FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Capital/Financing Update 2012

Aug 16, 2012

ASX ANNOUNCEMENT - 17 AUGUST 2012

SIGNIFICANT GOLD INTERSECTIONS AT CHILLAGOE

• Intrusive Related Gold (IRG) Model and gold mineralisation confirmed at both Empire and Wandoo

• Empire - gold increasing with depth (hole ended in gold)

• 36m @ 0.53g/t Au from 100m to end of hole

  • Including 24m @ 0.70g/t Au from 112m to end of hole

    • Including 8m @ 1.21g/t Au from 128m to end of hole

• Wandoo - higher level, gold-silver veining intersected

• 38m @ 0.55g/t AuEq from 27m (hole TLU014)

  • Including 3m @ 1.83g/t AuEq from 62m

• 11m @ 0.97g/t AuEq from 28m (hole TLU015)

  • Including 3m @ 2.87g/t AuEq from 49m

• 17m @ 0.65g/t AuEq from 52m (hole TLU018)

  • Including 4m @ 1.79g/t AuEq from 62m

Tellus' Managing Director, Stephen Woodham said "The results of the first drilling program at the Chillagoe Gold Project are encouraging. They confirm our theory that the mineralisation is Intrusive Related which is significant given the close proximity to Red Dome. We are developing a better understanding of the mineralisation at Chillagoe and look forward to a successful follow up drilling program."

CHILLAGOE GOLD PROJECT, QLD (TLU 100%)

Introduction

Over 3,000m of RC Drilling has been completed within the Empire and Wandoo Mining Leases (ML20380, ML5130 and ML20381).

Significant gold and silver mineralisation has been confirmed within the granted mining leases at both Empire and Wandoo Prospects. Thirteen (13) holes representing 2,372m were drilled within the Empire Mining Lease (ML20380). The purpose of the Empire drilling was primarily to;

• validate the previous gold intersections

• follow-up the shallow mineralisation at depth; and

• determine the geological controls on the mineralisation

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Most of the holes intersected a number of porphyritic intrusions with significant arsenopyrite, quartz veining and intense phyllic alteration validating the IRG model for the mineralisation.

Five (5) holes representing 646m were drilled within two of the three Wandoo Mining Leases (ML5130 and ML20381). The holes were planned to confirm the grades and position of the previous intersections where the confidence of the plotted positions of some of the early gold grades was low. Four of the five holes intersected significant gold and silver mineralisation.

Empire (ML20380)

Drilling within the Empire Mining Lease (ML20380) intersected primary gold mineralisation immediately below the oxide intersections in hole TLU007.

TLU007 terminated at 136m due to difficult drilling conditions. The bottom 32m of the hole had an average gold grade of 0.51g/using a 0.1g/t cut-off. The gold grades are open and increasing with depth (8m @ 1.21g/t Au from 128m to the end of hole using a 0.90g/t cut-off); the gold appears to be associated with a distinctive aplitic quartz eye porphyry, interpreted to be the causative intrusion.

During the course of the drilling it was discovered the depth of weathering was around 50m vertically, as a result the gold within the shallow ‘oxidised’ part of the system tends to have poor repeatability. The bottom of TLU007 successfully intersected primary ‘unoxidised’ mineralisation beneath the shallow oxide gold intersections.

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0.5g/t
>0.1g/t
----- End of picture text -----

Figure 1 - Empire Prospect – Section 8095615N looking north and Interpreted Gold Zone Orange traces = 0.1g/t AuEq. Red traces = 0.5g/t AuEq[1] Traces are Au Equivalents to be consistent with the Wandoo sections. Labels are gold only for this section as the silver at Empire is negligible.

1 AuEq (Gold Equivalent) = Au + (Ag/50)

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The top of hole TLU007 intersected some shallow oxide copper mineralisation from surface 8m @ 0.79% copper. The shallow copper mineralisation is associated with Au+Ag+As+Bi; the lower primary mineralisation does not display the same associations and is relatively depleted, consequently the shallow copper intersection in TLU007 is likely to be caused by a separate intrusion.

