FORTUNA METALS LTD — Interim / Quarterly Report 2016

Jan 30, 2017

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, 01/05/13, 01/09/16

Name of entity

FRONTIER RESOURCES LTD

ABN96 095 684 389	Quarter ended (“current quarter”)
96 095 684 389	31 December 2016

Consolidated statement of cash flows	Current quarter$A’000	Year to date(6 months)$A’000
1.Cash flows from operating activities1.1Receipts from customers1.2Payments for(a) exploration & evaluation(b) development(c) production(d) staff costs(e) administration and corporate costs1.3Dividends received (see note 3)1.4Interest received1.5Interest and other costs of finance paid1.6Income taxes paid1.7Research and development refunds1.8Other (net GST / FBT Activity)1.9Net cash from / (used in) operatingactivities	(93)(23)6	(335)(112)27
	(110)	(420)

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment
	(b) tenements (see item 10)
	(c) investments
	(d) other non-current assets

• See chapter 19 for defined terms 1 September 2016

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

C	onsolidated sta	onsolidated sta	onsolidated sta	tement of cas	tement of cas	tement of cas	h flows		Curren$A	Curren$A	Curren$A	t quarter’000	t quarter’000		Yea(6 m	Yea(6 m	r to dateonths)
															$		A’000
2.2Proceeds from the disposal of:(a) property, plant and equipment(b) tenements (see item 10)(c) investments(d) other non-current assets2.3Cash flows from loans to other entities2.4Dividends received (see note 3)2.5Other (refund of tenement rehabilitationbond)2.6Net cash from / (used in) investingactivities	2Proceeds fro			m the disposal of:
									-
	5Other (refbond)	und of tenemen			t rehabilitation
																		74
	6Net cashactivities	from / (used in			) investing					-
3.Cash flows from financing activities3.1Proceeds from issues of shares3.2Proceeds from issue of convertible notes3.3Proceeds from exercise of share options3.4Transaction costs related to issues ofshares, convertible notes or options3.5Proceeds from borrowings3.6Repayment of borrowings3.7Transaction costs related to loans andborrowings3.8Proceeds from application funds held intrust3.9Other (provide details if material)3.10Net cash from / (used in) financingactivities	.Cash flo	ws from finan			cing activities
	1Proceeds	from issues of			shares					-						2
	2Proceeds	from issue of c			onvertible notes
									(2)
	5Proceeds6Repayme	from borrowingnt of borrowings			s					40
	7Transacti	on costs related			to loans and
	borrowing	s
	8Proceeds	from applicatio			n funds held in					18
									56						346
4.Net increase / (decrease) in cash andcash equivalents for the period4.1Cash and cash equivalents at beginning ofperiod4.2Net cash from / (used in) operatingactivities (item 1.9 above)4.3Net cash from / (used in) investing activities(item 2.6 above)4.4Net cash from / (used in) financing activities(item 3.10 above)
	.Net incr	ease / (decrea			se) in cash and
	cash eq	uivalents for t			he period
									82(110)-
	(item 2.6 ab4Net cash fr		ove)
			om / (used in) fina			ncing activitie		s					56			3
	(item 3.10 a		bove)

• See chapter 19 for defined terms 1 September 2016

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

Consolidated statement of cash flows	Current quarter$A’000	Year to date(6 months)$A’000
4.5Effect of movement in exchange rates oncash held4.6Cash and cash equivalents at end ofperiod	(2)	(3)
	26	26

5.	Reconciliation of cash and cash	Current quarter		Previous quarter
	equivalents	$A’000		$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances		23	41
5.2	Call deposits		3	41
5.3	Bank overdrafts		-	-
5.4	Other (provide details)		-	-
5.5	Cash and cash equivalents at end of		26	82
	quarter (should equal item 4.6 above)

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2		-
6.2	Aggregate amount of cash flow from loans to these parties included		-
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

Consulting fees and directors fees $nil

7.	Payments to related entities of the entity and their	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2		-
7.2	Aggregate amount of cash flow from loans to these parties included		-
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

• See chapter 19 for defined terms 1 September 2016

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

		8.Financing facilities availableAdd notes as necessary for anunderstanding of the positionTotal facility amountat quarter end$A’000Amount drawn atquarter end$A’0008.1Loan facilities40408.2Credit standby arrangements--8.3Other (please specify)--8.4Include below a description of each facility above, including the lender, interest rate andwhether it is secured or unsecured. If any additional facilities have been entered into or areproposed to be entered into after quarter end, include details of those facilities as well.	Total facility amountat quarter end$A’000	Amount drawn atquarter end$A’000
			40	40
			-	-
			-	-

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation		105
9.2	Development		-
9.3	Production		-
9.4	Staff costs		-
9.5	Administration and corporate costs		25
9.6	Other (provide details if material)		-
9.7	Total estimated cash outflows		130

10.	Changes in	Tenement	Nature of interest	Interest at	Interest
	tenements	reference		beginning	at end of
	(items 2.1(b) and	and		of quarter	quarter
	2.2(b) above)	location
10.1	Interests in mining	-	-	-	-
	tenements and
	petroleum tenements
	lapsed, relinquished
	or reduced
10.2	Interests in mining	-	-	-	-
	tenements and
	petroleum tenements
	acquired or increased

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

Sign here: (lodged electronically) Date: 31 January 2017 ( Director /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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

• See chapter 19 for defined terms 1 September 2016

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