FireFly Metals Ltd. — Interim / Quarterly Report 2013

Oct 29, 2012

Exploration Office Warehouse I, 5 Butler Blvd Burbridge Business Park Adelaide Airport SA 5950 Postal Address PO Box 247 Export Park SA 5950

ABN: 96 110 336 733

Tel: +61 8 8375 3900 Fax: +61 8 8375 3999 www.monaxmining.com.au

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For immediate release 30 October 2012

Monax Mining Limited Quarterly Report

For the quarter ended 30 September 2012

HIGHLIGHTS

• Punt Hill Project –

• Major drilling program commenced comprising at least seven holes.

• Three holes completed to the end of the quarter.

• Samples submitted to laboratory.

•

Monax | Antofagasta Strategic Alliance –

• First Designated Project approved by Antofagasta plc, a major Chilean copper mining company.

• Continuing review of a number of copper projects for the Alliance.

•

Waddikee Project –

• Maiden graphite drilling program completed with high-grade, coarse flake graphite reported from the Wilclo South prospect.

• Surface and drill hole samples from Wilclo South submitted for metallurgical testing.

• Phar Lap Project – Monax has commenced the land access process for planned drilling in early 2013.

• Yorke Peninsula Project – Calcrete sampling at Melton reports anomalous copper and gold.

Quarterly report for the period ending 30 September 2012 ~ 1 ~

Corporate

During the quarter to 30 September 2012, Monax Mining Limited (ASX:MOX) (“Monax” or the “Company”) reduced its holding in Marmota Energy Limited (ASX:MEU) by the sale of 3.4 million shares to raise approximately $647,000. This was a strategic decision to provide working capital for Monax to continue the exploration for graphite at its Waddikee project on South Australia’s Eyre Peninsula.

Monax remains Marmota’s major shareholder with 32.6 millions shares (14.28% undiluted).

The current value of this holding is $2.27 million (based on share price $0.075).

Monax’s exploration activities are well funded with significant contributions from farm-in and strategic partner Antofagasta plc for the Punt Hill copper-gold and the Monax | Antofagasta Strategic Alliance. This allows a high level of exploration activity to be maintained, whilst conserving Monax’s financial resources.

As at 30 September 2012, Monax had a cash balance of $2.9 million. During the quarter $1.34m was spent on exploration on Monax projects.

During the quarter, long-standing Monax Board member, Mr Reg Nelson resigned from the Board.

Mr Nelson, who had been a Director of the Company since August 2004, advised the Company that his resignation was the result of his need to focus on his role as Managing Director of ASX-listed Beach Energy Limited at a time when it is engaged in an expansive exploration and development program.

Monax continues to review a number of opportunities for the Monax | Antofagasta Strategic Alliance and during the quarter signed a non-binding term sheet with ERO Mining Limited (ASX:ERO) to undertake technical due diligence on the Welbourn Hill project, located on the northern Gawler Craton in South Australia.

Subsequent to the end of the quarter, a detailed gravity survey was undertaken over the main Welbourn Hill target area and this did not result in a suitable target suggestive of a large ironoxide copper-gold (IOCG) body being determined. As a result, the Company withdrew from the term sheet with ERO.

Four Monax | Antofagasta Strategic Alliance tenements were granted in the September quarter. Exploration Licence (EL) 4990 - part of the Algebuckina project - was granted, and this tenement together with two EL applications (ELA), form part of the first Designated Project approved by Antofagasta.

Monax will commence on ground exploration upon the grant of the remaining two ELA’s.

Quarterly report for the period ending 30 September 2012 ~ 2 ~

Exploration

South Australian projects

Monax (ASX: MOX) has five South Australian projects (Figure 1).

1. Punt Hill – copper-gold (farm-in with Antofagasta).

2. Monax | Antofagasta Strategic Alliance.

3. Waddikee – graphite, manganese and iron.

4. Phar Lap – copper-gold.

5. Yorke Peninsula – copper-gold (includes Melton JV with Marmota Energy).

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Figure 1. Location of Monax’s projects.

