FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2012

Oct 30, 2011

31 October 2011

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Tellus Resources Ltd
ABN: 35 144 733 595
Suite 301, Level 3
66 Hunter Street,
SYDNEY NSW 2001
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ASX RELEASE

Tellus Resources Ltd is an Australian‐based mineral exploration company.

Tellus has acquired a large tenement package in regional New South Wales prospective for Intrusive Related Gold Deposits (IRG).

A number of the tenements encompass historic goldfields, but have received relatively little in the way of modern exploration.

QUARTERLY REPORT

For the period ending 30 September 2011

HIGHLIGHTS

• RC Drilling at Glen Morrison completed

• Assay values returning up to 1.15 g/t gold

Projects & Exploration

Southern New England IRG Project, NSW

Glen Morrison Prospect (EL7699, TLU: 100%)

Projects:

Southern New England

• Glen Morrison Project (EL7699)

Following up on the high grade rock chip sampling results discovered around the Golden Bar and Golden Star Reefs in the June quarter, a total of 1,327 metres of Reverse Circulation (RC) drilling was completed on the Glen Morrison Prospect during the quarter.

• Cobark Project (EL7698)

Southeast Lachlan

• Cobargo (EL7721)

• Brogo (EL7723)

• Yurammie (EL7722) • Yambulla (EL7720)

Best results included 4 metres at 0.67g/t Au from 12 metres in hole GMRC002, including one metre at 1.15g/t Au.

Most rock chip samples demonstrated a strong arsenopyrite‐gold correlation. Gold assays were highest where there was a lower concentration of arsenopyrite in the mineral signature.

Directors/Officers:

Anthony Wehby David Ward Richard Willson Anne Adaley

A seven metre veined and mineralised intersection in hole GMRC007 returned 7 metres at 0.13g/t gold from a depth of 72 metres.

Exploration License Applications

• ELA4226 – Upper Hunter (TLU: 100%)

• ELA4324 – Niangala (TLU: 100%)

Issued Shares and Options:

26,150,000 shares 6,000,000 unlisted options

Tellus has submitted two exploration license applications in the Southern New England Fold Belt to the NSW Department of Industry and Investment the quarter.

Tellus Resources Ltd

The two areas applied for contain significant historic gold workings and are interpreted to be prospective for Intrusive Related Gold deposits.

ASX Code: TLU

T: +61 2 9231 6231 F: +61 2 9231 6687 W: www.tellusresources.com.au

QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2011

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Figure 1 – September Quarter Golden Star and Golden Bar drillholes projected to surface. Gold values greater than 0.1g/t displayed. Dashed red lines indicate interpreted veining prior to drilling.

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Figure 1 Outline
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Figure 2 – Historic Workings on EL7699 Outline

QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2011

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Hole ID	Easting	Northing	RL	Azimuth	Dip	Depth
	(m)	(m)	(m)	(°deg)	(°deg)	(m)
GMRC001	359,665	6,548,622	1184	235	‐60	225
GMRC002	359,741	6,548,675	1189	237	‐60	216
GMRC003	359,828	6,548,731	1186	235	‐60	198
GMRC004	359,707	6,548,782	1184	55	‐60	224
GMRC005	359,649	6,548,705	1185	45	‐60	72
GMRC006	359,535	6,548,658	1184	57	‐60	200
GMRC007	359,698	6,548,739	1184	45	‐60	144
GMRC008	359,870	6,548,730	1186	244	‐60	48

Table 1 – Glen Morrison RC Collar Locations

Hole ID	From	To	Interval	Au
	(m)	(m)	(m)	(g/t)
GMRC007	2	3	1	0.13
GMRC007	53	54	1	0.14
GMRC007	72	79	7	0.13
GMRC007	104	105	1	0.16
GMRC007	129	130	1	0.16
GMRC006	117	118	1	0.36
GMRC004	78	79	1	0.13
GMRC003	17	19	2	0.16
GMRC003	5	6	1	0.10
GMRC002	12	16	4	0.67
Including	14	15	1	1.15

Table 2 – Glen Morrison RC Gold Intervals.

Samples are 1m riffle split RC samples. Based on 0.1g/t Au and 1.0g/t Au cut‐offs with a maximum internal dilution of 2m Au was analysed by ALS Orange by fire assay / AAS finish

Southern Lachlan Project, NSW

No work was undertaken during the September quarter.

