NE Volcanic Zone returned up to 3.4 g/t Au, 0.5% Cu and 8.5% Zn. Previous auger sampling by Cullen identified a strong gold anomaly in the prospect area that is open to the east.

Cullen is planning a programme of auger pedogenic carbonate, soil and rock chip sampling commencing in February 2003 to follow up the Big Bend, Duke, NE Volcanic Zone and Peninsula leads described above. Auger sampling will also be carried out south east of Peninsula where Sipa's mapping identified a prospective geological association of a major WNW trending fault offsetting magnetic mafic volcanic units. Limited, wide-spaced auger sampling by AGM located weak anomalies near the fault and over the magnetic mafics but away from the offset target.

ASHBURTON GOLD PROVINCE W.A.

BARRICK WYLOO JOINT VENTURE

De Courcy (E 47/874, 875,1004), De Courcy North/Horse Well (E 47/903, ELA 47/1154), Hardey Junction (E 08/1145, ELAs 08/1166, 1189, 1327), Catho Well (ELA 08/1330), Cardo Bore (E 08/1341) and Mount Stuart (ELA 08/1292).

Barrick can earn a 70% interest in the package of tenements for an expenditure of \$5 million over 5 years, of which \$350,000 would be committed in the first year, subject to granting of two key tenements at Hardey Junction (E 08/1166, 1189). The agreement is subject to documentation and WA Department of Minerals and Petroleum Resources approval. In the meantime, interpretation, targeting and exploration programme design continued by Barrick incorporating data supplied by Cullen. Processing of aeromagnetic data was initiated with final imaging expected in February.

Exploration is planned to commence mid-2003 with reconnaissance RAB, aircore and RC drilling on previously delineated geochemical and conceptual targets. Further mapping and reconnaissance stream sediment sampling are scheduled for the remainder of the project.

YANKS BORE PROJECT (E 08/1022 Yanks Bore, Cullen 51% (Cullen and Udu Resources Ltd contributing pro rata); E 08/1135 Red Hill West, Cullen 100%)

During the quarter, a programme of soil sampling was completed on 100-50m spaced lines with 50-25m sample intervals to infill several gold/arsenic soil anomalies outlined by previous 200 x 50m sampling (Figure 7). The infill defined new anomalous zones and provided better definition of existing anomalies.

One new anomaly (located along the Hunter Zone, north of the Aberfoyle Knoll Prospect) extends over an area of 400 x $75m$ (>5ppb Au). Immediately to the south of Aberfoyle Knoll is a previously known anomaly which has been extended to dimensions of 600 x 100m.

At the Marshall's Find Prospect, a 300 x 100m soil anomaly related to the Hunter Zone was confirmed (with values up to 75ppb Au). A previous rock chip sample of gossanous dolomite in the same area assayed 14.5 g/t Au.

Another anomaly 400m to the north is open ended with values up to 44ppb Au. A nearby rock chip sample of silicified shale assayed 1.23 g/t Au.

A parallel 400 x 200m soil anomaly (peak value 106ppb Au) has been located 100 to 200m east of Marshall's Find. This new zone is related to the Yanks Bore Fault and confirms the prospectivity of this structure.

Infill soil sampling of three anomalies south of Aberfoyle Knoll and east of the Hunter Zone located a $>5$ ppb Au anomaly extending over 2,500 x 150m and open to the south. Within the 5ppb contour, there are three anomalies (northern, central and southern) with values up to 60 ppb Au and dimensions of 450 $x$ 50m, 150 x 50m and 350 x 100m respectively. Outcropping dolomite with occasional quartz veining was observed at the northern and central anomalies. A rock chip of this material from the central anomaly returned a strongly anomalous gold assay of 203ppb. The southern anomaly is mostly soil covered.

These soil and rock chip anomalies are encouraging and further prospecting is planned. In general, the soil sampling has confirmed that the Hunter Zone/Yanks Bore Fault corridor is strongly anomatous in gold over a strike length of 9km in the Yanks Bore tenement and has provided several target areas for further work and possible drill testing.

