GBM RESOURCES LIMITED. — Interim / Quarterly Report 2009

Jul 30, 2009

31 July 2009

The Manager Company Announcements Australian Securities Exchange Ltd . Level 5, 20 Bridge Street Sydney NSW 2000

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Registered Office:

Level 1, 335 Churchill Ave Subiaco WA 6008 ABN 91 124 752 745

T 08 9388 6899 F 08 9388 6977 W www.gbmr.com.au

REPORT FOR THE QUARTER ENDED 30 JUNE 2009

Exploration Highlights:

QUEENSLAND

• Presence of high grade copper and gold mineralisation confirmed from field activities completed on the Isa Brightlands Project.

• Large copper anomalies defined at the Brightlands Project on the Milo and Tiger prospects.

• Significant gold values in addition to high grade copper results evident in the Tambourine (previously the Range) prospect.

• A 2,500 metre Reverse Circulation (RC) drilling program on the Tiger and Tambourine prospects planned for August to confirm mineralisation and potential for further development.

• Secured a Queensland Government CDI grant to drill a copper gold target on the Isa Bungalien Project.

VICTORIA

• Results from systematic soil sampling at Malmsbury gold project further support an Intrusive Related Gold System (IRGS) related to a buried intrusive at depth.

• One kilometre deep diamond drill hole planned for later in the year to test the potential for a large tonnage intrusive related gold deposit.

Corporate:

• Successful full take-up of an $876,000 Entitlement Offer to shareholders.

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EXPLORATION ACTIVITIES

SAFETY & ENVIRONMENT

No significant safety or environmental incidents were reported during the quarter. The Company had no Lost Time Injury (LTI) incidences for 2008-2009 and has now completed 18 months with no significant environmental or safety incidents.

GBM continues to target zero injuries and environmental incidents.

QUEENSLAND

Mount Isa Region Copper Gold Projects

Introduction

During the June quarter, the Company’s focus was on exploration of its extensive copper gold exploration assets in the Mount Isa region and in particular preparing the Brightlands Project for drilling during the September quarter. A further application was submitted to acquire available ground immediately west of the Brightlands tenement. The Mount Isa region tenements represent more than 60% of GBM’s exploration areas.

During the quarter, Ivanhoe Australia announced its maiden molybdenum and rhenium resource for the Merlin project. This resource again highlights the prospectivity of the region to host world-class mineral deposits in a range of commodities and further underpins GBM’s strategy to build a core minerals business in the Mount Isa Inlier. Importantly, GBM’s tenement package is highly focussed on the Eastern Succession which is recognised as the key host to Iron Oxide Copper Gold (IOCG) style Cu-Au targets in the region, and host to recent discoveries including Merlin Mo-Rh-Cu-Au, Rocklands Cu-Au and the Amythyst Castle Cu Au project. Other significant IOCG deposits include Ernest Henry, Osborne, Selwyn Mt Dore, Swan, Mt Elliot and Roseby.

The key target remains IOCG and gold mineralisation.

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Brightlands (EPM 14416)

Five of the priority targets identified as a result of GBM’s review of existing exploration data and a detailed lithostructural review of the Brightlands project (completed during the March 2009 quarter) have now been located and initial rock chip sampling completed. Four of these have been systematically soil sampled. Results have been received for all but one area (Lost Track results remain outstanding) and these are summarised below.

Tiger Prospect

Tiger Prospect is a Cu-Au occurrence hosted by sandstones and calc-silicate rocks of the Mitakoodi Quartzite and Overhang Jaspilite in the Eastern Succession of the Mount Isa Inlier. Tiger occurs near the eastern margin of a magnetic low which extends northwards where the Rocklands mineralisation also occupies a similar position and strike trend near the eastern margin of this feature (see figure below). No record of any drilling has been located for the Tiger Prospect area.

Tiger is marked by several small diggings and more recent trenching (circa 1970). However, it had been overlooked by modern exploration until sampling in 2006 by Newcrest returned high grade copper values. Apart from the small dumps associated with the diggings, Tiger is marked by several rubbly gossan outcrops adjacent to a creek which generally follows the trend of the observed mineralisation in a topographic low. As a result, geochemical dispersion is expected to be limited and variably diluted by sheet wash from higher areas.

