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FireFly Metals Ltd. Interim / Quarterly Report 2012

Apr 29, 2012

48548_rns_2012-04-29_7fda56f6-12ce-45b1-904c-cf2c55f01251.pdf

Interim / Quarterly Report

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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

==> picture [596 x 10] intentionally omitted <==

For immediate release 30 April 2012

Monax Mining Limited Quarterly Report For the period ending 31 March 2012

HIGHLIGHTS

  • Punt Hill – MIMDAS survey to commence in current quarter with drilling planned for second half of 2012.

  • Punt Hill – US$2.5 million budget approved by major international mining company Antofagasta, for 2012 exploration program.

  • Monax:Antofagasta Strategic Alliance – Four project areas in South Australia under application.

  • Waddikee – Manganese drilling program completed comprising 45 holes totalling 2306m.

  • Waddikee – Graphite exploration commenced. Graphite identified in historical surface samples and historical drill holes.

  • Phar Lap – Two potential copper-gold targets identified with drilling planned for second half of 2012.

Quarterly report for the period ending 31 March 2012 ~ 1 ~

Corporate

During the quarter to 31 March 2012, Monax Mining Limited (ASX:MOX) undertook a comprehensive project review, which involved both internal assessment and prospectivity analysis of current and potential projects. As a result of the review, Monax has strengthened its focus on South Australia.

The project review highlighted two significant exploration opportunities within Monax’s current project portfolio. They are:

  1. Graphite at Waddikee and

  2. Copper-gold at Phar Lap.

Monax is currently in the process of relinquishing tenements in Queensland in order for it to focus on its core South Australian projects.

In addition, Monax has allowed its option on the Huentalaquen iron sand project in Chile to lapse and has withdrawn from the project following due diligence on the project, and the Company’s project review.

Monax holds 36 million shares (23.93% undiluted) in Marmota Energy Limited (ASX:MEU), which announced an initial resource estimate of 1,510 tonnes of U3O8 (3.33 million pounds) from its Junction Dam project in South Australia during the December quarter. Marmota recommenced drilling at the Junction Dam project in mid April.

The current value of this holding is $2.23 million (based on share price $0.062).

Monax’s exploration activities are well funded with significant contributions from farm-in partners for the Punt Hill copper-gold and Waddikee manganese-iron project 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 31 March 2012, the Company had a cash balance of $2.9 million.

Exploration

South Australian projects

Monax has five core South Australian projects (Figure 1).

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

2. Monax:Antofagasta Strategic Alliance.

3. Waddikee – manganese, iron (farm-in with OM (Manganese) Limited) and graphite.

4. Phar Lap – copper-gold.

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

Quarterly report for the period ending 31 March 2012 ~ 2 ~

==> picture [470 x 473] intentionally omitted <==

Figure 1. Location of Monax’s core South Australian projects.

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 (Figure 2), in South Australia’s Far North. 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 adjacent to Carrapateena, which has an inferred resource of 203Mt @ 1.3% copper and 0.56g/t gold.

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 S.A. The agreement commits Antofagasta to spend a minimum of US$1.5 million on the project within the first two years.

Quarterly report for the period ending 31 March 2012 ~ 3 ~

==> picture [394 x 667] intentionally omitted <==

Figure 2. Location of four recently completed drill holes and historical drill holes at Punt Hill.

Quarterly report for the period ending 31 March 2012 ~ 4 ~

Monax completed a four hole drilling program totalling 2561.2m in October 2011. Drill hole details and locations are shown in the Table below and Figure 2.

Prospect Drill Hole No. Easting Northing Depth to
basement
Total depth
Otcheck OCDD01 735000 6511900 432.1m 639.5m
Camel Dam CDDD01 724361 6527435 425.8m 704.0m
BottleHill BHDD01 723409 6535764 546.9m 766.6m
SellsDam SDDD01 725601 6536769 363.5m 451.1

All holes drilled vertical. Datum MGA 94, Zone 53.

