FOCUS MINERALS LTD — Interim / Quarterly Report 2008

Jul 30, 2008

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Name of entity

Name of entity
FOCUS MINERALS LIMITED
ACN or ARBN 56 005 470 799	Quarter ended (“current quarter”)
56 005 470 799	30 June 2008

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 and evaluation (b) development (c) production (d) suppliers (e) administration (f) mill care & maintenance (g) royalties paid 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
	2,125 (4,440) (1,557) (1,831) - (759) (19) (76) - 253 (230) - 90	2,346 (11,097) (2,297) (1,831) (424) (1,793) (355) (76) - 671 (237) - 209
	(6,020)	(14,460)
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)	(27,290) - (1,663) - - - - - -	(27,295) - (2,214) - - 525 - - -
	(28,953)	(28,984)
	(34,973)	(43,444)

• See chapter 19 for defined terms.

1/7/2000

1.13 Total operating and investing cash flows (brought forward)	(34,973)	(43,444)
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 - share issue costs Net financing cash flows	25,700 - 13,250 - - (1,062)	25,700 - 13,250 - - (1,149)
	37,888	37,801
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	2,915 4,447 -	(5,643) 13,005 -
	7,362	7,362

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

1.23 1.24	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	Current quarter $A'000
			134
			-
1.25 Explanation necessary for an understanding of the transactions Directors’ fees, executive director salaries and superannuation payments. 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 During the quarter, the Company issued an 8.25%pa A$2,000,000 convertible note to Committee Bay Resources (CBR) as part of the settlement on the acquisition of CBR’s 50% interest in the Redemption Joint Venture. 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest N/A		Explanation necessary for an understanding of the transactions
		Directors’ fees, executive director salaries and superannuation payments.
	During the quarter, the Company issued an 8.25%pa A$2,000,000 convertible note to Committee Bay Resources (CBR) as part of the settlement on the acquisition of CBR’s 50% interest in the Redemption Joint Venture.
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest
	N/A

• See chapter 19 for defined terms.

Appendix 5B Page 2

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Contingent Instrument Facility arrangements	Amount available $A’000	Amount available $A’000	Amount used $A’000
	17,000		13,250
	1,650		-
Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development			$A’000
			1,500
			900
Total			2,400

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 (Secured term deposit for performance bonds) 5.4 Term deposit held on behalf of Joint Venture Partner	1,393	378
	4,208	3,184
	-	-
	1,761	1,737
	-	(852)
Total: Cash at end of quarter(item 1.22)	7,362	4,447

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 of quarter	Interest at end of quarter
	-	-	-	-
	-	Balance of Joint Venture interest in tenements held by the Redemption Joint Venture.	50%	100%

• See chapter 19 for defined terms.

1/7/2000

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) (cents)	Amount paid up per security (see note 3) (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 Settlement of JV acquisition Placement Share Purchase Plan #- In voluntary escrow until 30 April 2009. (b) Decreases through returns of capital, buy-backs	1,246,143,210	1,246,143,210
	140,000,000 254,545,455 72,772,769	140,000,000# 254,545,455 72,772,769
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	8.25% convertible note exercisable on 30 April 2009. Conversion to shares at 7.5 centsper share.	-	$2,000,000
7.7 Options (description and conversion factor) Total options on issue 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	3,000,000 2,140,000 2,140,000 2,140,000 4,925,000 4,925,000 40,000,000 59,270,000	- - - - - - -	Exercise price 5.04 cents 12.0 cents 14.5 cents 17.5 cents 5.0 cents 6.0 cents 6.875 cents	Expiry date 31/7/2008 06/12/2009 06/12/2009 06/12/2009 30/11/2010 30/11/2010 30/4/2011
	40,000,000		6.875 cents	30/4/2011
	Nil
	Nil
7.11 Debentures(totals only)	Nil
7.12 Unsecured notes(totals only)	Nil

Compliance statement

• See chapter 19 for defined terms.

Appendix 5B Page 4

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).

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

Sign here: Date: 31 July 2008 (Company Secretary)

Print name:

Jon Grygorcewicz

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.

1/7/2000