This area is considered a target for discovery of an oxidised-hematite rich IOCG style deposit.

GBM completed a soil sampling and initial rock sampling program in May 2009 to define the extent and distribution of key economic and pathfinder elements (in particular Cu, Au, Ag, Co, Mo and U) over the 1.5 kilometre strike length of the prospect within the project area. This initial soil sampling program involved collection and analyses of 155 soil samples on a 25 metre by 200 metre grid over the Tiger Prospect area. Samples were sieved to -80 mesh (200µm) and analysed for a broad suite of elements by ALS method MEICP41 and for Au by AA21 (2 ppb detection)

Significant outcomes from the Tiger Prospect sampling program are summarised below and illustrated on the attached figure;

• A coherent Cu anomaly is defined at 125ppm Cu in soil sampling. This anomaly is continuous over the 1.5 kilometres covered by the initial survey within the tenement boundaries. Peak value for Cu was 820ppm Cu, with a semi continuous anomaly also defined at plus 378ppm Cu.

• Rock samples confirm significant levels of copper mineralisation over 1.1 kilometres along strike and coincident with soil geochemical anomaly. Further sampling is required to locate extension of this mineralisation. Of 24 samples collected by GBM, 22 (92%) returned greater than 0.1%Cu, and 19 (79%) returned over 1% Cu.

• Rock samples have confirmed the presence of strong copper mineralisation with samples containing up to 33% Cu. A total of 71% of GBM’s samples contained greater than 3% Cu. Samples collected by GBM are summarised in the table below and are plotted (along with previous sampling) on the figure below.

• Significant gold values are associated with copper values in rock samples with 18 samples (75%) containing greater than 0.1 ppm Au, 8 (33%) greater than 0.5 ppm Au and a peak gold value of 2.7ppm Au.

• Elevated Cobalt (peak value 5200ppm) and silver (peak value 35ppm) values are also noted in rock samples.

The 1.5 kilometre long coherent soil anomaly supported by high copper values in rock sampling has resulted in Tiger being selected as one of two areas for drilling in GBM’s maiden drill campaign on the Brightlands Project.

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SAMPLE	Easting	Northing	Cu	Ag	Co	Au
	(mga94)	(mga94)	%	ppm	ppm	ppm
BTR01	435548	7710318	5.03	9.1	129	0.016
BTR02	435538	7710296	7.55	35.5	120	0.031
BTR03	435242	7710602	0.16	0.2	163	0.012
BTR04	435216	7710668	0.72	0.3	90	0.041
BTR05	435199	7710639	0.63	0.5	235	1.76
BTR06	435185	7710660	0.09	0.2	237	0.011
BTR07	435149	7710724	6.67	0.3	43	0.078
BTR08	435056	7710792	1.70	0.3	82	0.218
BTR09	435028	7710853	13.40	8.4	230	2.06
BTR10	435032	7710868	17.70	18	542	1.44
BTR11	434971	7710931	5.93	3.4	289	0.214
BTR12	434912	7710980	19.80	14.9	66	0.333
BTR13	434886	7710997	3.56	1.7	60	0.2
BTR14	434855	7711030	21.70	7.6	128	0.748
BTR15	434954	7711077	20.30	11.8	2710	0.258
MD01	434915	7710984	10.45	2.4	128	0.15
MD02	434870	7711019	29.80	19.3	11	0.114
MD03	434808	7711068	19.15	7.8	2670	0.789
BT-01	434947	7711089	0.01	0.4	99	0.002
BT-02	434959	7711064	17.20	2.1	5200	0.82
BT-03	434916	7710991	1.28	0.8	70	0.085
BT-04	434916	7710991	8.29	2.6	70	2.72
BT-05	434913	7710976	33.70	22.8	118	0.824
BT-06	434913	7710976	6.16	2.7	97	0.378

Table: Tiger Prospect rock sample analyses for GBM samples

Planning is underway to complete a series of drillholes testing a strike length of around 1 kilometre where soil and rock sampling have confirmed the presence of copper mineralisation. This initial program will involve approximately 1,500 metres of RC drilling in a series of angled drillholes designed to broadly test the mineralised structure to depths up to 100 metres.

