FOCUS MINERALS LTD — Interim / Quarterly Report 2016

Jul 28, 2016

Quarterly Activities Report To 30 June 2016

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ASX ANNOUNCEMENT

29 July 2016

Focus Minerals Ltd (ASX:FML) Quarterly Activities Report for April – June 2016

Exploration Activity During the Quarter

Focus Minerals Ltd (“Focus” or the “Company”) is committed to building a sufficient Ore Reserve to enable five years of high margin production which is sustainable in weaker gold price environments than we are currently experiencing. It is the ability to remain profitable across a wide range of gold prices that will ensure long term wealth creation for shareholders.

As such, exploration remains the core activity of the Company. At the time of publication of this Quarterly Activities Report, the Company had three drill rigs running in Coolgardie. These exploration programs are generating a wealth of information about Bonnie Vale and the Greater Tindals area. This information will be essential to the studies that need to be completed to help determine when Focus will enter production.

At Laverton, the June Quarter commenced strongly before exploration at Karridale had to be postponed due to unseasonably wet conditions. Exploration will begin again as soon as ground conditions are suitable, which we currently expect to be late August.

The following section provides some further information on the current programs, which are proceeding in line with the presentation released to the ASX on 25 May 2016. The Company expects to reach the next milestone in the current Coolgardie program in September and will then release a comprehensive update on the program, its results, and the Company’s next steps.

Coolgardie Gold Project

Summary

During the June Quarter, Focus made significant progress on our current exploration campaigns at Bonnie Vale and Greater Tindals. At 30 June, some 38 RC holes for around 8,300m and six DD holes (RC pre-collar for a diamond tail) for around 2,700m had been drilled at Bonnie Vale (seven RC holes for 1,268m, six DD holes for 1818.8m) and Greater Tindals (six RC holes for 1,806m and three DD holes for 835m at Brilliant and 25 RC holes for 5,212m). This work is ongoing; the Company has multiple drill rigs operating and will complete approximately another 9,700m at Bonnie Vale and 16,000m at Tindals during the remainder of the year.

A detailed discussion of these programs will be released once the next milestone is reached in September.

Bonnie Vale

At Bonnie Vale, drilling in the June Quarter focussed on testing the extensions of the Quarry Reef and the Westralia Reef. At the end of the June Quarter, the Bonnie Vale program still had approximately 9,700m left to drill. Once completed, the Company hopes to expand the Bonnie Value Quarry Reef Mineral Resource and better understand down-dip extensions at Westralia. The general target area of the current work at Bonnie Vale is presented in Figure 1 below.

Quarterly Activities Report To 30 June 2016

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Figure 1: Current Bonnie Vale Target Area

Greater Tindals - Brilliant

The June Quarter saw the continuation of an ongoing exploration program and resource definition work at Brilliant, where the three-pronged strategy is to:

• 1) Further define near-surface mineralisation suitable to open pit mining methods proximal to the existing open pit;

• 2) Assess the potential for underground mineable mineralisation beneath the current open pit; and

• 3) Identify additional mineralisation in the vicinity of Brilliant.

There is still approximately 8,000 meters to be completed in the current campaign, which is expected to be completed at a similar time to the Bonnie Vale work. A detailed description of this work is expected to be released in September. Plan and section views of the current Brilliant target areas are presented below in Figures 2 and 3, respectively.

2

Quarterly Activities Report To 30 June 2016

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Figure 2: Plan View of Current Brilliant Targets

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Figure 3: Section View of Current Brilliant Targets

3

Quarterly Activities Report To 30 June 2016

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Laverton Gold Project

During the June Quarter, seven reverse circulation holes (KARC187 to KARC193) were drilled at the Karridale Project for a total of 1,320m. The holes were drilled as part of a 25 hole program that was continued from the March Quarter. Wet weather meant a further nine planned holes have not yet been able to be drilled. Regular rain events during the June Quarter saw the decision to postpone further drilling until the September Quarter.

The work that was completed in the June Quarter provided limited 40m spaced (collar positions) drilling around the historic Karridale and Boomerang underground mines as well as 80m spaced drilling to test for links between the Karridale and Boomerang zones. The highlights of the drilling results include:

• KARC187 4m @ 4.60g/t Au from 98m

• KARC188 7m @ 3.02g/t Au from 81m

• KARC 189 1m @ 7.05g/t Au from 102m

• KARC189 1m @ 6.76g/t Au from 129m

Full details of this drilling were released to the ASX on 29 April 2016.

