FOCUS MINERALS LTD — Interim / Quarterly Report 2009

Oct 26, 2009

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

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98. Name of entity
FOCUS MINERALS LIMITED
ACN or ARBN 56 005 470 799	Quarter ended (“current quarter”)
56 005 470 799	30 September 2009

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) 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 OperatingCash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	7,886 (714) (275) (5,449) - (776) (153) - 103 (204) - 195	7,886 (714) (275) (5,449) - (776) (153) - 103 (204) - 195
	613	613
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)	- (200) (12,607) - 130 - - - -	- (200) (12,607) - 130 - - - -
	(12,677)	(12,677)
	(12,064)	(12,064)

• See chapter 19 for defined terms.

1/7/2000

1.13 Total operating and investing cash flows (brought forward)	(12,064)	(12,064)
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 financingcash flows	- - - (4,270) - -	- - - (4,270) - -
	(4,270)	(4,270)
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	(16,334) 20,516 -	(16,334) 20,516 -
	4,182	4,182

Note – At 30 September 2009 the Company held gold metal stocks and gold in circuit totalling 3,613 ozs with a realisable value of A$3.95 million. During October 2009, 1,200 ozs has been delivered into forward gold contracts and 1,500 ozs has been sold at spot gold prices.

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	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
		68
		-
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 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	N/A
	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 –note 1 below 3.2 Contingent Instrument Facility arrangements	Amount available $A’000	Amount used $A’000
	4,250	4,250
	1,650	1,180

Note 1 – Secured bank facilities totalled A$3.75 million with repayment due 31 December 2009. Unsecured debt totalled A$500,000 with repayment due in monthly instalments and fully repaid on 30 November 2009.

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	1,500
	2,500
Total	4,000

Reconciliation of cash

4.1 Exploration and evaluation 4.2 Development Total Reconciliation of cash		$A’000 1,500 2,500 4,000
Reconciliation of cash at the end of the quarter (as shown in	Current quarter	Previous quarter
the consolidated statement of cash flows) to the related items	$A’000	$A’000
in the accounts is as follows.
5.1 Cash on hand and at bank	1,454
5.2 Deposits at call	2,728
5.3 Bank overdraft	-
5.4 Other (Secured term deposit for performance bonds)	765
Total: Cash at end of quarter(item 1.22)	4,947

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
	-	-	-	-
	-	-	-	-

• 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 (b) Decreases through returns of capital, buy-backs	2,646,143,210	2,646,143,210
	- -
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) Total options on issue 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	2,140,000 2,140,000 2,140,000 4,925,000 4,925,000 10,000,000 40,000,000 10,000,000 76,270,000	- - - - - - - - -	Exercise price 12.0 cents 14.5 cents 17.5 cents 5.0 cents 6.0 cents 4.5 cents 6.875 cents 7.0 cents	Expiry date 06/12/2009 06/12/2009 06/12/2009 30/11/2010 30/11/2010 30/4/2010 30/4/2011 30/4/2011
	-
	-
	-	-	-	-
7.11 Debentures(totals only)	-
7.12 Unsecured notes(totals only)	-

• See chapter 19 for defined terms.

Appendix 5B Page 4

Compliance statement

• 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 : 19 October 2009 (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