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Photograph. Malachite (Cu carbonate mineral) filling fractures and disseminated throughout altered quartzite.

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Tambourine, Accidental and Lost Track Prospects

These three prospect areas lie at the foot of a distinctive northeast trending range of hills in the southern part of the project area. Tambourine (previously referred to as The Range) and Lost Track were deemed as priority targets as a result of initial data and lithostructural reviews. Initial field inspection and proximity to Tambourine and Lost Track resulted in sampling being conducted at the Accidental Prospect as part of building a semi regional understanding of the priority targets.

This group of prospects is Cu-Au occurrences hosted by sandstones, shales, intrusives and calc-silicate rocks of the Mitakoodi Quartzite and Marraba Volcanics in the Eastern Succession of the Mount Isa Inlier. These prospects occur near the eastern margin of a prominent northeasterly trending range formed by the Mitakoodi Quartzite Formation in the western limb of the Duck Creek Anticline.

GBM completed initial rock and soil sampling programs in the June quarter to define the extent and distribution of key economic and pathfinder elements (in particular Cu, Au, Ag, Co, Mo and U) over the 2.0 kilometre strike length of the Tambourine Prospect, 2.2 kilometres of the Accidental Prospect and 0.8 kilometres at the nearby Lost Track Prospect. These initial soil sampling programs involved collection and analyses of 170, 150 and 71 soil samples respectively on a 25 metre by 200 metre grid over the prospect areas. Samples were sieved to -80 mesh (200µm) and analysed for a broad suite of elements by ALS method ME-ICP41 and for Au by AA21 (2 ppb detection). Interpretation of this programme is underway with some areas of elevated Cu noted.

Significant gold values were noted in addition to high copper values in rock samples collected from these areas. Gold values included a peak value of 19.2ppm Au recorded in association with 22% Cu. Of the 30 samples collected over these prospects, 22 (73%) returned analyses of greater than 0.1ppm Au and 11 (37%) contained greater than 1 ppm Au. Rock sample analyses and locations are tabulated below.

At the Tambourine Prospect, mineralisation is visible in a number of very small diggings - the most continuous zone of which is interpreted to extend for more than 500 metres on gently sloping area several hundred metres east of the main range. The mineralised zone is largely masked by a thin veneer of sheetwash from the range resulting in a subdued soil geochemical response. Difficult access and the masking effect of sheet wash are considered to have discouraged modern exploration with only limited rock sampling having been competed in the last 30 years. Strong mineralisation observed in small diggings and outcrops over a significant strike length, supported by high gold and copper values in rock samples, results in this prospect being selected along with Tiger for initial drill testing on the Brightlands Project.

Accidental Prospect and Lost Track Prospects occupy similar structural and lithostratigraphic positions to Tambourine. However, bedrock is reasonably well exposed and a more coherent geochemical response is evident in available results from Accidental. No record of any previous drilling in these areas has been located to date. Sampling results from Lost Track areas are still awaited.

These prospects are considered targets for discovery of oxidised-hematite rich, IOCG style deposits.