A total of 16,850m from 62 holes is planned for the Karridale project, re-commencing in the September Quarter. The drilling has a three-fold purpose:

1. Complete 40m x 80m spaced infill drilling between Karridale and Boomerang, to test and define the Karridale, upper Boomerang and Boomerang lodes. Current drilling in the central portion between Karridale and Boomerang is generally 80m x 80 at best, which is too broad spaced to model pinch and swell style of mineralisation with a high level of confidence.

2. Step out drilling along strike around the Boomerang mine to resolve gold grade distribution.

3. At the Karridale prospect, 140m and 200m step outs to the northeast and southwest respectively. This drilling is been designed to test the strike and down plunge of the high grade mineralised zone.

Corporate Activity During The Quarter

Focus remains in a strong financial position with $69.5M in cash and equivalents at 30 June 2016 (31 March $72.2M).

arch $72.2M).
CashatBankandDeposits	$53.4M
Cash held on bond	$16.1M
**Total Cash and Equivalents **	**$69.5M **

The Company’s Board and management would like to thank the shareholders who were able to attend the Annual General Meeting in May and especially thank the shareholders who voted on the resolutions, which all passed with large majorities.

4

Quarterly Activities Report To 30 June 2016

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Tenements held at 30 June 2016

	Laverton Gold Project
Tenement Description	Tenement Number	Percentage Interest
BARRICK	E38/1642	100
BARRICK	E38/1725	100
BARRICK	E38/2032	100
BARRICK	L38/0092	100
BARRICK	L38/0101	100
BARRICK	M38/0037	100
BARRICK	M38/0038	100
BARRICK	M38/0049	100
BARRICK	M38/0101	100
BARRICK	M38/0159	100
BARRICK	M38/0342	100
BARRICK	M38/0363	100
BARRICK	M38/0364	100
BARRICK	M38/0535	100
BARRICK	M38/0693	100
BARRICK	P38/3500	100
BARRICK	P38/3501	100
BARRICK	P38/3667	100
BARRICK	P38/3671	100
BLACK SWAN JV	E38/1869	100
BLACKSWANJV	P38/3608	100
BURTVILLE	E38/3050	100
BURTVILLE	E38/3051	100
BURTVILLE	E38/3088	100
BURTVILLE	G38/0033	100
CENTRAL LAVERTON	E38/1349	100
CENTRAL LAVERTON	E38/1861	100
CENTRAL LAVERTON	E38/1864	100
CENTRAL LAVERTON	E38/2143	100
CENTRAL LAVERTON	G38/0020	100
CENTRAL LAVERTON	M38/0264	100
CENTRAL LAVERTON	M38/0318	100
CENTRAL LAVERTON	M38/0376	100
CENTRAL LAVERTON	M38/0377	100
CENTRAL LAVERTON	M38/0387	100
CENTRAL LAVERTON	M38/0401	100
CENTRAL LAVERTON	M38/0507	100
CENTRAL LAVERTON	M38/1032	100
CENTRAL LAVERTON	M38/1042	100
CENTRAL LAVERTON	P38/3691	100
CENTRAL LAVERTON	P38/3692	100
EAST LAVERTON	M38/0008	100
EAST LAVERTON	M38/0261	100
EAST LAVERTON	P38/3611	100
EAST LAVERTON	P38/3612	100
INFRASTRUCTURE	G38/0024	100
INFRASTRUCTURE	G38/0025	100
INFRASTRUCTURE	L38/0034	100
INFRASTRUCTURE	L38/0052	100

5

Quarterly Activities Report To 30 June 2016

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INFRASTRUCTURE	L38/0053	100
INFRASTRUCTURE	L38/0054	100
INFRASTRUCTURE	L38/0055	100
INFRASTRUCTURE	L38/0056	100
INFRASTRUCTURE	L38/0057	100
INFRASTRUCTURE	L38/0063	100
INFRASTRUCTURE	L38/0075	100
INFRASTRUCTURE	L38/0076	100
INFRASTRUCTURE	L38/0078	100
INFRASTRUCTURE	L38/0108	100
INFRASTRUCTURE	L38/0120	100
INFRASTRUCTURE	L38/0152	100
INFRASTRUCTURE	L38/0153	100
INFRASTRUCTURE	L38/0160	100
INFRASTRUCTURE	L38/0163	100
INFRASTRUCTURE	L38/0164	100
INFRASTRUCTURE	L38/0165	100
INFRASTRUCTURE	L38/0166	100
INFRASTRUCTURE	L38/0173	100
INFRASTRUCTURE	L38/0177	100
INFRASTRUCTURE	L38/0179	100
INFRASTRUCTURE	L38/0183	100
INFRASTRUCTURE	L39/0124	100
INFRASTRUCTURE	L39/0214	100
JASPER HILLS	M39/0138	100
JASPER HILLS	M39/0139	100
JASPER HILLS	M39/0185	100
JASPER HILLS	M39/0262	100
LAVERTON	L38/0231	100
LAVERTON	P38/4091	100
LAVERTON	P38/4099	100
LAVERTON	P38/4100	100
LAVERTON	P38/4102	100
LAVERTON	P38/4163	100
LAVERTON-MONEY	M38/0547	100
LAVERTON-MONEY	P38/3504	100
LAVERTON-MONEY	P38/3505	100
LAVERTON-MONEY	P38/3506	100
MEROLIA JV	M38/0073	91
MEROLIAJV	M38/0089	91
MT WELD	E38/2862	100
MT WELD	E38/2872	100
MT WELD	E38/2873	100
WATER	GWL154255	100
WATER	GWL160209	100
WATER	GWL160210	100
WATER	GWL160685	100
WATER	GWL172290	100
WEST LAVERTON	M38/0143	100
WEST LAVERTON	M38/0236	100
WEST LAVERTON	M38/0270	100
WEST LAVERTON	M38/0345	100
WEST LAVERTON	M38/1187	100