This drilling program successfully defined additional areas of shallower IOCG style alteration and mineralisation than previous drill results. The shallower depth to basement will allow the use of electrical geophysical methods to locate zones of high grade mineralisation within basement gravity anomalies and will be a significant factor in future exploration.

Monax will undertake a MIMDAS survey in the current quarter. MIMDAS is a broad-band, high resolution multi-channel acquisition system, which is designed to acquire networked multi-channel electrical and electromagnetic geophysical data. MIMDAS is capable of acquiring induced polarisation (IP), magnetotellurics (MT), electromagnetic (EM) and controlled source audiomagnetotellurics (CSAMT) data and can provide significant improvement in resolution over traditional geophysical surveys. Monax has approximately 30 line kilometres of MIMDAS planned across the Punt Hill project.

A significant drilling program is planned for the second half of 2012. This drilling program will incorporate more untested geophysical targets, anomalies that present from the MIMDAS survey as well as geological development from the numerous studies currently in progress.

This project remains the cornerstone exploration focus for Monax, which is pleased with the continued support from its project partner, Antofagasta.

Monax:Antofagasta Strategic Alliance

Monax has 12 tenement applications covering four separate areas which are potentially subject to the Alliance.

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

The terms of the agreement require that Antofagasta invest US$1 million over two years to facilitate area prospectivity identification and analysis, basic exploration, project generation and target selection. Any initial properties that are identified as a project of interest become a ‘Designated Project’ (DP). Once a DP has been formed, Antofagasta will have acquired a 51% interest and Monax a 49% interest in the project.

Antofagasta will then have the option to earn an additional 19% of any DP (cumulative 70% interest) by spending a further US$4 million on exploration within three years and subsequently be required to make a cash payment (success fee) to Monax of US$3 million.

Quarterly report for the period ending 31 March 2012 ~ 5 ~

The 4 projects are outlined below (see Figure 1 and Table below for location and tenement details):

  1. Marla

  2. Algebuckina

  3. WGC (western Gawler Craton)

  4. Kangaroo Island

Marla and Algebuckina

The Marla and Algebuckina tenement applications are located on the northern margin of the Gawler Craton (Figure 1), in SA’s Far North and cover an area of 4518 km[2] . The applications are located within areas of limited basement outcrop and have received minimal exploration for IOCG mineralisation. It is believed this area is the potential northern continuation of the IOCG Province.

Monax believes these areas are prospective for IOCG style mineralisation and require detailed geophysical datasets to provide a better insight into the potential of this part of the Gawler Craton for IOCG mineralisation

Project Tenement No. Status Area **Area type **
Marla Sarda Bluff ELA 2011/00268 Application 736 km2
Algebuckina Algebuckina ELA 2011/00269 Application 399 km2
Algebuckina Douglas Creek ELA 2011/00270 Application 935 km2
Algebuckina Old Umbum ELA 2011/00271 Application 540 km2
Marla Henrietta Creek ELA 2011/00275 Application 929 km2
Marla Mt Beviss ELA 2011/00276 Application 979 km2
WGC Nullarbor ELA 2012/00063 Application 963 km2
WGC North of Yalata ELA 2012/00064 Application 941 km2
WGC West of Yalata ELA 2012/00065 Application 957 km2
WGC Yalata ELA 2012/00066 Application 951 km2
Kangaroo Island Parndana ELA 2012/00067 Application 868 km2
Kangaroo Island West of Parndana ELA 2012/00068 Application 226 km2

WGC (Western Gawler Craton)

The WGC project comprises four tenement applications covering an area of 2950 km[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.

This area is covered by recent sand and limestone units, which has hindered previous attempts at exploration. The acquisition of high-resolution aeromagnetic data flown by the South Australian government has greatly increased the geological understanding of the region and provides a significant dataset for mineral exploration.

Kangaroo Island

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) deposit and historic Kohinoor Gold Mine. Drilling by the Department of

Quarterly report for the period ending 31 March 2012 ~ 6 ~

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 and Punt Hill; 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. Just as the Marla and Algebuckina projects define the logical northern extension of the IOCG Province, Kangaroo Island logically defines the southern extension.

