DATELINE RESOURCES LIMITED — Interim / Quarterly Report 2011

Jul 27, 2011

Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Rule 5.3

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

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CONTO RESOURCES LIMITED
ABN Quarter ended(“current quarter”)
149 105 653 30 JUNE 2011
From
Current
Incorporation
Consolidated Statement of Cash Flows quarter
(03/02/2011)
30 June 2011
to date
Cash flows related to operating activities $A’000 $A’000
1.1 Receipts from product sales and related debtors - -
1.1a Receipts in advance - -
1.2 Payments for
(a) exploration and evaluation - (9)
(b) development - -
(c) production - -
(d) administration (24) (31)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature 3 3
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 (21) (37)
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 (21) (37)
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• See chapter 19 for defined terms.17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

Cash flows related to financing activities 1.14 Net 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 Net Financing Cash Flows Consolidated statement of cash flows continued…	3,631 - - - - - 3,631	4,131 - - - - - 4,131
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 ofquarter	3,610 484 -	4,094 - -
	4,094	4,094

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 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	27
	Nil

• 1.25 Explanation necessary for an understanding of the transactions

• 1.23 Relates to Directors Fees

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

None.

• 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

N/A

• 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
		N/A
		N/A

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	299
	-
	-
	90
Total	389

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 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	4,089	479
	5	5
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	4,094	484

• See chapter 19 for defined terms.17/12/2010 Appendix 5B Page 3

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 of quarter	Interest at end of quarter
	None during the Quarter
	None during the Quarter

Comment:

On 16 February 2011, the Company and Sammy Resources Pty Ltd (Sammy Resources) entered into an Option and Farmin Agreement (Option and Farmin Agreement) under which the Company has the right to earn an initial 80% interest in the Tenements comprising the Cardinia Bore Project, subject to certain commitments being fulfilled. They are as follows:

• completing a minimum of 1,000 metres of RC drilling within 2 years of the Company listing on the ASX (Minimum Expenditure Commitment);

• payment of $25,000 in cash (GST exclusive) to Sammy Resources upon obtaining conditional approval to list on the ASX (commitment fulfilled); and

• issuing $80,000 in Shares (at a deemed issue price of $0.20 per Share) (that is 400,000 Shares) to Sammy Resources upon obtaining conditional approval to list on the ASX (commitment fulfilled).

The Project comprises nine granted Prospecting Licences being P37/7635 to P37/7642 and P37/7654 (the “Tenements”) granted for a period of four years to Sammy, a wholly owned subsidiary of Cazaly. The Tenements cover a total area of 1,309 hectares.

• 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)	Amount paid up per security (see note 3)
7.1 Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions 7.2	-	-	-	-
Changes during quarter (a) Increases through issues (b) Exercise of options 7.4 (c) Decreases through return of capital, buy-backs (d) Increase pursuant to underwriting of options 7.3 +Ordinary securities	29,900,000	22,500,000	-	-
	5,000,000 4,500,000 20,000,000 400,000	250,000 2,250,000 20,000,000 -	$ 0.01 $ 0.10 $ 0.20 $ 0.20	50,000 450,000 4,000,000 Consideration shares
	29,900,000	22,500,000
7.5 +Convertible securities Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.6	-	-	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.1 Expired during quarter	750,000 4,000,000	- -	Exercise price $0.20 $0.20	Expiry date 1/04/2014 31/05/2014
	750,000 4,000,000	- -	$0.20 $0.20	1/04/2014 31/05/2014
	-	-	-	-
	-	-	-	-
Debentures (totals only) 7.1	-	-	-	-
7.1 Unsecured notes (totals only)	-	-	-	-

• See chapter 19 for defined terms.17/12/2010 Appendix 5B Page 5

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.

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Sign here: Company secretary)

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Date: 28 JULY 2011
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Print name: TANYA WOOLLEY

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.

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• See chapter 19 for defined terms.

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