FOCUS MINERALS LTD — Interim / Quarterly Report 2011

Jul 28, 2011

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

FOCUS MINERALS LIMITED

		ABN 56 005 470 799 Consolidated statement of cash flows	ABN 56 005 470 799 Consolidated statement of cash flows	Quarter ended (“current quarter”) 30 JUNE 2011	Quarter ended (“current quarter”) 30 JUNE 2011
				30 JUNE 2011
	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 (e) 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 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)- bonds Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		Current quarter $A’000		Year to date $A’000
			28,778 (11,514) (5,811) (17,193) (1,123) (581) - 344 (37) - (294)		104,776 (23,643) (16,505) (67,870) (4,444) (2,211) - 442 (42) - 10
			(7,431)		(9,487)
			(300) (195) (616) - - - (3,000) - (3)		(300) (195) (3,046) - 47 - (3,000) - (10)
			(4,117)		(6,504)
			(11,548)		(15,991)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(11,548)	(15,991)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. Share issue costs 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	41,238 (2,489) - - - - -	42,900 (2,581) - - - - -
	38,749	40,319
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	27,201 3,511 -	24,328 6,384 -
	30,712	30,712

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
		57
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Director fees, Executive Chairman salary & superannuation expense.

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
	Nil
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	Nil

• See chapter 19 for defined terms.

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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 Contingent Instrument Facility	Amount available $A’000	Amount used $A’000
		N/a 3,500	N/a 2,189

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	6,000
	7,000
	24,000
	1.200
Total	38,200

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 Available cash (item 1.22) 5.4 Other (provide details) - Bonds	2,292	3,181
	28,420	330
	-	-
	30,712	3,511
	812	809
Total: cash at end of quarter	31,524	4,320

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
		N/a
	M15/664 P15/4810	Direct (Subject to forfeiture) Direct	0% 0%	100% 100%

• See chapter 19 for defined terms.

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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)	Issue price per security (see note3) (cents)	Amount paid up 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 (b)Decreases	N/a
	N/a
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues - Placement - Share Purchase Plan - option exercise (b) Decreases through returns of capital, buy-backs	3,440,515,431	3,440,515,431
	425,000,000 92,104,911 26,000,000	425,000,000 92,104,911 26,000,000		7.6 cents 7.6 cents 6.875 cents		7.6 cents 7.6 cents 6.875 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases (b) Decreases	N/a
	N/a
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired/cancelled during quarter	22,180,385 22,180,385 33,500,000 77,860,770	- - -		Exercise price 7.5 cents 7.8 cents 12.3 cents		Expiry date 31/12/2012 31/12/2012 30/6/2014
	-	-		-		-
	26,000,000	-		6.875 cents		30/4/2011
	-	-
7.11 Debentures (totals only)	N/a
7.12 Unsecured notes (totals only)	N/a

• See chapter 19 for defined terms.

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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 does give a true and fair view of the matters disclosed.

Sign here: Jon Grygorcewicz Date: 29 July 2011 Company secretary

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.

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