ECHOIQ LIMITED — Interim / Quarterly Report 2015

Apr 29, 2015

==> picture [111 x 127] intentionally omitted <==

==> picture [96 x 119] intentionally omitted <==

ASX ANNOUNCEMENT

30[th] APRIL 2015 ASX: PML

QUARTERLY ACTIVITIES REPORT FOR MARCH 2015

HIGHLIGHTS

• Drillhole PMLJH001 completed at Dunnsville Nickel Prospect Southern Target.

• Commenced strategic review of operations including assessment of non resource related opportunities that are capable of delivering significant shareholder value.

During the quarter Parmelia Resources Limited (‘PML’ or the ‘Company’) completed drill-testing of the Southern High Priority nickel-sulphide exploration target at the Dunnsville Nickel Prospect located within its Jaurdi Hills Project 50km north-west of Coolgardie, Western Australia. Disappointingly no nickel-sulphide mineralisation was identified.

PML is continuing its review of a number of advanced base metals projects. In addition to this the company is assessing a number of other opportunities outside the resources sector that have the potential to add significant value to the company.

EXPLORATION

JAURDI HILLS PROJECT – NICKEL-SULPHIDE EXPLORATION

KEY POINTS

• Drillhole PMHJH001 completed at Southern High Priority Target.

• Hole intersected spinifex and cumulate-textured komatiite from surface to 124m downhole, andesite from 124 to 372m and basalt from 372m to end of hole at 401.73m.

• Downhole EM survey of PMLJH001 confirms that the Southern Target conductivity anomaly is caused by sub-metre zones of pyrrhotite, chalcopyrite and pyrite veining in andesite and subjacent inter-flow black shale horizons at 212, 257 and 280m downhole.

Between 19[th] December 2014 and 7[th] January 2015 Parmelia Resources drill-tested the Southern High Priority nickel-sulphide exploration target at the Dunnsville Nickel Prospect located in the north-east of its Jaurdi Hills Project 50km north-west of Coolgardie, Western Australia (see Figure 1). The drilling program comprised one EIS co-funded RC pre-collar / diamond tail hole (PMLJH001) drilled to a total depth of 401.73m and subsequently DHEM surveyed to 372m depth down hole.

PMLJH001 intersected spinifex and cumulate-textured komatiite from surface to 124m down hole, andesite from 124 to 372m and basalt from 372m to end of hole. No nickel-sulphide mineralisation was intersected and the DHEM survey confirmed the source of the Southern Target conductivity anomaly targeted by the hole to be a combination of sub-metre zones of barren pyrrhotite, pyrite and minor chalcopyrite veining and subjacent inter-flow black shale at andesitic flow basal contacts at 175, 212, 257 and 280m down hole. Encouragingly, the hole returned a somewhat anomalous intersection of 20m @ 1319ppm Ni , 426ppm Cu , 147ppm Co and 77ppb Pt+Pd from surface in confirmation of the nickel and nickel-sulphide pathfinder soil geochemistry anomaly at the Southern Target however the absence of a nickel-sulphide intersection or significant off-hole conductor means its source remains unexplained. This raises the possibility that the regolith anomaly is related to supergene enrichment and / or hydrothermal remobilisation from the Jaurdi Ultramafic Belt by the north-east striking fault that cross-cuts the formation immediately south of the target.

A 7m-thick intersection of conceptually prospective, magnetic and cumulate-textured ultramafic at the base of the Central komatiite unit of the Jaurdi Ultramafic Belt returned a marginally anomalous intersection of 7m @ 1262ppm Ni , 104ppm Cu , 101ppm Co, 8ppb Pt+Pd and 26% MgO from 106m down hole however this result is more indicative of a flanking sheet-flow or channel margin than a nickel-sulphide prospective, high (>36%) MgO central channel facies volcanic setting which in principal rules out the possibility of a nickel-sulphide discovery at the Southern Target.

Although initially suggested otherwise, elevated copper (up to 2196ppm ) and zinc (up to 1.02% ) results returned from sulphide veining at the base of andesitic flows and in subjacent inter-flow black shale horizons at 212, 257 and 280m down hole are not considered vectors to nearby VMShosted base metal mineralisation due to the absence of chlorite alteration and only very weakly elevated corresponding silver, lead, barium and gold results.

