FMR RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

JUNE 2012

QUARTERLY ACTIVITIES REPORT

31 July 2012

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HIGHLIGHTS

• Management continues focus on acquisition of additional projects.

• Extension of the Youanmi Greenstone Belt confirmed along with anomalous gold on a mafic-granite contact.

• Deep diamond hole at Golden Mile South completed.

• First instalment of DMP funding received.

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, prospective joint venture partners and the completion of two exploration programs at Golden Mile South and Barlee.

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 over $2m in cash, we are well positioned in this market. Updates on our progress will be provided if/when tenure is secured.

Results of Barlee program

The recent RAB program confirmed the extension of the Youanmi Greenstone Belt along the southwest margin of the Company’s tenements. The results indicate that the greenstone occurs as enclaves or selvedges within granite and may be more confined than the original geophysical interpretation. Due to the penetration depth of the RAB holes, the extent of the greenstone could not be fully established. It is therefore possible that the subsurface extent of the greenstone is more widespread and correlates better with the geophysical results.

Anomalous gold results (>10ppb) associated with granite were established immediately adjacent to holes that intersected greenstone. The mafic–granite contact appears structurally controlled and these structures may have acted as fluid pathways for the gold mineralising fluids.

There is potential for the presence of zones of mineralization between the current drill holes. This is due to the poorly developed weathering profile and the wide spacing (200m) of the drill holes containing anomalous gold.

Table 1: Anomalous Gold Results

Hole_ID	East	**North **	RL	Dip	Date Completed	**Depth **	Au ppb (EOH)	Au_ppb (Max)	EOH Geology
12LBR034	677,200	6,790,000	500	-90	26/04/2012	25	63	63	Granite
12LBR047	677,200	6,786,500	500	-90	26/04/2012	11	<1	13	Felsic Intrusive - Aplite?

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GMS deep diamond hole

The Company completed drilling of a deep diamond hole at its Golden Mile South Project. The drill hole was designed to test for extensions of the famous “Golden Mile” of Kalgoorlie and to provide stratigraphic information to assist with further exploration.

The hole was completed on schedule and drilled to a vertical depth of 1000m (~1100m downhole) and was targeting the Golden Mile Dolerite, host to the 70 million oz Kalgoorlie Super Pit gold deposit. The drill hole passed through the modelled target but did not hit the Golden Mile Dolerite or any other noteworthy magnetic source to account for the magnetic anomaly identified by the geophysical work. There are several possibilities as to why a significant magnetic source/Golden Mile Dolerite was not intersected and these include, but are not limited to:

1. The magnetic target was deeper than modelled and the drillhole passed over the target;

2. The magnetic anomaly does not have the down dip extent that has been modelled and the drillhole passed beneath the target; or

3. The magnetic anomaly is actually dipping to the east and was drilled sub-parallel to the body.

Orrex has completed a downhole 3D magnetic survey which will provide information to assist in sorting through this discrepancy, and determining the position of the source of the magnetic anomaly. Its ultimate position will lend support to whether it represents a target for gold mineralisation at a viable economic extraction depth.

Preliminary results indicate that the drill hole intersected a thick sequence of felsic to intermediate volcaniclastics of the Black Flag Formation, ranging from crystal rich tuff units through to volcaniclastic conglomerates/breccias with sub-rounded to sub angular clasts up to 150mm diameter. The target horizon was not intersected and the interpreted greenstone, beneath the Black Flag Formation was not intersected.

A number of alteration zones within the volcaniclastic sequence were observed within the drill hole including:

• 61.1 - 72.65 meters. Zone of weak to moderate carbonate alteration with associated quartz veining and a trace of disseminated pyrite.

• 84.9 - 88.8 metres. Weak to moderate carbonate (sericite?) alteration.

• 109.1 - 113.95m. Moderate to strong carbonate, sericite alteration with quartz veins up to 100mm thick.

• 175.3 - 196.66 metres. Zone of moderate carbonate(?) alteration. No associated quartz veining was observed.

• 323.6 - 343.7 metres. Zone of mostly weak to moderate, carbonate alteration with associated quartz veining and disseminated pyrite to 1%.

• 451.65 - 484.8 metres. Zone of mixed carbonate and epidote (+albite?) alteration with disseminated pyrite present up to 1%. An increase in quartzcarbonate veins as a sheeted stockwork was also observed in this zone.

Assay results for all of the initial sampling have been returned with no significant gold returned with all values below detection.

The first instalment from the State of WA, acting through the Department of Mines & Petroleum under the Exploration Incentive Scheme, has been received. The board and management of Orrex are grateful for the funding which provided an opportunity for the Company to test the Golden Mile Dolerite target.

Substantial progress has been made at Golden Mile South and the project requires more aggressive exploration to unlock its potential value.

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

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr John Bartlett, who is a Member of The Australasian Institute of Mining and Metallurgy. He has sufficient experience which is relevant to the style of mineralisation and type of deposits 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 Bartlett consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

2

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

	Orrex Resources Ltd	Orrex Resources Ltd
	ABN 29 107 371 497 Consolidated statement of cash flows
			30 June 2012
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 (...12....months) $A’000
		(422) (107) 37		(840) (456) 158 5
		(492)		(1,133)
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)				(20)
		‐		(20)
		(492)		(1,153)

• 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)	(492)	(1,153)
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	‐	(19)
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	(492) 2,515	(1,171) 3,195
	2,023	2,023

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 • Received$112k afteryear end

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
	100
Total	250

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)	13 2,010	40
		2,475
Total: cash at end of quarter(item 1.22)	2,023	2,515

• 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

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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs	36,685,000	22,245,000
7.5 +Convertible debt securities (description)

• See chapter 19 for defined terms.

Appendix 5B

30/9/2001

Appendix 5B

Mining exploration entity quarterly report

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7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options Exercise price Expiry date
(description and
conversion 5,000,000 $0.30 12 April 2015
factor) 15,529,783 $0.25 30 November 2012
7.8 Issued during
quarter
7.9 Exercised
during quarter
7.10 Expired during
quarter
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
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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 4).

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

31/7/2012 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

• See chapter 19 for defined terms.

Appendix 5B

30/9/2001

Appendix 5B Mining exploration entity quarterly report

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.

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• See chapter 19 for defined terms.

Appendix 5B

30/9/2001