EASTERN RESOURCES LIMITED — Interim / Quarterly Report 2016

Jan 14, 2016

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 December 2015

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 December 2015 $A’000	Year to date (6 months) 31 December 2015 $A’000
	0 (15) 0 0 (133) 0 0 0 0 0 0	0 (65) 0 0 (217) 0 0 0 281 0 0
	(148)	(1)
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 0 0 0 0 0 0
	0	0
	(148)	(1)

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EASTERN IRON LIMITED

	Current quarter $A’000	Year to date $A’000
1.13 Total operating and investing cash flows (brought forward)	(148)	(1)
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 Share Capital Applications Net financing cash flows*	0 0 0 0 0 (15) 1,000	0 0 0 0 0 (15) 1,000
	985	985
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	837 231 0	984 84 0
	1,068	1,068

*Note: At the Company’s AGM on 10 December 2015, shareholders approved the issue of 133,333,333 shares at $0.015 per share to Fortune Future Holdings Ltd to raise $2 million. $1 million was received in the December 2015 quarter and the remaining $1 million was received in January 2016. The 133,333,333 shares were issued to Fortune Future Holdings Ltd on 14 January 2016.

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 1.24	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
		20
		Nil
1.25	Explanation necessary for an understanding of the transactions
	Directors’ fees and consultancy fees at normal commercial rates

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

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

• At the Company’s AGM on 10 December 2015, shareholders approved the issue of 133,333,333 shares at $0.015 per share to Fortune Future Holdings Ltd to raise $2 million. $1 million was received in the December 2015 quarter and the remaining $1 million was received in January 2016. The 133,333,333 shares were issued to Fortune Future Holdings Ltd on 14 January 2016.

• 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

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

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A'000
	200
	0
	0
	169
Total	369

Reconciliation of cash

Total Reconciliation of cash		369
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 - Share capital applicatons	44	207
	24	24
	0	0
	0 1,000	0 0
Total: cash at end of quarter(item 1.22)	1,068	231

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EASTERN IRON LIMITED

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

• 6.3 The full Eastern Iron schedule of tenements is included as an attachment to this report.

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

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	152,524,401	152,524,401
	Nil
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 6.2 cents EFE 4.5 cents 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,000,000 450,000	0 0	Exercise price $0.062 $0.045	Expiry date 26 Nov 2016 19 Nov 2017
	Nil
	Nil
	3,700,000	0	$0.10	23 Nov 2015
7.11 Debentures (totals only)	Nil
7.12 Unsecured notes (totals only)	Nil

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.

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EASTERN IRON LIMITED

Sign here:

Date: 15 January 2016 ( ~~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 December 2015

Tenement

Tenement Number Interest Joint Venture Details

VICTORIA
Nowa Nowa Tara Nowa Nowa MIN	ELA 6183 ELA 5545 MIN 5571	100% 100% 100%	Note 1 Note 1 Note 1

EL = Exploration Licence ELA = Exploration Licence Application MIN = Mining Licence (Vic)

Notes:

1. Held by Gippsland Iron Pty Ltd a wholly owned subsidiary of Eastern Iron.

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