FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2014

Apr 29, 2014

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ASX RELEASE

31 March 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 31 March 2014

HIGHLIGHTS

Directors:

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

Issued Shares:

154,766,435 ordinary shares

Tellus Resources Ltd

ASX Code: TLU

T: +61 8 8100 9200 F: +61 8 8223 3235

• Preparatory work at the Covenant Mondo Project (CMP) in Utah USA advanced with the first well expected to spud in the current quarter.

• Drilling of the second farm-out well in PEL 105, to be sole funded by Senex Energy Ltd (SXY), is also scheduled for the current quarter.

• A General Meeting was held at which all resolutions were passed.

• Post the end of the quarter, a placement was made to sophisticated investors, raising $1M.

• Minerals tenements in Queensland and New South Wales have been maintained in good standing and progress has been made on divestment of Queensland assets.

Level 5, 70 Pirie Street, Adelaide, SA 5000

Website: www.tellusresources.com.au

Enquiries :

Carl Dorsch,

Level 5, 70 Pirie St.,

Adelaide SA 5000 +61(0)400 508 088

Carl.Dorsch@tellusresources.com.au

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OPERATIONS SUMMARY

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).

Preparation for drilling the first of two wells is well advanced with spud of the first well expected in May or June 2014.

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 will earn a 41.67% working interest in the CMP, post farm-in, in exchange for the payment of past costs (already paid) and the payment of 50% of the costs of two exploration wells.

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Hunt Rig No. 3

PEL 105

The Company received a proposal to drill the second well in PEL 105 from the JV partner.

The well is expected to be spudded in the current quarter ending 30 June 2014.

Tellus will be fully carried through this well (with no dollar cap) and thereafter will retain a 30% interest in PEL 105. This exploration permit is currently being converted into three fifteen year retention leases.

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ATP 904P

PNC AUST Pty Ltd (PNC) , a wholly owned subsidiary of Tellus purchased 100% of ATP 904P, subject to Ministerial approval, as part of the Sale and Purchase Agreement on 30 April 2013 with Deka Resources Pty Ltd and Well Traced Pty Ltd. (Both wholly owned subsidiaries of Beach Energy Ltd (Beach) )

Despite extensive negotiation between the Queensland Department of Natural Resources and Mines (DNRM) , Beach and the Company, the Minister indicated that, as the Permit was not in substantial compliance, Ministerial approval was very unlikely to be granted.

Consequently, Beach notified the DNRM that it wished to relinquish the whole area of the Permit. The DNRM subsequently advised Beach that ATP 904P has been relinquished effective 24 January 2014.

Tellus and Beach remain in discussions over an alternative deal.

MINERALS PERMITS

During the Quarter, the Company maintained its various minerals permits in Queensland and New South Wales in good standing. Negotiations are well advanced with respect to the divestment of its Queensland permits and the Company expects to close a deal thereon in the next few months.

CORPORATE

The Company held a General Meeting on 26 February 2014 to address various corporate matters. All resolutions put thereto were overwhelmingly passed.

Post the end of the quarter, Tellus announced it had made a placement of shares to sophisticated investors, raising $1M.

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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”)
		31 March 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 (9 months) $A’000
		- (862) - - (355) - - 3 - -	- (6,400) - - (1,279) (211) - 18 - -
		(1,214)	(7,872)
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)		(1,214)	(4,550)

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1.15 Total operating and investing cash flows (brought forward)	(1,214)	(4,550)
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	439 - - - - (59)	3,763 - - - - (289)
	380	3,474
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	(834) 893 -	(1,076) 1,135 -
	59	59

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 the parties included in item 1.10	Current quarter $A'000
		133
		-
1.27	Explanation necessary for an understanding of 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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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
	-	-
	-	-
Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration Total	$A’000
	1,200
	-
	-
	300
	1,500

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)	54	424
	5	429
	-	-
	-	40
	59	893

Changes in interests in mining tenements

6.1Interests 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 EL7877 EL7698	Relinquished Relinquished Relinquished	100% 100% 100%	0% 0% 0%
	American Gypsum & U.S. Gypsum Oil & Gas Leases EPM25253 EPM19803	JV - CMP Project Chillagoe Gold Project Chillagoe Gold Project	0% 0% 0%	50% 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	154,766,435	132,808,341
	10,432,145	10,432,145
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 1,200,000 5,000,000 45,000,000 6,500,000 7,500,000	- - - - - -	Exercise price 20 cents 30 cents 25 cents Nil 20 cents 0.093 cents	Expiry date 5 Mar 2018 30 Apr 2014 25 Sep 2014 Tenure of MD 17 Sep 2017 31 Dec 2016
	1,500,000 2,000,000 - 4,800,000	- -	20 cents 20 cents 30 cents	17 Sep 2017 5 Mar 2018 31 Mar 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: 30 April 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.