The lack of exploration success at Jaurdi Hills’ most promising nickel-sulphide exploration target means no further nickel-sulphide exploration is recommended at the Southern Target, Dunnsville Nickel Prospect or anywhere else within the project area.

==> picture [510 x 720] intentionally omitted <==

Figure 1 – Dunnsville Nickel Prospect map featuring the location of Parmelia drillhole PMLJH001 relative to the Southern Target MLEM conductor and Ni-Cu-Co-Pt+Pd soil geochemistry anomalies overlaid on simplified geology and moderately late-time MLEM Z-axis B-field Channel 33 (101.4ms) imagery.

PANDA PROJECT – BASE METALS EXPLORATION

The Company announced on the 11/11/2014, that, subject to due diligence and regulatory approval, it had secured the rights to acquire a 100% interest in the high grade Panda zinc, lead, gold, copper and silver project located near the town of Garessio in north-western Italy. Due diligence enquiries are continuing with respect to the project and the parties have agreed to extend the term of the due diligence period until such time as is necessary in order to complete the necessary documentation and approvals.

SPA GO WEST PROJECT– NICKEL-SULPHIDE EXPLORATION

HIGHLIGHTS

• Spar Go West is located in the highly prospective Kambalda / Widgiemooltha nickel province of Western Australia

• Parmelia has secured an exclusive right to earn an 80% interest in the project

• It encompasses approx. 15kms strike of the ultramafic sequence that hosts Mithril Resources’ Hendrix and Floyd nickel-sulphide prospects which retuned a maximum historical drill intersection of 9.1m @ 2.5% Ni and 155ppm Cu

• Ultramafic stratigraphy within the project area is thought to be contemporaneous to the rocks that host the Spargoville Mining Centre

• PML has so far identified three conceptual nickel-sulphide exploration targets within the project area along strike of Hendrix and Floyd

 Exploration plans to be announced in due course

On the 17[th] of June 2014, PML announced it had secured the exclusive right to farm into and earn an 80% interest in the Spar Go West Project comprising Exploration License Application E15/1410 located in the highly prospective Kambalda / Widgiemooltha nickel province of Western Australia (see Figure 1). Spar Go West is thought to be prospective for both nickelsulphide and gold mineralisation and as such is considered a strategic acquisition for Parmelia. The Company’s exploration plans for Spar Go West will be announced in due course.

CORPORATE ACTIVITIES

HIGHLIGHTS

• Commenced strategic review of operations including assessment of non resource related opportunities that are capable of delivering significant shareholder value.

• Parmelia Resources to continue with due diligence on additional base metal projects in commodities with positive future supply demand fundamentals.

• A number of advanced base metals opportunities currently being assessed.

COMMERCIAL NEGOTIATIONS ON JAURDI HILLS GOLD PROJECT

The company continues to evaluate potential commercial opportunities on its gold assets at the Jaurdi Hills Project these include possible, joint ventures, earn in deals or sale of the in-situ gold resource at Panther as well as the adjoining extensive and promising exploration tenement portfolio.

NEW OPPORTUNITIES

In response to difficult market conditions for small mineral resource companies PML commenced a strategic review of its operations and in particular has commenced assessment of a number of non resource related opportunities. In concert with this review, PML continues to evaluate a number of additional advanced base metals opportunities that have been identified with technical due diligence and commercial negotiations currently underway with respect to these opportunities. Further advice will be given to the market on the progress of these discussions when it is appropriate to do so.

For further information concerning Parmelia’s activities or the exploration plans for the future please contact Nigel Gellard, Executive Chairman at:

Phone +61 (0)8 6141 3500 Fax +61 (0)8 6141 3599 www.parmeliaresources.com

Nigel Gellard Executive Chairman

COMPETENT PERSON STATEMENT – Jaurdi Hills | Nickel-Sulphide Exploration

The information in this report that relates to Exploration Results is based on information compiled by Stephen Burke, a Competent Person who is a Member of the Australian Institute of Geoscientists. Stephen is employed by Burke Geoscience Pty. Ltd. as a consultant to Parmelia Resources Limited. He has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the ‘JORC Code’). Stephen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information is extracted from ASX announcements released by the Company on 17/06/2014, 30/07/2014, 10/09/2014 and 23/01/2015, and are available to view on www.asx.com.au and www.parmeliaresources.com. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

REFERENCES

Speyers, G., 2015. Parmelia Resources Limited, Jaurdi Hills Project, Dunnsville Prospect – Southern Target, B-field DHTEM TEM Survey, Profiles of A Component, Hole PMLJH001 . Core Geophysics Pty Ltd.