6

Quarterly Activities Report To 30 June 2016

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	Coolgardie Gold Project
Tenement Description	Tenement Number	Percentage Interest
BAYLEYS	G15/0007	100
BAYLEYS	M15/0630	100
BAYLEYS	M15/1433	100
BAYLEYS	M15/1788	100
BAYLEYS	P15/4912	100
BAYLEYS	P15/5717	100
BONNIE VALE	M15/0277	100
BONNIE VALE	M15/0365	100
BONNIE VALE	M15/0595	100
BONNIE VALE	M15/0662	100
BONNIE VALE	M15/0711	100
BONNIE VALE	M15/0770	100
BONNIE VALE	M15/0852	100
BONNIE VALE	M15/0857	100
BONNIE VALE	M15/0877	100
BONNIE VALE	M15/0981	100
BONNIE VALE	M15/1384	100
BONNIE VALE	M15/1444	100
BONNIE VALE	M15/1760	100
BONNIE VALE	P15/5155	100
BONNIE VALE	P15/5156	100
BONNIE VALE	P15/5158	100
BONNIE VALE	P15/5159	100
BONNIE VALE	P15/5190	100
BONNIE VALE	P15/5238	100
BONNIE VALE	P15/5253	100
BONNIE VALE	P15/5254	100
BONNIE VALE	P15/5255	100
BONNIE VALE	P15/5713	100
BONNIE VALE	P15/5714	100
BONNIE VALE	P15/5704	100
BURBANKS	P15/5939	0 (Under Application)
BURBANKS	P15/6027	0 (Under Application)
COOLGARDIE	P15/5946	100
COOLGARDIE	P15/5949	100
COOLGARDIE	P15/5987	100
COOLGARDIE	P15/5995	100
COOLGARDIE	P15/6002	0 (Under Application)
COOLGARDIE	P15/6006	100
COOLGARDIE	P15/6033	0 (Under Application)
GUNGA	M15/1341	100
GUNGA	M15/1357	100
GUNGA	M15/1358	100
GUNGA	M15/1359	100
GUNGA	P15/5256	100
GUNGA	P15/5702	0 (Under Application)
GUNGA	P15/5703	0 (Under Application)
GUNGA	P15/5704	0 (Under Application)
LAKECOWAN	E15/0986	100
LONDONDERRY	P15/5969	100
LONDONDERRY	P15/5970	100
LONDONDERRY	P15/5963	0 (Under Application)