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SAMPLE	Easting	Northing	Cu	Ag	Co	Au
	(mga94)	(mga94)	%	ppm	ppm	ppm
RR01	416952	7690644	7.33	0.2	41	0.85
RR02	417190	7690795	12.30	2.1	260	1.26
RR03	417190	7690795	1.30	0.2	90	0.80
RR04	417599	7690836	0.02	0.2	18	0.03
RR05	417511	7690755	0.59	5.4	930	4.52
RR06	417511	7690755	9.57	8.2	842	0.74
RR07	417462	7690687	16.90	1	247	0.76
RR08	417306	7690555	32.30	2.6	801	12.60
RR09	417146	7690785	0.06	0.2	36	0.02
RR10	416382	7689572	13.60	28	105	8.35
RR11	416689	7689866	15.30	0.7	41	0.12
RR12	416689	7689866	5.36	0.6	20	0.11
RR13	416689	7689866	5.29	24.6	64	1.40
RR14	416719	7689902	16.00	4.9	159	4.55
RR15	416719	7689902	22.60	1.7	15	19.20
RR16	416935	7690145	14.45	0.2	18	0.40
RR17	417306	7690555	19.20	0.4	678	1.55
RR18	417294	7690531	10.35	0.2	684	0.93
RR19	417277	7690232	8.98	3.6	18	0.42
RR20	417277	7690232	1.00	0.4	9	0.01
RR21	417275	7690232	9.57	0.2	101	1.26
RR22	417275	7690232	2.21	0.2	17	0.22
RR23	417342	7690322	0.58	0.2	6	0.01
RR24	419566	7692946	0.02	0.2	11	0.09
RR25	419199	7692405	26.10	6.5	215	7.62
RR26	421058	7694004	0.03	0.2	4	0.01
RR27	421054	7694010	0.09	0.2	10	0.03
RR28	421091	7694056	7.66	0.2	32	0.47
RR29	421098	7693986	25.30	1.4	71	3.90
RR30	421098	7693986	5.46	0.2	26	0.02

Table: Rock sample results from the Tambourine.

Initial drill testing of the Tiger and Tambourine Prospects is planned for the September quarter. Further field work to progress Milo and other priority targets in the Brightlands Project area to drill ready are scheduled to continue during the September quarter. This will include;

• Southern Gold – Extensive areas in the Chumvale Breccia hosting widespread anomalous base

• metal and gold values at surface

• Fine Gold Gully- interpreted by previous owner, Newcrest, as being in a similar stratigraphic position as the Tick Hill Mine (470,000t @ 28g/t Au) with a similar geochemical anomaly, one hole drilled over weaker (30ppb in soil) geochemical response returned 6m @ 0.2g/t Au and 0.23% Cu.

The focus on Brightlands is consistent with GBM’s strategy to explore for Au and Cu-Au deposits in world class mineral provinces.

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1. Bungalien (EPM 14355), Malbon 2 (EPM 14120), Horse Creek (EPM 15150) & Limestone Creek (EPM 17849)

A 17 hole RC drilling program was completed at the end of December, 2008. This program returned peak values in excess of 10% P2O5 in five holes, with the two eastern most holes returning peak values of more than 22% P2O5. This drilling demonstrated the continuity of the Beetle Creek Formation throughout the project area. The sedimentary rock sequence is also the key host to phosphate mineralisation within the Georgina Basin. Interpretation of the drilling results demonstrates that the project area contains some 16 square kilometres of the Beetle Creek Formation within a depth of 50 metres from surface and over a strike length of 9 kilometres. The drilling intersections confirm a very flat lying orientation for the mineralised Beetle Creek Formation, which most holes intersected between 40 to 50 metres downhole. In addition, the Bungalien project is ideally supported by a road and rail corridor through its tenement boundary, enhancing potential development options.

During the quarter, rehabilitation of 14 of the 17 drill sites was completed, with the remaining sites to be completed in the next quarter.

Collaborative Drilling Initiative Grant

GBM has been successful in its application to the Queensland Department of Energy and Minerals for a Collaborative Drilling Grant (CDI) to test a magnetic high located in the southwestern part of Bungalien EPM14355. The CDI grant covers 50% of actual drilling costs up to a total of $105,000. This hole is planned to be drilled in the current field season.

2. Talawanta (EPM 15406) & Grassy Bore (EPM 15681)

These tenements are centred on a north trending linear magnetic complex interpreted to represent basement feature in the underlying Proterozoic basement interpreted as the northward extension of the Eastern Sequence of the Mount Isa Inlier under cover. The magnetic complex is locally, extremely intense, particularly given the depth of the cover sequence which would tend to mask the magnetic response.

Talawanta is centred on a major magnetic anomaly, which is one of the most intense anomalies in the district, next to Ernest Henry, and covers an area 15km x 7km.The anomaly is clearly associated with alteration with potential for discovery IOCG style mineralisation.

