EMERALD RESOURCES NL — Interim / Quarterly Report 2015

Jan 27, 2015

28 January 2015

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ASX Announcement

QUARTERLY ACTIVITIES AND CASHFLOW REPORT 31 December 2014

The Board of Emerald Resources NL ( EMR or Company ) is pleased announce the Quarterly Activities Report and Appendix 5B Quarterly Cashflow Report for the period ended 31 December 2014.

Yours sincerely,

MORGAN HART Managing Director

Emerald Resources NL ACN 009 795 046 1110 Hay Street, WEST PERTH, WA, AUSTRALIA, 6005 PO Box 1408 West Perth WA 6872 T: 1300 729 543 F: 1300 729 528 E:info@emeraldresources.com.au

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Quarterly Activities Report – December 2014

Appalachian Gas - Magoffin County, Kentucky

(Emerald 75% Equity Interest in Kentucky Energy Partners LLC)

Emerald's Appalachian gas operations are operated through Kentucky Energy Partners (“KEP”), a company 75% owned by Emerald. KEP currently holds approximately 1,000 lease acres with 12 existing wells potentially capable of gas production, and an 8 mile long gas gathering pipeline.

During the period, the Board continued to evaluate the strategy with respect to the core operating asset in Magoffin County, Kentucky and actively analysed more significant opportunities in the energy and broader resources sector.

Corporate Directors Mr Simon Lee AO - Chairman Mr Morgan Hart - Managing Director Mr Ross Stanley - Non Executive Director Mr Ross Williams - Non Executive Director

Change of Name and Registered Office

At the Annual General Meeting held 27 November 2014, shareholders approved the Board’s proposed change of name to “Emerald Resources NL” to eliminate any perception that the activities of the Company are focused on a single resource or that it is seeking to undertake investments solely in the oil and gas industry.

During the period, the Company also relocated to 1110 Hay Street, West Perth, WA.

Cash Position

At 31 December 2014 the Group had $18.02m cash on hand (30 September 2014: $18.1m).

Issued Capital

Issued capital as at 31 December 2014 was 1,306,594,114 fully paid ordinary shares. The Company’s market capitalisation as at 31 December 2014 was approximately $26.13m (@ $0.02)(30 September 2014: $30.05m).

Emerald Resources NL ACN 009 795 046

Quarterly Activities Report – December 2014

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Public Announcements

The Company made the following announcements since 1 October 2014 to the date of this report:

Date	Headline
22/01/2015	Option Issue
27/11/2014	Results of Meeting
30/10/2014	Quarterly Activities and Cashflow Report September 2014
28/10/2014	Change in substantial holding
24/10/2014	Notice of Annual General Meeting/Proxy Form
22/10/2014	Change of Director's Interest Notice
16/10/2014	Change in substantial holding
15/10/2014	Change of Director's Interest Notice
1/10/2014	Change of Registered Office
1/10/2014	Annual Report

For more information please contact:

MORGAN HART Managing Director

Emerald Resources NL ACN 009 795 046

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
Emerald Resources NL
ABN 009 795 046	Quarter ended (“current quarter”)
009 795 046	31 December 2014

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 (6 months) $A’000
	- - (12) - (204) - 133 - - -	- - (81) - (354) - 239 - - -
	(83)	(196)
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)	- - - - - - - - -	- - (4) - - - - - -
	-	(4)
	(83)	(200)

• 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)	(83)	(200)
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	(83) 18,100 -	5,445 12,572 -
	18,017	18,017

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	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
			43
			-
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 reportingentityhas an interest N/A		Explanation necessaryfor an understandingof the transactions
		The amount above includes payments to directors and to companies associated with the directors for this quarter.
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas 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
	-
	50
	-
	165
Total	215

Reconciliation of cash

Total Reconciliation of cash		215
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)	97	200
	17,920	17,900
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	18,017	18,100

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	N/A
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

28 January 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.

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• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 5