EV RESOURCES LTD — Interim / Quarterly Report 2010

Jul 29, 2010

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Quarterly Activity Report For the period ending 30 June 2010

Victory West Moly Limited ( “VWM” or “the Company”) is pleased to provide shareholders with this Quarterly Activities Report for the three (3) months ending 30 June 2010. Activities continued to focus on the Anomaly B and Promistis prospect areas within the Malala Molybdenum Project located in northern Sulawesi, Indonesia (see Figure 1).

Highlights

• Trenching at Anomaly B continues to refine a high-quality target area on the Northern Limb, including 240m at 803ppm Mo from trench L-1100 B

• Northern Limb bedrock geochemical anomaly >1,300m long x 300m wide, coincident with IP geophysical data and soil geochemistry

• Trenching underway on the Southern Limb

• Continued success delineating two large target areas within the PT Promistis (“Promistis”) concession

• Encouraging reconnaissance geochemical sampling results from PT Era Moreco including rock chip samples up to 1,420ppm Mo

Project Activity Update

Trenching Activities – Bedrock geochemistry at Anomaly B

Trenching activities continued during the June quarter, with the aim of refining the surface expression of the bedrock target area of the Northern Limb at Anomaly B. Trenches L-1100 B and L-1050 B were completed, whilst trench lines L-1000 D, L-925 D and L850 D have been initiated on the Southern Limb (Figure 2). A total of 560 samples from 2,800 metres of trench line were collected during the three month period. Each sample is a 5 metre continuous rock chip sample. Assay results received during the quarter have revealed a broad high grade zone within the northern part of the Northern Limb, with 240m @ 803ppm Mo .

Assay results from all trenches excavated over the Northern Limb have now been received. The bedrock geochemistry has confirmed the Northern Limb has a surface expression in-excess of 1,300m in length and up to 300m wide, as shown on Figure 2. Visible molybdenite has been reported from every trench line completed to date.

Importantly, this 1,300m x 300m bedrock anomaly is coincident with the target area defined by both the Induced Polarisation (IP) geophysical survey and the detailed soil geochemistry. These data sets have therefore refined a high-quality target at the Northern Limb which is ready for drilling.

Detailed geochemistry – PT Promistis

The regional geological work program continued to focus on a large area within the PT Promistis concession, located approximately 10km to the north west of Anomaly B. As previously reported, this area has returned several highly anomalous stream sediment and rock chip samples from a large area, originally reported to be 3km x 3km. However, further information obtained from the ongoing detailed work programs has now revealed two large zones of anomalous geochemistry, as illustrated on Figure 3. Each of these zones is 2-3km across,

representing two potentially very large target areas. Ridge-and-spur soil geochemistry is currently underway to assist in refining these target zones and aid in drill target definition.

A total of 393 soil samples were collected as part of the ongoing ridge-and-spur soil geochemical program at Promistis. Each sample is collected at 25 metre spacing. It is expected this soil program will be ongoing through the current quarter.

Regional Reconnaissance Sampling Program

A regional reconnaissance sampling team has been undertaking intermittent campaigns of fieldwork over the Companies remaining three concessions forming the Malala Molybdenum Project. Wide-spaced and selective sampling (stream sediments and rock chips) have revealed a number of new areas of anomalous molybdenum. Highlights include a rock chip sample collected within PT Era Moreco returning 1,420ppm Mo and a stream sediment geochemical sample from PT Indo Surya containing 34ppm Mo . These new areas will be re-visited, with more detailed mapping and sampling to take place.

The Company continues to employ approximately 70 full-time personnel at Malala.

Corporate

Indonesian Operations

In continuing the Company‟s strategy of ensuring its Indonesian assets are optimally structured, the Company is in the process of converting their 5 controlled molybdenum concession companies: PT Inti Cemerlang, PT Promistis, PT Era Moreco, PT Sembilan Sumber Mas and PT Indo Surya (collectively the “Moly Companies”) into Indonesian foreign investment companies (“PMA Companies”) which allows greater flexibility and transparency for foreign ownership.

In parallel, the Company is progressing the conversion of the Inti Cemerlang and Promistis Exploration IUP concession licenses to Production and Operation (Exploitation) IUP‟s and has engaged experienced local consulting groups to undertake the required feasibility and environmental (AMDAL) studies. It is expected that these studies will be completed during the current quarter, upon which the formal application process will begin.

