FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2012

Apr 29, 2012

30 April 2012

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

Projects:

Southern New England

• Glen Morrison Project (EL7699)

• Cobark Project (EL7698)

• Niangala (EL7877)

• Upper Hunter (EL7874)

QUARTERLY REPORT

For the period ending 31 March 2012

HIGHLIGHTS

• Finalising due diligence for the purchase of the Chillagoe Gold Project

• New Managing Director appointed

• Successful capital raising completed

• Cornerstone investor welcomed

Projects & Exploration

During the March quarter the Company has focused on capital raising, completing the due diligence on the Chillagoe Gold Project and advancing the project geologically and logistically. This will enable work to commence as soon as practicable on the highest priority targets following execution of the agreement .

Southeast Lachlan

• Cobargo (EL7721)

No work was completed on the NSW Projects.

• Brogo (EL7723)

• Yurammie (EL7722)

Chillagoe Gold Project, QLD

• Yambulla (EL7720)

Directors/Officers:

Anthony Wehby Stephen Woodham Richard Willson Anne Adaley

Issued Shares and Options:

29,900,000 shares 6,000,000 unlisted options

Tellus Resources Ltd

On 21 November 2011, Tellus Resources announced it had entered into a Binding Heads of Agreement to acquire 100% of the issued capital of Premier Minerals Pty Ltd (Premier). Tellus is in the final stages of the due diligence.

The Chillagoe Gold Project is a significant Intrusive Related Gold (IRG) Project with granted mining leases 13km south‐west of the Red Dome – Mungana gold and base metal operation near Chillagoe in far North Queensland.

A drilling rig has been secured which will be mobilised to site upon completion of the deal with Premier. The drilling will focus on the two mining lease areas, Wandoo and Empire following up significant shallow gold‐silver intersections including 22m @ 3.15 g/t Au Eq[1] (Wandoo) and 21m @ 2.28g/t Au (Empire).

ASX Code: TLU

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

1 Au Equivalent = Au + (Ag÷50)

QUARTERLY REPORT FOR THE PERIOD ENDED 31 MARCH 2012

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Compilation and interpretation of the drillhole data for the Chillagoe Project has increased the geological understanding of the mineralisation. Three styles of mineralisation are evident within the mining leases all of which are related to the Late Carboniferous intrusives (similar to Red Dome – Mungana):

1. Epithermal veining (figure 1) – Hardman’s Lode is a 2.4m wide, narrow, high grade epithermal style vein mined in the 1930’s to a vertical depth of approximately 75m. The vein reported to have produced at one (1) ounce to the tonne gold and twelve (12) ounces to the tonne silver. The margins of Hardman’s Lode were drilled by Noble Resources in the 1980’s. They intersected some voids and gold mineralisation eg 3m @ 4.13g/t AuEq[1] , 3m @ 3.62g/t AuEq[1] and 12m @ 1.3g/t AuEq[1] .

The Hardman’s Lode plunges to the east and the area down plunge of the ‘lode’ has not been drilled.

1. Breccia related (figure 2) – at Wandoo mineralisation at the area referred to as Bayley’s is located in and on the margins of a granodiorite breccia very similar to Kidston and Mt Leyshon. The best intersection to date at Bayley’s is 22m @ 3.15g/t AuEq[1] (which is open at depth).

2. Contact porphyry related (figure 3) ‐ at Empire the mineralisation is hosted within granodiorite on the contact of a porphyry intrusion similar to that seen at Red Dome (figure 1). The best drillhole intersection to date at Empire is 21m @ 2.28g/t Au (note this area has been analysed for gold only despite copper stained outcrop at surface).

All of the mineralisation seen in the Chillagoe Gold Project is shallow and intrusive related and should continue to significant depths. Red Dome has been defined to at least 1,000m deep to date and is still open at depth.

TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 MARCH 2012

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Figure 1‐ HARDMAN'S LODE (scanned from Noble Resources Annual Report)

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Hole 6 – 12m @ 1.3 Au Eq incl 4m of void
No significant results
Hole 4 – 3m @ 3.62 Au Eq incl 1m of void No significant results
Hole 3 – 3m @ 4.13 Au Eq
~40‐50m
Figure 1 ‐ Hardman’s Workings looking north (Red Hexagons Noble Drilling pierce points)
East‐West Long Section scanned from Noble Resources Annual Report
‐ mirror image of original for consistency, displayed looking North.
Priority Drill Target
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TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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Figure 2 ‐ Wandoo

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18m @ 1.13g/t AuEq
6m @ 23.39g/t AuEq
4m @ 8.52g/t AuEq
22m @ 3.15g/t AuEq
Priority Drill Target
granodiorite breccia granodiorite
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• 600m long x 250m wide +50ppb gold soil anomaly

