FOCUS MINERALS LTD — Interim / Quarterly Report 2012

Oct 25, 2012

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QUARTERLY ACTIVITIES REPORT: SEPTEMBER 2012

OVERVIEW

• Focus entered into a Share Subscription Deed with Shandong Gold International Mining Corporation Limited (“Shandong Gold”), under which Shandong Gold has agreed to subscribe for new fully paid ordinary Focus shares to raise approximately $225 million.

• Focus posted record production in the September Quarter of 48,959oz, up from 48,222oz in the preceding Quarter, at a Group cash cost of $1,267/oz.

• Focus had record gold sales for the September Quarter of 49,383oz, generating Group revenue of A$76.7 million at an average selling price of $1,553/oz.

• Laverton Operations produced 25,786oz from 44 processing days, taking Laverton gold output to 74,874oz for the nine months of calendar 2012, a 23% uplift on the previous corresponding period.

• Coolgardie Operations produced 23,177oz of gold, the second strongest Quarter of Calender 2012. However, stoping issues at The Mount underground negatively impacted cash operating costs offsetting positive gains that had been achieved across the wider Coolgardie operations.

• Focus announced a revised combined Mineral Resource of at 59.1Mt @ 2.2g/t for 4.3Moz of contained gold, and an Ore Reserve of 7.6Mt @ 2.1g/t for 514,000oz of contained gold.

• Exploration programs at Dreadnought in Coolgardie and Euro in Laverton have both returned strong results.

• Capital investment and exploration expenditure was $4.7 million, comprising $2.1 million of mine capital development and $2.6 million in exploration.

• At the end of the Quarter total cash and equivalents (including bullion) was $10.4 million.

• Production in the December Quarter is targeted to range between 40-45,000oz with the transition from mining to the low-strip ratio Burtville open pit in Laverton and Greenfields Open Pit in Coolgardie.

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Quarterly Activities Report To September 30, 2012

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GROUP PRODUCTION SUMMARY

The Focus Group produced a record 48,959oz of gold for the September Quarter, up from 48,222oz in the June Quarter. This comprised 23,177oz from the Coolgardie operations and 25,782oz from the Laverton operations (on a 100% basis, with 21,030oz attributable to Focus). Group C1 cash operating costs were $1,267/oz.

Group Results	Sep 11	Dec 11	Mar 12	Jun 12	Sep 12
Mining
Ore Mined (tonnes)	463,561	676,998	879,814	778,495	790,648
Grade (g/t)	2.72	2.74	2.06	2.31	2.02
Gold In Ore (oz)	40,605	59,692	58,211	57,936	51,410
Processing
Ore Processed (tonnes)	795,608	709,888	834,527	751,186	796,407
Head Grade (g/t)	1.75	1.67	1.95	2.11	1.91
Gold Produced (oz)	43,823	37,098	47,489	48,222	48,959
Attributable Gold Produced (oz)	35,647	34,211	42,764	43,899	44,207
Sales
Average price received	1,626	1,675	1,609	1,593	1,553
Total Revenue ($ '000s)	70,543	59,585	76,181	77,292	76,670
Attributable Revenue ($ '000s)	34,185	56,317	71,020	70,415	69,406
Cost Summary ($/oz Produced)
Mining	595	485	482	614	695
Processing	443	446	447	364	391
Haulage	110	135	115	140	113
Site Admin, Safety & Environment	80	97	81	76	68
Cash Cost (excl. Royalties)	1,228	1,163	1,125	1,194	1,267
Royalties	42	77	87	62	91

* Attributable production based on the Focus shareholding interest in Focus Minerals (Laverton) Pty Ltd which owns the Laverton Operations, for the period applied to Laverton’s quarterly production statistics.

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Group Mining
1,000,000 80,000
800,000
60,000
600,000
40,000
400,000
20,000
200,000
- -
Sep 11 Dec 11 Mar 12 Jun 12 Sep 12
Ore Mined (tonnes) Gold In Ore (oz)
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Group Processing
850,000 60,000
800,000
40,000
750,000
700,000
20,000
650,000
600,000 -
Sep 11 Dec 11 Mar 12 Jun 12 Sep 12
Ore Processed (tonnes) Gold Produced (oz)
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OPERATIONS REVIEW

LAVERTON OPERATIONS

Safety

Laverton Operations experienced no lost time injuries.

Production

Focus Group’s Laverton Gold Operations delivered another strong Quarter producing 25,782oz from 44 processing days at a C1 cash operating cost of $1,230/oz, up from 23,456oz from 41 days in the previous campaign.

This takes gold production at Laverton for the first three Quarters of calendar 2012 to 74,874oz up 23% on the previous corresponding period (60,790oz), at an average C1 cash cost of $1,230/oz.

Laverton Results	Sep 11	Dec 11	Mar 12	Jun 12	Sep 12
Mining
Ore Mined (tonnes)	214,080	445,120	589,216	477,238	524,493
Grade (g/t)	2.37	2.53	1.80	1.89	1.79
Gold In Ore (oz)	16,286	36,229	34,082	29,020	30,238
Processing
Ore Processed (tonnes)	504,288	411,012	537,693	455,237	492,146
Grade (g/t)	1.50	1.20	1.71	1.76	1.83
Gold Produced (oz)	21,915	15,666	25,636	23,456	25,782
Attributable Gold Produced (oz) *	13,739	12,779	20,911	19,133	21,030
Cost Summary ($/oz Produced)
Mining	722	335	233	378	551
Processing	550	573	526	486	445
Haulage	179	267	175	224	147
Site Admin, Safety & Environment	103	158	100	115	86
Cash Cost (excl. Royalties)	1,554	1,333	1,034	1,203	1,230
Royalties	42	37	42	43	134

* Attributable production based on the Focus shareholding interest in Laverton Operations for the period applied to Laverton’s quarterly production statistics.

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Laverton Mining
800,000 40,000
600,000 30,000
400,000 20,000
200,000 10,000
- -
Sep 11 Dec 11 Mar 12 Jun 12 Sep 12
Ore Mined (tonnes) Gold In Ore (oz)
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Laverton Processing
600,000 30,000
400,000 20,000
200,000 10,000
- -
Sep 11 Dec 11 Mar 12 Jun 12 Sep 12
Ore Processed (tonnes) Gold Produced (oz)
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A total of 524,493t @ 1.79g/t for 30,238oz of contained gold was mined during the Quarter predominantly from the Apollo pit complex (Figures 1 & 2), with minor remnant mining at the Fish and Mary Mac Hill pits. Focus treated 492,146t @ 1.83g/t at the BGS mill.

At the end of the Quarter a total of 304,410t was stockpiled in preparation for Campaign 13 (Stockpile comprised 201,919 @ 1.8g/t at the BGS ROM pad and a further 102,491t @ 1.9g/t at Apollo).

For the December Quarter, mining is targeted to be completed at Apollo and the pre-strip commenced at Burtville. Burtville is a very low strip ratio operation with a Mineral Resource of 5.7Mt @ 1.3g/t for 235,000oz.

There will be no material impact to gold production from this transition because stockpiles at the BGS processing plant will ensure consistent feed during this transition. Campaign 13 at BGS is a 37 day campaign and commenced on 8[th] October 2012.

The Apollo project area has been a highly successful production base in Laverton with Focus quickly bringing it to production in the December Quarter 2011, shortly after completion of the takeover of Crescent Gold. In the subsequent 11 months over 1Mt @ 1.9g/t has been mined (63,957 contained ounces). It is planned for additional resource development work to be undertaken over the next two Quarters with the intention of testing depth and strike extensions and evaluating the underground potential.

