FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2014

Jul 28, 2014

29 July 2014

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ASX RELEASE 29 JULY 2014

Tellus Resources Ltd is an Australianbased oil, gas and mineral exploration company with licences in South Australia, Queensland and New South Wales. The Company has oil interests in Utah, USA as well.

Appendix 5B QUARTERLY ACTIVITY REPORT 30 June 2014

HIGHLIGHTS

Directors:

Robert Kennedy - Chairman Carl Dorsch - Managing Director Neil Young - Non-Executive Director

Issued Shares:

172,348,295 ordinary shares

Tellus Resources Ltd

ASX Code: TLU

T: +61 8 8100 9200 F: +61 8 8227 0544

Level 5, 70 Pirie Street, Adelaide, SA 5000

Website: www.tellusresources.com.au

• Site preparation at the Covenant Mondo Project (CMP) in Utah USA continued. Site will be ready to accept a drilling unit in August. The spud of the first well is planned for late in the third quarter.

• Tellus Resources Limited agreed to acquire a 25% interest (with a right to acquire up to an 80% interest) in a 10,000 kms2 onshore block in Madagascar.

• PEL 105 converted to 3 PRLs with up to 15 years tenure.

• Drilling of the second farm-out well in PEL 105, to be sole funded by Senex Energy Ltd, is scheduled for September 2014.

• A placement was made to sophisticated investors, raising $800,000.

• Minerals tenements in Queensland and New South Wales have been maintained in good standing and discussion on rationalization and optimization of these assets is continuing.

Enquiries :

Carl Dorsch, Level 5, 70 Pirie St., Adelaide SA 5081 +61(0)400 508 088 Carl.Dorsch@tellusresources.com.au

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OPERATIONS SUMMARY

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Site Preparation Covenant Mondo Project

US/UTAH OIL PLAY – COVENANT MONDO PROJECT

As reported in the Quarterly Report to 31 Dec 2013, Tellus Resources Ltd (“Tellus”or“the Company”) has acquired a participating interest in an exciting conventional oil-play located in Sevier County, Utah, named the Covenant Mondo Project ("CMP").

Blasting work for the drilling pad is complete and the site should be graveled and ready to accept a drilling unit in mid-August.

Spudding of the first well is scheduled for late in the third quarter this year.

CMP consists of two leases with a total area of approximately 3,900 acres held over private lands. The leases are located on the well-known "hingeline" overthrust structure in the Rocky Mountains which trends in a North Easterly direction from Arizona in the South right up into Canada. The overthrust belt has hosted a number of major oil discoveries including the massive Anschutz Ranch East field discovered by Amoco in 1979 as well as the recent (2004) discovery of the Covenant field located some 4 kms. immediately to the South West of CMP.

Tellus was to earn a 41% working interest in the CMP in exchange for the payment of past costs (already paid) and the payment of 50% of the costs of two exploration wells giving it a Net Revenue Interest of approx. 31% after Royalties to the land owner and other investors are paid.

Post the end of the Quarter, Tellus has agreed with the Operator to reduce its participating interest in the CMP to 25% which means it is now required to pay 30% rather than 50% of the cost of the two well farmin Project.

Tellus’ share of the estimated costs has been advanced to the Operator for the first well and construction of the second well pad.

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Block 3114 Madagascar

MADAGASCAR, MORONDAVA BASIN, BLOCK 3114

Tellus has acquired a 25% in t erest (with the right to acquire up to a 80% i n terest) in a drill ready onshore oil exploration asset of 10,000 kms2, located off the south-ea s t coast of Africa on the Island of Madagascar.

The vendor of the asset is ASX listed company Caravel Energy Ltd (CRJ).

Under the Sale Agreement Tel l us has agreed to acquire;

• (i) CRJ’s shareholdin g interest in PetroMad (Mauritius) Limited (Petr o Mad), being the company which o w ns a 100% interest in the Bezaha Oil project co n cession.

• (ii) All of CRJ’s rights a nd obligations under an agreement entered int o with the owner of the remaining 75% interest in PetroMad (and under which CRJ is entitled, subject to succes s ful completion of staged work programs, to earn up to 80% ownership interes t in PetroMad.)

