FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2013

Jul 30, 2013

ASX ANNOUNCEMENT ‐ 31 JULY 2013

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

ASX RELEASE

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

QUARTERLY ACTIVITIES REPORT JUNE 2013

Tellus purchased The Chillagoe Gold Project in 2012 which includes Exploration Permits covering a combined area of ~57,411 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. This has resulted in an agreement to acquire PNC Aust Pty Ltd which holds oil and gas assets in the Cooper & Surat Basin.

Directors/Officers:

Anthony Wehby Stephen Woodham Richard Willson Ben Salmon Anne Adaley

Issued Shares and Options:

44,380,555 shares 6,000,000 unlisted options

HIGHLIGHTS

• Agreement to acquire PNC Aust Pty Ltd (PNC). PNC has a 50% interest in PEL105 in the Cooper Basin and the right to purchase a 100% interest in ATP904P in the Surat Basin. PNC has also agreed to acquire the remaining 50% interest in PEL 105.

• Extensive due diligence completed on PNC Aust Pty Ltd including site visits to PEL105 and ATP904P.

• Shareholder approval received in July for the acquisition of PNC.

• Strategies pursued to maximise value of Chillagoe Gold Assets.

• Tenement application at Chillagoe adjacent to King Vol Mining Leases.

PROPOSED ACQUISITION OF PNC AUST PTY LTD

The Company announced on 30 April 2013 that it had signed a share sale and purchase agreement to acquire a private company, PNC Aust Pty Ltd ( PNC ). PNC has a 50% interest in PEL105, a prospective wet gas project in the Cooper Basin, South Australian. PNC also has the right to purchase a 100% interest in ATP904P in the Surat Basin subject to ministerial approval.

In addition, during the June quarter PNC reached agreement to acquire the remaining 50% interest in PEL 105 from Austin Exploration Limited (AKK). Owning 100% of PEL105 will allow greater flexibility and puts the Company in a better position to realise opportunities.

On July 10, at a General Meeting, Tellus shareholders approved all resolutions including the acquisition by Tellus of 100% of the shares in PNC.

The Company is required to raise a minimum of A$2,000,000 as a condition of the Acquisition of PNC. The Company is currently undertaking a capital raising to raise up to A$5,000,000 via a placement. These funds will be used to fund drilling of PEL 105, geophysics at ATP 904P and working capital.

Tellus Resources Ltd

ASX Code: TLU

T: +61 2 9231 6231 F: +61 2 9231 6687

TELLUS RESOURCES LTD ‐ Quarterly Activities & Cashflow Report ‐ June 2013

1

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

Mr Carl Dorsch, who is the current sole director of PNC, will be appointed as Managing Director of the Company from completion of the acquisition of PNC. Mr Dorsch brings 35 years of Australian and international experience in the hydrocarbon sector. Mr Dorsch has a proven track record of sourcing and identifying quality acreage positions in proven low risk basins with low entry costs.

Summary of PNC Aust Pty Ltd Oil & Gas Assets

Permit	PEL 105	ATP 9042
Basin	Cooper	Surat
Location	Sth Australia	Qld
Equity interest	100% 1	100% 2
Size	219.6 km	1,101.2 km 2
Play Type	Wet gas	Oil
Comments	Conventional with unconventional deep coal gas play	Conventional with CBM/deep shale gas prospectivity

1 50% now and 50% to be purchased from AKK Ltd for either $1.25M or $1.75M Tellus scrip by 30 September 2013

2 PNC have the legal right to purchase ATP904 subject to ministerial approval

NOTE : Tellus (via 100% owned PNC Aust Pty Ltd) will be the operator of all projects

Tellus sees PNC as a significant oil and gas opportunity particularly to secure a noteworthy interest in the Cooper Basin. The Cooper Basin has attracted recent investment from major oil and gas corporations including BG and Chevron and mid tier companies such as Santos, Senex Energy, Beach Energy & Drillsearch Energy. Australia provides a low risk and established industry with access to existing infrastructure and it is starting to be recognized for its unconventional potential. Australia is also hydrocarbon liquids short which makes PEL 105 an attractive investment.

TELLUS RESOURCES LTD ‐ Quarterly Activities & Cashflow Report ‐ June 2013

2

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

CHILLAGOE GOLD PROJECT, QLD (TLU 100%)

During the June Quarter, the Company has been working on the most effective strategy to maximise the value of the Chillagoe gold assets including the opportunity to negotiate with prospective suitable joint venture partners.

A tenement application (EPM25253) was lodged during the June Quarter to complement the existing Chillagoe Gold Project portfolio. The new application covers a 4km long north‐south structure within the Palmerville Fault Zone and lies within 100m of the King Vol Mining Leases which contains a current Inferred Resource of 1.97Mt @ 14% Zn, 1.1% Pb, 0.9% Cu, 43g/t Ag. King Vol lies on the intersection of this structure and part of the north‐west oriented Palmerville Fault (figure 1).