Grassy Bore is centred on a series of bull’s eye magnetic anomalies and gravity features. Limited drilling has confirmed the presence of alteration and weak mineralisation. A review of EXCO’s exploration data and BHP historic drilling highlighted the northern Boomera region as being highly prospective for copper mineralisation. These targets are genuine IOCG targets of substantial size and intensity.

3. Mt Margaret Group (Mt Margaret West EPM 14614, Mt Margaret Extended EPM 16227, Cotswold EPM 16622 and Mt Malakoff Extended 16398)

Data review is ongoing as these areas have been subjected to significant exploration in the past, However, the major focus this quarter has been on the Brightlands and Bungalien projects. These tenements are situated in the same geophysical/geological domain as Ernest Henry and are centred on a series of magnetic anomalies that surround prospective granites. The area also contains extensive geochemical targets (Cu, Au) though the relationship with basement magnetic features has not been established in our review to date. It is a highly mineralised district with Ernest Henry and E1 deposits located within this domain. This area also appears likely to host genuine IOCG targets of substantial size and intensity.

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Isa Region Summary Outlook

• Brightlands- commence initial drilling campaigns testing two of the priority target areas (Tiger and Tambourine) during the September 2009 quarter. Field evaluation of other priority targets during the September and December quarters ready for ranking and drill testing in the first half of 2010.

• Bungalien, Malbon2 and Horse Creek- compilation of drill data and results. Soil sampling of additional phosphate target areas has been re-scheduled for the September quarter. Mount Margaret - Complete data review, prospect ranking and upgrade IOCG targets associated with significant magnetic features.

• Talawanta/Grassy Bore –progress data review, prospect ranking and upgrade IOCG targets associated with significant magnetic features.

Dee Range Copper Gold Project

The Dee Range Copper Gold Project now includes four exploration permits areas in proximity to the Mount Morgan Mine which produced 8M ounces of gold and more than 400,000 tonnes of copper in a mining history spanning more than 100 years. This is a world-class deposit and the project area contains a number of Cu-Au anomalies from previous exploration that remain unexplained in a highly prospective geological setting.

Project Outlook

Field inspection including field mapping with rock and or soil sampling of the target areas is required. This is now planned to be completed during September quarter if conditions permit. Survey design will be undertaken pending results of field inspection.

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VICTORIA

Malmsbury Gold Project

Results from systematic soil sampling at the Malmsbury Gold project continues to support the conclusion that the system is related to a buried intrusive at depth. The extent of the system is interpreted to be in excess of 4km in strike length.

The Malmsbury Project has historically been reported as two adjoining areas;

1. Belltopper Hill

Belltopper Hill currently hosts numerous zones of gold mineralisation as disseminations in shears and faults including the Leven Star Prospect which has a JORC compliant resource of 0.8Mt containing an estimated 104,000 ounces of gold at an average grade of 4.0 g/t Au. This deposit is open both at depth and strike.

2. The Drummond North Goldfield ( adjoins Belltopper Hill)

The Drummond North Goldfield mined during the 1880’s yielded over 90,000 ounces of gold from hardrock mining, and an unknown quantity of gold from extensive alluvial areas.

Soil sampling has defined a coherent Gold-Molybdenum-Bismuth anomaly at Belltopper Hill with spatially related and overprinting Gold-Arsenic-Antimony anomalism. Interpretation of this data further supports the conclusion that the Malmsbury gold system is related to a buried intrusive centre at depth. The significance of this is that Intrusive Related Gold Systems have a pedigree for delivering world class deposits. On a district scale the hydrothermal system analogy would include the Fosterville Gold Mine, owned and operated by Northgate Minerals with a current resource base of 3.0M ounces.

The company plans to drill a 1 kilometre deep diamond drill hole in the December quarter to test the potential for a large tonnage intrusive deposit on Belltopper Hill. This drill program will be partly funded by the grant from the Victorian Department of Primary Industries which the company successfully secured last year.

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Belltopper Hill is a prominent landform resulting from the resistive nature of the metamorphism and silicification of the area. These features have been interpreted to indicate the emplacement of a granitic intrusive below Belltopper Hill, This interpretation is supported by the existence of a subtle magnetic high over the area. This feature was interpreted from high quality airborne magnetic survey data available as part of the Victorian Governments VIMP initiatives.

