FAR LIMITED — Interim / Quarterly Report 2011

Jan 29, 2012

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
	FAR LIMITED
	ABN 41 009 117 293 Consolidated statement of cash flows
			31 DECEMBER 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (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 (Overhead Recovery) Net Operating Cash Flows		Current quarter $A’000		Year to date (12 months) $A’000
		166 (94) (696) 369 (228) 24		764 (323) (2,938) 1,721 (571) 88
		(459)		(1,259)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets (d) exploration & evaluation (e) development 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 1.12a Other – Flow Energy Acquisition Costs 1.12b Other – Flow Energy Acquisition - Cash Acquired 1.12c Other – Flow Energy Acquisition – Settlement of Liabilities Assumed on Acquisition Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		(14) (239) 45 (970) 105 (545)		(22) (202) (10,966) 23 (970) 105 (545)
		(1,618)		(12,577)
		(2,077)		(13,836)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(2,077)	(13,836)
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
	-	-
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	(2,077) 25,915 (34)	(13,836) 38,092 (452)
	**23,804 **	**23,804 **

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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
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 187
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
During the quarter the Company completed the acquisition of Flow Energy Limited (“Flow”) under
an off market takeover bid initially announced to the ASX on 21 September 2011. Refer to the
Bidder’s Statement dated 21 September 2011 for details of the assets acquired. The consideration for
the acquisition of Flow was paid by the issue of new FAR shares. As at 31 December 2011 the
Company held 100% of the share capital of Flow.
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
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A’000 $A’000
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• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

3.1	Loan facilities
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	2,050*
	-
	-
	950
Total	3,010

• Exploration forecast for the quarter does not include a US$5m performance bond payable in respect of the Company’s Senegal licences on approval of a submitted application to enter the second renewal period of the exploration phase. The amount is repayable in the event of an exploration well being drilled during the second renewal period. FAR may look to recoup some or all of this amount in the event of a successful farm-out.

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 Commercial Bills 5.4 Term Deposits	809	926
	512	546
	3,483	1,443
	19,000	23,000
Total: cash at end of quarter(item 1.22)	23,804	25,915

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

• See chapter 19 for defined terms.

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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	2,150,401,164	2,150,401,164	N/A	N/A
	904,678,993 -	904,678,993 -	Refer note below	Refer note below
7.5 ~~+~~Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted	6,506,419	6,506,419	45 cents	Maturity Date 31 January2012
	- -	- -
7.7 Options Consultant Consultant Consultant Incentive Consultant Incentive 7.8 Issued during quarter: 7.9 Exercised during quarter 7.10 Expired during quarter	4,000,000 4,750,000 2,000,000 7,800,000 4,750,000 1,500,000	- - - - - -	Exercise price 20 cents 7.5 cents 5 cents 7 cents 10 cents 18 cents	Expiry date 9 March 2012 31 March 2012 30 June 2012 30 June 2012 31 March 2013 30 April 2014
	-	-
	-	-
	-	-
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

Note: 42.66 ordinary shares issued as consideration for each Flow Energy Limited share acquired under the Company’s off-market takeover offer dated 21 September 2011.

• See chapter 19 for defined terms.

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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.

Sign here: (Company Secretary)

Date: 30 January 2012

Print name: COLIN HARPER

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.

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