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ECLIPSE METALS LIMITED. Interim / Quarterly Report 2016

Apr 28, 2016

64863_rns_2016-04-28_ec104c36-d05b-449a-b635-8dbadf317388.pdf

Interim / Quarterly Report

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_______________

Quarterly Activities Report and Appendix 5B For the Quarter ending 31[st ] March 2016

_______________

HIGHLIGHTS

  • Extension of term granted for EPM 17938, Mary Valley Manganese Project.

  • Commenced review of geophysical exploration methods to assist with planning exploration programs on Mary Valley manganese deposits.

  • Continuing review of historical data for Devil’s Elbow Uranium Project and adjoining tenements and planning for exploration.

  • Negotiations proceeding to secure farm-in and joint venture agreement on Liverpool uranium tenements.

The Board of Eclipse Metals Limited ( the Company ) is pleased to provide the following commentary and Appendix 5B.

CORPORATE ACTIVITY

The main focus during the March 2016 quarter has been to evaluate opportunities which create wealth without materially reducing the balance sheet strength and preserve the Company’s cash reserves.

The Board has been actively seeking a key project interest capable of providing Eclipse with new impetus. The Board has been focused on commencing negotiations with fellow junior and multinational mining and exploration entities with a view to securing a farm-in and joint venture agreement.

A farm-in opportunity for one of the Company’s tenements has been presented that passes its value criteria and the Board will continue to work to further negotiations.

TENEMENT ACTIVITY

NT Uranium Projects

The Devil’s Elbow Project is part of a group of five tenements with a combined area of 1,405sq km wholly situated in West Arnhem Land. The Company’s Liverpool project area is in the sought after Alligator Rivers Uranium field neighbouring senior uranium explorers such as Rio Tinto and Cameco Australia.

The Company has successfully concluded a meeting with Traditional Landowners to seek approval for uranium-gold-palladium exploration and potential mining over ELA’s 27584 and 26244, to progress toward acquiring further consents and agreements. Refer Figure 2 .

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ECLIPSE METALS LIMITED

2

Queensland – Mary Valley Manganese Project

Renewal of tenure for EPM 17938 Amamoor (Mary Valley Manganese Project) in Queensland has been granted.

Investigations are progressing for application of existing and recently developed geophysical procedures to assist with mapping and drilling manganese deposits in the Mary Valley project tenements.

A renewal for EPM 17938 (Amamoor Manganese Project) in Queensland has been granted.

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Figure 1. Eclipse Metals Ltd tenements in Northern Territory and Queensland

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ECLIPSE METALS LIMITED

3

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Figure 2: Location Map showing the Eclipse uranium ground and recent application, highlighted in red, as part of the Liverpool Uranium Project - West Arnhem

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ECLIPSE METALS LIMITED

4

Interest in Granted Mining tenements at the end of the quarter

Tenement Project Commodity Status State Beneficial Area Area
Name **Holder ** Blk
km2
EL 27567
EL 24808
EPM 17672
EPM 17938
EPM 25698
Mt Wells
Eclipse
Mary Valley
Amamoor
WestMaryValley
Gold-Base Metals
Uranium
Manganese
Manganese
Manganese
Granted
Granted
Granted
Granted
Granted
NT
NT
QLD
QLD
QLD
Eclipse Metals Pty Ltd
Eclipse Metals Pty Ltd
Eclipse Metals Pty Ltd
Eclipse Metals Pty Ltd
EclipseMetalsPtyLtd
5
27
54
4
10
16
84
167
12
31
TOTAL
310

Exploration Licences Application at the end of the quarter

Tenement Project Commodity Status State Beneficial Area Area
Name **Holder ** Blk
km2
ELA 24623 Eclipse Uranium Application NT EclipseMetalsLtd 305 915
ELA 24624 Eclipse Uranium Application NT EclipseMetalsLtd 476 1,428
ELA 24627 Eclipse Uranium Application NT EclipseMetalsLtd 500 1,550
ELA 24861 LakeMackay Uranium Application NT EclipseMetalsLtd 50 150
ELA 25666 MtPozieres Uranium Application NT EclipseMetalsLtd 229 733
ELA 26193 Liverpool 1 Uranium Application NT EclipseMetalsLtd 240 768
ELA 26244 Liverpool 2 Uranium Application NT EclipseMetalsLtd 50 160
ELA 26259 South Alligator 1 Uranium Application NT EclipseMetalsLtd 202 646
ELA 26260 South Alligator 2 Uranium Application NT EclipseMetalsLtd 274 877
ELA 26487 Yuendi Uranium-Copper Application NT EclipseMetalsLtd 320 992
ELA 26283 MtTheo Uranium Application NT EclipseMetalsLtd 260 806
ELA 27130 FlyingFox Uranium Application NT EclipseMetalsLtd 482 1,494
ELA 27549 Liverpool3 Uranium Application NT EclipseMetalsLtd 51 163
ELA 27584 Devil'sElbow Uranium Application NT EclipseMetalsLtd 30 96
ELA 27703 Gumadeer Uranium Application NT EclipseMetalsLtd 3 10
ELA30165 Liverpool 4 Uranium Application NT EclipseMetalsLtd 68 218
Total Area
11,006

For further information please contact:

Carl Popal

Executive Chairman

T: +61 8 9480 0420

The information in this report that relates to Exploration Results together with any related assessments and interpretations is based on information compiled by Mr Rodney Dale, a NonExecutive Director of Eclipse Metals Limited. Mr Dale is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the styles of mineralisation under consideration and to the activity being reported 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.