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

All of these projects are at an early stage of evaluation by the Alliance, and further reporting on these will be made as exploration activities progress.

Waddikee Project – manganese, iron and graphite (Monax 100%; OM (Manganese) Limited earning 60% interest in manganese and iron)

The Waddikee project is located south of the township of Kimba on central Eyre Peninsula, South Australia (Figure 1). The Waddikee project is the subject of a farm-in agreement with OM (Manganese) Limited (OMM), a wholly-owned subsidiary of OM Holdings Limited (ASX:OMH). OMM is required to fund A$2 million over four years to acquire a 60% participating interest in the project.

Manganese Exploration

Monax completed a 45 hole drilling program totalling 2306m at Waddikee in early April 2012. Samples have been submitted for analysis with results expected in mid-May. A more detailed description of the drilling program will be released upon receipt of the drilling results.

Graphite Exploration

During the March quarter, Monax has been investigating the graphite potential on EL 4662, which has involved an assessment of historical drilling and an interpretation of airborne electromagnetic (AEM) survey data. The Waddikee project has been the focus of continued exploration for more than 40 years, primarily for base metals (silver, lead and zinc), uranium and gold. As a consequence, there is a vast amount of historic exploration information preserved across the project. Graphite is highly conductive and is readily detected in electrical based geophysical survey methods such as AEM.

Six preliminary target areas have been identified as containing prominent AEM conductivity anomalies and/or having graphite identified in surface samples. This will be the focus of Monax’s initial exploration for graphite on the tenement (Wilclo, Lacroma, Ridgestone, Balumbah, Jamieson Tank, and Cut Snake – see Figure 3).

Quarterly report for the period ending 31 March 2012 ~ 7 ~

==> picture [453 x 319] intentionally omitted <==

Figure 3. Waddikee (EL 4662). AEM contours showing location of historical drill holes which intersected graphite (yellow dots) and surface samples with graphite (red dots) and six target areas identified for graphite exploration.

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 WNW of Prominent Hill on the southwestern 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.

The Phar Lap project has been part of Monax’s portfolio for some time, but has not been thoroughly explored due to the uncertainty caused by its proximity to the Woomera Prohibited Area (WPA).

This uncertainty has now been rectified with a small fraction of the tenement having been identified as being in the WPA Red Zone (a zone where exploration is prohibited) and this has been relinquished.

In 2008, an extensive geophysical program was conducted over the project which included the acquisition of airborne magnetic, radiometric, electromagnetic and ground gravity data. Monax has recently undertaken a comprehensive review of the geophysical data which has resulted in two prominent anomalies being identified.

The responses in the unprocessed Phar Lap geophysical data were dominated by a suite of thin ‘vertical sheet like’ mafic rocks known as the Gairdner Dykes. These rocks are half the age and unrelated to the known IOCG related mineral systems of the Eastern Gawler Craton. However

Quarterly report for the period ending 31 March 2012 ~ 8 ~

these rocks are commonly intersected by explorers in their quests to discover IOCG deposits, as they exhibit comparable geophysical qualities.

After extensive processing and filtering the Gairdner Dykes, two anomalies have been outlined PLGA 1 and PLGA2 (Figure 4). These anomalies are interpreted as being similar to those associated with the Carrapateena ore body (Figure 4).

Monax believes that comparative modelling (3D inversion modelling and apparent density modelling) between the Phar Lap data and publicly available Carrapateena data has demonstrated that the source of anomaly PLGA2 is very similar to the body that sources the Carrapateena ore body; in density volume product (i.e. from the apparent density modelling, density contrast (maximum density 1.2 Vs 1.3 g/cc), dimensions and depth (about 550m to top).

Monax has commenced the land access process and plans to drill these targets in the second half of 2012.

==> picture [424 x 176] intentionally omitted <==

Figure 4. A comparison of the second order gravity residual for Carrapateena and Phar Lap

showing similarity in bouger gravity response.