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Name of entity

Parmelia Resources Limited

ABN 48 142 901 353 Consolidated statement of cash flows		Quarter ended (“current quarter”)	Quarter ended (“current quarter”)
		March 2015
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 1.7 Other NetOperating Cash Flows	Current quarter $A’000		Year to date 9 Months $A’000
	- (185) - - (97) - 2 - - -		- (427) - - (458) - 6 - - -
	(280)		(879)
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 to other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - - - - - - - -		- - - - - - - - -
	-		-
	(280)		(879)

Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(280)	(879)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. net of costs 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 – Funds held in trust Net financing cash flows	(9) - - - - -	1,021 - - - - 59
	(9)	1,080
Net increase 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 ofquarter	(289) 647 -	201 157 -
	358	358

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
		29
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Director fees andpayments to related entities for Corporate Services.

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

• 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

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
		-	-
		-	-

Appendix 5B Page 2

Appendix 5B Mining exploration entity quarterly report

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 Total	$A’000
		50
		-
		-
		30
		80

Reconciliation of cash

	Current quarter	Previous quarter
	$A’000	$A’000
	309	598
	49	49
	358	647

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.

5.1	Cash on hand and at bank	309
5.2	Deposits at call	49
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter(item 1.22)	358

Interests in Mining Tenements

Disclosure in accordance with ASX Listing Rule 5.3.3

6.1	Project/ Tenements	Location	Held at end of quarter	Acquired during thequarter	Disposed during the quarter
	Jaurdi Hills: P16/2411, P16/2413, P16/2414, P16/2438, P16/2439, P16/2440, P16/2441, P16/2442, P16/2443, P16/2444, P16/2460, P16/2627, P16/2653, P16/2654, P16/2655, P16/2656, P16/2657, P16/2658, P16/2659, P16/2678,	Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia	100% 100% 100% 100% 100% 100% 100% 100% 100% 90% 100% 100% 100% 100% 100% 100% 100% 100% 100%	- - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - -

Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

6.1	Project/ Tenements	Location	Held at end of quarter	Acquired during thequarter	Disposed during the quarter
	M16/35, M16/113, M16/114, M16/193, M16/194, M16/201, M16/202, M16/203, M16/204, M16/205, M16/254, M16/255, M16/301, M16/365, M16/425, M16/462, E15/1061, P16/2672, P16/2673, P16/2674, P16/2675 E08/2606	Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia Western Australia	90% 90% 100% 90% 100% 90% 90% 90% 90% 90% 90% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	- - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - -
6.2	Farm-in Agreements / Tenements	Location	Held at end of quarter	Acquired during thequarter	Disposed during the quarter
	E15/1410	Western Australia	Farm-in	Farm-In	-
	E38/2946	Western Australia	Application pending	-	-
	E38/2947	Western Australia	Application pending	-	-
6.3	Farm-out Agreements / Tenements	Location	Held at end of quarter	Acquired during thequarter	Disposed during the quarter

Appendix 5B Page 4

Appendix 5B Mining exploration entity quarterly 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 (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	84,695,706	84,695,706
	-	-	-	-
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-	-	-
	-	-	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	15,941,667 4,500,000 4,500,000 44,354,509	- - - 44,354,509	Exercise price 15 cents 6.5 cents 6.4 cents 5 cents	Expiry date 15 November 2016 31 October 2016 31 October 2017 30 May2017
	-	-	-	-
7.11 Debentures (totals only)

Appendix 5B Page 5

Appendix 5B Mining exploration entity quarterly report

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.12 Unsecured notes(totals only)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act.

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

==> picture [83 x 58] intentionally omitted <==

Sign here: ............................................................ Date: 30 April 2015 (Non-Executive Director and Company secretary)

Print name: Jay Stephenson

Appendix 5B Page 6