The Empire Prospect displays many similarities to the Red Dome Deposit which is just 23km to the north-east. Red Dome is open at over one kilometre deep. The bottom of the TLU007 intersection is only 120m below surface and is also open.

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Inset figure 3
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Figure 2 – Empire ML20380. Empire and Pinnacles Breccias overlaid with gold soil anomalism. Tellus Drillholes in red. All previous drilling in black.

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Figure 3 – Empire Drillhole Plan and Section Line on Soil Gold Anomalism Orange traces = 0.1g/t AuEq. Red traces = 0.5g/t AuEq Intercepts displayed for Tellus Drilling only (Red traces)

Wandoo (ML5130, ML20381, ML20234)

Five (5) holes were drilled at Wandoo. Two (2) at Bayley’s and one (1) each at Hardman’s, Wendy’s and Reid’s. The holes were designed to confirm the grades and positions of the previous intersection around the old workings. Four (4) of the five (5) holes were successful intersecting zones of gold and silver mineralisation.

The gold and silver mineralisation occurs in quartz arsenopyrite veins with a halo of intense phyllic alteration and disseminated sphalerite (zinc), the mineralisation and alteration correlates well between holes at Bayley’s, Wendy’s and Reid’s.

Reconnaissance mapping of the workings, surface vein orientations and the results of the drillholes suggests that the main orientation of the veining is north-west to south-east giving the mineralisation a strike of at least 350m.

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Figure 4 – Wandoo Drillhole Plan, Section Lines and Interpreted Mineralised structure Tellus holes and traces in red. Overlayed on Soil Gold Anomalism

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Bayley’s (2 holes)

TLU014

• 38m @ 0.55g/t AuEq from 27m[2]

• Including 3m @ 1.83g/t AuEq from 62m[3]

TLU015

• 11m @ 0.97g/t AuEq from 28m²

• Including 3m @ 2.87g/t AuEq from 31m³

• 14m @ 0.71g/t AuEq from 46m²

• Including 6m @ 1.42g/t AuEq from 49m³

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Figure 5 – Bayley’s Composite Section looking north. Selected TLU014 and 015 Intervals (bold) and Interpreted Gold-Silver Zone Orange traces = 0.1g/t AuEq. Red traces = 0.5g/t AuEq[4]

2 0.1g/t AuEq cut-off with a maximum internal dilution of 2x the sample interval

3 0.5g/t AuEq cut-off with a maximum internal dilution of 2x the sample interval

4 AuEq (Gold Equivalent) = Au + (Ag/50)

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Reid’s (1 hole)

TLU017  2m @ 2.4g/t AuEq² from 30m o Including 1m @ 4.49g/t AuEq³ from 30m

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Figure 6 – Reid’s Section looking north. TLU017 Intervals (bold) and Interpreted Gold-Silver Zone Orange traces = 0.1g/t AuEq. Red traces = 0.5g/t AuEq

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Wendy’s (1 hole)

TLU018

• 17m @ 0.65g/t AuEq² from 52m

• Including 4m @ 1.79g/t AuEq³ from 62m

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Figure 7 – Wendy’s Section looking north. TLU018 Intervals (bold) and Interpreted Gold-Silver Zone Orange traces = 0.1g/t AuEq. Red traces = 0.5g/t AuEq

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Table 1 – Drillhole Collar Information

Hole ID	East GDA	North GDA	RL	Azi (Grid)	Dip	Depth	Prospect	Title
TLU001	202705	8095672	310	244.0	-60	228	Empire	ML20380
TLU002	202700	8095612.5	315	270.0	-60	127	Empire	ML20380
TLU003	202700	8095562.5	310	270.0	-55	205	Empire	ML20380
TLU004	202658	8095587	322	270.0	-55	264	Empire	ML20380
TLU005	202672	8095542	320	270.0	-55	216	Empire	ML20380
TLU006	202660	8095647	319	270.0	-70	264	Empire	ML20380
TLU007	202615	8095619	323	90.0	-60	132	Empire	ML20380
TLU008	202551	8095767	311	63.2	-60	180	Empire	ML20380
TLU009	202566	8095787	312	285.1	-60	150	Empire	ML20380
TLU010	202457	8095834	300	167.4	-60	150	Empire	ML20380
TLU011	201817	8094685	325	182.3	-60	156	Pinnacles	ML20380
TLU012	201722	8094664	321	126.1	-60	150	Pinnacles	ML20380
TLU013	201778	8094553	329	54.3	-60	150	Pinnacles	ML20380
TLU014	210072	8103931	270	275.0	-60	126	Bayley's	ML5130
TLU015	210075	8103937	271	279.0	-55	190	Bayley's	ML5130
TLU016	210188	8103736	264	24.5	-55	84	Hardman's	ML20381
TLU017	210137	8103661	266	284.0	-55	108	Reid's	ML20381
TLU018	210125	8103708	274	279.0	-55	138	Wendy's	ML20381