Soil sampling has been completed to define the extent and distribution of key economic and pathfinder elements (in particular Au, Sb, As, Mo, Bi and Cu) in the central and northern 2.0 kilometres of the project area. This will in turn assist in targeting scout drilling to probe the deeper parts of the system for large mineralised zones within or proximal to an intrusive body. The initial phase of this drilling will be completed with assistance from a grant received by the company as part of the Victorian Governments Rediscover Victoria Drilling Initiative. GBM Resources target is bulk mineable high value gold mineralisation.

The initial soil sampling programme involved collection and analyses of 175 soil samples on a 50 metre by 400 metre grid over the readily accessible areas of Belltopper Hill. Samples were sieved to -80 mesh (200µm) and analysed for a broad suite of 12 elements by AMDEL method ARM20. This broadly spaced programme was designed to outline the extent of mineral enrichment in the area. Results have been hand contoured to reflect known controls on mineralisation where possible, and are presented for Au, Mo Bi As, and Sb on the attached figures.

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Significant trends at Malmsbury are summarized below and illustrated on the attached figures; Gold defines a strong anomaly at 50 ppb centred on the intersection of known mineralisation but trending north wards to areas not previously drill tested.

At low levels (10ppb) this anomaly is continuous over the 2.0 kilometres covered by the initial survey and remains open to both the East and West. Peak values for Au was 1600ppb Au.

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Molybdenum defines a discrete ovoid pattern centred near south east margin of the magnetic feature, and very close to the Missing Link mineralised zone . Values range from 1 to 33 ppm Mo. Bismuth distribution pattern very closely reflects molybdenum , and also defines a coherent feature centred on the same area as the Molybdenum anomaly.

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Arsenic defines a very similar pattern to gold, both reflecting the strong structural controls known to operate in the area.

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Antimony (Sb) closely follows the Au distribution pattern , however Sb is much more tightly constrained at higher concentrations, with the Leven Star zone displaying the largest Sb anomaly.

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The broader distribution of Au, As and Sb is related to structurally hosted mineralisation. This comparison is consistent with the expected metal zoning in these systems where a central region of anomalous Au, Mo and Bi (intrusive centre)Is surrounded by a series of fractures, shears and faults that display more peripheral geochemistry of As, Sb and Au. A schematic representation based on similar styles of systems, including several significant deposits, occurring in the Yukon Region of Canada is shown below.

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Geological observations made during the soil sampling programme added to our existing knowledge of the area as recent bushfires had removed weed growth allowing many old workings to be observed for the first time in many years. Of particular interest was the extent of workings over some 500 metres of strike on the Missing Link Zone.

Project Outlook

During sampling it was noted that recent fires had removed many areas of dense weed growth over old workings, exposing them for mapping and sampling. Compilation and interpretation of soil results to assist in targeting drilling, will be undertaken with the assistance of a Rediscover Victoria Drilling grant for 50% of drilling costs - up to $132,000. This will be completed in the second half of 2009.

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Willaura Copper Gold Project

Previous exploration has identified three discrete magnetic features with coincident geochemical anomalies considered worthy of further investigation for intrusive related gold mineralisation. These anomalies are located in the Stavely region of western Victoria. The Stavely Belt is considered by the Company as one of Australia’s most under-explored volcanic terrains with exploration results previously released by Beaconsfield Gold representing some of the first high grade gold and base metal intersections in this terrain and confirming the prospectivity of the region for IRDG style deposits.

The Company was successful in receiving funding as part of the Rediscover Victoria Strategic Drilling Initiative. This funding is for 50% of direct drilling costs up to $56,000 to test three coincident geochemical and magnetic anomalies with two holes each.