Quarterly report for the period ending 30 September 2012 ~ 3 ~

Punt Hill Project – copper-gold (Monax 100%; Antofagasta earning 51%)

The Punt Hill Project is located within the highly prospective Olympic Iron Oxide Copper-Gold (IOCG) Province on the eastern margin of the Gawler Craton in northern South Australia. This province is host to the world class Olympic Dam and Prominent Hill mines, as well as the recently discovered Carrapateena and Hillside deposits.

The Punt Hill project is subject to a farm-in agreement with major Chilean mining company Antofagasta plc ("Antofagasta"), through its wholly-owned subsidiary, Antofagasta Minerals Adelaide Pty Ltd.

Monax commenced a seven hole drilling program at Punt Hill on 15 August 2012. Figure 2 shows the location of the completed drill holes and planned drill holes remaining for the 2012 program. As at the end of the September quarter, three holes have been completed with details outlined below:

details outlined below:
Hole No.	Easting	Northing	Depth to Basement(m)	Total Depth (m)
MMDD01	743328	6503022	933.5	1248.4
PHDD1201	741802	6503642	846.6	969.5
PHDD1202	739692	6507636	907.5	1077.5

All holes drilled vertical. Datum MGA 94, Zone 53 (GDA 94).

The first drill hole of the campaign was MMDD1 (Figure 2). This was a re-entry into a hole drilled by Monax in 2008. The hole was originally terminated at ~908m within the Beda Volcanics (part of the cover sequence), due to technical difficulties and geological understanding at that time. The Monax | Antofagasta Technical Committee, comprising personnel from both companies, reviewed the gravity data and made the decision to extend this hole to provide an accurate depth to basement and test for alteration and mineralisation.

Basement geology in drill hole MMDD1, from 933.5m to1248.4m (EOH), comprised massive calc-silicate skarn, including a number of zones of sulphide mineralisation. Selected intervals from MMDD1 have been submitted for geochemical analyses.

MMDD1 is located in the SW area of the “Prairie Dog” gravity ridge, approximately 6.5km from previous drill holes PDDD1 and PDDD2 (Figure 2). Both drill holes at Prairie Dog intersected long intervals of mineralisation (see Table below).The presence of intense skarn style alteration and mineralisation within MMDD1 is seen as highly encouraging for the project, significantly increasing the prospectivity footprint of the area.

Drill hole	Interval	**Mineralisation **
PDDD1	29m(754-782m)	0.12% Cu
	10m(811 –821m)	0.22% Cu
	12m(888–900m)	0.55% Cu
	12m (985–997m)	0.33% Cu
PDDD2	152m (856–1008)	0.32% Zn
	99m(876–975m)	0.24% Cu

Drill hole coordinates previously reported. Holes drilled vertical and due to flat lying nature of sediments represent approximate true widths. Intersections calculated by averaging 1m samples.

Quarterly report for the period ending 30 September 2012 ~ 4 ~

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Figure 2. Location of completed drill holes and planned drill holes, Punt Hill project
(red dots 2012 completed and planned holes; yellow dots historical drill holes).
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Drill hole PHDD1201, located 1.65km to the NW of MMDD1, intersected altered Donington Suite granite at 841.6m depth. The hole was terminated at 969.9m depth. No mineralisation was observed in the drill core.

Drill hole PHDD1202, located SE of the Prairie Dog drill holes, intersected altered metasediments from 907.5m to 1077.5m. The intensity of the alteration was intermediate and there was only weak mineralisation observed near the bottom of the hole. The bottom 11.5m of drill core has been sampled and awaits submission for geochemical analyses.

This project remains the cornerstone exploration focus for Monax, backed by strong continued support from Antofagasta.

Quarterly report for the period ending 30 September 2012 ~ 5 ~

Monax | Antofagasta Strategic Alliance

In October 2011, Monax announced the formation of a Strategic Alliance with Antofagasta Minerals Adelaide Pty Ltd, a wholly owned subsidiary of ‘Antofagasta plc’, a major international copper mining company, for project generation in South Australia.