Figure 1: The northern end of the Apollo D pit Figure 2: The southern end of the Apollo D pit

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COOLGARDIE OPERATIONS

Safety

There were no lost time injuries at the Coolgardie Operations.

Production

Focus’ Coolgardie Operations produced 23,177oz of gold at a C1 cash operating cost of $1,308/oz.

The September Quarter was the second strongest Quarter for production at Coolgardie since the commencement of mining at The Mount and Tindals Open pits.

The Dreadnought pit at the Tindals Open Pits operation has continued to outperform expectations and is currently delivering ~45,000t of ore per 5m bench, whilst there was a greater focus on the movement of waste at the Big Blow pit reducing that pit’s contribution for the period.

The Tindals Underground completed its last full Quarter’s production making a solid profit contribution to the Coolgardie operations as there was no development work undertaken. During the December Quarter, there will be a planned transition from the Tindals Underground to the Greenfields open pit as base load for the Three Mile Hill operation.

Stoping issues at The Mount underground saw it deliver approx. 50% of its targeted production at 80% of its targeted grade which negatively impacted cash operating costs for the Coolgardie operations and notably offset positive gains that had been achieved across the wider Coolgardie operations.

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The Three Mile Hill plant continued to process at a stable rate of 147t/hour, milling 304,261t and delivering recoveries of 98% (based on leach well assaying, previous assaying has been done by fire assay).

Coolgardie Results	Sep 11	Dec 11	Mar 12	Jun 12	Sep 12
Mining
Ore Mined (tonnes)	249,481	231,878	249,066	301,257	266,155
Grade (g/t)	3.03	3.15	2.77	2.99	2.47
Gold In Ore (oz)	24,319	23,463	22,181	28,916	21,172
Processing
Ore Processed (tonnes)	291,320	298,876	296,834	295,949	304,261
Head Grade (g/t)	2.45	2.34	2.41	2.75	2.42
Contained Gold (oz)	22,947	22,456	22,999	26,166	23,685
Recovery %	95%	95%	95%	95%	98%
Gold Produced (oz)	21,908	21,432	21,853	24,766	23,177
COST SUMMARY ($/Oz Produced):
Mining	542	656	772	839	855
Processing	262	291	355	250	331
Haulage	41	39	45	40	74
Site Admin, Safety & Environment	57	53	59	60	48
Cash Cost (excl. Royalties)	902	1,039	1,231	1,189	1,308
Royalties	42	134	126	82	43

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Coolgardie Mining Coolgardie Processing
400,000 40,000 310,000 26,000
24,000
300,000 30,000 300,000
22,000
200,000 20,000 290,000
20,000
100,000 10,000 280,000 18,000
- - Sep 11 Dec 11 Mar 12 Jun 12 Sep 12
Sep 11 Dec 11 Mar 12 Jun 12 Sep 12
Ore Processed (tonnes)
Ore Mined (tonnes) Gold In Ore (oz) Attributable Gold Produced (oz)
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Coolgardie Production Centres Summary

Mining Area	Mining Area	Sep-11	Dec-11	Mar-12	Jun-12	Sep-12
Tindals Open Pit
Ore Mined	tonnes	68,137	56,187	110,172	132,552	111,828
Grade	g/t	1.81	2.21	2.03	2.00	1.89
Gold In Ore	ounces	3,968	3,996	7,181	8,515	6,786
Tindals Underground
Ore Mined	tonnes	147,589	132,382	103,930	131,871	127,188
Grade	g/t	3.3	3.37	3.28	3.47	2.68
Gold In Ore	ounces	15,662	14,354	10,962	14,708	10,975
The Mount
Ore Mined	tonnes	33,755	42,952	34,964	38,722	27,139
Grade	g/t	4.32	4.38	3.59	4.76	3.91
Gold In Ore	ounces	4,689	6,047	4,038	5,928	3,411

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Tindals Open Pits

Production from the open pits has remained consistently strong with 111,828t @ 1.89g/t mined during the Quarter containing 6,786oz of gold compared with the budgeted production rate of 90,000 tonnes.

Production for the Quarter was predominantly from the Dreadnought pit where mining concentrated on the central zone and a new eastern cutback. Dreadnought is currently delivering ~45,000t of ore per 5m bench. The movement of waste at the Big Blow pit resulted in reduced ore tonnages for the Quarter.

The central pit zone was prepared for resource development drilling to allow for further Mineral Resource and mine planning work to further evaluate a larger pit scenario. This commenced in September (see initial results in exploration section of this report) and will be ongoing during the December Quarter.

The understanding of the geological model at Dreadnought has also benefited from two recent discoveries being an old plan of underground workings (dating from 1924) showing the mined stopes and drives of the East West trending Dreadnought shear and the discovery of a new mineralised zone called Metropolitan.

In addition, a structural mapping project was carried out by CSA Global. Comparing this data to the current grade control has enabled a better geological model to be developed to target ore zones beyond the current pit and within the optimised pit shells.

During the December Quarter, the Alicia deposit is planned to start development after Mining Approvals from the Department of Mines and Petroleum. Alicia mine is adjacent to the Empress pit which was mined to completion through the past financial year.

Figure 4: Plan view of dreadnought

Figure 3: Dreadnought Pit

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Tindals Underground

The Tindals Mining Centre Underground operations mined a total of 127,188t @ 2.68g/t containing 10,975oz of gold. Stoping focused on the Countess and Perseverance ore bodies with the Perseverance ore body almost exhausted by the end of the Quarter. The overall grade was influenced by the extraction of the final lower grade stopes in the stoping sequence. The final high grade reserves in the Perseverance and Countess ore bodies will be stoped in the first month of the December Quarter after which the stoping operations will cease and the production from the Tindals Underground will be supplanted by production from the Greenfields open pit.

The Mount

The Mount produced 27,139t @ 3.91g/t for 3,411oz in the September Quarter with a 70:30 split of stope ore to development ore. Development for the Quarter was focused on advancing a number of upper level ore drives in preparation for stoping, and also continuing the 258 level access, crosscutting a number of lodes. In addition, the 297 cross cut was advanced to the Fuchs lode. Stoping was undertaken in a total of six lodes for the Quarter.

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The Mount underperformed in the September Quarter, due primarily to stoping difficulties in the Frankfurt lode where the stope bridged during firing (meaning not all of the stope was extracted). This then significantly impacted the stoping sequence for the mine as the bridge had to be carefully redrilled in order to remove it and normal stoping recommence. This delayed stoping at the Frankfurt lode by six weeks which significantly impacted production for the Quarter.

The loss in production and grade had a notable impact on the Coolgardie cash costs for the Quarter offsetting positive gains that had been made elsewhere.

The difficulties at the Frankfurt lode were resolved at the end of September and mining is expected to return to normal rates in the coming Quarter, with stoping continuing in four areas. A comprehensive technical review is underway in order to mitigate cost exposures at the operation.

Greenfields

During the Quarter, approvals were received for the commencement of the Greenfields operation and site preparation commenced. The Greenfields pit is adjacent to Three Mile Hill plant and is expected to provide up to 1.0Mt @ 1.9g/t over two years at a strip ratio of 5.4:1. This will supplement the mill feed to maintain a rate of up to 60,000 tonnes per month. Production will commence in the December Quarter.

Fig: View across Greenfields pit to Three Mile Hill Plant. Fig 6: Mineralisation styles in Greenfields pit

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Production in the December Quarter is expected to be between 20,000oz – 22,000oz managing the transition between the Tindals Underground and Greenfields, with production returning to the norm in the March Quarter.

