EV RESOURCES LTD — Interim / Quarterly Report 2014

Oct 29, 2013

ASX ANNOUNCEMENT

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Quarterly Activity Report

For the period ending 30 September 2013

South East Asia Resources Limited (ASX: SXI ) ( “SEAE” or “the Company ”), is pleased to provide shareholders with this Quarterly Activities Report for the three (3) months ending 30 September 2013.

Corporate Matters

• As announced by the Company on 31 July 2013 and on 16 September 2013, the Company had agreed, through its wholly-owned subsidiary, South East Asia Energy Resources (Australia) Pty Ltd (SEA), to extend the expiry date of the option period granted to acquire Tiger Coal Pty Ltd and Energy Investments Pty Ltd (“Target Companies”), the holders of three coal exploration licences in Tasmania, Australia, until 30 November 2013. While the material terms of the agreement as announced on 31 July 2013 were not changed, in consideration of the seller agreeing to extend the expiry date of the option period, the Company has issued 5,000,000 SXI shares on 31 July 2013 and agreed to issue and allot to the seller 2,500,000 SXI shares or pay $50,000 by no later than 30 October 2013. In addition, the Company agreed to reimburse the seller for expenses incurred and paid by the seller.

The Company is continuing towards a JORC report which is expected to be finalized during the last calendar quarter of 2013.

The Company is in discussions with Potential Asian Thermal coal customers to finalise firm off take and project financing.

• As announced by the Company on the 3 September 2013, the Company completed the offtake coal agreement through its wholly owned subsidiary Singapore based South East Asia Energy Resources Pte Ltd (SEAER PTE) from PT PAR semi soft coking coal mine East Kalimantan Indonesia. The Sale Purchase Agreement for the coal is with Vietnam Coke producer CoalMiDanka Limited that is part of the energy group Ancom. The coal is being supplied under a long term agreements to the newly commissioned Viet Trung Coke Plant on North Vietnam.

SEAER PTE have secured a letter of credit facility for $2.4m US for the first shipment of 20,000 tonnes of the initial 120,000 tonnes which has been facilitated through the Commonwealth Bank Australia with total initial contract revenue of US$14.4m.

The production is being undertaken by mining contractor Debbia Mining under the mine and project management of United Mining with Indonesian and Australian site management. The first shipment scheduled for the second half of November and then monthly shipments thereafter on ongoing basis.

South East Asia Resources Limited ACN 009 144 503

311-313 Hay Street Subiaco, Western Australia 6008 T:+61 (0) 8 9381 5819 F: +61 (0) 8 9388 3701 www.victorywest.com.au

• During the quarter, the Company executed a Bond Subscription Agreement with PA Broad Opportunity IV Limited (Subscriber) for the provision of up to A$10 million by way of unsecured bonds, convertible into shares.

The key terms of the bonds are set our below:

The conversion price for the bonds is the lower of:

• a) 125%of the average of the closing price per share for the 25 trading days immediately prior to the date on which the bond is issued; or

• b) 90% of the average of the closing price per share in any 5 consecutive trading days during the 25 trading days immediately preceding the relevant conversion date of the bonds.

The conversion price, at all times, cannot be lower than A$0.015 and if the conversion price determined from either (a) or (b) above is below A$0.015, then the conversion price would be equal to A$0.015 for that particular conversion.

The Bonds are unsecured and have a maturity date of 5 years. The financing is subject to appropriate shareholder and regulatory approvals.

On 18 September, the Company issued the Initial Tranche Bonds of A$500,000. The net proceeds from the issue of the Initial Tranche of Bonds, , will be used by the Company to retire existing debt/liabilities and working capital requirements for the growth of the business to a mining and resources ownership and trading business, focusing on activities in South East Asia and Australia. The Company also issued 15 million shares in satisfaction of the A$300,000 fee for agreeing the Bond Subscription Agreement.

With this facility in place and the expected contributions from the first coal shipment expected next month, the Company is in a good position to progress towards execution of additional projects.

