FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Capital/Financing Update 2014

Jun 1, 2014

ASX ANNOUNCEMENT 2[nd] June 2014

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Tellus Resources Ltd is an Australianbased oil & gas and mineral exploration company with licences in South Australia, Queensland and New South Wales. The Company has oil interests in Utah, USA as well.

Directors:

Robert Kennedy - Chairman Carl Dorsch - Managing Director Ben Salmon - Non-Executive Director Neil Young - Non-Executive Director

Issued Shares:

168,099,767 ordinary shares

Tellus Resources Ltd

ASX Code: TLU

T: +61 8 8100 9200 F: +61 8 8223 3235

Website: www.tellusresources.com.au

CMP Update

Tellus Resources Limited (TLU or the Company) provides the following market update in relation to its 41.67% participating interest in the Covenant Mondo Project (“the CMP”) located in Utah in the USA.

As advised on 17 April 2014, the drilling pad for the first well (TWP USG #1) was originally located some 200m from the desired bottom hole location due to surface constraints imposed by the landowner. However, following recent negotiations between the Operator (TWP) and the landowner, the following has now been agreed to:

1. The landowner has advised TWP that it is prepared to amend the Access Agreement with TWP allowing the drilling pad to be moved over the proposed bottom hole location.

2. The landowner, a commercial gypsum miner, has agreed to strip approximately 20 feet of gypsum from the site. This will involve blasting which is to commence shortly. Following this, the CMP JV partners will have a level pad site which will require only minor earthworks to prepare for the drilling operation.

Enquiries:

Tellus Resources Ltd

Level 5, 70 Pirie St. (PO Box 190, Rundle Mall)

Adelaide SA 5000

Attention: Carl Dorsch M: +61(0)400 508 088

The consequences of this are positive for the CMP for two reasons:

1. The cost of construction for the lease pad will be significantly reduced.

2. The revised pad location will minimise the need for expensive directional drilling equipment. Driiling problems that can be associated with deviated holes will be reduced with corresponding reductions in drilling times.

Carl.Dorsch@tellusresources.com.au

Commenting on the developments, the Managing Director Carl Dorsch said, “ The benefits of the new pad location with potential cost savings of over USD500k will outweigh the delay in the spud of the well. I expect rig operations to commence early in the third quarter and we’ll provide the market with an update as soon as we have a better estimate from the Operator. ”

TELLUS RESOURCES LTD - ASX Announcement

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