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EXPLORATION & RESOURCE DEVELOPMENT

Laverton

Euro

Drilling at Euro (figure 7 and table 4) was designed to test the gold mineralisation potential below the historic underground workings along strike from the existing Euro pit. The historical workings at Euro (approximately 400m along strike to the NNW of the Euro pit) were mined in the early 1900s with recorded production of 35,707oz of gold grading 11.7g/t.

Best intersections at Euro included:

• 4.0m @ 17.2g/t

• 3.0m @ 5.31g/t

• 2.0m @ 7.90g/t

• 2.0m @ 23.79g/t

• 1.0m @ 75.60g/t

Figure 7: Drill hole collar locations for the Euro drilling.

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Burtville

A Mineral Resource estimation was completed for the Burtville deposit delivering a 140% increase in the Burtville Mineral Resource estimate to 5.7Mt @ 1.3g/t for 235,000 ounces of contained gold (Table 1). (see ASX announcement dated 7 August 2012). Additionally a new Ore Reserve of 46,000oz was established.

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Tindals Mining Centre

Dreadnought

A new resource development drilling program commenced at Dreadnought on the 31st August and had completed 40 drill holes for 7,078m by the end of the Quarter. This drilling is targeting mineralisation immediately around and under the Dreadnought trial pit. Assay results received so far (Table 3, Figure 8) are encouraging. The program is expected to be completed during the December Quarter.

Figure 8: Drill hole collar locations for the Dreadnought drilling.

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Mineral Resource

The Group Mineral Resource table has been updated as at 30 June 2012. This shows Mineral Resources across Laverton and Coolgardie have remained stable despite production of 176,632oz of gold during FY12.

Table 1: Mineral Resources as at 30 June 2012

	Measured Resources	Indicated Resources	Inferred Resources	Total Resources
	Tonnes '000t Grade Au g/t Ounces	Tonnes '000t Grade Au g/t Ounces	Tonnes '000t Grade Au g/t Ounces	Tonnes '000t Grade Au g/t Ounces
COOLGARDIE GOLD PROJECT
Tindals Project	416 4.6 62,000	10,777 2.4 837,000	3,409 2.3 251,000	14,602 2.4 1,150,000
Mount Project	131 7.8 33,000	588 5.2 98,000	576 5.5 97,000	1,295 5.5 228,000
Lindsays-Bayleys Project		4,350 1.7 238,000	3,562 2.0 233,000	7,912 1.9 471,000
Three Mile Hill Project		2,446 1.6 123,000	1,174 1.5 57,000	3,620 1.5 180,000
Norris Project			2,440 2.2 169,000	2,440 2.2 169,000
Total Coolgardie	547 5.4 95,000	18,161 2.2 1,296,000	11,161 2.2 807,000	29,869 2.3 2,198,000
LAVERTON GOLD PROJECT
Barnicoat Project	390 1.7 21,000	2,486 1.7 135,000	3,378 1.3 137,000	6,254 1.5 293,000
Burtville Project		1,573 1.3 65,000	4,146 1.3 170,000	5,719 1.3 235,000
Central Laverton Project	41 1.5 2,000	2,768 1.8 164,000	825 1.8 48,000	3,634 1.8 214,000
Chatterbox Project	948 2.4 72,000	3,967 2.1 273,000	3,186 2.2 227,000	8,101 2.2 572,000
Jasper Hills Project	370 1.8 22,000	1,455 1.8 82,000	843 2.1 58,000	2,668 1.9 162,000
Lancefield Project		2,109 6.4 436,000	713 7.0 160,000	2,822 6.6 596,000
Total Laverton	1,749 2.1 117,000	14,358 2.5 1,155,000	13,091 1.9 800,000	29,198 2.2 2,072,000
TOTAL COMBINED RESOURCES	2296 29 212000	32519 23 2451000	24252 21 1607000	59067 22 4270000
	, . ,	, . ,,	, . ,,	, . ,,

Note: Some errors may result due to rounding. Mineral Resources for the Laverton Gold Project are owned by Focus Minerals (Laverton) Limited. Focus owns 81.57% of this subsidiary company.

Notably the following variances have occurred across the company’s Mineral Resource portfolio:

Mineral Resource Growth

Mineral Resource Depletion

Coolgardie: • Tindals Surface– 9% increase in Mineral Resource to 809,000oz whilst mining 19,692oz. This has included the addition of 29,000oz at Undaunted and Lady Charlotte, as well as 58,000oz at Brilliant as a result of drilling during the year. • Three Mile Hill Project– 82% increase in Mineral Resource to 180,000oz through exploration success . This saw a new Mineral Resource of 48,000oz established at CNX (see ASX announcement dated 27 June 2012), and an increase in the Greenfields Mineral Resource as a result of drilling. • Norris Project– 36% increase in Mineral Resource to 169,000oz through exploration success at Norris-Grossmont. Laverton: • Burtville– a 140% increase in Mineral Resource to 235,000oz.

Coolgardie: • Tindals Underground– 23% decrease in Mineral Resource to 341,000oz as underground development was completed for Phase 1 of the Tindals Underground. • The Mount– 38% decrease in Mineral Resource to 228,000oz through depletion and as a result of reinterpretation of the mineralisation due to recent drilling and mine development. Laverton: • Central Laverton Project Area– Mining at Mary Mac saw an 8% decrease in Mineral Resource for the Central Laverton Project area to 214,000oz. • Chatterbox project- Mining at Apollo, and Eclipse saw a 4% decrease in Mineral Resource on the Chatterbox Project area with drilling seeing the discovery of additional resource areas at Apollo whilst 33,589oz was mined during the period.

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Ore Reserves

The Group Ore Reserves table has been updated as at 30 June 2012. This shows Ore Reserves across Laverton and Coolgardie of 7.6Mt @ 2.1g/t for 514,000oz.

Table 2: Mineral Resources as at 30 June 2012

	Tonnes '000t Grade Au g/t Ounces Proven Reserves	Tonnes '000t Grade Au g/t Ounces Proven Reserves	Tonnes '000t Grade Au g/t Ounces Proven Reserves	Tonnes '000t Grade Au g/t Ounces Probable Reserves	Tonnes '000t Grade Au g/t Ounces Probable Reserves	Tonnes '000t Grade Au g/t Ounces Probable Reserves	Tonnes '000t Grade Au g/t Ounces Total Reserves	Tonnes '000t Grade Au g/t Ounces Total Reserves	Tonnes '000t Grade Au g/t Ounces Total Reserves
COOLGARDIEGOLD PROJECT
Tindals Project	43	4.9	7,000	1,111	2.4	86,000	1,154	2.5	93,000
Mount Project				126	4.2	17,000	126	4.2	17,000
Three Mile Hill Project				999	1.9	60,000	999	1.9	60,000
Stocks							551	0.7	13,000
Total Coolgardie	43 4.9 7,000			2,236 2.3 163,000			2,830 2.0 183,000
LAVERTON GOLD PROJECT
Barnicoat Project				589	2.2	41,000	589	2.2	41,000
Burtville Project				1,044	1.4	46,000	1,044	1.4	46,000
Central Laverton Project				825	1.3	34,000	825	1.3	34,000
Chatterbox Project	547	2.1	37,000	167	2.6	14,000	714	2.2	51,000
Jasper Hills Project	0	0.0	0	331	2.4	26,000	331	2.4	26,000
Lancefield Project	0	0.0	0	680	4.9	108,000	680	4.9	108,000
Stocks							628	1.3	25,000
Total Laverton	547 2.1 37,000			3,636 2.3 269,000			4,811 2.1 331,000
TOTAL COMBINED RESERVES	590 4.9 44,000			5,872 2.3 432,000			7,641 2.1 514,000

Note: Some errors may result due to rounding. Ore Reserves identified above for the Laverton Gold Project are owned by Focus Minerals (Laverton) Limited. Focus owns 81.57% of this subsidiary company.