SLATE BORE (M 08/79, Cullen 100%, E 08/1021, Cullen 100%)

Cullen continues to follow up expressions of interest by potential joint venture partners in Slate Bore as a base metal exploration project. The known base metal prospects and geochemical anomalies are located within a large scale hydrothermal alteration system and indicate potential for stratiform/stratabound, sediment hosted, base metal sulphide deposits. Lead isotope analysis of lead sulphide mineralisation (galena) sampled from previous diamond drill core will be undertaken in the March quarter by the CSIRO to indicate overall prospectivity for sediment hosted massive sulphide deposits.

CORPORATE

On January 6th Dr Chris Ringrose joined Cullen as Exploration Manager based in Perth. Dr Ringrose, one of the best known exploration geologists in Western Australia, brings to Cullen a wealth of project evaluation and management experience gained in Australia and overseas. He has established a Perth office for Cullen and will direct the Company's on-going and developing exploration programmes.

Contact details:

Address

4/7 Hardy Street, South Perth WA

Telephone 0894745511 Fax. 0894745588

ATTRIBUTION

Information in this report which relates to mineralisation is based on information compiled by Grahame Hamilton, a full time
employee of Cullen Resources Limited who is a Member of the Australian Institute of Geoscientists relation to mineralisation being reported on.

JOHN HORSBURGH DIRECTOR

CR 31-1-2003

$Rule 5.3$

$\mathbb{R}^{\mathbb{Z}}$

Appendix 5B

Mining exploration entity quarterly report

______________________________________

$\overline{a}$

$\sim$ $\sim$

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Name of entity

CULLEN RESOURCES LIMITED

ABN

46 006 045 790

للبيت الممالك

Quarter ended ("current quarter") 31 December 2002

Consolidated statement of cash flows

			Current quarter	Year to date
	Cash flows related to operating activities		\$A'000	$($ . $6$ months) \$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for	(a) exploration and evaluation	(616)	(1, 146)
		(b) development
		(c) production
		(d) administration	(90)	(165)
1.3	Dividends received
1.4		Interest and other items of a similar nature received	23	52
1.5	Interest and other costs of finance paid
1,6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows		(683)	(1,259)
		Cash flows related to investing activities
1.8	Payment for purchases of:	(a)prospects
		(b)equity investments
		(c) other fixed assets
1.9	Proceeds from sale of:	(a)prospects
		(b) equity investments
		(c)other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows
1.13	Total operating and investing cash flows (carried forward)		(683)	(1,259)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(683)	(1,259)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other share issue expenses
	Net financing cash flows
	Net increase (decrease) In cash held	(683)	(1,259)
1.20	Cash at beginning of quarter/year to date	2 1 2 9	2,705
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	1446	1,446

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter SA'000
1.23	Aggregate amount of payments to the partles included in item 1.2	87
1.24	Aggregate amount of loans to the parties included in item 1.10	$\overline{\phantom{a}}$

$1.25$ Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$\blacksquare$

• See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available SA 000	Amount used SA 000
3.1	Loan facilities
3.2	Credit standby arrangements ---	------

Estimated cash outflows for next quarter

		SA000
4.1	Exploration and evaluation		250
-4.2	Development		-
	Total		250

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	1.446	2.129
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1,446	2.129

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note $(2)$ )	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed		SEA
6.2	Interests in mining tenements acquired or increased		х×.

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights logalher with prices and dates.

		Total number	Number quoted	Issue price per security (see note $3)$ (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference *securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases
	through returns of capital, buy-backs, redemptions
$\overline{73}$	+Ordinary securities	268,752,376	268,752,376
74	Changes during quarter (a) Increases through issues
	(b) Decreases through returns of capital, buy-backs
7.5	*Convertible debt securities (description)
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	10,000,000		Exercise price \$0.04	Expiry date 30 November 2004
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

Compliance statement

• $\mathbf{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

$\frac{30}{12}$ Date: $\frac{30}{12}$ (Director/Company secretary)

Sign here:

Print name:

Wayne Kernaghan

Notes

• $\mathbf{I}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

⁺ See chapter 19 for defined terms.