PROJECTS REVIEW

PT PAR COKING COAL PROJECT (INDONESIA)

In December 2012, SXI entered into a formal joint venture agreement to manage, operate and market 100% of the coking coal from the PT PAR project in East Kalimantan, Indonesia. PT PAR is a 191ha coking coal concession that is currently opened up in a 10ha area. The concession area has previously undergone mining activity, with 7,000 tonnes of coking coal already extracted and stockpiled. A further 10,000 tonnes have been extracted with a large percentage of overburden already removed.

The project has secured IUP Production Licensing and has all required infrastructure in place for immediate mine production, including camp, mining equipment, haul road and processing crush facilities. The hauling road distance from the boundary of the PT PAR concession is 32 kilometers to the jetty facility (which has a port weight bridge and belt loading conveyor capacity of 1000Mt per hour). Loading of coal onto export coal vessels is estimated to take 10 hours.

Production is being undertaken by mining contractor, Debbia Mining, under the mine and project management of United Mining with Indonesian and Australian site management.

Independent testing of PT PAR coal by SEAER has indicated the presence of high quality coal, based on a Gross Calorific Value of 7,000 kcal/kg, low Volatile Matter (26%-28% range), a high Crucible Swell Number (CSN) of 8-9 and low ash (12-14%) and sulphur content (1.5%-1.7%).

The high energy content, together with the low ash and low sulphur content make coal from PT PAR suitable for a high quality export thermal coal, or a coking coal product.

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Over the last quarter, SEAER has been focusing on developing business relationships in Vietnam that include potential mining collaborations, off-take opportunities, as well as infrastructure development and management. The first supply contract from SXI’s presence in Vietnam is an offtake agreement entered into with Vietnamese coking coal producer Coal Mi Danka Company JSC (a subsidiary of the energy group Ancom (Vietnam)) for 120,000 metric tonnes of coal from PT PAR at a fixed price of US$120 per metric tonne FOB, to be delivered over a one year period. The first shipment of 20,000 metric tonnes is scheduled to occur during the second half of November 2013, with proposed monthly shipments thereafter.

The coking coal from PT PAR (supplied under a long term agreement to the newly commissioned Viet Trung Coke Plant in North Vietnam) will be processed at the barge loading port of Telen, which is a short trucking distance from the PT PAR site. The coal will then be loaded onto barges for 30 kilometer trans-shipment to anchorage of Adang Bay, where the cal coal will then be loaded onto the Vietnamese chartered ships for direct shipment to the Port of CaiLan, Quang Ninh Province in North Vietnam.

TASMANIA COAL PROJECTS

In May 2013, SXI purchased an option to acquire two privately-owned companies (Tiger Coal P/L and Energy Investments P/L ) that are the holders of three coal exploration licenses in the Central Midlands of Tasmania, Australia. During the quarter, the parties agreed to extend the option period to 30 November 2013 whilst technical and legal due diligence is completed and formal legal documentation is finalised.

The exploration and if development occurs, the production will be managed by SEA wholly-owned subsidiary South East Asia Energy Resources (Tasmania) Pty Ltd.

The three exploration licenses, pertaining to the Central Midlands of Tasmania, cover an approximate area of 700 km2 with potential for shallow open cut bituminous coal. The inherent qualities of this type of coal are preferred by cement producers. The Central Midland project area is predominantly low rainfall open grazing country with year round access and is serviced by extensive infrastructure including two nearby large regional towns, highway, and rail with direct access through the area and direct 150km to Bell Bay deep-water port. The project area is predominantly low rainfall open grazing country with year round access. Tasrails’ Southern Mainline intersects the project area from South to North.

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Figure 1 : Map of Tasmanian Coal Projects- Approx 80kms N of Tasmania

First stage due diligence has been undertaken by SEAER which has included discussions both directly and indirectly with Tasrail, Tasports, Mines Department Consultants, contractors and local stakeholders. The acquisition is close to being finalised, following the completion of legal and technical due diligence; the latter involving an exploration program designed to test and establish a JORC measured resource. An acquisition payment of up to $15 million will be made if a JORC measured resource of at least 30 million tonnes is established.

In June 2013, SEAER commenced an exploration program comprising a minimum of 21 exploration holes within the Jericho area (EL26/2008 and EL26/2008 licenses). This program was finalized during the quarter and will assist the company in developing the balance of the required drilling program to complete the proposed JORC report.