Notably the following variances have occurred across the company’s Ore Reserve portfolio:

Ore Reserve Growth

Ore Reserve Depletion

Coolgardie: • Tindals Surface– 19% increase in Ore Reserves to 47,000oz despite mining 12,000oz. • The Mount– Ore Reserves at The Mount have increased to 17,000oz, whilst mining 16,000oz. Laverton: • Burtville– an Ore Reserve has been established at Burtville of 46,000oz. There was previously no Ore Reserve at Burtville. • Jasper Hills– Established a maiden underground Ore Reserve at Fish of 26,000oz.

Coolgardie: • Tindals Underground– 60% decrease in Ore Reserves as underground development was completed for Phase 1 of the Tindals Underground. Laverton: • Chatterbox project– 40% decrease in Ore Reserve through the production at Apollo. • Central Laverton- Mining at Mary Mac saw a 37% decrease in Ore Reserves for the Central Laverton Project. • Jasper Hills– Production at Fish has seen a 14% decrease in Ore Reserves at the Jasper Hills Project with the completion of the Fish open pit. • Lancefield– a Reassessment of the Ore Reserves at Lancefield has seen this decrease 26% to 108,000oz.

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CORPORATE

Revenue

Focus Group sold 49,383oz of gold at an average price of A$1,553/oz, to generate revenue of A$76.7M for the Quarter.

Gold royalties paid for the Quarter totalled $4.4 million comprised of approximately $43/oz for Coolgardie and $134/oz for Laverton.

Expenditure

Focus Group mine development and exploration expenditure for the Quarter totalled $4.7 million. This comprised $2.1 million of mine capital development and $2.6M of exploration expenditure.

Cash

At 30 September 2012, the Focus Group held cash and bullion comprising:

Cash At 30 September 2012, the Focus Group held cash	and bullion comprising:
Cash at Bank	$9.4 million
Bullion on Hand	$0.9 million
Cash held on bond	$13.9 million
Total Cash and Equivalents	$24.2 million

Director Share Purchase

Subsequent to the end of the Quarter, all four Focus directors have purchased Focus shares on-market:

	Existingholding	Purchase	Total Holding
Don Taig	11,963,259	1,000,000	12,963,259
Phil Lockyer	594,523	255,000	849,523
BruceMcComish	nil	250,000	250,000
GerryFahey	Nil	641,000	641,000

Shandong Gold Placement

Focus Minerals announced, that it has entered in to a Share Subscription Deed with Shandong Gold International Mining Corporation Limited, under which Shandong Gold has agreed to subscribe for new fully paid ordinary Focus shares to raise approximately $225 million (see ASX release dated 20 September 2012). The Board is recommending the Placement in the absence of a superior proposal and subject to an independent expert opining that the terms of the Placement are reasonable.

The investment by Shandong Gold will enable Focus to pursue organic and non-organic growth opportunities, and represents the start of a long-term, mutually beneficial relationship which will allow Focus to unlock the potential of its large tenement holdings.

ENDS

The information that relates to exploration targets refers to targets that are conceptual in nature, where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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Competent Person’s Statement

The information in this announcement that relates to Ore Reserves is based on information compiled by Mr Peter Ganza, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Ganza is a full time employee of Focus Minerals and has sufficient experience that is relevant to the style of mineralisation and type of deposit 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 Ganza consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results and Minerals Resources is based on information compiled by Dr Garry Adams who is a member of the Australian Institute of Geoscientists. Dr Adams is employed by Focus Minerals and has sufficient experience that is relevant to the style of mineralisation and type of deposit 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”. Dr Adams consents to the inclusion in this announcement of the matters based on the information compiled by him in the form and context in which it appears.

Notes to accompany the Mineralised Resource Updates

Significant Mineral Resource updates occurred for Brilliant, Lady Charlotte, Undaunted, Greenfields, CNX, NorrisGrosmont and The Mount at the Coolgardie Gold Project and for Burtville at the Laverton Gold Project. All other resources were either unchanged or had slight modifications due to a change in interpretation and/or mining depletion.

All details associated with the CNX resource can be found in ASX announcement dated 27 June 2012, while all details associated with the Burtville resource can be found in ASX announcement dated 7 August 2012.

The Brilliant Deposit is hosted within a sequence of basalt and ultramafic rocks that have been intruded by a suite of diorites dykes. The dykes host the bulk of the mineralisation at Brilliant. The mineralised lodes occur in two orientations; the main lodes strike NNW (340-350°) and dip steeply to the east (75°) with an average width of 3-5m, or the northwest striking (310-330°) series of smaller, flatter dipping (20-40°NE) lodes with widths up to 20m. Mineralisation consists of a stockwork of quartz/sulphide micro-veining with associated albitic alteration.

The Lady Charlotte and Undaunted Deposits are hosted within an ultramafic sequence that has been intruded by diorites. The diorites are the host to the mineralisation. Undaunted mineralisation lies to the north of Lady Charlotte and strikes N- NE (000-030°) with sub-vertical dips and widths averaging 3-5m. The Lady Charlotte mineralisation strikes 010-040°, with dips varying 40-85°E and widths of up to 10m. Gold mineralisation appears to be related to the sulphide content, which occurs in fractures in the diorite, and the intensity of silica-albite alteration.

The Greenfields Deposit is located within a Dolerite Sill. The deposit is divided into five geological units – Units 2, 3, 4 & 5 and volcaniclastic sediments of the Kurrawang Formation. The gold mineralisation tends to be associated with pyrite in the extensional veins, pyrrhotite in the wall rock as halo alteration and pyrrhotite in quartz veining within the dolerite sequence. The lodes strike 110° and dip 70°S with average widths of 10m.

The Norris-Grosmont Deposit is hosted in a series of sub-parallel, shallowly dipping thrusts in a sequence of mafic and ultramafic rocks. These have been intruded by thin lensoidal felsic units, which unlike other deposits in the region tend not be mineralised. The mineralisation occurs as a series of lenticular bodies hosted within the thrusts, which strike 060° and dip south at 40-50°. Mineralisation consists of laminated quartz lodes and breccias with minor pyrite.

The Mount Deposit is hosted within sheared basalt and ultramafic rocks within a NW trending fold hinge. Gold mineralisation is generally associated with vertical laminated quartz-sulphide (pyrrhotite, pyrite and chalcopyrite) veins within the shears, which trend parallel to the regional NW trending fold axis. Widths of these lodes are variable, ranging from 0.2m up to several metres.

The resource upgrades in all areas are as a result of drilling completed over the past 12 months by Focus. The updated interpretations were then used to create new Mineral Resource models for each deposit.

Drilling Information

The Brilliant area has a total of 8 diamond holes and 425 RC drill holes for a total of 44,105m, which were used in the estimation. Drill spacing is generally 20m x 10m in the core of the resource, and widens to 80m x 80m at the margins of the resource.

At Lady Charlotte and Undaunted a total of 157 RC drill holes for a total of 9,523m have been used in the estimation. Drill spacing is generally 20m x 20m (with 20m x 10m in some areas) in the core of the resource, and widens to 80m x 80m at the margins of the resource areas.