Corporate

At 30 September 2011 the Company had available cash totalling $3.3M. Exploration and evaluation expenditure for the quarter was $225K.

Shareholder Information

As at 12 September 2011, the issued capital comprised of 26,150,000 ordinary fully paid shares (ASX code: TLU) held by 439 holders with the top 20 shareholders holding 36.14% of the total issued capital.

QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2011

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Outlook

On October 28 2011, Tellus Resources Limited announced its intention to acquire a 100% interest in Northern Discovery Limited (NDL), an unlisted Australian public company with a portfolio of coal assets in Indonesia. Tellus has signed a Memorandum of Understanding to acquire 100% of the issued capital of NDL.

In addition to the ongoing development of its Australian gold interests, Tellus, through Northern Discovery, will become a significant player in the burgeoning Indonesian coal sector. The transaction is expected to significantly boost Tellus market capitalisation and deliver strong growth opportunities for the Company.

Further details on the proposed transaction are available on the Tellus Resources website.

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

David Ward Anne Adaley Technical Director Company Secretary & Chief Financial Officer T: 0419 979 786 T: 02 9231 6231 E: david.ward@tellusresources.com.au E: anne.adaley@tellusresources.com.au

or visit our website at www.tellusresources.com.au

For Investor and Media Enquiries: Ophir Partners ‐ Stuart Glazebrook ‐ 0402216835.

Competent Person’s Statement

The information in this report that relates to Exploration Results, Mineral Resources and/or Ore Reserves is based on information provided by Mr D Ward, Member of Australasian Institute of Mining and Metallurgy and a Technical Director of Tellus Resources Limited. 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.

Disclaimer

This document has been prepared by Tellus Resources Limited (“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 Limited 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 Limited 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.

QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2011

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APPENDIX 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

Name of entity
Tellus Resources	Ltd
ABN 35 144 733 595 Consolidated statement of cash flows	Quarter ended (“current quarter”)
		30 September 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 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		Current quarter $A’000	Year to date (3 months) $A’000
		- (225) - - (169) - 18 - - -	- (225) - - (169) - 18 - - -
		(376)	(376)
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 Net investing cash flows		- - (42) - - - - - -	- - (42) - - - - - -
		(42)	(42)
1.15 Total operating and investing cash flows (carried forward)		(418)	(418)

QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2011

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1.15 Total operating and investing cash flows (brought forward)	(418)	(418)
Cash flows related to financing activities 1.16 Proceeds from issues of shares, options, etc. 1.17 Proceeds from sale of forfeited shares 1.18 Proceeds from borrowings 1.19 Repayment of borrowings 1.20 Dividends paid 1.21 Other Net financing cash flows	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.22 Cash at beginning of quarter/year to date 1.23 Exchange rate adjustments to item 1.20 1.24 Cash at end of quarter	(418) 3,704 -	(418) 3,704 -
	3,286	3,286

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

1.25 1.26	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to theparties included in item 1.10	Current quarter $A'000
		56
		-
1.27	Explanation necessaryfor an understandingof the transactions
	Consulting fees: $34,000; and Directors fees for the period 11 May 2011 to 30	Sep 2011: $22,000.

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	Nil
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Nil

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
	-	-
	-	-

QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2011

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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 Total	$A’000
	159
	-
	-
	138
	297

Reconciliation of cash

Reconciliation of cash
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 Commercial Bills 5.4 Other: Term Deposit Total: cash at end of quarter(item 1.22)	18	32
	1,268	1,672
	-	-
	2,000	2,000
	3,286	3,704

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	Interest at beginning of quarter	Interest at end of quarter
	None
	None

QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2011

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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	26,150,000	26,150,000
7.5 Convertible debt securities(description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options Unlisted Unlisted 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11Debentures (totals only) 7.12Unsecured notes (totals only)	6,000,000 1,200,000	- -	Exercise price 30 cents 30 cents	Expiry date 31 March 2014 30 April 2014

QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2011

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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 give a true and fair view of the matters disclosed.

Sign here:

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Date: 31 October 2011

Company Secretary

Print name: Anne Adaley

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.