FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2011

Jan 23, 2012

24 January 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 ASX‐ listed minerals exploration company that generates 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 regional New South Wales prospective for Intrusive Related Gold Deposits (IRG) and is actively pursuing other value‐adding opportunities within the resources sector.

Projects:

QUARTERLY REPORT

For the period ending 31 December 2011

HIGHLIGHTS

• Purchase of advanced gold, silver and base metal potential projects at Chillagoe

• Ongoing due diligence on Northern Discovery acquisition

• Granting of Upper Hunter exploration licence

Projects & Exploration

Southern New England IRG Project, NSW

Upper Hunter Prospect (EL7874, TLU: 100%)

Southern New England

• Glen Morrison Project (EL7699)

• Cobark Project (EL7698)

• Upper Hunter Prospect (EL7874)

Southeast Lachlan

• Cobargo (EL7721)

• Brogo (EL7723)

• Yurammie (EL7722)

• Yambulla (EL7720)

Directors/Officers:

Anthony Wehby David Ward Richard Willson Anne Adaley

Issued Shares and Options:

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

ELA4293, applied for in May 2011, was granted to Tellus on the 19th of December 2011 for a two year period. EL7874 (250km²) covers the whole of the Upper Hunter Goldfield and surrounds.

The Upper Hunter Goldfield has 65 known hard rock historic workings oriented north‐south extending over 20 kilometres, operated in the late 1800’s.

Only two of the 65 hard rock workings have received some level of exploration. These were the Royal Standard and Mountaineer mines.

Twelve samples were collected from underground veins within the Royal Standard and Mountaineer of which seven returned gold grades greater than 5 g/t.

The highlight of the sampling program saw one underground face sample return 1045 g/t gold. Other underground sample results included 33.8, 15.6 and 10.8 g/t gold. None of these veins have ever been drilled.

Recent interpretation suggests the geology bears close similarity to Donlin Creek in Alaska, at >30 million ounces, one of the largest undeveloped gold projects in the world.

Tellus Resources Ltd

ASX Code: TLU

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

QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 2011

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Figure 1 – EL7874 Upper Hunter Project Location Red Symbols = Historic Hard rock Gold Workings displayed

Southern Lachlan Project, NSW

No work was undertaken during the December quarter.

Corporate

Chillagoe Gold Project, QLD

On November 21, Tellus Resources announced it had entered into Binding Heads of Agreement to acquire 100% of the issued capital of Premier Minerals Pty Ltd, a wholly owned subsidiary of Premier Mining Limited, an unlisted Australian public company.

Premier holds significant Intrusive Related Gold (IRG) assets near Chillagoe which 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, four (4) applications for Exploration Permit Minerals and four (4) granted Mining Leases. The Exploration Permits cover a combined area of 9,520.7 hectares and the Mining Leases cover a combined area of 480.92 hectares.

TELLUS RESOURCES LTD | QUARTERLY REPORT | DECEMBER 2011

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QUARTERLY REPORT
FOR THE PERIOD ENDED
31 DECEMBER 2011
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Figure 2 – Chillagoe Gold Project Location.

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.

Advanced exploration has already been completed with more than 14,000 metres drilled to date with strong mineralisation evident from surface, an open depth extent and is highly prospective down to at least 1000 metres.

Corporate

• At 31 December 2011 the Company had available cash totalling $2.9M.

• Exploration and evaluation expenditure for the quarter was $72K.

Northern Discovery (Indonesian Coal acquisition)

During the December quarter Tellus Resources 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 signed a Memorandum of Understanding to acquire 100% of the issued capital of NDL.

Following the end of the quarter both parties mutually agreed to terminate the MOU.

TELLUS RESOURCES LTD | QUARTERLY REPORT | DECEMBER 2011

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 2011

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Outlook

The completion of the Chillagoe Gold acquisition remains the near‐term goal and the immediate priority for the Company.

Looking ahead, Tellus 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:

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

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.

TELLUS RESOURCES LTD | QUARTERLY REPORT | DECEMBER 2011

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 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
Tellus Resources	Ltd
ABN 35 144 733 595	Quarter ended (“current quarter”)
35 144 733 595	31 December 2011

Consolidated statement of cash flows

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 (6 months) $A’000
	- (72) - - (271) - 83 - - -	- (297) - - (440) - 101 - - -
	(260)	(636)
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	(56) - (14) - - - - - -	(56) - (56) - - - - - -
	(70)	(112)
1.15 Total operating and investing cash flows (carried forward)	(330)	(748)

TELLUS RESOURCES LTD | QUARTERLY REPORT | DECEMBER 2011

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 2011

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1.15 Total operating and investing cash flows (brought forward)	(330)	(748)
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	(330) 3,286 -	(748) 3,704 -
	2,956	2,956

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
		94
		-
1.27	Explanation necessaryfor an understandingof the transactions
	Consulting fees: $69,000; and Directors fees: $25,000.

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.	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows	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 has an interest		the reporting entity
	Nil
3.1 Loan facilities 3.2 Credit standby arrangements		Amount available $A’000	Amount used $A’000
		-	-
		-	-

TELLUS RESOURCES LTD | QUARTERLY REPORT | DECEMBER 2011

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 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
	91
	-
	-
	223
	314

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)	44	18
	2,912	1,268
	-	-
	-	2,000
	2,956	3,286

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
	EL 7874 Upper Hunter	100%	-	100%

TELLUS RESOURCES LTD | QUARTERLY REPORT | DECEMBER 2011

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 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

TELLUS RESOURCES LTD | QUARTERLY REPORT | DECEMBER 2011

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 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: 24 January 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 | DECEMBER 2011

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