At Greenfields a total of 71 diamond holes and 143 RC drill holes for a total of 22,263m have been used in the estimation. Drill spacing is generally 20m x 10m in the core of the resource, and widens to 80m x 80m at depth on the margins of the resource.

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At Norris-Grosmont a total of 5 diamond holes and 931 RC drill holes for a total of 58,652m have been used in the estimation. Drill spacing is generally 20m x 20m in the core of the resource, and widens to 80m x 80m at the margins of the resource areas.

At The Mount a total of 143 diamond holes and 233 RC drill holes for a total of 41,115m have been used in the estimation. Drill spacing is generally 20m x 20m within the core of the resource, and widens to 80m x 80m away from this.

The majority of drill holes at Brilliant, Lady Charlotte, Undaunted, Greenfields, Norris-Grosmont and The Mount have either been down hole surveyed by Eastman single-shot camera, electronic multi-shot (EMS) or by gyroscopic methods. Some historical holes have planned azimuths and dips assigned as no downhole survey was completed.

All drill holes that were surveyed at Brilliant were done so historically in the Brilliant Mine Grid coordinates which have subsequently been converted to GDA94 co-ordinates. All drill holes that were surveyed at Lady Charlotte and Undaunted were done so historically in the Tindals Mine Grid coordinates which have subsequently been converted to GDA94 coordinates. All historical drill collars at Greenfields were surveyed in the local mine grid in the area and have subsequently been converted to GDA94 co-ordinates. All historical drill collars at Norris-Grosmont were surveyed in the Norris Mine Grid and have subsequently been converted to GDA94 co-ordinates. All historical drill collars at The Mount were surveyed in the Mount Mine Grid and have subsequently been converted to GDA94 co-ordinates. All Focus Minerals drilling at all deposits has been surveyed in GDA94.

All drilling has been logged (lithology, alteration, structure, veining and mineralisation) in detail and stored in electronic databases after being validated.

Diamond core has been sampled to a combination of geological boundaries or metre intervals for pre-Focus drilling. All Focus diamond drilling has been sampled to geological boundaries. The core was cut in half, with only half submitted for assaying. All RC drilling has been sampled to 1m intervals.

All samples (Focus and historical drilling) have been assayed using the Fire Assay method at Analabs, ALS Chemex or Kalgoorlie Assay Laboratory in Kalgoorlie. For Focus drilling a 30g Fire Assay with AAS finish was used at ALS Chemex, while a 40g Fire Assay with ICP-MS finish method was used at the Kalgoorlie Assay Laboratories. Stringent QAQC measures are in place with the use of control samples to monitor laboratory performance.

Geological Model

All geological interpretations (geology and mineralisation) and the Mineral Resource estimations were conducted internally. The mineralised interpretations at Brilliant, Lady Charlotte, Undaunted, Greenfields and Norris-Grosmont were digitised to either geological boundaries or a nominal 0.5g/t Au cut-off grade where the geological contact was obscure. No mining dilution has been incorporated into the resource interpretation, although low grade zones (<0.5g/t Au) have been included to allow for continuity of the interpretation. At The Mount the interpretation process is the same as described above, however a nominal 1.0g/t Au cut-off was used where geological contacts were obscured. The interpretation was extrapolated either 20m past the last drill hole, or half way to the next drill hole closing off the mineralisation (which ever was the smallest distance).

Samples within individual wireframes were composited to 1m intervals at Brilliant, Lady Charlotte, Undaunted and NorrisGrosmont, and to 2m intervals at Greenfields and The Mount. The composite samples were used to determine the necessary top cuts, which were determined by a combination of Skree Plot and Cumulative Frequency Plot analysis.

The top cut values at Brilliant were 20g/t Au for the steep dipping N-S striking lodes and 12g/t Au for the shallow dipping NW striking lodes. The top cut value at Lady Charlotte was 10g/t Au for all lodes, while at Undaunted the top cut values were 12g/t Au for the main lode and 9g/t Au for all other lodes. The top cut value for Greenfields was 25g/t Au.

At Norris-Grosmont the resource was divided into 3 domains based on geographical separation. The top cuts were similar with 24g/t Au for the Coronation domain and 23g/t Au for both the Norris and Grosmont domains.

At The Mount the resource was divided into four domains and nine sub-domains based on where the lodes are located within the deposit and differences in variography of those sub-domains. The top cut values were determined from statistics for individual lodes because it is more appropriate to apply lode top cuts as opposed to domain top cuts to individual lodes particularly within a high nugget, narrow lode gold deposit such as the Mount. This has resulted in a wide range of top cut values (between 5 – 37g/t Au) being implemented for the Mount estimate.

A Surpac block model was created for all Mineral Resource models in GDA grid co-ordinates except for the Norris Grosmont model which was completed in a local grid. All estimations were completed using the Ordinary Kriging (OK) method.

At Brilliant, Lady Charlotte and Undaunted a bulk density of 2.75t/m[3] was applied to fresh rock, 2.4t/m[3] to transitional material and 1.8t/m[3] to oxide material in the ore zones within the model. These values are either assumed based on historical values or values determined from test work at various other similar deposits nearby with similar geology. At Greenfields the density values for the transition and oxide material are as above, however the fresh rock has a slightly higher bulk density of 2.8t/m[3] which is based on measurements taken from recent drill core. At Norris-Grosmont the density values for the transition and oxide material are as above, however the fresh rock has a lower bulk density of 2.7t/m[3] which is the value used for previous estimates at Norris. At The Mount, all of the ore body is located within fresh

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rock. Bulk density for the lodes at The Mount range from 3.0t/m3 to 3.1t/m3 based on test work conducted on lodes that have been intersected in recent diamond core drilling.

The Mineral Resources for Brilliant, Lady Charlotte, Undaunted, Greenfields and Norris-Grosmont have been reported at a 1g/t lower cut-off grade and are depleted by using the current open pit survey pick up or any underground voids where applicable. The Mineral Resource for The Mount has been reported at a 2g/t lower cut-off grade and is depleted by using the current underground voids survey pick up.

All Mineral Resources are inclusive of Ore Reserves.

The reported grades, tonnages and contained ounces are rounded to appropriate levels of precision in accordance with the recommendations of the JORC code.

Notes to accompany the Ore Reserve Updates

All reserve estimates are based upon current mineral resource models for both Laverton and Coolgardie regions.

Costs utilised for the economic evaluations are based on current contractor and owner operator actual costs. Cut off grades developed for open pit operations are based on A$1400 per ounce of gold produced. Exceptions to this are Burtville (A$1550 per ounce) and Undaunted ($1450 per ounce). The elevated gold price for Burtville and Undaunted were adopted to accommodate minimum cut back width required for safe and efficient operation. Underground cut-off grades are based on A$1600 per ounce.

The estimation of open pit cut-off grades was performed utilising the Whittle optimisation whereas underground cut off grades are calculated manually from unit rate analysis.

Open pit dilution and recovery factors are pit specific and applied in the optimisation of the pit.

Area	Project	Dilution	Mining Recovery
Coolgardie
	Alicia	11.1	90.0
	BigBlow	9.9	95.0
	Brilliant	10.0	95.0
	Cookes	13.6	90.0
	Dreadnought North	15.0	95.0
	Greenfields	12.4	95.0
	Happy Jack	10.0	90.0
	Hillside	10.0	95.0
	Undaunted	14.9	90.0
Laverton
	Admiral Hill	10.0	95.0
	Apollo	28.0	95.0
	Burtville	0.0	100.0
	Calypso	14.0	95.0
	Lord Byron North and South	14.0	95.0

The Burtville resource model was developed with dilution and mining recoveries applied during the model construction. No further dilution or mining recovery was applied during the optimisation. This adopted methodology was audited and concurred with by an independent consultant.