• Mineralisation hosted in and around granodiorite breccias

• Very similar to Resolute’s Welcome Breccia with about a 50m diameter surface

  • expression which along hosts >200,000oz Au

• Part of a larger system which could host a number of these breccias

• Open at Depth

• Granted Mining Leases

• Wandoo Au Soil Anomaly

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100ppb Au
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TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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Empire Stockworks Schematic Geology Section
Figure 3 ‐ Empire
• Large +50ppb gold soil anomalies
8m @ 3.86g/t Au • Gold related to a rhyolite
porphyry intruding the breccia
granodiorite contact
21m @ 2.28g/t Au
• Western margin of porphyry
untested
• Similar to Red Dome which is
Mineralised Zone defined to 1,000m depth
• Potential for a large open pit
Priority Drill Target project
Priority Drill Target
breccia porphyry granodiorite
100ppb Au
No downhole surveys
50ppb Au
17
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• Large +50ppb gold soil anomalies

• Gold related to a rhyolite porphyry intruding the breccia granodiorite contact

Analysis for gold only

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TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 MARCH 2012

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CORPORATE

Appointment of Managing Director

On 30 January 2012, Tellus announced the appointment of Stephen Woodham as Managing Director of the Company. David Ward stepped down from the Board and has assumed the role of Senior Exploration Consultant.

Mr Woodham has over 15 years experience in the mining and exploration industry in Western Australia and New South Wales specialising in field logistics and support and land access in rural and remote environments. He also has a successful track record of tenement acquisition, mining investment and commercial and cross‐cultural negotiation.

Mr Woodham has been instrumental in the founding of a number of successful resource companies including LFB Resources Pty Ltd, Techdrill Services Pty Ltd, YTC Resources Limited and Centaurus Metals Limited.

The Tellus Board welcomes Mr Woodham to the position and thanks Mr Ward for his contribution in managing the company since listing.

Share Placement

On 22 March 2012, Tellus announced the placement of 3,750,000 shares @ $0.20 per share to an existing shareholder, Paragon Group Holding Limited (Paragon), a company based in Singapore. This placement results in Paragon holding 15.5% of the issued capital of the Company.

The funds will be directed towards the payment for acquisition of the Chillagoe Gold Project and the planned exploration program.

Tellus welcomes Paragon's ongoing support and the strong endorsement of the Company's prospects.

A General Meeting of shareholders was held on 5 April 2012 which ratified the prior issue of shares and gained approval for the issue of up to 16,250,000 shares at an issue price of $0.20 per share to raise up to $3,250,000.

Northern Discovery

On the 23 January 2012, Tellus Resources Limited announced it had terminated the MOU with Northern Discovery by mutual consent.

TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 MARCH 2012

Available Funds

• At 31 March 2012 the Company had available cash totalling $3.466M.

• Exploration and evaluation expenditure for the quarter was $27K.

Outlook

The completion of the acquisition of the Chillagoe Gold Project and the ensuing drilling program remain the near‐term goals and the immediate priorities.

Looking ahead, the Company continues to evaluate and assess value‐adding opportunities to bring into its portfolio of assets.

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

Stephen Woodham	Anne Adaley
Managing Director	Company Secretary & Chief Financial Officer
T: 0417 293 449	T: 02 9231 6231
E: stephen.woodham@tellusresources.com.au	E: anne.adaley@tellusresources.com.au

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

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information provided by Mr D Ward, Member of Australasian Institute of Mining and Metallurgy and the Senior Exploration Consultant to 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 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 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.

TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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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”)
		31 March 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 (9 months) $A’000
		- (27) - - (200) - 30 - - 16	- (332) - - (633) - 131 - - 16
		(181)	(818)
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		(10) - (3) - - - - - -	(66) - (59) - - - - - -
		(13)	(125)
1.15 Total operating and investing cash flows (carried forward)		(194)	(943)

TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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1.15 Total operating and investing cash flows (brought forward)	(194)	(943)
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	750 - - - - (45)	750 - - - - (45)
	705	705
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	511 2,955 -	(238) 3,704 -
	3,466	3,466

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
		79
		-
1.27	Explanation necessaryfor an understandingof the transactions
	Consulting fees: $13,035 and Directors fees /salary for the period 1 Jan 2012 to 31 March 2012: $66,258.

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.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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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
	400
	-
	-
	210
	610

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	44
	3,408	2,912
	-	-
	40	-
	3,466	2,956

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
	EL7877	100%	-	100%

TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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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	29,900,000	29,900,000
	3,750,000	3,750,000	$0.20	$0.20
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) 7.12Performance Rights (totals only) 7.13Unsecured notes (totals only)	6,000,000 1,200,000	- -	Exercise price 30 cents 30 cents	Expiry date 31 March 2014 30 April 2014
	1,000,000	-

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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: 30 April 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.

TELLUS RESOURCES LTD | QUARTERLY REPORT | MARCH 2012

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