Coordinates in GDA Zone 55

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Table 2 – 0.5g/t cut off AuEq intervals

**HoleID **	**Interval **	**from **	to	Au	Ag	AuEq	Label	Sample Interval	Maximum Internal Dilution	**Tenement **	Prospect
TLU001	4	34	38	1.82	0.65	1.83	4m @ 1.83g/t AuEq from 34m	2	4	ML20380	Empire
TLU001	2	58	60	0.49	1.69	0.52	2m @ 0.52g/t AuEq from 58m	2	4	ML20380	Empire
TLU001	4	66	70	0.81	0.31	0.82	4m @ 0.82g/t AuEq from 66m	2	4	ML20380	Empire
TLU002	2	14	16	0.99	0.27	0.99	2m @ 0.99g/t AuEq from 14m	2	4	ML20380	Empire
TLU002	2	26	28	0.66	0.26	0.66	2m @ 0.66g/t AuEq from 26m	2	4	ML20380	Empire
TLU002	4	44	48	1.05	2.14	1.09	4m @ 1.09g/t AuEq from 44m	2	4	ML20380	Empire
TLU002	2	76	78	1.06	1.86	1.09	2m @ 1.09g/t AuEq from 76m	2	4	ML20380	Empire
TLU002	2	92	94	0.46	2.66	0.51	2m @ 0.51g/t AuEq from 92m	2	4	ML20380	Empire
TLU003	2	6	8	0.78	0.44	0.79	2m @ 0.79g/t AuEq from 6m	2	4	ML20380	Empire
TLU003	2	140	142	0.77	0.39	0.78	2m @ 0.78g/t AuEq from 140m	2	4	ML20380	Empire
TLU003	2	184	186	0.60	0.40	0.61	2m @ 0.61g/t AuEq from 184m	2	4	ML20380	Empire
TLU004	10	0	10	1.52	0.80	1.53	10m @ 1.53g/t AuEq from 0m	2	4	ML20380	Empire
TLU007	2	2	4	0.23	20.40	0.59	2m @ 0.59g/t AuEq from 2m	2	4	ML20380	Empire
TLU007	24	112	136	0.70	0.62	0.71	24m @ 0.71g/t AuEq from 112m	2	4	ML20380	Empire
TLU008	2	76	78	0.96	1.00	0.98	2m @ 0.98g/t AuEq from 76m	2	4	ML20380	Empire
TLU008	2	116	118	0.67	1.90	0.70	2m @ 0.7g/t AuEq from 116m	2	4	ML20380	Empire
TLU010	2	40	42	0.88	2.10	0.92	2m @ 0.92g/t AuEq from 40m	2	4	ML20380	Empire
TLU010	4	62	66	0.56	0.45	0.57	4m @ 0.57g/t AuEq from 62m	2	4	ML20380	Empire
TLU013	2	4	6	0.93	0.30	0.94	2m @ 0.94g/t AuEq from 4m	2	4	ML20380	Pinnacles
TLU013	2	146	148	0.89	0.40	0.90	2m @ 0.9g/t AuEq from 146m	2	4	ML20380	Pinnacles
TLU014	2	17	19	0.56	30.75	1.10	2m @ 1.1g/t AuEq from 17m	1	2	ML5130	Wandoo
TLU014	1	28	29	3.58	4.59	3.66	1m @ 3.66g/t AuEq from 28m	1	2	ML5130	Wandoo
TLU014	1	48	49	0.51	3.03	0.56	1m @ 0.56g/t AuEq from 48m	1	2	ML5130	Wandoo