Under the terms of the Strategic Alliance Agreement Antofagasta, agreed to commit US$1 million to Monax over two years for target-generation within South Australia.

The Alliance is targeting properties containing base and precious metals. Under the Alliance, Monax has the ability to approach companies with prospective tenements, with some exclusions to undertake third party deals.

Northern Gawler Craton Project – ERO Mining

During the September quarter, the Monax | Antofagasta Alliance signed a non-binding term sheet with ERO Mining Ltd over the Northern Gawler Craton Project.

The Northern Gawler Craton Project comprises two granted tenements, EL4019 and EL4020, covering an area totalling 439km[2 ] ,and is located approximately 1100km north- north-west of Adelaide, and approximately 50km east of the township of Marla (Figure 1).

The main target within the project area was the ‘Welbourn Hill’ target which is a prominent magnetic and gravity feature identified within regional geophysical data sets.

Under the term sheet signed with ERO, the Alliance had a four month exclusive period to undertake technical due diligence on the project.

Subsequent to the end of the quarter, the Alliance undertook a detailed gravity survey to assist with modelling and target generation. Modelling of the data did not produce a suitable target suggestive of a large IOCG body and therefore the Company withdrew from the term sheet with ERO.

Monax | Antofagasta Alliance Tenements

Monax has 13 tenement applications covering four separate areas in South Australia, which are potentially subject to the Alliance.

The four projects are (see Figure 1 for project locations and table below for tenement details):

1. Marla

2. Algebuckina

3. WGC (western Gawler Craton)

4. Kangaroo Island

Project	Tenement	No.	Status	Area	**Area type **
Marla	Mount Brougham	ELA 2012/00127	Application	840	km2
Marla	Henrietta Creek	EL 4991	Granted	929	km2
Marla	Mt Beviss	ELA 2011/00276	Application	979	km2
Algebuckina	Algebuckina	ELA 2011/00269	Application	399	km2
Algebuckina	Douglas Creek	ELA 2011/00270	Application	935	km2
Algebuckina	Old Umbum	EL 4990	Granted	540	km2
WGC	Nullarbor	ELA 2012/00063	Application	963	km2

Quarterly report for the period ending 30 September 2012 ~ 6 ~

Project	Tenement	No.	Status	Area	**Area type **
WGC	North of Yalata	ELA 2012/00064	Application	941	km2
WGC	West of Yalata	EL 4992	Granted	957	km2
WGC	Yalata	EL 4993	Granted	951	km2
WGC	East Yalata	ELA 2012/00076	Application	904	km2
Kangaroo Island	Parndana	ELA 2012/00067	Application	868	km2
Kangaroo Island	West of Parndana	ELA 2012/00068	Application	226	km2

Algebuckina Project

Monax has one granted tenement (EL 4990) and two tenement applications (ELA 2011/00269 and ELA 2011/00270) located within the Peak and Denison Inlier on the margin of the northern Gawler Craton.

During the quarter, Antofagasta approved this project as the first Designated Project under the Strategic Alliance. Monax will commence exploration upon the granting of the two ELA’s which is expected during the current quarter.

Marla Project

The Marla project comprises one granted tenement (EL 4991) and two tenement applications (ELA 2011/00276 and ELA 2012/00127). This project is located within the same geological setting to the Northern Gawler Craton project with ERO.

Monax is planning detailed gravity over selected targets generated from the regional 7km spaced gravity data set. Exploration will commence upon the grant of all tenements and after undertaking a cultural heritage clearance.

WGC Project

The WGC project comprises two granted tenements (EL 4992 and EL 4993) and three tenement applications (ELA’s 2011/0063, 2011/0064 & 2011/0076) covering an area of 4716km[2] (Figure 1).

