DGR GLOBAL LIMITED — Interim / Quarterly Report 2016

Jan 30, 2017

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Name of entity

Name of entity	Name of entity
DGR Global Limited
ABN		Quarter ended (“current	quarter”)
67 052	354 837	31 December 2016
Consolidated statement of cash flows		Current quarter $A’000	Year to date (6 months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	136	330
1.2	Payments for
	(a) exploration & evaluation	(251)	(537)
	(b) development	‐	‐
	(c) production	‐	‐
	(d) staff costs	(465)	(923)
	(e) administration and corporate costs	(363)	(751)
1.3	Dividends received (see note 3)	‐	‐
1.4	Interest received	94	169
1.5	Interest and other costs of finance paid	(101)	(252)
1.6	Income taxes paid	‐	‐
1.7	Research and development refunds	‐	‐
1.8	Other (provide details if material)	‐	‐
1.9	Net cash from / (used in) operating	(1,000)	(1,964)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(1)	(12)
	(b) tenements (see item 10)	‐	‐
	(c) investments	(368)	(368)

• See chapter 19 for defined terms. 01/09/2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months)
			$A’000
	(d) other non‐current assets	‐	‐
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	‐	‐
	(b) tenements (see item 10)	‐	‐
	(c) investments	‐	‐
	(d) other non‐current assets	‐	‐
2.3	Cash flows from loans to other entities	(231)	(1,303)
2.4	Dividends received (see note 3)	‐	‐
2.5	Other (provide details if material)	‐	‐
2.6	Net cash from / (used in) investing	(600)	(1,683)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	830	830
3.2	Proceeds from issue of convertible notes	‐	‐
3.3	Proceeds from exercise of share options	‐	‐
3.4	Transaction costs related to issues of	(2)	(2)
	shares, convertible notes or options
3.5	Proceeds from borrowings	‐	3,000
3.6	Repayment of borrowings	‐	‐
3.7	Transaction costs related to loans and	‐	‐
	borrowings
3.8	Dividends paid	‐	‐
3.9	Other (provide details if material)	‐	‐
3.10	Net cash from / (used in) financing	828	3,828
	activities
4.	Net increase / (decrease) in cash and	(772)	181
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of	1,484	531
	period
4.2	Net cash from / (used in) operating	(1,000)	(1,964)
	activities (item 1.9 above)

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months)
			$A’000
4.3	Net cash from / (used in) investing	(600)	(1,683)
	activities (item 2.6 above)
4.4	Net cash from / (used in) financing	828	3,828
	activities (item 3.10 above)
4.5	Effect of movement in exchange rates on	‐	‐
	cash held
4.6	Cash and cash equivalents at end of	712	712
	period
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to
	the related items in the accounts
5.1	Bank balances	712	712
5.2	Call deposits	‐	‐
5.3	Bank overdrafts	‐	‐
5.4	Other (provide details)	‐	‐
5.5	Cash and cash equivalents at end of	712	712
	quarter (should equal item 4.6 above)
6.	Payments to directors of the entity and their associates		Current quarter
			$A'000
6.1	Aggregate amount of payments to these parties included in		(127)
	item 1.2
6.2	Aggregate amount of cash flow from loans to	these parties	‐
	included in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

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• See chapter 19 for defined terms. 01/09/2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

7. Payments to related entities of the entity and their associates

7. Payments to related entities of the entity and their Current quarter associates $A'000

7.1 Aggregate amount of payments to these parties included in ‐ item 1.2

7.2 Aggregate amount of cash flow from loans to these parties ‐ included in item 2.3

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• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

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8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an understanding of the	at quarter end	quarter end
	position	$A’000	$A’000
8.1	Loan facilities	3,530	3,530
8.2	Credit standby arrangements	‐	‐
8.3	Other (please specify)	‐	‐

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Item 8.1 consists of:

• (a) On 5 July 2016, the Company executed short‐term secured loan facility agreements with two international financiers for CAD$3,000,000 for a period of 6 months on commercial terms. The purpose of the loan facility agreements is to provide DGR Global Ltd with access to adequate working capital to continue to facilitate the on‐going development of the various companies in which it holds significant equity interests.

• (b) On 30 June 2016, DGR Global Ltd assumed liability for a loan of CAD$505,000 owing by SolGold plc to Tenstar Trading Ltd. Interest is payable at the rate of 6% per annum, where principal and accrued interest is payable in full together on demand at any time after 30 June 2016.

• See chapter 19 for defined terms. Appendix 5B Page 4

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation		(100)
9.2	Development		‐
9.3	Production		‐
9.4	Staff costs		(300)
9.5	Administration and corporate costs		(300)
9.6	Other (provide details if material)		‐
9.7	Total estimated cash outflows		(700)

10.	Changes in	Tenement	Nature of interest	Interest	Interest
	tenements	reference		at	at end of
	(items 2.1(b) and	and		beginning	quarter
	2.2(b) above)	location		of quarter
10.1	Interests in mining	‐	‐	‐	‐
	tenements and
	petroleum tenements
	lapsed, relinquished
	or reduced
10.2	Interests in mining	EPM 25976	Exploration permit for	‐	100%
	tenements and		minerals
	petroleum tenements
	acquired or increased

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

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Sign here: Date: 31 January 2017

Print name: Karl Schlobohm – Company Secretary

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral

3. See chapter 19 for defined terms. 01/09/2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

2. See chapter 19 for defined terms. Appendix 5B Page 6

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