ELEVRA LITHIUM LIMITED — Interim / Quarterly Report 2008

Oct 30, 2008

Appendix 5B Mining exploration entity quarterly report

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

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DIAMONEX LIMITED
ABN Quarter ended (“current quarter”)
26 091 951 978 30 SEPTEMBER 2008
Consolidated statement of cash flows
Year to date
Current quarter
Cash flows related to operating activities (3 months)
$A’000
$A’000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration and evaluation (427) (427)
(b) development (3,694) (3,694)
(c) production
(d) administration (847) (847)
1.3 Dividends received
1.4 Interest and other items of a similar nature received 47 47
1.5 Interest and other costs of finance paid (364) (364)
1.6 Income taxes paid
1.7 Other (provide details if material)
(5,285) (5,285)
Net Operating Cash Flows
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c) other fixed assets (123) (123)
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 (provide details if material)
(123) (123)
Net investing cash flows
1.13 Total operating and investing cash flows (carried
(5,408) (5,408)
forward)
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• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(5,408)	(5,408)
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: Cost of share issue Net financing cash flows	3,600 1,353 (175)	3,600 1,353 (175)
	4,778	4,778
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	(630) 1,674 164	(630) 1,674 164
	1,208	1,208

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
		100
		Nil
1.25	Explanation necessaryfor an understandingof the transactions

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 nil

• 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 nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available	Amount used
		$A’000	$A’000
3.1	Loan facilities	15,726	15,726
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	200
	-
Total	200

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)	1,138	1,604
	70	70
Total: cash at end of quarter(item 1.22)	1,208	1,674

Changes in interests in mining tenements

Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
EL6595	Exploration tenement - Jugiong, NSW	100%	0%

• See chapter 19 for defined terms.

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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	173,424,196	173,424,196
	18,000,000 6,506,121	18,000,000 6,506,121	20 cents 23.5 cents	20 cents 23.5 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted	Convertible bonds issued in Botswana. Up to 10% of the bonds are convertible to up to 50,000 ordinary shares of the Company at BPW1.83 on 3 September 2011.(Note 1)
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	422,850 2,000,000 1,000,433 1,000,000 1,550,000	nil nil nil nil nil	Exercise price 37 cents 35 cents 37 cents 30 cents 37 cents	Expiry date 16 January 2011 28 December 2011 22 October 2010 1 November 2010 17 April 2013
	-	-	cents	-
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Note 1: Application has been made to the Botswana Stock Exchange for listing of these securities.

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 4).

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

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Sign here: ............................................................ Date: 30 October 2008 (Director/Company Secretary) Print name: Paul Crawford

• See chapter 19 for defined terms.

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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 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 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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• See chapter 19 for defined terms.

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