DGR GLOBAL LIMITED — Interim / Quarterly Report 2016

Jul 28, 2016

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

DGR Global Limited

ABN 67 052 354 837	Quarter ended (“current quarter”)
67 052 354 837	30 June 2016

Consolidated statement of cash flows	Consolidated statement of cash flows
Cash flows related to operating activities1 1.1 Receipts from product sales and related debtors including Goods & Services Tax 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 (12 months) $A’000
	228 (263) ‐ ‐ (677) ‐ 435 (1) 8 ‐	952 (1,080) ‐ ‐ (3,490) ‐ 1,560 (1) (2,188) ‐
	(270)	(4,247)
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 (Security Deposits, net) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	‐ (350) ‐ ‐ 624 ‐ (5,290) ‐ 68	‐ (3,844) (37) ‐ 757 ‐ (27,452) 9,263 1,890
	(4,948)	(19,423)
	(5,218)	(23,670)

• 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 (brought forward)	(5,218)	(23,670)
Cash flows related to financing activities 1.14 1.15 Proceeds from issues of shares, options, etc. Proceeds from issue of shares in subsidiaries to outside equity interests 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings (leases and other) 1.19 Dividends paid 1.20 Other (Capital Raising Costs) Net financing cash flows	40 3 ‐ 530 ‐ ‐ ‐	4,802 170 ‐ 530 ‐ (813) (125)
	573	4,564
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to cash 1.23 Cash at end ofquarter	(4,645) 5,176 ‐	(19,106) 19,637 ‐
	531	531

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

1.24 1.25	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
		61
		‐
1.26	Explanation necessaryfor an understandingof the transactions
	Amount included at item 1.8(b) for the quarter ended 30 June 2016 represents participation in Aus Tin Mining Placement at $0.005 per share. Amount included at item 1.10 for the quarter ended 30 June 2016 represents cash loans made to related parties consisting of $1.758m to Armour Energy Ltd and $3.532m to SolGold plc. Note that the conversion of the convertible note in SolGold plc of $1.25m and the conversion of SolGold loans of $2.01m to ordinary shares has been disclosed on a grossed up basis in the year to date numbers, showing the equity investment under item 1.08(b) and also the loan repayment under item 1.11.

Non‐cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	The total dividend paid during the year to date was $1,035k of which $222k was reinvested under the Company’s Dividend Reinvestment Plan(DRP).
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas 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
	530	530
	‐	‐

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration (net of management fees)	$A’000
	150
	‐
	‐
	600
Total	750

Reconciliation of cash

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)	531	5,176
	‐	‐
	‐	‐
	‐	‐
Total: cash at end of quarter(item 1.22)	531	5,176

As announced on 5 July 2016, the Company has access to a commercial loan facility of $3m.

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
	EPM 259821 EPM 259841 EPM 188082	Exploration Permit for Minerals Exploration Permit for Minerals Exploration Permit for Minerals	100% 100% 100%	Nil Nil Nil
	EPM 259771	Exploration Permit for Minerals	Nil	100%

Notes:

1 Tenement acquired/surrendered by Albatross Bauxite Pty Ltd which is a 100% DGR Global subsidiary.

2 Tenement surrendered by Barlyne Mining Pty Ltd, which is a 100% Archer Resources Ltd subsidiary, in which DGR Global Ltd holds a 63% interest.

• See chapter 19 for defined terms.

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3

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	Total number	Total number	Number quoted	Number quoted	Number quoted	Issue price per security (see note 3) (cents)	Issue price per security (see note 3) (cents)	Amount paid up 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		Nil			Nil
		Nil			Nil
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs		550,881,877			550,881,877
		Nil			Nil
7.5 +Convertible debt securities(description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted		Convertible Notes Nil			Convertible Notes Nil			Convertible Notes		Convertible Notes
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter		12,000,000 9,500,000 1,000,000 23,000,000 22,950,000 6,000,000						Exercise price 12 cents 12 cents 6.5 cents 6.5 cents 6.5 cents 6.5 cents		Expiry date 30/11/2016 29/05/2017 10/07/2016 30/09/2017 25/11/2017 14/12/2017
		Nil
		Nil
		4,400,000						6.5cents		15/04/2016
7.11 Debentures (totals only)		Nil
7.12 Unsecured notes (totals only)		Nil				Nil

• See chapter 19 for defined terms.

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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 4).

• 2 This statement does / ~~does not*~~ (delete one) give a true and fair view of the matters disclosed.

Sign here:

==> picture [143 x 27] intentionally omitted <==

Date: 29 July 2016

(Company Secretary)

Print name: Karl Schlobohm

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 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.

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