FMR RESOURCES LIMITED — Interim / Quarterly Report 2013

Oct 28, 2012

SEPTEMBER 2012

QUARTERLY ACTIVITIES REPORT

29 October 2012

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OPERATIONS REPORT

Overview

Orrex operates as a mineral explorer in Western Australia and has two gold exploration projects, the Golden Mile South Project and the Barlee Project. The Golden Mile South Project is located in the heart of the Kalgoorlie region with potential for discovery of various styles of large gold deposits similar to those of the Eastern Goldfields. The Barlee Project is located in the Central Yilgarn Craton and is comprised of greenfields exploration terrain with potential for gold and base metal deposits. Orrex management is also reviewing further projects in Australia and overseas to add to its project portfolio.

During this quarter, we have been focussed on the evaluation of new projects.

New projects

Management has continued to focus on acquiring additional projects for the Company. We have looked at numerous projects and are only pursuing those projects which we believe will add value to Orrex. We are primarily focussed on Australia, South America and Africa with applications and tenders made for a number of prospects in southern Africa. These were based on project generative analysis, historical data research and strong in-continent contacts. With close to $2m in cash, we are well positioned in this market. Updates on our progress will be provided if/when tenure is secured.

We are continuing to strive to add value to the Company and look forward to further progress over the next few months.

For further information please contact:

Managing Director Sonja Felderhof Office: +61 8 9486 4862 Email: sonjaf@orrexresources.com

Company Secretary Jonathan Asquith Office: +61 8 9486 4862 Email: jasquith@orrexresources.com.

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10. Name of entity
Orrex Resources Ltd
ABN 29 107 371 497	Quarter ended (“current quarter”)
29 107 371 497	30 September 2012

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 & 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 (...3....months) $A’000
	102 (118) (32) 21 3	102 (118) (32) 21 3
	(24)	(24)
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 1.13 Total operating and investing cash flows (carried forward)
	‐	‐
	(24)	(24)

• See chapter 19 for defined terms.

Appendix 5B

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(24)	(24)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows
	‐	‐
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(24) 2,013	(24) 2,013
	1,989	1,989

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter $A'000 83 None

related entities	related entities
		Current quarter $A'000
1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	83
		None
1.25	Explanation necessaryfor an understandingof the transactions
	• Includes directors fees, managing director’s salary and superannuation

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

• 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

• See chapter 19 for defined terms.

Appendix 5B

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

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	$A’000
	150
	50
Total	200

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 Bank overdraft 5.4 Other (provide details)	39 1,950	13
		2,000
Total: cash at end of quarter(item 1.22)	1,989	2,013

• See chapter 19 for defined terms.

Appendix 5B

30/9/2001

Appendix 5B Mining exploration entity quarterly report

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 (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	E57/815, E57/816, E57/822, E57/879	90% interest – partial surrender of blocks as per legislative requirement and as per results of exploration work	90%	90%
	P26/3825 P26/3826 P26/3827 P26/3828 P26/3863 P26/3864 P26/3865 P26/3866 P26/3867 P26/3868 P26/3869 P26/3870 P26/3871 P26/3872	100% beneficial interest 100% beneficial interest 100% beneficial interest 100% beneficial interest 95% beneficial interest 95% beneficial interest 95% beneficial interest 95% beneficial interest 95% beneficial interest 95% beneficial interest 95% beneficial interest 95% beneficial interest 95% beneficial interest 95% beneficial interest	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%	100% 100% 100% 100% 95% 95% 95% 95% 95% 95% 95% 95% 95% 95%

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 note3) (cents)	Amount paid up per security (see note3) (cents)
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	36,685,000	22,245,000

• See chapter 19 for defined terms.

Appendix 5B

30/9/2001

Appendix 5B

Mining exploration entity quarterly report

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	5,000,000 15,529,783		Exercise price $0.30 $0.25	Expiry date 12 April 2015 30 November 2012
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

Appendix 5B

30/9/2001

Appendix 5B Mining exploration entity quarterly report

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 4).

• 2 This statement gives a true and fair view of the matters disclosed.

29/10/2012 Sign here: ............................................................ Date: ............................ (Director/Company secretary)

Print name: ..........Jonathan Asquith...............................................

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 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting 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.

• = == == == ==

• See chapter 19 for defined terms.

Appendix 5B

30/9/2001