Underground dilution and recovery factors are applied to individual stopes prior to economic analysis. A minimum stope width of 1.0m is applied to all underground operations to which footwall and hanging wall dilution (typically 0.5m each) is applied.

Metallurgical recoveries applied are:

• Laverton – 90%

• Coolgardie Open Pit – 92%

• Coolgardie Underground – 95%

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Note for Drill Results Tables below : All RC drill holes are sampled to 1m intervals. Assay method is by a 40 gram fire assay at Amdel KalAssay in Kalgoorlie or Leonora. All mineralised intersections are quoted as down-hole lengths with uncut gold values. For Dreadnought the intersections are approximately equal to the true thickness, while at Euro the intersections are approximately 75% of true thickness. All gold grades are reported with a nominal cut-off grade of 1g/t Au. NSR = “no significant result” (above 1g/t).

Table 3: Assay Results received to date from the Dreadnought drilling.

Hole Number	Northing	Easting	RL	Azimuth	Dip	Total Depth (m)	From (m)	To (m)	Down Hole Interval (m)	Grade g/t (Au)
DNC683	6569541	325260	414	90	-60	207	117	121	4	1.17
							139	146	7	1.33
							157	158	1	1.40
							166	167	1	5.72
							184	185	1	1.55
DNC686	6569540	325153	417	90	-62	212	73	78	5	2.53
							92	95	3	1.31
							102	104	2	1.45
							114	115	1	1.47
							121	124	3	1.62
							130	132	2	1.47
							148	149	1	4.26
DNC689	6569525	325249	413	90	-55	216	29	32	3	6.15
							37	43	6	1.52
							46	49	3	1.79
							122	123	1	9.95
							126	128	2	3.69
							141	142	1	1.86
							211	212	1	3.46
DNC696	6569460	325245	385	90	-62	180		NSR
DNC698	6569479	325230	385	90	-54	192	9	10	1	3.54
							55	56	1	1.36
							104	105	1	1.74
							148	153	5	2.41
DNC701	6569542	325197	415	90	-61	200	97	102	5	1.29
							110	113	3	5.07
							146	147	1	1.69
							190	192	2	1.38
DNC702	6569522	325185	416	90	-50	156	64	68	4	3.25
							106	107	1	1.46
							119	120	1	1.81
DNC703	6569499	325178	416	90	-50	210	39	40	1	1.90
							48	51	3	2.16
							57	60	3	1.24

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Table 4: Assay Results received to date from the Euro drilling.

Hole Number	Northing	Easting	RL	Azimuth	Dip	Total Depth (m)	From (m)	To (m)	Down Hole Interval (m)	Grade g/t (Au)
EURC158	6822175	440946	471	90	-60	150	127	131	4	2.00
EURC159	6822200	440951	471	90	-60	125	106	112	6	1.78
EURC160	6822250	440936	471	90	-60	113		NSR
EURC161	6822274	440891	471	90	-60	150	134	138	4	17.18
EURC162	6822225	440922	471	90	-60	156	124	127	3	5.31
EURC163	6822150	440991	471	90	-60	110	84	86	2	7.90
EURC164	6822124	440976	471	90	-60	150	111	112	1	1.69
							115	116	1	4.42
EURC165	6822100	441021	471	90	-60	110	107	108	1	8.55
EURC166	6822075	441006	470	90	-60	150	103	104	1	3.25
							106	109	3	1.00
EURC167	6822050	441051	470	90	-60	110	70	71	1	1.96
							81	82	1	1.35
EURC168	6822025	441031	471	90	-59	150	102	105	3	1.00
EURC169	6822000	441081	469	90	-60	110	77	79	2	23.79
							83	84	1	11.52
							86	87	1	75.60
EURC170	6821975	441060	470	90	-60	150	103	104	1	1.88
							143	146	3	2.95
EURC171	6821987	441136	468	90	-60	54	18	19	1	1.63
							39	47	8	1.67
							49	50	1	1.48
							53	54	1	1.62

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Quarterly Activities Report To September 30, 2012

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Table 5: Coolgardie Resource Table – Detail

Prospect Classification Tonnes Grade (g/t) Ounces Alicia Indicated 466,000 2.0 29,000 Inferred 307,000 2.0 20,000 Big Blow Indicated 484,000 3.1 49,000 Inferred 67,000 3.3 7,000 Bird in Hand Indicated 210,000 2.0 13,500 Inferred 107,000 2.0 6,500 Brilliant Indicated 3,611,000 2.0 236,000 Inferred 874,000 2.3 65,000 Cookes Indicated 120,000 2.4 9,000 Inferred 47,000 3.3 5,000 Cyanide Indicated 34,000 2.2 2,500 Inferred 144,000 2.1 9,500 Dreadnought Indicated 2,902,000 2.1 191,500 Inferred 426,000 1.8 24,500 Empress Indicated 128,000 2.0 8,000 Inferred 12,000 2.3 1,000 Friendship Inferred 100,000 1.4 4,500 Griffiths Inferred 104,000 2.7 9,000 Happy Jack Indicated 249,000 2.0 16,000 Inferred 99,000 3.1 10,000 Lady Charlotte Indicated 137,000 1.6 7,000 Inferred 346,000 1.5 17,000 Perseverance Inferred 53,000 2.4 4,000 Tindals Pit Indicated 257,000 2.7 22,500 Inferred 288,000 2.4 22,000 Undaunted Indicated 187,000 2.0 12,000 Inferred 126,000 1.9 8,000 Sub-Total Tindals Project Measured 0 0.0 0 Indicated 8,785,000 2.1 596,000 Inferred 3,100,000 2.1 213,000 Total Tindals Project 11,885,000 2.1 809,000 Greenfields Indicated 1,976,000 1.6 98,000 Inferred 714,000 1.5 34,000 CNX Indicated 470,000 1.6 25,000 Inferred 460,000 1.6 23,000 Sub-Total Three Mile Hill Project Measured 0 0.0 0 Indicated 2,446,000 1.6 123,000 Inferred 1,174,000 1.5 57,000 Total Three Mile Hill Project 3,620,000 1.5 180,000 Hillside Inferred 672,000 3.1 66,000 Lindsays Indicated 4,350,000 1.7 238,000 Inferred 1,490,000 1.6 77,000 King Solomon/Queen Sheba Inferred 1,400,000 2.0 90,000 Sub-Total Lindsays-Bayleys Measured 0 0.0 0 Indicated 4,350,000 1.7 238,000 Inferred 3,562,000 2.0 233,000 Total Lindsays-Bayleys Project 7,912,000 1.9 471,000 Lord Bob Inferred 820,000 1.6 42,000 Norris -Grosmont Inferred 1,620,000 2.4 127,000 Sub-Total Norris Project Measured . 0.0 0 Indicated 0 0.0 0 Inferred 2,440,000 2.2 169,000 Total Norris Project 2,440,000 2.2 169,000 Bird in Hand Indicated 282,000 3.1 28,000 Inferred 90,000 2.8 8,000 Countess Measured 173,000 4.8 26,500 Indicated 145,000 2.8 13,000 Inferred 4,000 2.5 500 Cyanide Indicated 516,000 4.7 77,000 Inferred 77,000 5.5 13,500 Empress Measured 16,000 3.9 2,000 Indicated 172,000 3.5 19,000 Inferred 13,000 7.5 3,000 Griffiths Inferred 39,000 2.8 4,000 Perseverance Measured 142,000 5.4 24,500 Indicated 462,000 4.4 66,000 Inferred 13,000 4.8 2,000 Tindals Measured 85,000 3.5 9,000 Indicated 415,000 2.8 38,000 Inferred 73,000 3.1 7,000 Sub-Total Tindals Project Measured 416,000 4.6 62,000 Indicated 1,992,000 3.8 241,000 Inferred 309,000 3.8 38,000 Total Tindals Project 2,717,000 3.9 341,000 The Mount Measured 131,000 7.8 33,000 Indicated 588,000 5.2 98,000 Inferred 576,000 5.2 97,000 Total Mount Project 1,295,000 5.5 228,000 Colgardie Surface Colgardie Underground Tindals Project Tindals Project Mount Project Three Mile Hill Project Lindsays-Bayleys Project Norris Project
	Classification Tonnes Grade (g/t) Ounces
	Sub-Total Coolgardie Surface
	Measured 0 0.0 0 Indicated 15,581,000 1.9 957,000 Inferred 10,276,000 2.0 672,000
	Total 25,857,000 2.0 1,629,000
			Classification Tonnes Grade (g/t) Ounces Sub-Total Coolgardie Resource
			Measured Resource 547,000 5.4 95,000 Indicated Resource 18,161,000 2.2 1,296,000 Inferred Resource 11,161,000 2.2 807,000 Total Coolgardie Resource 29,869,000 2.3 2,198,000
Colgardie Underground
Tindals Project
Bird in Hand Indicated 282,000 3.1 28,000 Inferred 90,000 2.8 8,000
Countess Measured 173,000 4.8 26,500 Indicated 145,000 2.8 13,000 Inferred 4,000 2.5 500
Cyanide Indicated 516,000 4.7 77,000 Inferred 77,000 5.5 13,500	Classification Tonnes Grade (g/t) Ounces
	Total Coolgardie Underground
Empress Measured 16,000 3.9 2,000 Indicated 172,000 3.5 19,000 Inferred 13,000 7.5 3,000	Measured 547,000 5.4 95,000 Indicated 2,580,000 4.1 339,000 Inferred 885,000 4.7 135,000
Griffiths Inferred 39,000 2.8 4,000	Total Coolgardie Underground 4,012,000 4.4 569,000
Perseverance Measured 142,000 5.4 24,500 Indicated 462,000 4.4 66,000 Inferred 13,000 4.8 2,000
Tindals Measured 85,000 3.5 9,000 Indicated 415,000 2.8 38,000 Inferred 73,000 3.1 7,000
Sub-Total Tindals Project Measured 416,000 4.6 62,000 Indicated 1,992,000 3.8 241,000 Inferred 309,000 3.8 38,000
Total Tindals Project 2,717,000 3.9 341,000
Mount Project
The Mount Measured 131,000 7.8 33,000 Indicated 588,000 5.2 98,000 Inferred 576,000 5.2 97,000
Total Mount Project 1,295,000 5.5 228,000