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Consideration for this asset i s the issue of 85M Tellus shares of which 60 m illion are to be issued to CRJ and the other 25 million to certain nominated CRJ creditors.

CRJ is required to distribute the 60M shares to its own shareholders.

A parcel of shares will also be i ssued to Tellus’ corporate adviser on completio n .

Settlement is conditional on b o th Tellus and the vendor obtaining shareholde r approval and to that end Tellus will call an Extraordinary General Meeting this quarter.

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Hunt Rig No. 3

PEL 105

In the Quarter, the South A ustralian Department for Manufacturing, In n ovation, Trade, Resources and Energy (DMITRE) accepted a proposal to convert PEL 105 into 3 PRLs, PRL 108, 109 and 110, with an up to 15 year tenure.

Tellus received a proposal to d rill the second well in PEL 105 from the JV part n er Senex Energy Limited.

In an amended farmin agre e ment SXY has agreed to drill the second w e ll by or on 30 September 2014.

Tellus will be fully carried through this well (with no dollar cap) and thereafter will retain a 30% interest in the three PRLs.

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MINERALS PERMITS

During the Quarter, the Company maintained its various minerals permits in Queensland and New South Wales in good standing.

Discussions and negotiations with various parties on the optimization and rationalisation of these assets is well advanced and Tellus intends to make an announcement in the near future concerning these.

CORPORATE

During the quarter, Tellus announced it had made a placement of fully paid shares and unlisted options to sophisticated investors, raising $800,000.

Contemporaneous with the Madagascar transaction outlined above, on 6 June 2014, Tellus entered into three loan agreements to borrow a total of $550,000, which the Company intends to repay from a forthcoming R&D claim from the ATO, expected in the next few months.

On 30 April 2014, 1,200,000 unlisted options expired.

On 6 June 2014 Tellus announced the retirement of Mr Ben Salmon from the Board of Directors.

In the quarter, Tellus changed its provider of Share Registry Management Services from Boardroom to Computershare.

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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 June 2014
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 (e) redundancy payments 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
		- (576) - - (345) - - 4 - -	- (6,976) - - (1,624) (211) - 22 - -
		(917)	(8,789)
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 (d) disposal of interest in PEL 105 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (Cash on hand of PNC Aust Pty Ltd upon acquisition on 23 Aug 2013) Net investing cash flows		- - - - - - - - - -	- - - - - - 3,500 (197) - 19
		-	3,322
1.15 Total operating and investing cash flows (carried forward)		(917)	(5,467)

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1.15 Total operating and investing cash flows (brought forward)	(917)	(5,467)
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	800 - 550 - - (98)	4,563 - 550 - - (387)
	1,252	4,726
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	335 59 -	(741) 1,135 -
	394	394

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
		104
		-
1.27	Explanation necessaryfor an understandingof the transactions
	1.25 - Directors fees / salary for the period and consultants fees paid to director related entities 1.26 - Loan payments from Tellus Resources Ltd (Tellus) to PNC Aust Pty Ltd (PNC) prior to acquisition of PNC by Tellus on 23 August 2013.

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

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29 July 2014

Financing facilities available

Add notes as necessary for an understanding of the position.

• 3.1 Loan facilities 3.2 Credit standby arrangements

	Amount available	Amount used
	$A’000	$A’000
	550	550
	-	-

Estimated cash outflows for next quarter

• $A’000

• 4.1 Exploration and evaluation 50 4.2 Development - 4.3 Production - 4.4 Administration 250 Total 300

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.

• 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)

	Current quarter	Previous quarter
	$A’000	$A’000
	394	54
	-	5
	-	-
	-	-
	394	59

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
EPM25193 EPM25230	West Wandoo Bolwarra	0% 0%	100% 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.

	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	168,099,767	146,141,673
	13,333,332	13,333,332
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 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)	2,000,000 6,666,666 5,000,000 45,000,000 6,500,000 7,500,000	- - - - - -	Exercise price 20 cents 10 cents 25 cents Nil 20 cents 0.093 cents	Expiry date 5 Mar 2018 31 Dec 2015 25 Sep 2014 Tenure of MD 17 Sep 2017 31 Dec 2016
	6,666,666 - 1,200,000	- -	10 cents 30 cents	31 Dec 2015 30 Apr 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: Date: 29 July 2014

George Yatzis 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.