TLU014	1	54	55	1.09	0.69	1.10	1m @ 1.1g/t AuEq from 54m	1	2	ML5130	Wandoo
TLU014	1	58	59	3.65	17.20	3.95	1m @ 3.95g/t AuEq from 58m	1	2	ML5130	Wandoo
TLU014	3	62	65	1.65	10.54	1.83	3m @ 1.83g/t AuEq from 62m	1	2	ML5130	Wandoo
TLU014	1	69	70	2.26	5.43	2.36	1m @ 2.36g/t AuEq from 69m	1	2	ML5130	Wandoo
TLU014	2	73	75	0.53	3.13	0.58	2m @ 0.58g/t AuEq from 73m	1	2	ML5130	Wandoo
TLU014	1	107	108	1.63	6.58	1.75	1m @ 1.75g/t AuEq from 107m	1	2	ML5130	Wandoo
TLU015	3	31	34	2.68	10.73	2.87	3m @ 2.87g/t AuEq from 31m	1	2	ML5130	Wandoo
TLU015	1	38	39	0.44	3.70	0.50	1m @ 0.5g/t AuEq from 38m	1	2	ML5130	Wandoo
TLU015	6	49	55	1.36	3.89	1.42	6m @ 1.42g/t AuEq from 49m	1	2	ML5130	Wandoo
TLU015	1	82	83	0.67	2.55	0.71	1m @ 0.71g/t AuEq from 82m	1	2	ML5130	Wandoo
TLU015	1	104	105	0.95	1.29	0.97	1m @ 0.97g/t AuEq from 104m	1	2	ML5130	Wandoo
TLU015	1	108	109	1.87	4.48	1.95	1m @ 1.95g/t AuEq from 108m	1	2	ML5130	Wandoo
TLU015	1	147	148	0.89	3.32	0.95	1m @ 0.95g/t AuEq from 147m	1	2	ML5130	Wandoo
TLU015	1	181	182	2.62	5.72	2.72	1m @ 2.72g/t AuEq from 181m	1	2	ML5130	Wandoo
TLU017	1	30	31	4.28	12.10	4.49	1m @ 4.49g/t AuEq from 30m	1	2	ML20381	Wandoo
TLU017	1	40	41	0.58	13.70	0.82	1m @ 0.82g/t AuEq from 40m	1	2	ML20381	Wandoo
TLU017	1	83	84	2.57	12.05	2.78	1m @ 2.78g/t AuEq from 83m	1	2	ML20381	Wandoo
TLU017	1	92	93	0.88	11.80	1.09	1m @ 1.09g/t AuEq from 92m	1	2	ML20381	Wandoo
TLU018	1	16	17	0.81	10.70	1.00	1m @ 1g/t AuEq from 16m	1	2	ML20381	Wandoo
TLU018	1	20	21	0.64	39.20	1.33	1m @ 1.33g/t AuEq from 20m	1	2	ML20381	Wandoo
TLU018	1	52	53	2.04	22.60	2.44	1m @ 2.44g/t AuEq from 52m	1	2	ML20381	Wandoo
TLU018	4	62	66	1.56	13.18	1.79	4m @ 1.79g/t AuEq from 62m	1	2	ML20381	Wandoo
TLU018	1	96	97	0.63	39.40	1.32	1m @ 1.32g/t AuEq from 96m	1	2	ML20381	Wandoo

0.5g/t AuEq cut off with a maximum internal dilution of 2x the sample interval

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Table 2 – 0.1g/t AuEq cut off Intervals