The basement rocks on the western Gawler Craton record a history of active tectonism which resulted in the mafic and ultramafic intrusives being introduced into a package of Palaeoproterozoic sediments; a setting analogous to the Thompson Nickel Belt in Manitoba, Canada. Monax considers this area prospective for nickel-copper mineralisation.

The Fowler Domain in South Australia comprises a northeast trending sinuous, high-magnetic intensity belt located on the western Gawler Craton (Figure 3). The Fowler Domain contains Archaean/Proterozoic rocks, reworked and intruded by Palaeoproterozoic igneous and metamorphic rocks.

Limited company exploration and geological mapping has shown that the Fowler Domain is a complex, long-lived deep crustal scale structural zone similar to the Thompson Nickel Belt in Canada and the Albany Fraser Belt in Western Australia.

Monax is currently undertaking a detailed review of historical company exploration within the Fowler Domain and generating a suitable exploration strategy for the region.

Quarterly report for the period ending 30 September 2012 ~ 7 ~

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Figure 3. WGC project on regional aeromagnetic data.

Kangaroo Island Project

Monax has two tenement applications covering an area of 1094 km[2] on the northern part of Kangaroo Island (Figure 1). The southern margin of the Gawler Craton is interpreted to correspond with the major Cygnet-Snelling Shear Zone which hosts Monax’s Bonaventura zinc (+Pb±Cu±Au) prospect and historic Kohinoor Gold Mine.

Drilling by the South Australian Department of Mines and Energy on the north coast of Kangaroo Island reported dolerite and granite basement rocks of the Donington Suite in Investigator 1 at 313m below the surface.

The Donington Suite is host to several major IOCG deposits/prospects on the eastern Gawler Craton including Carrapateena; however no exploration for IOCG has been undertaken within the Kangaroo Island region. A number of Proterozoic basement geological interpretations, including that from Geoscience Australia, depict the extension of the Pine Point Fault Zone on Yorke Peninsula, as the Cygnet-Snelling Shear Zone. The coverage of geophysical data outside of Monax’s 100% Kangaroo Island tenements is very poor, but there does appear to be a number of poorly defined, high intensity gravity and magnetic anomalies.

Monax has three additional granted Exploration Licences on Kangaroo Island which are excluded from the Alliance.

The Marla, WGC and Kangaroo Island projects are at an early stage of evaluation by the Alliance, and these projects have not been approved as Designated Projects by Antofagasta

The Company is currently reviewing a number of other opportunities for consideration by the Alliance and will keep shareholders informed on developments.

Quarterly report for the period ending 30 September 2012 ~ 8 ~

Waddikee Project – graphite, manganese and iron (Monax 100%)

The Waddikee Project (EL 4662) is located approximately 100 kilometres south-west of Whyalla, within an area that is becoming the premier graphite province in South Australia (Figure 4).

Monax completed forty holes totalling 2906 metres across five of its eight graphite targets identified on the Waddikee project (full details of the drilling program are provided in ASX Release 29 August, 2012).

Four holes were drilled at the Wilclo South target area with two holes intersecting high-grade graphite at depth below a recently discovered surface outcrop of graphite, containing coarse visible flake (Plate 1 and Plate 2).

Graphite up to a maximum of 29.9% total graphitic carbon (TGC) (Hole WG031 66-67m) was returned from the two holes which intersected graphite, reporting three zones of graphite grading >5% TGC. The drill holes show that the surface outcrop of graphitic gneiss continues to a depth of around 100m below the surface. The surface outcrop is up to 10 metres in width and crops out for around 50 metres along strike (Plate 1). The best intersections from each hole are:

• 15m @ 16.3% TGC (WG032 90-105m)

• 9m @ 14.8% TGC (WG031 59-68m) (Note: down hole lengths reported only; true widths unknown. Intersections calculated by averaging 1m samples).

A sample of the outcrop and four drill hole samples were sent for petrological examination to determine the flake size and distribution. The outcrop sample was also submitted for geochemical analyses. Petrology showed the sample from the surface at Wilclo South comprised coarse flake graphite with individual flakes up to 2mm in length with an average size of 1.3mm. Geochemical analysis reported 22.9% TGC (see Table below for details).

