EASTERN RESOURCES LIMITED — Interim / Quarterly Report 2014

Apr 29, 2014

Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

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.

Name of entity

EASTERN IRON LIMITED

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ABN 70 126 678 037

Quarter ended (“current quarter”) 31 March 2014

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and 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/received on R&D tax offset 1.7 Other - consulting fees and rental income - tenement security deposits (paid)/refunded Net Operating Cash Flows	Current quarter 31 March 2014 $A’000	Year to date (9 months) 31 March 2014 $A’000
	0 (732) 0 0 (391) 0 1 0 0 0 13	0 (2,313) 0 0 (767) 0 24 0 691 10 133
	(1,109)	(2,222)
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 Net investing cash flows 1.13 Totaloperating andinvesting cash flows (carriedforward)	0 0 0 0 0 0 0 0 0	0 0 0 150 0 0 0 0 0
	0	150
	(1,109)	(2,072)

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

	Current quarter $A’000	Year to date $A’000
1.13 Total operating and investing cash flows (brought forward)	(1,109)	(2,072)
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 – Equity raising costs Net financing cash flows	601 0 0 0 0 (10)	601 0 0 0 0 (10)
	591	591
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	(518) 710 0	(1,481) 1,673 0
	192	192

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
	135
	Nil

• 1.25 Explanation necessary for an understanding of the transactions

• Salaries, directors’ fees and consultancy fees at normal commercial rates

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

None

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

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

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A'000
	530
	0
	0
	196
Total	726 *

*Note: On 15 April 2014 the Company raised $100,800 through the issue of 2,400,000 shares to Harland Capital Fund LLC (Harland). In addition, Harland has an option to 30 June 2014 to subscribe for a further 7,300,000 shares at $0.042 which would raise $306,600. On 29 April 2014 the Company also announced a Share Purchase Plan (SPP) (the offer closing 26 May 2014). The funds raised from the Placement and SPP are for ongoing work on the Nowa Nowa Iron project including completion of the definitive feasibility study and environmental studies carried out in preparation of an environmental effects statement (EES). The company also expects to receive payment of $300,000 relating to the Victorian Government Infrastructure grant during the June 14 quarter.

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 - bills receivable, bank accepted and short term bank deposits	168	435
	24	24
	0	0
	0	251
Total: cash at end of quarter(item 1.22)	192	710

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

6.2 Interests in mining tenements acquired or increased

• 6.3 The full Eastern Iron schedule of tenements is included as an attachment to this 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 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions	Nil
	Nil
7.3 Ordinary securities - fully paid EFE 7.4 Changes during quarter (a) Increases through issues (b) Decreases through return of capital, buy-backs	134,445,059	134,445,059
	2,274,575 14,300,000	2,274,575 14,300,000	$0.06 $0.042	$0.06 $0.042
7.5 Convertible debt securities 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	Nil
	Nil
7.7 Options EFE 10 cents EFE 18 cents EFE 6.2 cents 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	3,700,000 1,200,000 1,000,000	0 0 0	Exercise price $0.10 $0.18 $0.062	Expiry date 23 Nov 2015 9 Mar 2015 26 Nov 2016
	Nil
	Nil
	Nil
7.11 Debentures (totals only)	Nil
7.12 Unsecured notes (totals only)	Nil

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

Compliance statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).

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

Sign here:

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Date: 30 April 2014

( ~~Director~~ / Company Secretary)

Print name: Ian K White

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 tenements, 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.

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED Schedule of Tenements as at 31 March 2014

Tenement	Tenement Number	Interest	Joint Venture Details
QUEENSLAND
Hawkwood Eulogie	EPMs 15289 and 17099 MDL 362	0% 100%	Rugby 100%, Eastern can earn up to 80%, Note 1 Note 2
VICTORIA
Nowa Nowa Nowa Nowa MIN	EL 4509 MINA 5571	100% 100%	- Note 3
EL = Exploration Licence ELA = Exploration Licence Application EPM = Exploration Permit for Minerals (Qld) EPC = Exploration Permit for Coal (Qld) MDL = Mining Development Licence (Qld) MIN = Mining Licence (Vic)

Notes:

1. Joint Venture with Rugby Mining Pty Ltd and Rugby Mining Limited whereby Eastern can earn up to an 80% interest.

2. MDL 362 is held by Queensland Iron Pty Ltd a wholly owned subsidiary of Eastern Iron.

3. MINA 5571 is held by Gippsland Iron Pty Ltd a wholly owned subsidiary of Eastern Iron.

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