ELEMENT 25 LIMITED — Interim / Quarterly Report 2017

Jul 25, 2017

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, 01/05/13, 01/09/16

Name of entity

Montezuma Mining Company Limited

==> picture [458 x 4] intentionally omitted <==

ABN Quarter ended (“current quarter”)

46 119 711 929 30 June 2017

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (12
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	14	64
1.2	Payments for
	(a) exploration & evaluation	(190)	(1,566)
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(72)	(110)
	(e) administration and corporate costs	(40)	(415)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	30	116
1.5	Interest and other costs of finance paid	-	-
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	(258)	(1,911)
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	-	-
	(d) other non-current assets	-	-

• See chapter 19 for defined terms 1 September 2016

Page 1

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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (12
		$A’000	months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	117	308
	(d) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing
	activities	117	308
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	2,210
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	-	(125)
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	-	2,085
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period	4,313	3,693
4.2	Net cash from / (used in) operating
	activities (item 1.9 above)	(258)	(1,911)
4.3	Net cash from / (used in) investing activities
	(item 2.6 above)	117	308
4.4	Net cash from / (used in) financing activities
	(item 3.10 above)	-	2,085
4.5	Effect of movement in exchange rates on
	cash held	3	-
4.6	Cash and cash equivalents at end of
	period	4,175	4,175

• See chapter 19 for defined terms

1 September 2016

Page 2

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

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	271	271
5.2	Call deposits	3,904	4,042
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)	4,175	4,313
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		86
6.2	Aggregate amount of cash flow from loans to these parties included
	in item 2.3		Nil
6.3	Include below any explanation necessary to understand the transactions		included in
	items 6.1 and 6.2

Item 6.1 includes aggregate amounts paid to directors including salary, directors’ fees, consulting fees and superannuation.

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	Nil
7.2	Aggregate amount of cash flow from loans to these parties included
	in item 2.3	Nil
7.3	Include below any explanation necessary to understand the transactions	included in
	items 7.1 and 7.2

N/A

• See chapter 19 for defined terms 1 September 2016

Page 3

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

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	Nil	Nil
8.2	Credit standby arrangements	Nil	Nil
8.3	Other (please specify)	Nil	Nil
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.
N/A

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation		400
9.2	Development		-
9.3	Production		-
9.4	Staff costs		75
9.5	Administration and corporate costs		50
9.6	Other (provide details if material)		-
9.7	Total estimated cash outflows		525

10.	Changes in	Tenement	Nature of interest	Interest at	Interest
	tenements	reference		beginning	at end of
	(items 2.1(b) and	and		of quarter	quarter
	2.2(b) above)	location
10.1	Interests in mining	E28/2630	Registered Applicant	100%	Nil
	tenements and petroleum tenements lapsed, relinquished or reduced	E38/2999 E51/1622 E52/3438	Registered Holder Registered Holder Registered Applicant	100% 100% 100%	Nil Nil Nil
		E59/2241	Registered Applicant	100%	Nil
		E70/4923	Registered Applicant	100%	Nil
		E77/2415	Registered Applicant	100%	Nil
10.2	Interests in mining	E28/2701	Registered Applicant	Nil	100%
	tenements and petroleum tenements acquired or increased	E59/2267 E70/4994 E77/2458	Registered Applicant Registered Applicant Registered Applicant	Nil Nil Nil	100% 100% 100%
		E80/5092	Registered Applicant	Nil	100%

• See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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.

==> picture [164 x 51] intentionally omitted <==

Sign here: ............................................................ Date: 26 July 2017 (Director & Company secretary)

Print name: John Ribbons

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. By the Company signing this Appendix 5B, the CEO and CFO declare that the Appendix 5B for the relevant quarter:

5. presents a true and fair view, in all material respects, of the cashflows of the Company for the relevant quarter and is in accordance with relevant accounting standards;

6. the statement given above is founded on a sound system of risk management and internal compliance and control which implements the policies adopted by the Board; and

7. the Company’s financial records have been properly maintained and the Company’s risk management and internal compliance and control system is operating efficiently and effectively in all material respects.

8. See chapter 19 for defined terms 1 September 2016

Page 5