FORTUNA METALS LTD — Interim / Quarterly Report 2015

Jan 28, 2016

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B Mining exploration entity quarterly report

Name of entity

FRONTIER RESOURCES LTD

ABN Quarter ended ("current quarter") 96 095 684 389 31 December 2015

Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration (e) project development costs 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 Net operating cash flows	Current Quarter $A'000	Year to date (6 Months) $A'000
	6 (8) - - (60) - - - - - 4	13 (20) - - (149) - - - - - 13
	(58)	(143)
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 Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - - - - - - - -	- - - - - 14 - - -
	-	14
	(58)	(129)

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward) 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 (costs of issue) Net Financing Cash Flows	(58)	(129)
	- - - - - -	(47) - - - - (3)
	-	(50)
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	(58) 85 (2)	(179) 208 (4)
	25	25

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
		16
		-
	Explanation necessaryfor an understandingof the transactions
	Consulting fees and directors fees $16,292

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

N/A

• 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

N/A

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

add notes as necessary for an understanding of the position

	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
		-	-
		-	-

	Estimated cash outlays for next quarter 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration 4.5 Capital Acquisitions TOTAL	$A'000
		100
		-
		-
		80
		-
		180

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in the statement of cash flows) to the related items in the accounts is follows. 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other – Term Deposits Total: cash at end of quarter(item 1.22)	Current Quarter $A'000	Previous Quarter $A'000
		21	31
		4	54
		-	-
		-	-
		25	85

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 (4)]	Interest at Beginning of Quarter	Interest at End of Quarter
	ELA 2348 - ANDEWA	Not granted	Nil-	Nil-
	EL 1595 - BULAGO	Renewed	100%	100%

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	Amount paid up
7.1Preferences securities (description) 7.2 Changes during quarter (a) increases through issues (b) decreases through returns of capital, buybacks, redemptions	-	-	-	-
	-	-	-	-
7.3Ordinary securities 7.4 Changes during quarter (a) increases through issues (b) decreases through returns of capital, buybacks	32,569,646	32,569,646	-	-
	3,470,000 -	3,470,000 -	$0.02 -	- -
7.5Convertible debt securities (description) 7.6 Changes during quarter (a) increases through issues (b) decreases through securities matured, converted	-	-	-	-
	-	-	-	-
7.7Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	900,000 500,000	- -	Exercise Price $1.22 $0.22	Expiry Date 1/11/2017 2/12/2017
	-	-	-	-
	-	-	-	-
	-	-	-	-
7.11Debentures (totals only)	-	-
7.12Unsecured notes (totals only) 7.13Performance Shares	-	-
	-	-

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 Law or other standards acceptable to ASX (see note 4).

• 2 This statement does/ ~~does not~~ * (delete one) give a true and fair view of the matters disclosed.

Sign here: [lodged electronically] ..................... Date: 29 January 2016 (Company Secretary)

Print name: Matthew Foy

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 the topic, the Australian standard on that topic (if any) must be complied with.