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Project Outlook

Extension of ground magnetic grid over anomaly ‘C’ and modelling of anomaly is required prior to planning drillhole testing. Field inspection of the northern continuation of anomaly ‘A’ to assist target development and drillhole planning, is required. A number of other significant geochemical and geophysical anomalies remain to be tested within the project area. These will be reassessed in light of data from the current program. It is planned to complete ground magnetic and follow-up IP surveys (Induced Polarization) to identify possible disseminated sulphide deposits with a view to determining the priority for future drill testing. Follow-up work is planned in the December 2009 quarter.

CORPORATE

1. The Company announced a 2 for 3 non-renounceable rights issue on the 12 May to raise $876,788. Support for the Offer was strong with 66% acceptances by GBM shareholders. Demand by investors to participate in the shortfall has resulted in the Company taking the opportunity to complete a share placement at the Offer price to Cygnet Capital to raise an additional $500,000.

The share placement is subject to shareholder approval at the general meeting on 7 August 2009. The funds raised will further strengthen the Company’s cash position and are to be allocated to the Brightlands copper gold project near Mount Isa and the Malmsbury gold project.

1. The Company spent $432,000 in the quarter of which $345,000 was for exploration and $ 91,000 on administration costs. Cash at the end of the quarter totals $ 1.4 million. Forecast exploration expenditure for the September 2009 quarter is estimated at $ 400,000. .

Yours sincerely

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Peter Thompson Managing Director

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*Rock samples have been collected from the available sampling medium at the particular location and may be chips from outcrop, fragments from dumps or float considered close to its source. Rock samples should not be considered to directly correspond to in situ grades or to relate in any way to volumes of mineralised material present.

Note; The information in this report that relates to Exploration Results is based on information compiled by Neil Norris, who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy. Mr Norris is a full-time employee of the company. Mr Norris has sufficient experience which 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 Norris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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TENEMENT SUMMARY

Project / Name	Project / Name		Tenement	Owner	GBMR	Manager	Granted	Expiry	Approx	Status	State
			No.		Equity				Area
									(km2)
Victoria
Malmsbury
Belltopper			EL4515*1	GBMR	100%	GBMR	6/10/2005	5/10/2010	25	Granted	Vic
Lauriston			EL5120	GBMR	100%	GBMR	17/12/2008	16/12/2013	143	Granted	Vic
Willaura
Lake Bolac			EL4631	GBMR	100%	GBMR	21/03/2002	20/03/2009	98	Granted	Vic
Woorndoo			EL4751	GBMR	100%	GBMR	19/11/2003	18/11/2010	29	Granted	Vic
Queensland
Dee Range
Dee Range			EPM16057	GBMR	100%	GBMR	27-Sep-07	26-Sep-12	178	Granted	Q'ld
Boulder Creek			EPM17105	GBMR	100%	GBMR	26-Mar-08	25-Mar-10	178	Granted	Q'ld
Mt Morrisey			EPM17163	GBMR	100%	GBMR	23-Apr-08	23-Apr-10	161	Granted	Q'ld
Black Range			EPMA17734	GBMR	100%	GBMR			180	Appl'n	Q'ld
Mount Isa
Region
Talawanta -	Grassy Bore
Talawanta			EPM15406	GBMR*2	100%	GBMR	15-Jan-08	14-Jan-11	325	Granted	Q'ld
Grassy Bore			EPM15681	GBMR*⁴	100%	GBMR	28-Sep-07	28-Sep-10	325	Granted	Q'ld
Mount Margaret
Mt Margaret W.			EPM1627	GBMR*2	100%	GBMR	31-Jul-07	30-Jul-12	36	Granted	Q'ld
Ext
Mt Margaret			EPM14614	GBMR*2	100%	GBMR	2-Aug-05	1-Aug-10	129	Granted	Q'ld
West
Mt Malakoff Ext			EPM16398	GBMR*2	100%	GBMR			84	Appl'n	Q'ld
Cotswold			EPM16622	GBMR*2	100%	GBMR			45	Appl'n	Q'ld
Brightlands
Brightlands			EPM14416	GBMR*2	100%	GBMR	5-Aug-05	4-Aug-10	251	Granted	Q'ld
Brightlands			EPM18051	GBMR	100%	GBMR			99	Appl'n	Q'ld
West
Bungalien
Bungalien			EPM14355	GBMR*2	100%	GBMR	13-Oct-04	12-Oct-09	61	Granted	Q'ld
Burke River			EPM17885	GBMR	100%	GBMR			3	Appl'n	Q'ld
Horse Creek			EPM15150	GBMR*2	100%	GBMR	13-Jul-06	12-Jul-09	80	Granted	Q'ld
Limestone			EPM17849	GBMR	100%	GBMR			72	Appl'n	Q'ld
Creek
Malbon 2			EPM14120	GBMR*2	100%	GBMR	24-Aug-04	23-Aug-10	15	Granted	Q'ld
Horse Creek	Ext		EPM17886	GBMR	100%	GBMR			45	Appl'n	Q'ld
Totals									2562
	_Note _	* 1 subject to a 2.5% net smelter royalty to vendors.
		* 2 subject to a 2%		net smelter royalty is payable to Newcrest Mining Ltd.

