First Graphene Ltd. — Interim / Quarterly Report 2015

Jan 28, 2016

Appendix 5B

Mining exploration entity quarterly report

(Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001).

Name of entity
First Graphite Limited
Consolidated statement of cash flows 50 007 870 760 ABN	Quarter ended (“current quarter”)
	31 December 2015
Payments for (a) exploration and 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) Net operating cash flows 1.2 Cash flows related to operating activities 1.1 Receipts from product sales and related debtors	Current quarter $A	Year to date (6 months) $A
	- (907,808) - - (390,999) - 4,225 - - -	- (1,457,638) - - (554,231) - 5,353 - - -
	**(1,294,582) **	(2,006,516)
1.8 Payment for purchases of: (a) prospects (b) investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Contributions from joint venture 1.13 Payments for joint venture operations 1.14 Loan provided to Kumai Energy Limited Net investing cash flows	- - (31,122) - - - - - - - -	- - (221,175) - - - - - - - -
	**(31,122) **	(221,175)
1.15 Total operating and investing cash flows (carried forward)	**(1,325,704) **	(2,227,691)

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Appendix 5B Mining exploration entity quarterly report

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	Current quarter $A	Year to date (3 months) $A
1.16 Total operating and investing cash flows (brought forward)	**(1,325,704) **	(2,227,691)
Cash flows related to financing activities 1.17 Proceeds from issues of shares, options, etc. 1.18 Proceeds from sale of forfeited shares 1.19 Proceeds from borrowings 1.20 Repayment of borrowings 1.21 Dividends paid 1.22 Share issue costs paid 1.23 Other (provide details if material) Net financing cash flows
	4,037,000 - - - - (264,990) -	4,578,791 - - - - (264,990) -
	3,772,010	4,313,801
Net increase (decrease) in cash held 1.24 Cash at beginning of quarter/year to date 1.25 Exchange rate adjustments to item 1.22 1.26 Cash at end ofquarter	2,446,306 731,565 (42,568)	2,086,110 1,055,093 (5,901)
	3,135,303	3,135,303

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.27 1.28	Aggregate amount of payments to the parties included in item 1.24 Aggregate amount of loans to theparties included in item 1.11	Current quarter $A
		425,749
		-
1.29	Explanation necessary for an understanding of the transactions
	Payment of directors fees, and consulting fees paid to director-related entities.

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 businesses in which the reporting entity has an interest

None.

Appendix 5B Mining exploration entity quarterly report

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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	Amount used $A
	-	-
	-	-

Estimated cash outflows for next quarter

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
		470,607 - - 215,411
Total:		686,018

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the month (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A	Previous quarter $A
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	3,135,303 - - -	1,055,093 - - -
Total: cash at end ofquarter(item 1.24)	3,135,303	1,055,093

Change 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	Interest at beginning of quarter	Interest at end of quarter
EL/318	Granted	Nil	100%
EL/321	Granted	Nil	100%
EL/322	Granted	Nil	100%
EL/325	Granted	Nil	100%
EL/326	Granted	Nil	100%

Appendix 5B Mining exploration entity quarterly report

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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)	Amount paid up per security (see note 3)
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	279,967,301	274,967,301
	73,000,000	73,000,000	0.055	0.055
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 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only)	Number 49,398,551 111,625,357 12,000,000	Number 49,398,551 111,625,357 -	Exercise price $0.200 $0.100 $0.092	Expiry date 17/10/2016 21/05/2017 31/10/2017
	57,625,388	57,625,388	$0.100	21/05/2017

Appendix 5B Mining exploration entity quarterly report

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

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Sign here: Date: 29 January 2016
(Director and Company secretary)
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Print name: Peter Richard Youd

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.