**HoleID **	**Interval **	**from **	to	Au	Ag	AuEq	Label	Sample Interval	Maximum Internal Dilution	**Tenement **	Prospect
TLU001	10	6	16	0.14	0.56	0.15	10m @ 0.15g/t AuEq	2	4	ML23080	Empire
TLU001	6	32	38	1.37	0.57	1.38	6m @ 1.38g/t AuEq	2	4	ML23080	Empire
TLU001	4	46	50	0.09	3.29	0.14	4m @ 0.14g/t AuEq	2	4	ML23080	Empire
TLU001	2	58	60	0.49	1.69	0.52	2m @ 0.52g/t AuEq	2	4	ML23080	Empire
TLU001	10	66	76	0.41	0.41	0.42	10m @ 0.42g/t AuEq	2	4	ML23080	Empire
TLU001	4	82	86	0.12	0.38	0.12	4m @ 0.12g/t AuEq	2	4	ML23080	Empire
TLU001	14	92	106	0.08	0.45	0.09	14m @ 0.09g/t AuEq	2	4	ML23080	Empire
TLU001	2	122	124	0.12	0.36	0.13	2m @ 0.13g/t AuEq	2	4	ML23080	Empire
TLU001	10	138	148	0.11	1.09	0.13	10m @ 0.13g/t AuEq	2	4	ML23080	Empire
TLU001	18	154	172	0.10	1.45	0.13	18m @ 0.13g/t AuEq	2	4	ML23080	Empire
TLU001	30	196	226	0.15	0.87	0.16	30m @ 0.16g/t AuEq	2	4	ML23080	Empire
TLU002	4	0	4	0.15	0.35	0.16	4m @ 0.16g/t AuEq	2	4	ML23080	Empire
TLU002	8	12	20	0.42	0.23	0.42	8m @ 0.42g/t AuEq	2	4	ML23080	Empire
TLU002	2	26	28	0.66	0.26	0.66	2m @ 0.66g/t AuEq	2	4	ML23080	Empire
TLU002	24	34	58	0.34	1.25	0.36	24m @ 0.36g/t AuEq	2	4	ML23080	Empire
TLU002	32	66	98	0.20	1.64	0.23	32m @ 0.23g/t AuEq	2	4	ML23080	Empire
TLU003	2	6	8	0.78	0.44	0.79	2m @ 0.79g/t AuEq	2	4	ML23080	Empire
TLU003	2	14	16	0.26	0.52	0.27	2m @ 0.27g/t AuEq	2	4	ML23080	Empire
TLU003	4	48	52	0.31	0.29	0.32	4m @ 0.32g/t AuEq	2	4	ML23080	Empire
TLU003	6	58	64	0.07	0.42	0.08	6m @ 0.08g/t AuEq	2	4	ML23080	Empire
TLU003	4	72	76	0.12	0.50	0.12	4m @ 0.12g/t AuEq	2	4	ML23080	Empire
TLU003	8	138	146	0.38	0.39	0.39	8m @ 0.39g/t AuEq	2	4	ML23080	Empire
TLU003	6	182	188	0.31	0.39	0.31	6m@0.31g/t AuEq	2	4	ML23080	Empire
TLU004	18	0	18	0.95	0.82	0.97	18m@ 0.97g/t AuEq	2	4	ML23080	Empire
TLU004	8	46	54	0.09	2.00	0.12	8m @ 0.12g/t AuEq	2	4	ML23080	Empire
TLU004	8	88	96	0.08	0.39	0.08	8m @ 0.08g/t AuEq	2	4	ML23080	Empire
TLU004	2	252	254	0.09	1.09	0.11	2m @ 0.11g/t AuEq	2	4	ML23080	Empire
TLU005	6	104	110	0.07	3.33	0.13	6m @ 0.13g/t AuEq	2	4	ML23080	Empire
TLU005	10	178	188	0.11	0.43	0.12	10m @ 0.12g/t AuEq	2	4	ML23080	Empire
TLU006	6	0	6	0.09	4.13	0.16	6m @ 0.16g/t AuEq	2	4	ML23080	Empire
TLU006	2	38	40	0.11	0.30	0.12	2m @ 0.12g/t AuEq	2	4	ML23080	Empire
TLU006	2	48	50	0.12	0.30	0.13	2m @ 0.13g/t AuEq	2	4	ML23080	Empire
TLU006	6	86	92	0.25	0.90	0.26	6m @ 0.26g/t AuEq	2	4	ML23080	Empire
TLU006	4	128	132	0.06	5.50	0.16	4m @ 0.16g/t AuEq	2	4	ML23080	Empire
TLU006	2	138	140	0.09	0.90	0.11	2m @ 0.11g/t AuEq	2	4	ML23080	Empire
TLU006	4	164	168	0.17	0.00	0.17	4m @ 0.17g/t AuEq	2	4	ML23080	Empire
TLU006	6	198	204	0.18	0.37	0.19	6m @ 0.19g/t AuEq	2	4	ML23080	Empire
TLU006	2	212	214	0.11	0.30	0.12	2m @ 0.12g/t AuEq	2	4	ML23080	Empire
TLU006	6	246	252	0.10	0.37	0.11	6m @ 0.11g/t AuEq	2	4	ML23080	Empire
TLU007	8	0	8	0.13	13.63	0.36	8m @ 0.36g/t AuEq	2	4	ML23080	Empire
TLU007	4	32	36	0.08	6.65	0.20	4m @ 0.2g/t AuEq	2	4	ML23080	Empire
TLU007	2	92	94	0.05	6.40	0.16	2m@0.16g/t AuEq	2	4	ML23080	Empire
TLU007	36	100	**136 **	0.51	0.97	0.53	36m@ 0.53g/t AuEq	2	4	ML23080	Empire
TLU008	2	0	2	0.12	0.40	0.13	2m @ 0.13g/t AuEq	2	4	ML23080	Empire
TLU008	6	32	38	0.25	3.40	0.31	6m @ 0.31g/t AuEq	2	4	ML23080	Empire
TLU008	2	54	56	0.08	1.20	0.10	2m @ 0.1g/t AuEq	2	4	ML23080	Empire
TLU008	6	72	78	0.51	0.70	0.52	6m @ 0.52g/t AuEq	2	4	ML23080	Empire
TLU008	4	94	98	0.20	1.90	0.23	4m @ 0.23g/t AuEq	2	4	ML23080	Empire
TLU008	24	108	132	0.22	1.31	0.24	24m @ 0.24g/t AuEq	2	4	ML23080	Empire
TLU008	6	146	152	0.11	0.20	0.11	6m @ 0.11g/t AuEq	2	4	ML23080	Empire
TLU008	16	160	176	0.13	0.48	0.14	16m @ 0.14g/t AuEq	2	4	ML23080	Empire
TLU009	4	42	46	0.12	1.50	0.15	4m @ 0.15g/t AuEq	2	4	ML23080	Empire

