DGR GLOBAL LIMITED — Interim / Quarterly Report 2019

Oct 30, 2019

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	30 September 2019
Consolidated statement of cash flows		Current quarter $A’000	Year to date (3 months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	163	163
1.2	Payments for
	(a) exploration & evaluation	(1,385)	(1,385)
	(b) development	‐	‐
	(c) production	‐	‐
	(d) staff costs	(668)	(668)
	(e) administration and corporate costs	(617)	(617)
1.3	Dividends received (see note 3)	‐	‐
1.4	Interest received	377	377
1.5	Interest and other costs of finance paid	(301)	(301)
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
	activities	(2,431)	(2,431)

• 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

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2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(2)	(2)
	(b) tenements (see item 10)	‐	‐
	(c) investments	(9)	(9)
	(d) other non‐current assets	‐	‐
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	‐	‐
	(b) tenements (see item 10)	‐	‐
	(c) investments1	2,067	2,067
	(d) other non‐current assets	‐	‐
2.3	Cash flows from loans to other entities	‐	‐
2.4	Dividends received (see note 3)	‐	‐
2.5	Other (Environmental bonds)	(6)	(6)
2.6	Net cash from / (used in) investing
	activities	2,050	2,050
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares2	20	20
3.2	Proceeds from issue of convertible notes	‐	‐
3.3	Proceeds from exercise of share options	‐	‐
3.4	Transaction costs related to issues of
	shares, convertible notes or options	‐	‐
3.5	Proceeds from borrowings	‐	‐
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
	activities	20	20

2.Represents cash from partial divestment of Armour Bonds.

3 Represents proceeds from shares issued in subsidiary Auburn Resources Ltd, DGR now holds a 45% interest following the share issue.

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

01/09/2016

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

4.	Net increase / (decrease) in cash and
	cash equivalents for the period	(361)		(361)
4.1	Cash and cash equivalents at beginning of
	period	1,672		1,672
4.2	Net cash from / (used in) operating
	activities (item 1.9 above)	(2,431)	(2,431)
4.3	Net cash from / (used in) investing
	activities (item 2.6 above)	2,050		2,050
4.4	Net cash from / (used in) financing
	activities (item 3.10 above)	20		20
4.5	Effect of movement in exchange rates on
	cash held	‐		‐
4.6	Cash and cash equivalents at end of
	period	1,311		1,311
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	1,311		1,672
5.2	Call deposits	‐		‐
5.3	Bank overdrafts	‐		‐
5.4	Other (provide details)	‐		‐
5.5	Cash and cash equivalents at end of
	quarter (should equal item 4.6 above)	1,311		1,672
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
	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
N/A

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

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	‐	‐
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.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation		(500)
9.2	Development		‐
9.3	Production		‐
9.4	Staff costs		(600)
9.5	Administration and corporate costs		(400)
9.6	Other (interest payable on Convertible Notes)		(300)
9.7	Total estimated cash outflows		(1,800)

• Subsequent to 30 September 2019, DGR has sold an additional $1,300,000 Armour Bonds and received the refund of US$823,482 plus accrued interest in relation to a performance bond lodged in 2017. DGR is also expected to receive approximately $400,000 in management fees during the next quarter ending 31 December 2019. Furthermore, DGR has the ability to sell down investments in listed entities if and when required to meet certain cash flow requirements. Auburn Resources may also raise further seed capital from sophisticated investors in the December 2019 quarter to defray some of the E&E costs above.

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

01/09/2016

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

10.	Changes in	Tenement reference and	Nature of	Interest	Interest
	tenements	location	interest	at	at end of
	(items 2.1(b) and			beginning	quarter
	2.2(b) above)			of quarter
10.1	Interests in mining	Refer Appendix A in
	tenements and	quarterly activity
	petroleum tenements	statement.
	lapsed, relinquished
	or reduced
10.2	Interests in mining	Refer Appendix A in
	tenements and	quarterly activity
	petroleum tenements	statement.
	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.

Sign here: Date: 31 October 2019

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 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.

3. 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.

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

Appendix 5B Page 5