Tasmanian coal offers consistent properties essential to keep the cement manufacturing process performing at its peak performance. One of the key benefits of using Tasmanian coal in the cement manufacturing process is the ash characteristics of the coal, which reduce the viabilities and quantities of the raw inputs required.

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EXPLORATION UNDERTAKEN AND PLANNED BY SXI

The exploration plan and schedule includes:

• Phase I: A planned 1,000-metre drilling program over 21 holes (12 cored holes; 9 open holes). . This program was completed during the quarter.

• Phase II Resource and Reserve JORC Reporting and documentation currently being undertaken by Golder Associates. This has not been finalised by the end of the quarter.

• Phase III: A planned 600-metre drilling program over 10 holes (six cored holes; four open holes) to provide for mineable reserve and mining planning. This phase will be depending on the outcome of phase II.

• The Woodbury Coal Deposit is ideally suited to open-cut techniques. The coal is shallow, the stripping ratio attractive, and a sufficient resource available for a continuous long-term mining operation. Special advantages of the proposed Woodbury coal project include:

• All coal seams greater than 30cm in thickness would be recovered by mining with excavators.

• Coal seam recoveries between 85% and 95% should be achievable through open cut mining at the Woodbury site.

• The proposed Woodbury open cut should be of sufficient scale to justify the creation of a large “inpit” coal exposed inventory. A coal exposed inventory in the order of approximately 100,000 tonnes should guarantee the continuity and regularity of coal supply.

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From an infrastructure viewpoint, the rail line is located immediately to the west of the proposed mine site, representing a major financial and strategic advantage with respect to coal transport between the proposed mine and power station.

MALALA MOLYBDENUM PROJECT, SULAWESI, INDONESIA

The Company has maintained the Malala Molybdenum Project and continued discussions with provincial Government and other officials concerning all licenses and administrative matters.

The Malala Project is located in the Toli Toli Regency of Central Sulawesi Province, Indonesia, approximately 150km to the north of Palu. The project comprises five IUP concessions: PT Inti Cemerlang, PT Promistis, PT Era Moreco, PT Sembilan Sumber Mas & PT Indo Surya. The total area forming the Malala Project is in excess of 240km2 spread across the five concessions all of which are located within 15km of the coast.

Since acquisition, SXI has worked diligently at compiling and reviewing the historical data and re-initiating the exploration process. The majority of work has targeted Anomaly B, the key area of Rio Tinto/Santos exploration efforts in the 1970’s and 1980’s. Rio Tinto had defined a non-JORC compliant resource at Anomaly B which is the basis of SXI’s exploration target of 105-115Mt @ 660-900ppm Mo[1] . The Company has significantly advanced its understanding of the Anomaly B prospect area, with detailed trenching and geophysical surveying making large contributions to this improved understanding.

While the Company has high expectations in relation to the Malala Molybdenum Project, it was decided to take a conservative approach and impair the related capital expenditure of this project at 30 June 2013.

1 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 Rio Tinto, Santos and SXI.

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About South East Asia Resources Limited

South East Asia Resources Limited is a resources focused exploration company listed on the Australian Securities Exchange (ASX code: SXI) and Frankfurt Stock Exchange (FSE code: R1E), with a vision to find, prove and extract value from world class resource projects in South East Asia.

Forward looking statements

This announcement contains forward-looking statements which involve a number of assumptions, risks and uncertainties. These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Competent Persons Statement

The data in this announcement that relates to Malala Molybdenum Project Exploration Results, Resources and Reserves is based on information reviewed and evaluated by Mr. Brett Gunter who is a member of The Australian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience 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. Gunter is a fulltime employee of GMT Indonesia and he consents to the result as they appear.

The data in this announcement that relates to the Penajam East Project Exploration Results, Resources and Reserves is based on information compiled by Mr. William Park, BSc (Geology), BEcon, MAIG, who is a member of the Australian Institute of Geoscientists. Mr. Park is a full time employee of NRM, and has sufficient experience which is relevant to the style and type of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify him as a “Competent Person” as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Park consents to the inclusion in the report of the matters based on his information in the form and content as they appear.

* JORC Exploration Targets

It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this announcement relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserves(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource. 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.

For further information on SEAE, please visit www.southeastasiaresources.com.au

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