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Table 2 continued – 0.1g/t AuEq cut off Intervals

**HoleID **	**Interval **	**from **	to	Au	Ag	AuEq	Label	Sample Interval	Maximum Internal Dilution	**Tenement **	Prospect
TLU010	8	40	48	0.37	1.80	0.40	8m @ 0.4g/t AuEq	2	4	ML23080	Empire
TLU010	8	58	66	0.37	0.38	0.37	8m @ 0.37g/t AuEq	2	4	ML23080	Empire
TLU010	4	72	76	0.19	0.55	0.19	4m @ 0.19g/t AuEq	2	4	ML23080	Empire
TLU010	8	104	112	0.09	0.43	0.10	8m @ 0.1g/t AuEq	2	4	ML23080	Empire
TLU010	10	132	142	0.09	0.38	0.09	10m @ 0.09g/t AuEq	2	4	ML23080	Empire
TLU011	2	128	130	0.17	0.30	0.18	2m @ 0.18g/t AuEq	2	4	ML23080	Pinnacles
TLU011	2	138	140	0.12	0.30	0.13	2m @ 0.13g/t AuEq	2	4	ML23080	Pinnacles
TLU012	4	6	10	0.13	0.20	0.13	4m @ 0.13g/t AuEq	2	4	ML23080	Pinnacles
TLU012	8	16	24	0.17	0.95	0.19	8m @ 0.19g/t AuEq	2	4	ML23080	Pinnacles
TLU012	2	36	38	0.14	0.90	0.16	2m @ 0.16g/t AuEq	2	4	ML23080	Pinnacles
TLU012	26	46	72	0.14	0.35	0.15	26m @ 0.15g/t AuEq	2	4	ML23080	Pinnacles
TLU013	20	0	20	0.21	0.23	0.22	20m @ 0.22g/t AuEq	2	4	ML23080	Pinnacles
TLU013	28	28	56	0.15	1.20	0.17	28m @ 0.17g/t AuEq	2	4	ML23080	Pinnacles
TLU013	34	62	96	0.17	1.23	0.19	34m @ 0.19g/t AuEq	2	4	ML23080	Pinnacles
TLU013	10	116	126	0.22	0.60	0.23	10m @ 0.23g/t AuEq	2	4	ML23080	Pinnacles
TLU013	14	136	150	0.23	0.39	0.23	14m @ 0.23g/t AuEq	2	4	ML23080	Pinnacles
TLU014	4	17	21	0.34	20.02	0.69	4m @ 0.69g/t AuEq	1	2	ML5130	Wandoo
TLU014	38	27	65	0.48	3.93	0.55	38m @ 0.55g/t AuEq	1	2	ML5130	Wandoo
TLU014	9	68	77	0.41	3.98	0.48	9m @ 0.48g/t AuEq	1	2	ML5130	Wandoo
TLU014	1	80	81	0.17	1.67	0.20	1m @ 0.2g/t AuEq	1	2	ML5130	Wandoo
TLU014	1	86	87	0.27	2.04	0.31	1m @ 0.31g/t AuEq	1	2	ML5130	Wandoo
TLU014	2	92	94	0.18	2.70	0.22	2m @ 0.22g/t AuEq	1	2	ML5130	Wandoo
TLU014	12	100	112	0.27	2.35	0.31	12m @ 0.31g/t AuEq	1	2	ML5130	Wandoo
TLU014	1	117	118	0.19	4.62	0.27	1m @ 0.27g/t AuEq	1	2	ML5130	Wandoo
