FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2013

Jan 30, 2014

==> picture [170 x 27] intentionally omitted <==

==> picture [170 x 26] intentionally omitted <==

ASX RELEASE

Tellus Resources Ltd is an Australianbased oil & gas and mineral exploration company with licences in South Australia, Queensland and New South Wales.

APPENDIX 5B QUARTERLY ACTIVITY REPORT TO 31 DEC 2013

HIGHLIGHTS

Directors:

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

Issued Shares:

146,902,147 ordinary shares

Tellus Resources Ltd

• Farmin to US/Utah oil play confirmed – Covenant Mondo Project.

• Pirie 1 well cased and suspended with a potential oil play in the Birkhead formation.

• Senex Energy Ltd (SXY) to drill a second well in PEL 105 at its cost.

• Messrs Robert Kennedy and Neil Young appointed to the Board.

• Successful capital raising with the placement of 11.719 million shares.

• Annual General Meeting was held in which all resolutions were passed.

ASX Code: TLU

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

Level 5, 70 Pirie Street

Adelaide, SA 5000

Website: www.tellusresources.com.au

Enquiries :

Carl Dorsch +61(0)400 508 088

Carl.Dorsch@tellusresources.com.au

==> picture [170 x 27] intentionally omitted <==

==> picture [170 x 26] intentionally omitted <==

OPERATIONS SUMMARY

FARMIN TO UTAH OIL PLAY – The Covenant Mondo Project

On 17[th] December, Tellus Resources Ltd (TLU or the “Company”) announced that it had signed a Participation Agreement with a private US company giving it rights to acquire up to an 83% participating interest and Operatorship in an exciting conventional oil-play located in Sevier County, Utah, named the Covenant Mondo Project ("CMP").

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.

The farm-in terms of the CMP agreement involve:

• Drilling two conventional wells at no cost to the owner, drilled to the lesser of 2,900m or 150m into the prolific Navajo sandstone, the top of which is expected at +/- 2,590m.

• The owner will retain a 17% participating interest in the leases after the 2 wells have been drilled.

• A promote fee payment to the owner.

PEL 105 – Cooper Basin, SA

As announced on 12 November 2013, the Pirie 1 well was cased and suspended in the top of the Nappamerri prior to reaching the primary Tirrawarra target. This followed well bore and other engineering problems which put the drilling program behind schedule.

Encouraging oil shows were seen in the Birkhead but commerciality was difficult to ascertain at the time. The Company remains keen to test the zone at a later date to demonstrate whether an economic reservoir exists.

As part of the farmin arrangement with SXY the operatorship and a 50% interest in the block was transferred to SXY following the rig release from Pirie 1. Following the drilling and rig release of a further well in the Permit to be drilled by SXY prior to 30 June 2014, at its sole cost and expense, interests in the block become:

TLU 30% SXY 70% (Operator)

==> picture [170 x 27] intentionally omitted <==

==> picture [170 x 26] intentionally omitted <==

The Company proceeded with three Petroleum Retention Licence (PRL) Applications over the licence area during the quarter. These are expected to be processed shortly and will give the joint venture long term tenure (15 years) over the licence area.

ATP 904P (TLU 100%)

The Company acquired a 100% working interest in ATP 904P in Queensland’s Surat Basin from Beach Energy Ltd (BPT). The transaction is subject to Ministerial approval, which has not yet been received. The Company expects further clarification on this approval process in the quarter ending 31[st] March 2014.

CHILLAGOE GOLD PROJECT, QLD (TLU 100%)

During the Quarter, the Company continued to work on the most effective strategy to maximise the value of its Chillagoe gold assets including the opportunity to negotiate with prospective suitable joint venture partners. No physical work was undertaken at Chillagoe in the quarter.

NEW SOUTH WALES EXPLORATION TENEMENTS (TLU 100%)

The Company did not undertake any material exploration activity on its New South Wales tenements in the quarter.

SHARE/OPTIONS ISSUES

On 10 December 2013, 7.5 million unlisted options were issued at an exercise price of $0.093 per option and exercisable on/before 31 December 2016.

On 17 Dec 2013, the Company advised also that it had reached agreement to place 14.285M shares at 7 cents per share, raising $1M from sophisticated investors. On 24 December 2013, 11.719 million shares were issued as part of the 14.285 million share placement.

PROSPECTUS

On 20 December 2013, a short form Prospectus was prepared for the purposes of Section 708A(11) of the Corporations Act to remove any trading restrictions on the sale of the placement shares issued above.

CORPORATE

Stephen Woodham resigned as a Non-Executive Director on 18 October 2013.

The Company held an Annual General Meeting on 20 November 2013 with all resolutions passed.

Mr Anthony Wehby, did not seek re-election as a Non-Executive Director and resigned at the conclusion of the AGM on 29 November 2013.

==> picture [170 x 27] intentionally omitted <==

==> picture [170 x 26] intentionally omitted <==

On 4 December 2013, the Company announced the appointment of Messrs Robert (Bob) Kennedy and Neil Young as Non-executive Directors of the Board. Mr Kennedy assumed the position of Chairman of the Board.

Richard Willson resigned as a Non-Executive Director on 5 December 2013.

The financials in the quarter include redundancy payments to the previous Managing Director and Sydney based staff of the Company.

==> picture [170 x 27] intentionally omitted <==

==> picture [170 x 26] 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”)
		31 December 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 (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 (6 months) $A’000
		- (4,672) - - (292) (211) - 6 - -	- (5,538) - - (924) (211) - 15 - -
		(5,169)	(6,658)
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		- - - - - 1,750 - - -	- - - - - 3,500 (197) - 19
		1,750	3,322
1.15 Total operating and investing cash flows (carried forward)		(3,419)	(3,336)

==> picture [170 x 27] intentionally omitted <==

==> picture [170 x 26] intentionally omitted <==

1.15 Total operating and investing cash flows (brought forward)	(3,419)	(3,336)
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	825 - - - - (28)	3,324 - - - - (230)
	797	3,094
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	(2,622) 3,515 -	(242) 1,135 -
	893	893

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
		273
		-
1.27	Explanation necessaryfor an understandingof the transactions
	1.25 - Directors fees / salary for the period and consultants fees paid to director related entities

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

==> picture [170 x 27] intentionally omitted <==

==> picture [170 x 26] intentionally omitted <==

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
	1,750
	-
	-
	250
	2,000

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)	424	1,959
	429	1,516
	-	-
	40	40
	893	3,515

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
	EL7877 EL 7874	During the quarter the Company submitted an Exploration Licence Renewal Application for approximately 50% of the existing EL’s 7874 and 7877, Upper Hunter and Niangala in NSW. As at the end of the reporting period, this Application was still being processed.	100% 100%	100% 100%
	Nil

==> picture [170 x 27] intentionally omitted <==

==> picture [170 x 26] 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	144,334,290	122,376,196
	31,495,368	31,495,368
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)	4,800,000 1,200,000 5,000,000 45,000,000 5,000,000 7,500,000	- - - - - -	Exercise price 30 cents 30 cents 25 cents Nil 20 cents 0.093 cents	Expiry date 31 Mar 2014 30 Apr 2014 25 Sep 2014 Tenure of MD 17 Sep 2017 31 Dec 2016
	7,500,000 - -	- -	0.093 cents	31 Dec 2016
	1,050,000	-

==> picture [170 x 27] intentionally omitted <==

==> picture [170 x 26] 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: Date: 31 January 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.