7

Quarterly Activities Report To 30 June 2016

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LONDONDERRY	P15/5964	0 (Under Application)
LONDONDERRY	P15/5965	0 (Under Application)
LONDONDERRY	P15/5966	0 (Under Application)
LONDONDERRY	P15/5967	0 (Under Application)
LONDONDERRY	P15/5968	0 (Under Application)
LONDONDERRY	P15/5971	0 (Under Application)
LONDONDERRY	P15/5972	0 (Under Application)
LONDONDERRY	P15/6064	0 (Under Application)
LORD BOB	M15/0385	100
LORD BOB	M15/0664	100
LORD BOB	M15/1789	100
LORD BOB	P15/4829	100
LORD BOB	P15/4916	100
LORD BOB	P15/4917	100
LORD BOB	P15/4950	100
LORD BOB	P15/4951	100
LORD BOB	P15/4952	100
LORD BOB	P15/4953	100
LORD BOB	P15/4956	100
LORD BOB	P15/5550	100
LORD BOB	P15/5712	0 (Under Application)
LORD BOB	P15/5731	100
LORD BOB	P15/5733	100
LORD BOB	P15/5735	100
LORD BOB	P15/5712	100
ML - BAYLEYS	L15/0034	100
ML-BAYLEYS	L15/0122	100
ML-BAYLEYS	L15/0161	100
ML-BAYLEYS	L15/0164	100
ML-BAYLEYS	L15/0186	100
ML-BONNIEVALE	L15/0126	100
ML-BONNIEVALE	L15/0127	100
ML - BONNIEVALE	L15/0130	100
ML-BONNIEVALE	L15/0200	100
ML-BONNIEVALE	L15/0211	100
ML -GUNGA	L15/0088	100
ML-GUNGA	L15/0090	100
ML -GUNGA	L15/0095	100
ML-GUNGA	L15/0096	100
ML -GUNGA	L15/0114	100
ML-GUNGA	L15/0116	100
ML-GUNGA	L15/0119	100
ML-GUNGA	L15/0283	100
ML-LORD BOB	L15/0051	100
ML - LORD BOB	L15/0059	100
ML-LORD BOB	L15/0063	100
ML - LORD BOB	L15/0077	100
ML-LORD BOB	L15/0078	100
ML-NEPEAN	L15/0027	100
ML - NEPEAN	L15/0028	100
ML-NEPEAN	L15/0179	100
ML - NEPEAN	L15/0193	100
ML-NEPEAN	L15/0194	100
ML - NEPEAN	L15/0294	100
ML - NORRIS	L15/0071	100

8

Quarterly Activities Report To 30 June 2016

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ML-NORRIS	L15/0168	100
ML-NORRIS	L15/0169	100
ML - NORRIS	L15/0170	100
ML-NORRIS	L15/0171	100
ML - NORRIS	L15/0172	100
ML-NORRIS	L15/0173	100
ML - NORRIS	L15/0174	100
ML-NORRIS	L15/0175	100
ML-THREE MILE HILL	L15/0042	100
ML - THREE MILE HILL	L15/0123	100
ML-THREE MILE HILL	L15/0177	100
NEPEAN	M15/0709	100
NEPEAN	M15/1809	100
NEPEAN	P15/5519	100
NEPEAN	P15/5574	100
NEPEAN	P15/5575	100
NEPEAN	P15/5576	100
NEPEAN	P15/5625	100
NEPEAN	P15/5626	100
NEPEAN	P15/5629	100
NEPEAN	P15/5738	100
NEPEAN	P15/5739	100
NEPEAN	P15/5740	100
NEPEAN	P15/5741	100
NEPEAN	P15/5742	100
NEPEAN	P15/5743	100
NEPEAN	P15/5749	100
NEPEAN	P15/5750	100
NORRIS	M15/0384	100
NORRIS	M15/0391	100
NORRIS	M15/0515	100
NORRIS	M15/0761	100
NORRIS	M15/0791	100
NORRIS	M15/0871	100
NORRIS	M15/1153	100
NORRIS	M15/1422	100
NORRIS	M15/1793	100
NORRIS	P15/5241	100
NORRIS	P15/5522	100
NORRIS	P15/5527	100
NORRIS	P15/5528	100
NORRIS	P15/5729	100
NORRIS	P15/5730	100
NORRIS	P15/5732	100
NORRIS	P15/5734	100
NORRIS	P15/5736	100
NORRIS	P15/5756	100
NORRIS	P15/5807	100
THREE MILE HILL	M15/0150	100
THREE MILE HILL	M15/0154	100
THREE MILE HILL	M15/0636	100
THREE MILE HILL	M15/0645	100
THREE MILE HILL	M15/0781	100
THREE MILE HILL	M15/0827	100
THREE MILE HILL	M15/1432	100

9

Quarterly Activities Report To 30 June 2016

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THREE MILE HILL	M15/1434	100
THREE MILE HILL	P15/4913	100
THREE MILE HILL	P15/4926	100
TINDALS	M15/0023	100
TINDALS	M15/0237	100
TINDALS	M15/0410	100
TINDALS	M15/0411	100
TINDALS	M15/0412	100
TINDALS	M15/0646	100
TINDALS	M15/0660	100
TINDALS	M15/0675	100
TINDALS	M15/0958	100
TINDALS	M15/0966	100
TINDALS	M15/1114	100
TINDALS	M15/1262	100
TINDALS	M15/1293	100
TINDALS	M15/1294	100
TINDALS	M15/1461	100
TINDALS	P15/4933	100
TINDALS	P15/4934	100
TINDALS	P15/4935	100
TINDALS	P15/4941	100
TINDALS	P15/4943	100
TINDALS	P15/4945	100
TINDALS	P15/4947	100
TINDALS	P15/5046	100
TINDALS	P15/5048	100
TINDALS	P15/5464	100
WATER	GWL160936	100
WATER	GWL166606	100