	Classification	Tonnes	Grade (g/t)	Ounces
	Sub-Total Coolgardie Resource
	Measured Resource	547,000	5.4	95,000
	Indicated Resource	18,161,000	2.2	1,296,000
	Inferred Resource	11,161,000	2.2	807,000
	Total Coolgardie Resource	29,869,000	2.3	2,198,000

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Table 7: Laverton Resource Table – Detail

Prospect Classification Tonnes Grade (g/t) Ounces Admiral Hill Indicated 660,000 1.4 30,000 Inferred 1,310,000 1.1 46,000 Barnicoat Indicated 340,000 1.3 14,000 Inferred 250,000 1.0 8,000 Bells Indicated 594,000 2.0 38,000 Inferred 36,000 1.4 2,000 Black Label Inferred 610,000 1.0 20,000 Castaway Indicated 247,000 1.6 13,000 Inferred 28,000 1.8 2,000 Grouse Indicated 447,000 1.7 24,000 Inferred 27,000 1.3 1,000 Ida H Inferred 627,000 1.4 28,000 Lily Pond Well Inferred 338,000 1.4 15,000 Sickle Measured 390,000 1.7 21,000 Indicated 198,000 2.6 16,000 Inferred 152,000 3.1 15,000 Sub-Total Barnicoat Project Measured 390,000 1.7 21,000 Indicated 2,486,000 1.7 135,000 Inferred 3,378,000 1.3 137,000 Total Barnicoat Project 6,254,000 1.5 293,000 Burtville Indicated 1,573,000 1.3 65,000 Inferred 4,146,000 1.3 170,000 Laverton Surface Barnicoat Project Burtville Project	Prospect Classification Tonnes Grade (g/t) Ounces Admiral Hill Indicated 660,000 1.4 30,000 Inferred 1,310,000 1.1 46,000 Barnicoat Indicated 340,000 1.3 14,000 Inferred 250,000 1.0 8,000 Bells Indicated 594,000 2.0 38,000 Inferred 36,000 1.4 2,000 Black Label Inferred 610,000 1.0 20,000 Castaway Indicated 247,000 1.6 13,000 Inferred 28,000 1.8 2,000 Grouse Indicated 447,000 1.7 24,000 Inferred 27,000 1.3 1,000 Ida H Inferred 627,000 1.4 28,000 Lily Pond Well Inferred 338,000 1.4 15,000 Sickle Measured 390,000 1.7 21,000 Indicated 198,000 2.6 16,000 Inferred 152,000 3.1 15,000 Sub-Total Barnicoat Project Measured 390,000 1.7 21,000 Indicated 2,486,000 1.7 135,000 Inferred 3,378,000 1.3 137,000 Total Barnicoat Project 6,254,000 1.5 293,000 Burtville Indicated 1,573,000 1.3 65,000 Inferred 4,146,000 1.3 170,000 Laverton Surface Barnicoat Project Burtville Project	Classification Tonnes Grade (g/t) Ounces Sub-Total Laverton Surface Measured 1,749,000 2.1 117,000 Indicated 12,192,000 1.8 710,000 Inferred 12,372,000 1.6 646,000 Total Laverton Surface 26,313,000 1.7 1,473,000 Classification Tonnes Grade (g/t) Ounces Sub-Total Laverton UG Measured 0 0.0 0 Indicated 2,166,000 6.4 445,000 Inferred 719,000 6.7 154,000 Total Laverton Underground 2,885,000 6.5 599,000	Classification Tonnes Grade (g/t) Ounces Sub-Total Laverton Surface Measured 1,749,000 2.1 117,000 Indicated 12,192,000 1.8 710,000 Inferred 12,372,000 1.6 646,000 Total Laverton Surface 26,313,000 1.7 1,473,000 Classification Tonnes Grade (g/t) Ounces Sub-Total Laverton UG Measured 0 0.0 0 Indicated 2,166,000 6.4 445,000 Inferred 719,000 6.7 154,000 Total Laverton Underground 2,885,000 6.5 599,000
Laverton Surface
Barnicoat Project
Admiral Hill Indicated 660,000 1.4 30,000 Inferred 1,310,000 1.1 46,000
Barnicoat Indicated 340,000 1.3 14,000 Inferred 250,000 1.0 8,000
Bells Indicated 594,000 2.0 38,000 Inferred 36,000 1.4 2,000
Black Label Inferred 610,000 1.0 20,000
Castaway Indicated 247,000 1.6 13,000 Inferred 28,000 1.8 2,000
Grouse Indicated 447,000 1.7 24,000 Inferred 27,000 1.3 1,000
Ida H Inferred 627,000 1.4 28,000
Lily Pond Well Inferred 338,000 1.4 15,000
Sickle Measured 390,000 1.7 21,000 Indicated 198,000 2.6 16,000 Inferred 152,000 3.1 15,000
Sub-Total Barnicoat Project Measured 390,000 1.7 21,000 Indicated 2,486,000 1.7 135,000 Inferred 3,378,000 1.3 137,000
Total Barnicoat Project 6,254,000 1.5 293,000
Burtville Project
Burtville Indicated 1,573,000 1.3 65,000 Inferred 4,146,000 1.3 170,000		Classification Tonnes Grade (g/t) Ounces
		Sub-Total Laverton Surface
Sub-Total Burtville Project Measured 0 0.0 0 Indicated 1,573,000 1.3 65,000 Inferred 4,146,000 1.3 170,000		Measured 1,749,000 2.1 117,000 Indicated 12,192,000 1.8 710,000 Inferred 12,372,000 1.6 646,000
Total Burtville Project 5,719,000 1.3 235,000		Total Laverton Surface 26,313,000 1.7 1,473,000
Central Laverton Project
Craggiemore Indicated 575,000 2.2 40,000 Inferred 113,000 2.7 10,000
Euro Indicated 255,000 1.7 14,000 Inferred 314,000 1.7 17,000
Mary Mac Indicated 232,000 2.2 16,000 Inferred 9,000 1.6 1,000
Mary Mac South Indicated 435,000 1.6 22,000 Inferred 90,000 1.8 5,000
West Laverton Measured 41,000 1.9 2,000 Indicated 1,271,000 1.8 72,000 Inferred 299,000 1.5 15,000
Sub-Total Central Laverton ProMeasured 41,000 1.5 2,000 Indicated 2,768,000 1.8 164,000 Inferred 825,000 1.8 48,000
Total Central Laverton Project 3,634,000 1.8 214,000
Chatterbox Project
Apollo Measured 929,000 2.3 70,000 Indicated 973,000 2.0 63,000 Inferred 560,000 3.0 54,000
Aurora (Inuendo) Indicated 180,000 2.9 17,000 Inferred 380,000 2.3 28,000
Calypso (Beasley Creek South)Indicated 316,000 2.6 26,000 Inferred 78,000 2.2 5,000
Eclipse (Garden Well) Measured 19,000 2.7 2,000 Indicated 63,000 1.8 4,000 Inferred 152,000 1.7 8,000				Classification Tonnes Grade (g/t) Ounces