TLU014	1	125	126	0.43	3.28	0.49	1m @ 0.49g/t AuEq	1	2	ML5130	Wandoo
TLU015	1	22	23	0.12	2.23	0.16	1m@0.16g/t AuEq	1	2	ML5130	Wandoo
TLU015	11	28	39	0.87	5.45	0.97	11m@ 0.97g/t AuEq	1	2	ML5130	Wandoo
TLU015	1	42	43	0.14	5.12	0.23	1m@0.23g/t AuEq	1	2	ML5130	Wandoo
TLU015	14	46	60	0.66	3.33	0.71	14m@ 0.71g/t AuEq	1	2	ML5130	Wandoo
TLU015	1	68	69	0.12	3.01	0.17	1m @ 0.17g/t AuEq	1	2	ML5130	Wandoo
TLU015	14	73	87	0.12	2.86	0.17	14m @ 0.17g/t AuEq	1	2	ML5130	Wandoo
TLU015	15	90	105	0.21	2.85	0.26	15m @ 0.26g/t AuEq	1	2	ML5130	Wandoo
TLU015	2	108	110	0.98	4.02	1.05	2m @ 1.05g/t AuEq	1	2	ML5130	Wandoo
TLU015	1	114	115	0.32	0.81	0.33	1m @ 0.33g/t AuEq	1	2	ML5130	Wandoo
TLU015	4	128	132	0.08	2.62	0.13	4m @ 0.13g/t AuEq	1	2	ML5130	Wandoo
TLU015	6	135	141	0.09	2.48	0.13	6m @ 0.13g/t AuEq	1	2	ML5130	Wandoo
TLU015	8	146	154	0.24	4.45	0.32	8m @ 0.32g/t AuEq	1	2	ML5130	Wandoo
TLU015	11	174	185	0.37	2.72	0.41	11m @ 0.41g/t AuEq	1	2	ML5130	Wandoo
TLU016	1	12	13	0.23	0.14	0.23	1m @ 0.23g/t AuEq	1	2	ML20381	Wandoo
TLU017	2	30	32	2.27	7.51	2.40	2m @ 2.4g/t AuEq	1	2	ML20381	Wandoo
TLU017	8	40	48	0.12	5.10	0.21	8m @ 0.21g/t AuEq	1	2	ML20381	Wandoo
TLU017	2	52	54	0.06	3.67	0.12	2m @ 0.12g/t AuEq	1	2	ML20381	Wandoo
TLU017	1	62	63	0.09	1.84	0.12	1m @ 0.12g/t AuEq	1	2	ML20381	Wandoo
TLU017	1	73	74	0.07	2.82	0.12	1m @ 0.12g/t AuEq	1	2	ML20381	Wandoo
TLU017	2	82	84	1.40	10.83	1.59	2m @ 1.59g/t AuEq	1	2	ML20381	Wandoo
TLU017	1	92	93	0.88	11.80	1.09	1m @ 1.09g/t AuEq	1	2	ML20381	Wandoo
TLU018	7	15	22	0.26	11.66	0.46	7m @ 0.46g/t AuEq	1	2	ML20381	Wandoo
TLU018	2	25	27	0.08	15.95	0.36	2m@0.36g/t AuEq	1	2	ML20381	Wandoo
TLU018	17	52	69	0.54	6.02	0.65	17m@ 0.65g/t AuEq	1	2	ML20381	Wandoo
TLU018	1	72	73	0.11	0.70	0.12	1m @ 0.12g/t AuEq	1	2	ML20381	Wandoo
TLU018	4	94	98	0.25	16.35	0.53	4m @ 0.53g/t AuEq	1	2	ML20381	Wandoo
TLU018	1	131	132	0.33	5.80	0.43	1m @ 0.43g/t AuEq	1	2	ML20381	Wandoo

