EMU NL — Interim / Quarterly Report 2011

Oct 28, 2010

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MINING EXPLORATION ENTITY QUARTERLY REPORT

APPENDIX 5B

Name of entity:

EMU NICKEL NL ABN: Quarter ended (“current quarter”) 50 127 291 927 30/9/2010 Consolidated statement of cash flows Current quarter $AUD’000 Year to date (3 months) $AUD’000 Cash flows related to operating activities 1.1 Receipts from product sales, related debtors, GST Credits 46 46 1.2 Payments for: (a) exploration and evaluation (22) (22) (b) development (c) production (d) administration (193) (193) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 79 79 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 (90) (90)	EMU NICKEL NL	EMU NICKEL NL	EMU NICKEL NL	EMU NICKEL NL
			Quarter ended (“current quarter”)
			30/9/2010
		Current quarter $AUD’000		Year to date (3 months) $AUD’000
		46 (22) (193) 79		46 (22) (193) 79
		(90)		(90)
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 advanced by/repaid to other entities 1.12 Other (Loan repayments to associated company) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		(10)		(10)
		(10)		(10)
		(100)		(100)

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1.13 Total operating and investing cash flows (brought forward)	(100)	(100)
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 (provide details if material) – Share issue expenses Net financing cash flows
	‐	‐
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	(100) 6,018	(100) 6,018
	5,918	5,918

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

• Current quarter $AUD'000

• 1.23 Aggregate amount of payments to the parties included in item 1.2 39 1.24 Aggregate amount of loans to the parties included in item 1.10 1.25 Explanation necessary for an understanding of 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

• 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

Financing facilities available

• Amount available Amount used $AUD’000 $AUD’000

• 3.1 Loan facilities 3.2 Credit standby arrangements

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Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Administration	$AUD’000
	200
	120
Total	320

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 $AUD’000	Previous quarter $AUD’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) – Short Term Deposit	81	150
	5,837	5,868
Total: cash at end of quarter(item 1.22)	6,018	6,018

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	Interest at beginning of quarter	Interest at end of quarter
	E37/787 E63/977 E63/978	Relinquished Relinquished Relinquished	Earned 80% Earning 30% Earning 30%	Nil Nil Nil

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Issued and quoted securities at end of current quarter

	Total number	Number quoted	Issue price per security (cents)	Amount paid‐up per security (cents)
7.1 Preference securities 7.2 Issued during quarter	N/A
7.3 Ordinary securities Fully paid 7.4 Issued during quarter
	59,828,940	59,828,940	$0.50	$0.50
	Nil
7.5 Convertible debt securities 7.6 Issued during quarter	N/A
7.7 Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter			Exerciseprice	Expiry date
	10,000,000	NotQuoted	$0.50	27/2/2013
	1,830,000	NotQuoted	$0.27	22/12/2014
	Nil
	Nil
7.11 Debentures	N/A
7.12 Unsecured notes	N/A

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.

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

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Rudolf Tieleman

Company Secretary Date: 29 October 2010

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