CZR RESOURCES LTD — Interim / Quarterly Report 2011

Jan 30, 2012

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

Coziron Resources Limited

ABN 91 112 866 869 Consolidated statement of cash flows	Quarter ended (“current quarter”)
	31 December 2011

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 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	Current quarter $A’000	Year to date (6 months) $A’000
	- - - - (134) - 53 - - -	- - - - (256) - 63 - - -
	(81)	(193)
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 (carriedforward)	- - - - - - - - -	- - - - - - - - -
	-	-
	(81)	(193)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (broughtforward)	(81)	(193)
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 (provide details if material) Net financing cash flows	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(81) 2,308 -	(193) 2,420 -
	2,227	2,227

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		$96
		NIL
1.25	Explanation necessaryforanunderstanding ofthe transactions
	Paid for Company secretarial, office and accounting services - $34k Directors’ Fees - $43k Legal fees - $19k

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 NIL

• 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 NIL

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	NIL	NIL
	NIL	NIL

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	400
	-
	-
	100
Total	500

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as	Reconciliation of cash at the end of the quarter (as
shown	in the consolidated statement of cash	Current quarter	Previous quarter
flows)	to the related items in the accounts is as	$A’000	$A’000
follows.
5.1	Cash on hand and at bank	682	808
5.2	Deposits at call	0	0
5.3	Bank overdraft	0	0
5.4	Other (provide details) – Term Deposit	1,545	1,500
	Total: cash at end of quarter(item 1.22)	2,227	2,308

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	Zanthus Project E08/1060 E08/1684 E08/1685 E08/1686 E08/1824 E08/1825 E08/1826 P08/0529 P08/0530 Buddadoo E59/1350 KingX E38/2213 E38/2211 E38/2212 E38/1433 E38/1434 E38/1435 E38/1436 E38/1437 E38/1622 E38/1623 E38/1624 E38/2573	Conditional Share Sale Agreement to acquire all the shares in Zanthus Pty Ltd (See Annexure A for a brief Summary of the Agreement) Conditional Share Sale Agreement to acquire all the shares in Buddadoo Metals Pty Ltd (See Annexure A for a brief Summary of the Agreement) Conditional Share Sale Agreement to acquire all the shares in KingX Pty Ltd (See Annexure A for a brief Summary of the Agreement)	0% 0% 0%	85% 85% 85%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together 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
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	454,473,654	454,473,654
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) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	Nil	Nil
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here:

Date: 31 January 2012 ( ~~Director/~~ Company secretary)

Print name: Stephen Hewitt-Dutton

Notes

• 1 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.

• 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

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ANNEXURE A

SUMMARY SHARE SALE AND PURCHASE AGREEMENTS

Coziron has executed three individual Share Sale and Purchase Agreements with Zanthus, Buddadoo and KingX dated 30 December 2011 (the "Agreements"). All three Agreements are virtually identical and contain the following material terms:

• 1) The Agreements are subject to conditions that must be satisfied or waived within 165 days of the date of the Agreements.

• 2) It is a condition of the Agreemnents that CZR completes a capital raising for an amount of not less than $10 million at a price of 10c or better.

• 3) It is a condition of the Agreements that CZR obtains shareholder and regulatory approvals to achieve completion.

• 4) On or before completion of the Agreements CZR will enter into a Tenement Sale Agreement and Joint Venture Agreement. CZR must execute these documents with Zanthus, Buddadoo and KingX for completion to occur. The terms of these documents have already been agreed by the parties.

• 5) It is a term of the Joint Venture Agreement that the vendors maintain a 15% interest in the three Joint Ventures until the completion of any Bankable Feasibility Study.

• 6) The consideration payable by CZR to the vendors is 500 million shares in Coziron.

• 7) CZR must until completion of the Agreements meet expenditure requirements on the Vendors tenements at least equal to the annual expenditure requirements of the Mines Department.

The terms above are a summary only and should not be considered a complete list of all the terms and conditions of the Agreements.

• See chapter 19 for defined terms.

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