Page 20 of 20

Appendix 5B GBM Resources Limited 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.

Name of entity

GBM Resources Limited

ABN 91 124 752 745	Quarter ended (“current quarter”)
ABN 91 124 752 745	30 June 2009

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 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 – Option fees paid Net Operating Cash Flows	Current quarter $A’000	Year to date $A’000
	-- (345) -- -- (91) -- 4 -- -- --	-- (1,528) -- -- (510) -- 69 -- -- --
	(432)	(1,969)
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)	-- -- -- -- -- -- -- -- --	(100) -- (34) -- -- -- -- --
	--	(134)
	(432)	(2,103)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(432)	(2,103)
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 (capital raising costs) Net financing cash flows	-- 741 -- -- -- --	-- 741 -- -- -- --
	741	741
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	309 1,094 --	(1,362) 2,765 --
	1,403	1,403

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 $124 1.24 Aggregate amount of loans to the parties included in item 1.10 Nil 1.25 Explanation necessaryfor an understandingof the transactions $21k Director fees $103k Executive Director fees All payments relating to Directors and Associates were on normal commercial terms.	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 $124 1.24 Aggregate amount of loans to the parties included in item 1.10 Nil 1.25 Explanation necessaryfor an understandingof the transactions $21k Director fees $103k Executive Director fees All payments relating to Directors and Associates were on normal commercial terms.	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 $124 1.24 Aggregate amount of loans to the parties included in item 1.10 Nil 1.25 Explanation necessaryfor an understandingof the transactions $21k Director fees $103k Executive Director fees All payments relating to Directors and Associates were on normal commercial terms.	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 $124 1.24 Aggregate amount of loans to the parties included in item 1.10 Nil 1.25 Explanation necessaryfor an understandingof the transactions $21k Director fees $103k Executive Director fees All payments relating to Directors and Associates were on normal commercial terms.
	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 $124 Nil
	1.25	Explanation necessaryfor an understandingof the transactions
		$21k Director fees $103k Executive Director fees All payments relating to Directors and Associates were on normal commercial terms.

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
	Nil	Nil
	Nil	Nil

• See chapter 19 for defined terms.

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Appendix 5B GBM Resources Limited Mining exploration entity quarterly report

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	400
	Nil
Total	400

Reconciliation of cash

Total Reconciliation of cash		400
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 (provide details)	249	402
	1,154	692
	Nil	Nil
	Nil	Nil
Total: cash at end of quarter(item 1.22)	1,403	1,094

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter

• 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 note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter	Nil
	Nil
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	109,598,401	84,023,504
	43,839,401 Nil	43,839,401	$0.02
7.5 +Convertible debt securities (description) 7.6 Changes during quarter	Nil
	Nil
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	3,730,000 20,000,000 40,379,552	Nil Nil 40,379,552	Exercise price $0.25 $0.22 $0.25	Expiry date 30 June 2010 30 June 2010 30 June 2010
	Nil	Nil	Exercise price	Expiry date
	Nil	Nil
	Nil	Nil
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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Appendix 5B GBM Resources Limited 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 [134 x 79] intentionally omitted <==

Sign here: ............................................................ Date: 30 July 2009 Company Secretary

Print name: Stuart Usher

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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