Yorke Peninsula Project – copper-gold

Monax has three 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)

  3. Coonarie (Monax has 100% rights to all minerals excluding uranium)

South Australia’s Yorke Peninsula region is highly prospective for IOCG deposits and recent drilling by Adelaide Resources Ltd (ASX:ADN) at Willamulka and Paskeville and Argonaut Resources Ltd (ASX:ARE) on a tenement adjoining Monax’s EL 3922 (Webling Bay) further highlight the copper and gold potential of the area.

The joint venture is reviewing all drilling information on the Melton project and is currently determining the next phase of exploration for the project.

No exploration was undertaken on the Coonarie and Webling Bay projects during the quarter.

Quarterly report for the period ending 31 March 2012 ~ 9 ~

Exploration Program Planned for Current Quarter (April - June)

Punt Hill – copper-gold

  • Petrological review of selected drill hole samples.

  • MIMDAS survey.

  • Plan next phase of drilling.

  • Aboriginal heritage clearance for second phase of drilling as part of Antofagasta farm-in.

Monax:Antofagasta Strategic Alliance

  • Continue to assess potential copper projects within South Australia.

Waddikee – manganese, iron and graphite

  • Assess drilling results.

  • Review and sample Monax drill hole samples for graphite.

  • Surface sampling for graphite.

  • Plan graphite drilling program.

  • Continued assessment of the iron potential.

Phar Lap – copper-gold

  • Land access for drilling (Woomera Prohibited Area, heritage clearance and pastoralist).

Yorke Peninsula – copper-gold

  • Undertake geophysical review of Webling Bay tenement.

  • The joint venture contnue to review drilling data from previous drilling programs on the Melton project and determining the ongoing exploration strategy.

For further information please contact:

Gary Ferris Managing Director Monax Mining Ph: (08) 8375 3900 Email: [email protected]

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 31 March 2012 ~ 10 ~

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
31 March 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 ( 9
months)
$A’000
-
(264)
-
-
(153)
-
63
-
-
153
126
-
(1,706)
-
-
(711)
-
171
-
-
1,265
152
(75) (829)
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)
-
-
(2)
-
-
-
-
3
-
-
-
(12)
-
-
-
-
11
-
1 (1)
(74) (830)
  • See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13
Total operating and investing cash flows
(brought forward)
(74) (830)
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
-
-
-
-
-
-
9
-
-
-
-
-
- 9
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
(74)
2,999
-
(821)
3,746
-
2,925 2,925

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
(197)
3
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

30/9/2001

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 $38,747 in the quarter ending 31 March 2012.

OM (Manganese) Ltd pursuant to the Farm-in and Joint Venture Agreement for EL 3357 has incurred on an accruals basis $14,786 in the quarter ending 31 March 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 $47,985 in the quarter ending 31 March 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

Estimated cash outflows for next quarter
4.1
Exploration and evaluation
4.2
Development
4.3
Production
4.4
Administration
$A’000
300
-
-
250
Total **550 **

Reconciliation of cash

Total
Reconciliation of cash
**550 **
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)
408 232
2,515 2,765
- -
2 2
Total: cash at end of quarter(item 1.22) 2,925 2,999
  • See chapter 19 for defined terms.

Appendix 5B Page 3

30/9/2001

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
ELA 2012/00063
ELA 2012/00064
ELA 2012/00065
ELA 2012/00066
ELA 2012/00067
ELA 2012/00068
Application
Application
Application
Application
Application
Application
0%
0%
0%
0%
0%
0%
100%
100%
100%
100%
100%
100%
  • See chapter 19 for defined terms.

Appendix 5B Page 4

30/9/2001

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
148,814,803 148,814,803
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
3,000,000
425,000
225,000
Nil
Nil
Nil
Nil
Nil
Exercise Price
$0.246
$0.0517
$0.10
$0.0517
$0.051
Expiry Date
18/07/2013
23/12/2013
31/07/2012
05/03/2015
28/07/2016
150,000
7.11
Debentures
(totals only)
  • See chapter 19 for defined terms.

Appendix 5B Page 5

30/9/2001

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: ....30/4/2012....... ~~(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

30/9/2001