Petrology of the four drill hole samples also showed coarse flake graphite with an average flake size ranging from 0.5 to 1mm (note 0.177mm is considered as coarse flake).

A summary of the petrology and geochemistry results for the samples from Wilclo South submitted for petrology are presented below.

Sample	Estimated vol% contained graphite (frompetrology)	Range of Flake length mm	Mean length mm	Total Graphitic Carbon (TGC) (Lab assay)
WS1(outcrop)	~20	0.1to2.0	1.3	22.9%
WG031, 51m	10-15	0.1to1.5	0.5	13.4%
WG031, 66m	30-35	0.1to1.5	1.0	29.9%
WG032, 69m	12-15	0.1to 0.8	0.5	12%
WG032,102m	30	0.1to1.5	0.5	24.9%

Petrology was undertaken by Pontifex and Associates. Geochemical analyses undertaken by Amdel - Bureau Veritas Australia, using GRAV4D method.

Plates 3 and 4 show examples of coarse flake graphite from the Wilclo South prospect.

Quarterly report for the period ending 30 September 2012 ~ 9 ~

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.
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Figure 4. Location of the Waddikee Project, central Eyre Peninsula.

Quarterly report for the period ending 30 September 2012 ~ 10 ~

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Plate 1: Outcrop of graphite gneiss at Wilclo South.

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Plate 2. Detailed view of graphite gneiss from Wilclo South.

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Plate 3. Coarse flake graphite from surface outcrop at Wilclo South (Note scale bar = 200 micron = 0.2mm).

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Plate 4. Hole WG031 66-67m. General view of coarse flake graphite. (Note scale bar 200 micron = 0.2mm).

Phar Lap Copper-Gold Project (Monax 100% of all minerals excluding uranium; Marmota 75% uranium, Monax 25% uranium)

EL 3909 (Phar Lap) is located about 60km west north-west (WNW) of the Prominent Hill mine, on the south-western margin of the Mt Woods Inlier in South Australia’s Far North. The Mt Woods Inlier contains the Prominent Hill (Cu-Au) and Cairn Hill (Fe-Cu) mines, as well as several IOCG style targets including Joes Dam and Manxman.

Monax is continuing the land access process and plans to drill these targets in early 2013.

Yorke Peninsula Project – copper-gold

Monax has two sub-projects located on the Yorke Peninsula in South Australia. They are:

1. Melton (50:50 Joint Venture with Marmota Energy Limited – ASX:MEU) 2. Webling Bay (100% Monax)

No exploration was undertaken on the Webling Bay project during the quarter.

Quarterly report for the period ending 30 September 2012 ~ 11 ~

Joint venture partner Marmota reported anomalous copper and gold values from a calcrete sampling program on the Melton project (see MEU ASX Release 10 September, 2012 for full details). The joint venture is currently assessing the data to determine the next phase of exploration on the project.

Exploration Program planned for current quarter (October – December 2012)

Punt Hill – copper-gold

• Drilling to continue.

• Review drilling data.

Monax | Antofagasta Strategic Alliance

• Continue to identify new potential copper projects within South Australia.

• Continue assessment of copper projects currently under review within South Australia by the Company.

• Plan exploration for the Algebuckina project.

Waddikee – graphite, iron and manganese

• Assess metallurgical results.

• Continue assessment of the iron potential.

Phar Lap – copper-gold

• Continue land access process.

Yorke Peninsula – copper-gold

• Joint venture is currently reviewing the Melton calcrete data to determine the ongoing exploration strategy.

For further information please contact:

Gary Ferris Managing Director Monax Mining Ph: (08) 8375 3900 Email: info@monaxmining.com.au

Duncan Gordon Investor Relations Ph: 0404 006 444

‘The information in the Quarterly Report that relates to Exploration Results, Mineral Resources, Ore Reserves or targets is based on information compiled by Mr G M Ferris, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferris is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies 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 Ferris consents to the inclusion of the information in this report in the form and context in which it appears.’