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Background

The Chillagoe Gold Project is situated 165 kilometres west of Cairns in far North Queensland, Australia. The Chillagoe region is renowned for its vibrant mining industry beginning in the early 1900's.

The Chillagoe Gold Project consists of one (1) granted Exploration Permit Minerals, six (6) applications for Exploration Permit Minerals and four (4) granted Mining Leases. The Exploration Permits cover a combined area of 28,880 hectares and the Mining Leases cover a combined area of 48 hectares. Within the Mining Lease are the Empire and Wandoo prospect areas. Both these prospects are associated with classic breccia pipe and IRG complexes and display features typical of the nearby multi-million ounce deposits at Kidston, Red Dome and Mungana.

For further information on this announcement or Tellus Resources please contact:

Stephen Woodham Managing Director T: 0417 293 449 E: stephen.woodham@tellusresources.com.au

or

Anne Adaley Company Secretary & Chief Financial Officer T: 02 9231 6231

E: anne.adaley@tellusresources.com.au

About Tellus

Tellus Resources Ltd is an ASX-listed mineral exploration company focused on generating value for its shareholders by identifying and acquiring properties and projects that have significant discovery and development potential.

Tellus has acquired a large tenement package in northern Queensland and regional New South Wales prospective for Intrusive Related Gold Deposits (IRG). The strategic objectives of the Company are to enhance Shareholder wealth through implementing exploration programs on its existing projects whilst continuing to evaluate additional exploration and value-accretive opportunities within Australia and internationally.

Competent Person’s Statement

The information in this report that relates to Exploration Results based on information provided by Mr D Ward, Member of Australasian Institute of Mining and Metallurgy and Senior Exploration Consultant to Tellus Resources Ltd. Mr Ward has sufficient experience that is 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. Mr Ward, consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Disclaimer

This document has been prepared by Tellus Resources Ltd (“Tellus”) and may contain some references to forecasts, estimates, assumptions and other forward looking statements. These forward-looking statements reflect the current internal projections, expectations or beliefs of Tellus based on information currently available to Tellus. Although the company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions, it can give no assurance that they will be achieved. They may be affected by a variety of variables and changes in underlying assumptions that are subject to risk factors associated with the nature of the business, which could cause actual results to differ materially from those expressed herein. Statements concerning reserves and/or resources may also be deemed to be forward looking statements in that they involve elements based on specific assumptions.

Tellus Resources Ltd has taken all reasonable care in producing the text and images contained in this report but do not warrant that the information contained herein is accurate or up to date. The information in this report is based on publicly available information, internal data and information from other sources. It is not intended to give investment or other advice to any party or individual(s) and the information is not a substitute for detailed investigation or analysis. Tellus Resources Ltd will not be responsible for any loss or damage (direct or indirect, consequential or otherwise) resulting from the use of information provided in this report.

TELLUS RESOURCES LTD - ASX Announcement 17 August 2012

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