FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2013

Oct 30, 2012

ASX ANNOUNCEMENT ‐ 31 OCTOBER 2012

ASX RELEASE

QUARTERLY REPORT SEPTEMBER 2012

HIGHLIGHTS

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

On 16 May 2012 Tellus announced it had purchased the Chillagoe Gold Project from Premier Mining Pty Ltd.

The Chillagoe Gold Project includes Exploration Permits covering a combined area of ~28,878 hectares plus Mining Leases covering a combined area of approx. 480 hectares, including the Wandoo & Empire prospects.

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

A key part of the Company's strategy is to actively pursue the acquisition of, and/or participation in additional advanced resource projects.

Directors/Officers:

Anthony Wehby Stephen Woodham Richard Willson Ben Salmon Anne Adaley

Issued Shares and Options:

44,380,555 shares 11,000,000 unlisted options

Projects & Exploration

• 330m of RC drilling at Chillagoe during the September quarter completing a total of 3,018m

• Empire

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

• Wandoo

  • 38m @ 0.55g/t AuEq from 27m

  • 11m @ 0.97g/t AuEq from 28m

  • 17m @ 0.65g/t AuEq

• IRG model for the mineralisation confirmed

• New Chillagoe EPM Application

• Adjacent to Red Dome Mining Leases

• Continuous with existing title

CHILLAGOE GOLD PROJECT, QLD (TLU 100%)

During the quarter a 3,018m RC drilling program was completed within the Empire and Wandoo Mining Leases (ML20380, ML5130 and ML20381).

Final assays were received for the RC drilling program during the quarter. Many of the holes intersected significant gold mineralisation associated with porphyritic intrusives, abundant arsenopyrite, quartz veining and phyllic (serecite) alteration consistent with an Intrusive Related Gold (IRG) mineral system reported in ASX Release dated 17 August 2012.

Shallow gold mineralisation intersected in Empire hole TLU007 is significant as the gold grades are increasing with depth. The best grades are related to contact with porphyry intrusives similar to those seen at Red Dome and Mungana nearby.

Red Dome gold mineralisation has been proven to extend to a depth of over one kilometre. Red Dome and Mungana have a reported gold resource of 2.7 million ounces of gold and 34 million ounces of silver.

A tenement application (EPM19803) was made on 1 August 2012 further consolidating the tenement position at Chillagoe. The Exploration Permit for Minerals (EPM) is contiguous with the existing EPMs and has a boundary of the Red Dome and Mungana mining leases.

Two of the Chillagoe EPMs were granted during the quarter with historic rockchip gold values up to 10.89g/t.

No exploration was completed on the NSW Projects in the September quarter.

Tellus Resources Ltd ASX Code: TLU

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Empire (ML20380)

Drilling within the Empire Mining Lease (ML20380) intersected significant primary gold mineralisation immediately below previously defined 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/t 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.

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----- Start of picture text -----

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.

The Empire Prospect displays many similarities to Red Dome, 23km to the north‐east. Red Dome is open at over one kilometre deep.

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

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Wandoo (ML5130, ML20381, ML20234)

330m of RC drilling was completed within the Wandoo mining lease during the quarter, with all of the assay results received.

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.

Surface mapping of the workings suggest the mineralisation may have a strike of at least 350m.

Bayley’s

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 2 – 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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Tenement Consolidation

Two EPM applications progressed to grant during the quarter, EPM18397 and EPM18398 (Figure 3 green hatching). One EPM application occurred during the September quarter EPM19803.

EPM19803 (Figure 3 blue hatching) has a common boundary with the Red Dome Mungana mining leases (Figure 3 solid green).

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Figure 3 – Tenement Locations. EPM19803 = New Application. EPM18397 and EPM18398 = EPMs Granted during the September Quarter.

The solid green indicates the Red Dome Mungana Mining Leases

Compilation of previous exploration rockchip data highlights the potential of the newly granted EPMs with gold values up to 10.89g/t. One sample within EPM18398 returned values of 7.9g/t gold, 360g/t silver and 5.01% lead.

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Figure 4 – Compiled Rockchip Sampling Blue points are rockchip locations from previous explorers

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CORPORATE

Available Funds

• At 30 September 2012 the Company had available cash totalling $3M.

• Exploration and evaluation expenditure for the quarter was $380K.

Shareholder Information

As at 30 September, the issued capital comprised of 44,380,555 ordinary fully paid shares (ASX code: TLU) held by 405 holders with the top 20 shareholders holding 57.19% of the total issued capital.

OUTLOOK

Results from the RC drilling program undertaken during the quarter are positive and highlight the significant potential for an economic gold deposit within the Chillagoe Mining Leases. Review and assessment of the RC drilling program will guide future exploration campaigns.

During the next quarter the Company will continue to assess the opportunities within its NSW assets with a view to maximising value from those holdings. In addition the Company is pursuing an active program to identify and evaluate new opportunities to enhance its portfolio of assets.

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 and development 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.

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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.

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.

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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
Tellus Resources	Ltd
ABN 35 144 733 595 Consolidated statement of cash flows	Quarter ended (“current quarter”)
		30 September 2012
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
		- (380) - - (267) - 28 - - -	- (380) - - (267) - 28 - - -
		(619)	(619)
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		- - - - - - - - -	- - - - - - - - -
		-	-
1.15 Total operating and investing cash flows (carried forward)		(619)	(619)

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1.15 Total operating and investing cash flows (brought forward)	(619)	(619)
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 – Capital raising costs 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	(619) 3,629 -	(619) 3,629 -
	3,010	3,010

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

• Current quarter $A'000

• 1.25 Aggregate amount of payments to the parties included in item 1.2 90 1.26 Aggregate amount of loans to the parties included in item 1.10 -

• 1.27 Explanation necessary for an understanding of the transactions

• Directors fees /salary for the period: $90,000

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

Nil

• 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

Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

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
	-	-
	-	-

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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
	170
	-
	-
	269
	439

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)	35	37
	2,935	3,552
	-	-
	40	40
	3,010	3,629

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
	EPM 18397	100%	Nil	100%
	EPM 18398	100%	Nil	100%

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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.

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- back	44,380,555	34,683,000
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 Unlisted 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11Debentures (totals only) 7.12Performance Rights (totals only) 7.13Unsecured notes (totals only)	4,800,000 1,200,000 5,000,000	- - -	Exercise price 30 cents 30 cents 25 cents	Expiry date 31 Mar 2014 30 Apr 2014 25 Sep 2014
	5,000,000	-	25 cents	25 Sep 2014
	1,050,000	-

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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 2012

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.

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