Quarterly report for the period ending 30 September 2012 ~ 12 ~

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

	Monax Mining Limited	Monax Mining Limited
	ABN 96 110 336 733 Consolidated statement of cash flows
			30 September	2012
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) Cash call contributions under JV agreements Other Net Operating Cash Flows		Current quarter $A’000		Year to date ( 3 months) $A’000
		- (1,284) - - (229) - 18 - - 2,042 (78)		- (1,284) - - (229) - 18 - - 2,042 (78)
		469		469
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) 5 - - - - -		- (3) 5 - - - - -
		2		2
		471		471

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	471	471
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	471 2,410 -	471 2,410 -
	2,881	2,881

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	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
		(202)
		-
1.25	Explanation necessaryfor an understandingof the transactions
	The amount at 1.23 above represents non executive directors’ fees and executive director’s salary (including SGC superannuation), legal fees paid to a legal firm in which a director is a partner, contributions to Joint Venture expenditure made to a related party and service fee payments to an associated entity. The amount at 1.24 above represents costs to be recovered in relation to shared facilities from a related entity.

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 reporting entity has an interest

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Marmota Energy Limited pursuant to the Farm-In and Joint Venture Agreements for EL 4510 (formerly EL 3358), EL 3910, EL 3907, EL 3911and EL 4000 has incurred on an accruals basis $27,027 in the quarter ending 30 June 2012.

Antofagasta Minerals S.A. pursuant to the Farm-In Option Agreement – Punt Hill Project for EL 4642 and EL 4548 has incurred on an accruals basis $1,011,887 in the quarter ending 30 June 2012.

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
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	800
	-
	-
	200
Total	1,000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as	Reconciliation of cash at the end of the quarter (as	Current quarter		Previous quarter
shown	in the consolidated statement of cash	$A’000		$A’000
flows)	to the related items in the accounts is as
follows.
5.1	Cash on hand and at bank		1,114		143
5.2	Deposits at call		1,765		2,265
5.3	Bank overdraft		-		-
5.4	Other (provide details)		2		2
	Total: cash at end of quarter(item 1.22)		2,881		2,410

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

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
	EPM 16963 EPM 17005	Expired Expired	100% 100%	0% 0%
	EL 4990 EL 4991 EL 4992 EL 4993 EL 4994 ELA 2012/00076 ELA 2012/00127 ELA 2012/00250	Granted (formerly ELA 2011/00271) Granted (formerly ELA 2011/00275) Granted (formerly ELA 2012/00065) Granted (formerly ELA 2012/00066) Granted (formerly ELA 2012/00025) Application Application Application	100% 100% 100% 100% 100% 0% 0% 0%	100% 100% 100% 100% 100% 100% 100% 100%

• See chapter 19 for defined terms.

Appendix 5B Page 4

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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 note3) (cents)	Amount paid up per security (see note3) (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	149,514,803	149,514,803
	700,000	700,000	$0.00	$0.00
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	215,000 10,000 425,000 225,000 325,000	Nil Nil Nil Nil Nil	Exercise Price $0.246 $0.0517 $0.0517 $0.051 $0.053	Expiry Date 18/07/2013 23/12/2013 05/03/2015 28/07/2016 23/07/2012
	325,000	Nil	$0.053	23/07/2012
	3,000,000	Nil	$0.10	31/07/2012
7.11 Debentures (totals only)

• See chapter 19 for defined terms.

Appendix 5B Page 5

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Appendix 5B Mining exploration entity quarterly report

7.12 Unsecured notes (totals only)

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 / ~~does not~~ * (delete one) give a true and fair view of the matters disclosed.

Sign here: ..................... Date: ....30/10/2012....... ( ~~Director~~ /Company secretary)

Print name: Virginia Suttell

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.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

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