FMR RESOURCES LIMITED — Interim / Quarterly Report 2012

Apr 26, 2012

MARCH 2012

QUARTERLY ACTIVITIES REPORT

27 April 2012

==> picture [183 x 105] intentionally omitted <==

==> picture [490 x 72] intentionally omitted <==

HIGHLIGHTS

• Commenced exploration program at Barlee to test extension of Youanmi Greenstone Belt

• Completed work required to initiate the deep diamond hole at Golden Mile South targeting the Golden Mile Dolerite, host rock to the Super Pit

• Focussed on evaluation and acquisition of new projects to expand and diversify the Company’s project portfolio

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 preparation of two exploration programs for the second quarter at Golden Mile South and Barlee.

Barlee Project

Geophysical work recently conducted at Barlee indicated that the Youanmi Greenstone Belt may extend along the western margin of the Company’s tenements. To test this, we have commenced a RAB program (up to 2500m) and expect to receive results at the end of May.

The Youanmi Greenstone Belt is host to major gold and VMS deposits, including the Youanmi Mine (recorded total production and resources of approximately 1.5 Moz Au), the Penny West deposit (recorded production of approximately 150 koz at ~18g/t), the Yuinmery Cu-Au deposit and the Manindi Zinc deposit.

Golden Mile South Project

Orrex has identified a target prospective for the Golden Mile Dolerite. 3-D inversion modelling indicates the presence of a WSW dipping unit trending SE from the Super Pit and under the Golden Mile South tenements. This will be tested with a deep diamond drill hole and Orrex will receive up to $150,000 in State funding to assist with the cost of this hole. During this quarter, Orrex has finalised details required to commence the hole in the second quarter.

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

Review and Evaluation of Projects

Management has continued to focus on acquiring an advanced stage project for the Company. We are looking at projects overseas and in Australia which would complement our current project portfolio and with deal structures which will maintain the strong capital structure and cash position of the Company.

==> picture [105 x 43] intentionally omitted <==

We are continuing to strive to add value to the Company and look forward to further progress over the next few months through both exploration and potential new projects

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.

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	31 March 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 (...9....months) $A’000
	(45) (96) 49 5	(418) (349) 121 5
	(87)	(641)
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)
	(87)	(661)

• 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)	(87)	(661)
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)	(19)
	(19)	(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	(106) 2622	(680) 3196
	2516	2516

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 69 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	69
		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
	400
	125
Total	525

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)	40 2,476	72
		2,550
Total: cash at end of quarter(item 1.22)	2,516	2,622

• 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

==> picture [462 x 321] intentionally omitted <==

----- Start of picture text -----

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)
----- End of picture text -----

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.

27 April 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.

= == == == ==

• See chapter 19 for defined terms.

Appendix 5B

30/9/2001