10

Quarterly Activities Report To 30 June 2016

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For further information please contact:

Dane Etheridge

Company Secretary and GM Business Development Focus Minerals Ltd Phone: +61 8 9215 7888

Focus Minerals Limited - Focus owns two large gold projects in Western Australia’s Eastern Goldfields. The company is the largest landholder in the Coolgardie Gold Belt, where it owns the 1.2Mtpa processing plant at Three Mile Hill. Located 250km to the northeast, Focus has the Laverton Gold Project which comprises a significant portfolio of highly prospective tenure. Focus also owns the 1.45Mtpa Barnicoat mill in Laverton which has been on care and maintenance since 2009.

Forward Looking Statements

This release contains certain “forward looking statements”. Forward-looking statements can be identified by the use of ‘forward-looking’ terminology, including, without limitation, the terms ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘predicts’, ‘intends’, ‘plans’, ‘propose’, ‘goals’, ‘targets’, ‘aims’, ‘outlook’, ‘guidance’, ‘forecasts’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future, assumptions which may or may not prove correct, and may be beyond Focus’ ability to control or predict which may cause the actual results or performance of Focus to be materially different from the results or performance expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions and contingencies and are not guarantees or predictions of future performance. No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved. Similarly, no representation is given that the assumptions upon which forward-looking statements may be based are reasonable. Forward-looking statements speak only as at the date of this document and Focus disclaims any obligations or undertakings to release any update of, or revisions to, any forward-looking statements in this document.

Competent Person’s Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Michael Guo (GM Exploration and Geology) who is a member of the Association of Professional Geoscientists of Ontario, Canada, which is a Recognised Professional Organisation (RPO). Mr Guo is employed by Focus Minerals Limited 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 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Guo 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.

END QUARTERLY ACTIVITY STATEMENT

11

Appendix 5B Mining exploration entity and oil and gas exploration entity Quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity Quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

Focus Minerals Ltd
ABN 56005470799	Quarter ended (“current Quarter”)
56005470799	30 June 2016

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 (e) royalties (f) Mine Rehabilitation Fund 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) (a) Tax Refund (b) Leasing Net Operating Cash Flows	Current Quarter $A’000	Year to date (six months) $A’000
	- (2,672) - - (1,023) (7) - - 979 (44) - - 48	- (3,927) - - (1,582) (41) - - 1,123 (110) - - 88
	(2,719)	(4,449)
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)	- - - - - - - - -	- - (13) - - 2 - - -
	-	(13)
	(2,719)	(4,462)

Appendix 5B

Mining exploration entity and oil and gas exploration entity Quarterly report

1.13 Total operating and investing cash flows (brought forward)	(2,719)	(4,462)
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	- - - - - -	- - - - - -
	-	-
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 of Quarter	(2,719) 72,198	(4,462) 73,941
	69,479	69,479

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

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

Current Quarter $A'000 174 -

• 1.25 Explanation necessary for an understanding of the transactions Director fees

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

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
	20	15

13

Appendix 5B Mining exploration entity and oil and gas exploration entity Quarterly report

Estimated cash outflows for next Quarter

4.1 4.2 4.3 4.4	Exploration and evaluation Development Production Administration	$A’000
		3,200
		-
		-
		650
	Total	3,850

• 4.1 Exploration and evaluation

• 4.2 Development

• 4.3 Production

• 4.4 Administration

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 (Environmental Bonds)	53,373	55,867
	-	-
	-	-
	16,106	16,331
Total: cash at end of Quarter(item 1.22)	69,479	72,198

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased	Tenement reference and location	Nature of interest (note (2))	Interest at beginning ofQuarter	Interest at end of Quarter
	E38/3088 P15/5987 P15/5995	Granted Granted Granted	0% 0% 0%	100% 100% 100%

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Appendix 5B Mining exploration entity and oil and gas 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)	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	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	182,748,565	182,748,565
	-
7.5 +Convertible debt securities (description) 7.6 Changes during Quarter (a) Increases through issues (b) Decreases through securities matured, converted	N/A
	-
7.7 Options (description and conversion factor)

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Appendix 5B

Mining exploration entity and oil and gas exploration entity Quarterly report

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)

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 5).

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

Sign here: ............................................................ Date: 29 July 2016 (Company secretary)

Print name: Dane Etheridge

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 and petroleum 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 or petroleum 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

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