Base metal ‘lodes’ at Griffiths Hill and Mungana to the south‐east form as part of large Intrusive Related Gold Deposits (IRG). King Vol is likely to be no exception, the zinc lodes are probably one component of a much larger IRG system. A significant gold deposit at King Vol is yet to be discovered.

The north‐south dilation zone in EPM25253 immediately south of King Vol has the structural complexity and proximity to be the likely position for the source intrusive(s) and gold component of the King Vol IRG system.

==> picture [214 x 214] intentionally omitted <==

==> picture [214 x 215] intentionally omitted <==

Figure 1 – Left = EPM25253 Location relative to King Vol MLs (in green) Right = EPM25253 overlayed on regional RTP 1VD magnetics

King Vol is host within the carbonates of the Chillagoe Formation, the north‐south structure to the south of King Vol is developed within the Pratt Volcanics. Work completed by Tellus on the Chillagoe Gold Project has demonstrated that gold deposits within the Chillagoe Area developed outside of the limestones, are likely to be identified easily as areas of large arsenic soil anomalies; well represented at Tellus’ Wandoo and Empire Prospects.

TELLUS RESOURCES LTD ‐ Quarterly Activities & Cashflow Report ‐ June 2013

3

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

Review of open file reporting from two previous explorers Kagara (XRF Soils) and Kennecott has identified some soil sampling to date within EPM25253 highlighting significant arsenic anomalism associated with the north‐south structure, neither datasets were analysed for gold (figure 2).

==> picture [329 x 228] intentionally omitted <==

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

Kennecott (1981)
Kagara XRF
----- End of picture text -----

Figure 2 – Open File Soil Arsenic Anomalism

Available Funds

• At 30 June 2013 the Company had available cash totaling $1.135 M.

Shareholder Information

As at 30 June 2013, the issued capital comprised of 44,380,555 ordinary fully paid shares (ASX code: TLU) held by 328 holders with the top 20 shareholders holding 61.276% of the total issued capital.

OUTLOOK

During the September Quarter, the completion of the purchase of PNC Aust Pty Ltd will continue with a capital raising to be undertaken to fund the drill ready prospect of Pirie 1 as well as undertaking a geophysical survey at ATP 904 in the Surat Basin and to provide working capital to the Company.

The company will continue to work on strategies to extract maximum value from the company's highly prospective gold assets.

TELLUS RESOURCES LTD ‐ Quarterly Activities & Cashflow Report ‐ June 2013

4

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

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 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.

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.

TELLUS RESOURCES LTD ‐ Quarterly Activities & Cashflow Report ‐ June 2013

5

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

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 June 2013
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 (12 months) $A’000
		- (25) - - (538) - 11 - - 1	- (470) - - (1,380) - 80 - - 1
		(551)	(1,769)
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		(5) - - - - - (250) - -	(25) - - - - - (700) - -
		(255)	(725)
1.15 Total operating and investing cash flows (carried forward)		(806)	(2,494)

TELLUS RESOURCES LTD ‐ Quarterly Activities & Cashflow Report ‐ June 2013

6

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

1.15 Total operating and investing cash flows (brought forward)	(806)	(2,494)
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	(806) 1,941 -	(2,494) 3,629 -
	1,135	1,135

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
		93
		-
1.27	Explanation necessaryfor an understandingof the transactions
	Directors fees /salary for the period: $93,000

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
	-	-
	-	-

TELLUS RESOURCES LTD ‐ Quarterly Activities & Cashflow Report ‐ June 2013

7

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

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
	25
	-
	-
	240
	265

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)	14	17
	1,081	1,884
	-	-
	40	40
	1,135	1,941

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
	EL7699 Glen Morrison	During the March Quarter the Company submitted an Exploration License Renewal Application for 50% of the existing EL7699. The application was approved during the June Quarter; EL7699 has been renewed until 16th February 2016.	100%	100%
	EPM25253	100%	0%	100%

TELLUS RESOURCES LTD ‐ Quarterly Activities & Cashflow Report ‐ June 2013

8

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

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- back	44,380,555	38,825,000
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
	1,050,000	-

TELLUS RESOURCES LTD ‐ Quarterly Activities & Cashflow Report ‐ June 2013

9

==> picture [169 x 27] intentionally omitted <==

==> picture [169 x 27] intentionally omitted <==

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:

==> picture [77 x 22] intentionally omitted <==

Date: 31 July 2013

Anne Adaley

Company Secretary

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 Activities & Cashflow Report ‐ June 2013

10