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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

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

Name of entity
Eclipse Metals Limited
ABN
85 142 366 541
Quarter ended(“currentquarter”)
31 March 2016
85 142 366 541 31 March 2016

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 & 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 (provide details if material)
Net Operating Cash Flows
Current quarter
$A’000
Year to date
(9 months)
$A’000
-
(30)
-
-
(71)
-
-
-
-
-
-
(44)
-
-
(250)
-
-
-
-
-
(101) (294)
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) prospects1
(b) equity investments
(c) other fixed assets
1.10
Loans to other entities
1.11
Loans repaid by other entities
1.12
Other (refundable deposit)
Net investing cash flows
1.13
Total operating and investing cash flows
(carried forward)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- -
(101) (294)

Appendix 5B Page 1

29/04/2016

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

1.13
Total operating and investing cash flows
(brought forward)
(101) (294)
Cash flows related to financing activities
1.14
Proceeds from issues of shares, options, etc.1
1.15
Proceeds from sale of forfeited shares
1.16
Proceeds from borrowings
1.17
Repayment of borrowings
1.18
Dividends paid
1.19
1.20
Other (share issue cost)
Other (R&D refund)
Net financing cash flows
30
-
-
-
-
-
-
490
-
-
-
-
(4)
-
30 486
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 ofquarter
(71)
494
-
192
231
-
423 423

Payments to directors of the entity, associates of the directors, 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
8
-
1.25 Explanation necessaryfor an understandingof the transactions
N/A

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 N/A

  • 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

N/A

Appendix 5B Page 2

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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
-
-
-
-

Estimated cash outflows for next quarter

4.1
Exploration and evaluation
4.2
Development
4.3
Production
4.4
Administration
$A’000
50
-
-
50
Total 100

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 (provide details)
423 493
- -
- -
- -
Total: cash at end of quarter(item 1.22) 423 493

Changes in interests in mining tenements and petroleum tenements

6.1
Interests in mining
tenements and petroleum
tenements relinquished,
reduced or lapsed
6.2
Interests in mining
tenements and petroleum
tenements acquired or
increased
Tenement
reference and
location
Nature of interest
(note (2))
Interest at
beginning
ofquarter
Interest at
end of
quarter
N/A N/A N/A N/A

Appendix 5B Page 3

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

6.3 Interests in mining tenements at end of the quarter

Location Project Name Tenement # Ownership Titleholder
Northern Territory Mt Wells EL 27567 100% Eclipse Metals Ltd
Northern Territory Eclipse EL 24808 100% Eclipse Metals Ltd
Queensland Mary Valley EPM 17672 87.38% Walla Mines Pty Ltd
Queensland Amamoor EPM 17938 87.38% Walla Mines Pty Ltd
Queensland West Mary Valley EPM25698 87.38% Walla Mines Pty Ltd
Northern Territory Eclipse ELA 24623 100% Eclipse Metals Ltd
Northern Territory Eclipse ELA 24624 100% Eclipse Metals Ltd
Northern Territory Eclipse ELA 24627 100% Eclipse Metals Ltd
Northern Territory Lake Mackay ELA 24861 100% Eclipse Metals Ltd
Northern Territory Mt Pozieres ELA 25666 100% Eclipse Metals Ltd
Northern Territory Liverpool 1 ELA 26193 100% Eclipse Metals Ltd
Northern Territory Liverpool 2 ELA 26244 100% Eclipse Metals Ltd
Northern Territory South Alligator 1 ELA 26259 100% Eclipse Metals Ltd
Northern Territory South Alligator 2 ELA 26260 100% Eclipse Metals Ltd
Northern Territory Mt Theo ELA 26283 100% Eclipse Metals Ltd
Northern Territory Yuendi ELA 26487 100% Eclipse Metals Ltd
Northern Territory Flying Fox ELA 27130 100% Eclipse Metals Ltd
Northern Territory Liverpool 3 ELA 27549 100% Eclipse Metals Ltd
Northern Territory Devil’s Elbow ELA 27584 100% Eclipse Metals Ltd
Northern Territory Gumadeer ELA 27703 100% Eclipse Metals Ltd
Northern Territory Liverpool 4 ELA 30165 100% Eclipse Metals Ltd

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.

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
Total number Number quoted Issue price per
security (see note 3)
(cents)
Amount paid up per
security (see note 3)
(cents)
964,616,948 964,616,948

Appendix 5B Page 4

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.4
Changes
during quarter
(a) Increases
through issues
(b) Decreases
through
returns of
capital, buy-
backs
78,766,667 78,766,667 0.005 0.00
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
103,023,813 - Exercise price
6 cents
Expiry date
30/11/16
7.11
Debentures
(totals only)
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 or other standards acceptable to ASX (see note 5).

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

Sign here: Date: 29 April 2016 Print name: Eryn Kestel 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 wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

Appendix 5B Page 5

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

  • 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum 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 tenement or petroleum tenement, 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

  • 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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 Page 6

29/04/2016