				Sub-Total Laverton Resource
				Measured Resource 1,749,000 2.1 117,000
Elation (Gladiator North) Indicated 48,000 1.7 3,000 Inferred 123,000 1.6 6,000				Indicated Resource 14,358,000 2.5 1,155,000
				Inferred Resource 13,091,000 1.9 800,000
Emerald (Rumor) Indicated 1,590,000 2.1 107,000 Inferred 1,060,000 2.1 72,000				Total Laverton Resource 29,198,000 2.2 2,072,000
Liberty (Beasley Creek) Indicated 797,000 2.1 53,000 Inferred 833,000 2.0 54,000
Sub-Total Chatterbox Project Measured 948,000 2.4 72,000 Indicated 3,967,000 2.1 273,000 Inferred 3,186,000 2.2 227,000
Total Chatterbox Shear Project 8,101,000 2.2 572,000
Jasper Hills Project
Lord Byron Measured 370,000 1.9 22,000 Indicated 1,326,000 1.5 64,000 Inferred 743,000 1.9 45,000
Sub-Total Jasper Hills Project Measured 370,000 1.8 22,000 Indicated 1,326,000 1.5 64,000 Inferred 743,000 1.9 45,000
Total Jasper Hills Project 2,439,000 1.7 131,000
Lancefield Project
CrownJewel (Telegraph) Inferred 91,000 6.0 18,000
Odyssey (South Lancefield) Indicated 72,000 4.0 9,000 Inferred 3,000 5.0 1,000
Sub-Total Lancefield Project Measured 0 0.0 0 Indicated 72,000 3.9 9,000 Inferred 94,000 6.3 19,000
Total Lancefield Project 166,000 5.2 28,000
Laverton Underground
Jasper Hills Project
Fish Indicated 129,000 4.4 18,000 Inferred 100,000 4.0 13,000
Sub-Total Jasper Hills Project Measured 0 0.0 0 Indicated 129,000 4.3 18,000 Inferred 100,000 4.0 13,000
Total Jasper Hills Project 229,000 4.2 31,000
Lancefield Project		Classification Tonnes Grade (g/t) Ounces
Summit (Lancefield) Indicated 2,037,000 6.5 427,000 Inferred 619,000 7.1 141,000		Sub-Total Laverton UG
		Measured 0 0.0 0
Sub-Total Lancefield Project Measured 0 0.0 0 Indicated 2,037,000 6.5 427,000 Inferred 619,000 7.1 141,000		Indicated 2,166,000 6.4 445,000 Inferred 719,000 6.7 154,000
		Total Laverton Underground 2,885,000 6.5 599,000
Total Lancefield Project 2,656,000 6.7 568,000

Page 19 of 19

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 SEPTEMBER 2012	Quarter ended (“current quarter”) 30 SEPTEMBER 2012
			30 SEPTEMBER 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 (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 - Takeover costs Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		Current quarter $A’000		Year to date $A’000
		78,371 (2,682) (2,109) (60,478) (2,261) (2,929) - 139 - - (12)		78,371 (2,682) (2,109) (60,478) (2,261) (2,929) - 139 - - (12)
		8,039		8,039
		- - (637) - - - - - (663) -		- - (637) - - - - - (663) -
		-		-
		(1,300)		(1,300)
1.13 Total operating and investing cash flows (brought forward)		6,739		6,739

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

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	- - - - - -	- - - - - -
	-	-
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	6,739 2,603 -	6,739 2,603 -
	9,342	9,342

Gold on hand – At 30 September 2012 the Company held 590 ounces of gold in its metal account with the Perth Mint.

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

• 1.23 Aggregate amount of payments to the parties included in item 1.2 115 1.24 Aggregate amount of loans to the parties included in item 1.10 -

• 1.25 Explanation necessary for an understanding of the transactions

Director fees & superannuation expense.

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

Nil

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

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 available $A’000	Amount used $A’000
	10,000 3,500		8,000 3,102
Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration			$A’000
			2,895
			7,862
			61,492
			3,600
Total			75,849

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.

• 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 Total: cash at end of quarter

	Current quarter $A’000	Previous quarter $A’000
	9,342	2,750
	381	381
	-	-
	9,723	3,131
	13,548	13,138
	23,271	16,269

At 30 September 2012 the Company held

Changes in interests in mining tenements

6.1 Interests in mining & prospecting tenements relinquished, reduced or lapsed 6.2 Interests in mining * prospecting tenements acquired or increased	Tenement reference	Nature of interest (note(2))	Interest at beginning ofquarter	Interest at end of quarter
	P15/5154 P15/4955	Lapsed Relinquished	100 100	- -

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 (b) Decreases through returns of capital,buy-backs	4,320,773,701	4,320,773,701
	- -	- -
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	14,116,923 14,116,923 23,500,000 51,733,846	- - -		Exercise price 7.5 cents 7.8 cents 12.3 cents		Expiry date 31/12/2012 31/12/2012 30/6/2014
	-	-		-		-
	-	-		-		-
		-		Exercise price		Expiry date
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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Appendix 5B Mining exploration entity quarterly report

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.

==> picture [120 x 40] intentionally omitted <==

Sign here:

Paul Fromson Date: 26 October 2012 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.

Appendix 5B Page 5

30/9/2001