Strengthening of Management team

In May 2010, the Company appointed Mr. David Lonsdale as Commercial Manager to oversee the financial function of the Company as well as provide operational support to the Australia corporate and Indonesian incountry management team.

Mr Lonsdale is a Chartered Accountant with a background in corporate taxation consulting with Ernst & Young in Perth. He then transitioned to senior commercial finance roles in the international commodity trading, energy and technology sectors in the UK, Europe and Asia. Mr Lonsdale has extensive management experience in emerging foreign markets that required significant focus on risk management, logistics and commercial operations.

Yours faithfully

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LUKE MARTINO Company Secretary

*** Notes on Exploration Targets**

In accordance with Clause 18 of the JORC Code, it is important to note that no JORC Mineral Resources or Ore Reserves have been established on these tenements and any current assessment remains subject to ongoing exploration work and drilling. The current interpretation remains preliminary and is based on exploration, evaluation and resource definition work performed by previous owners Rio Tinto and Santos.

Competent Persons Statement

The information in this report that relates to exploration results is based on information complied by Mr Brett McKay, who is a Member of the Australasian Institute of Geoscientists and a fulltime employee of Victory West Moly Limited. Mr McKay has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves‟ (“The JORC Code”). Mr McKay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Victory West Moly Limited

Victory West Moly Limited (VWM) (www.victorywestmoly.com.au) is a metals focused resource exploration company listed on the Australian Securities Exchange (ASX code: VWM) and Frankfurt Stock Exchange (FSE code: R1E). VWM is currently focused on exploring and developing its cornerstone asset, the highly prospective Malala Molybdenum Project (23,747 Ha total) located in Sulawesi, Indonesia, approximately 12km from a deep water harbour at Malala Bay.

VWM is in the process on delineating the size and grade of the Anomaly B prospect through a series of exploration programs including drilling, trenching, geophysics and geochemistry. VWM is yet to define a JORC resources however, it is in the process of verifying an initial minimum Exploration Target at Anomaly B of 105-115Mt @ 660-900ppm Mo* based on previous work by Rio Tinto, Santos and the Company. VWM expects to build on this target over time.

Recent exploration suggests Anomaly B could be just one of a series of molybdenum-bearing prospects within the district, with regional reconnaissance generating a number of high priority targets, including a large target area within the PT Promistis concession.

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Figure 1 – Location of the Malala Molybdenum Project in northern Sulawesi, Indonesia.

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Figure 2 – 3D perspective view of contoured bedrock geochemistry overlaying the digital elevation model (DEM). Assay results are currently awaited for the first two trench lines on the Southern Limb.

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Figure 3 – Combined rock chip, stream sediment and ridge-and-spur soil geochemistry for the Promistis concession. Results to date have defined two large areas of highly anomalous Molybdenum geochemistry which will be the focus for further follow-up work.

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, 01/06/10.

Name of entity

Victory West Moly Limited

	ABN 66 009 144 503 Consolidated statement of cash flows		Quarter ended (“current quarter”) 30 June 2010	Quarter ended (“current quarter”) 30 June 2010
			30 June 2010
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 (Deposits) NetOperating Cash Flows		Current quarter $A’000		Year to date (12 months) $A’000
		- (824) - - (449) - 8 (119) - (147)		- (2,828) - - (1,012) - 17 (193) - (147)
		(1,531)		(4,163)
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)		- - (3) - - - - 164 -		- - (11) - - - (1,386) 878 -
		161		(519)
		(1,370)		(4,682)

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,370)	(4,682)
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) Net financing cash flows	1,500 - - - - (90)	1,512 - 2,000 - - (220)
	1,410	3,292
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	40 361 9	(1,390) 1,799 1
	410	410

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
			23
1.25 Explanation necessaryfor an understandingof the transactions Directors fees 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 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest		Explanation necessaryfor an understandingof the transactions
		Directors fees
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest

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 3.3 Credit standby arrangements Short term loan receivable	Amount available $A’000	Amount used $A’000
		-	-
		- 700	- -

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	250
	-
	-
	150
Total	400

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)	410	360
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	410	360

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

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 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	101,044,344	95,919,344
	10,000,000	10,000,000	15 cents	15 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	Secured convertible note deed	-	$2 million	$2 million
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	65,004,650 25,000,000	65,004,650 -	Exercise price 20 cents 20 cents	Expiry date 24 February 2010 31 December 2011
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

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 4).

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

Sign here: ............................................................ Date: ......30 July 2010......... (Director/Company secretary)

Print name: ............Luke Martino.............................................

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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