EMERALD RESOURCES NL — Interim / Quarterly Report 2015

Jul 30, 2015

31 July 2 015

ASXAnnouncement

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Q UARTERLY ACTIVITIES AND CASHFLOW REPORT 30 June 2 015

The Board ofEmerald Resources NL( EMR or Company is pleased announce the Quarterly ActivitiesReport and Appendix5B Quarterly Cashflow Reportforthe period ended 30 June 20 1 5.

Yourssincerely,

MORGAN HART Managing Director

Emerald ResourcesNLACN 0 0 9 79 5 0 46 1 1 1 0 Hay Street,W EST PERTH,W A,AUSTRALIA,6 0 0 5 PO Box1 40 8 W estPerth W A 6 8 72 T:1 30 0 729 543 F:1 30 0 729 528 E:info@ emeraldresources.com.au

Q uarterly Activities Report– June 2 015

31 July 2 015 P a g e | 2

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Appalachian Gas - Magoffin County,Kentucky

(Emerald75% EquityInterestinKentuckyEnergyP artnersL L C)

During the period, EMR continued evaluating the strategy in relation to the Magoffin County oiland gas leases w hich culminated w ith Kentucky Energy Partners, LLC ( KEP) , a partnership betw een EMR 75% ) and Slone Production,LLC ( Slone Production) 25% ) ,entering into an assignmentofoiland gas leases w ith Slone Energy,LLC ( Slone Energy) ,a company associated w ith Slone Production,forthe various oiland gas interests located in Magoffin County,Kentucky ( Leases) ,to Slone Energy ( Agreement) .

KEP has assigned the various oiland gas interests,including existing fixtures,casing and pipelines utilized on and forthe Leases fora nominalconsideration in return forEMR retaining a 5% overriding royalty interestin allgasproduction from the Leases( Royalty Interest) .

The Royalty Interestw illcontinue over any new oiland gas lease acquired by Slone Energy w here thatnew oiland gas lease is in respect of any part of an area that w as the subject of the Leases that may be relinquished,surrendered ornotrenewed.

EMR w illreceive quarterly reports from Slone Energy setting out the product recovered and sold and the royalty payable forthatperiod.

Market conditions remain challenging however EMR are continuing to actively analyse more significant opportunitiesin the energy and broaderresourcessectorw ith a view to enhancing EMR shareholdervalue.

Corporate

Directors

MrSimon Lee AO - Chairman MrMorgan Hart - Managing Director MrRossStanley - Non Executive Director MrRossW illiams - Non Executive Director

Cash Position

At30 June 20 1 5 the Group had $ 1 7.9 3m cash on hand ( 31 March 20 1 5:$ 1 7.8 7m) .

Issued Capital

Issued capitalas at 30 June 20 1 5 w as 1 ,30 6 ,59 4,1 1 4 fully paid ordinary shares. The Company’s market capitalisation asat30 June 20 1 5 w asapproximately $ 24.8 3m @ $ 0 .0 1 9 ) ( 31 March 20 1 5:$ 26 .1 3m) .

Emerald ResourcesNLACN 0 0 9 79 5 0 46

Q uarterly Activities Report– June 2 015

31 July 2 015 P a g e | 3

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PublicAnnouncements

The Company made the follow ing announcementssince 1 April20 1 5 to the date ofthisreport:

Date	Headline
22 0 7 20 1 5	Emerald to Earn Royalty Interestfrom Oiland GasLeases
29 0 4 20 1 5	Quarterly Activitiesand Cashflow ReportMarch 20 1 5

Formore information please contact:

MORGAN HART Managing Director

Emerald ResourcesNLACN 0 0 9 79 5 0 46

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining 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

Name of entity

	Name of entity	Name of entity
	Emerald Resources NL
	ABN 009 795 046 Consolidated statement of cash flows
			30 June 2015
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 (12 months) $A’000
		- (38) (4) - (152) - 248 - - -		- (38) (114) - (676) - 546 - - -
		54		(282)
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 (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - - - - - - - -		- - (7) - - - - - -
		-		(7)
		54		(289)

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	54	(289)
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 (costs of share issue) Net financing cash flows	- - - - - -	5,716 - - - - (71)
	-	5,645
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	54 17,874 -	5,356 12,572 -
	17,928	17,928

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
		36
		-
1.25	Explanation necessaryfor an understandingof the transactions
	The amount above includes payments to directors and to companies associated with the directors for this quarter.

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

• See chapter 19 for defined terms.

Appendix 5B Page 2

17/12/2010

Appendix 5B Mining 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
		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
	40
	10
	-
	150
Total	200

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)	208	154
	17,720	17,720
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	17,928	17,874

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 ofquarter	Interest at end of quarter
	N/A
	N/A

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

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 note3) (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	N/A
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	1,306,594,114	1,306,594,114
	-	-
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	N/A
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	20,000,000	-	Exercise Price $0.025	Expiry Date 21 January 2020
	20,000,000	-	$0.025	21January2020
	-
	-
7.11 Debentures (totals only)	N/A
7.12 Unsecured notes (totals only)	N/A

• See chapter 19 for defined terms.

Appendix 5B Page 4

17/12/2010

Appendix 5B Mining exploration entity quarterly report

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.

MARK CLEMENTS Company Secretary

31 July 2015

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 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.

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 5