GBM RESOURCES LIMITED. — Interim / Quarterly Report 2012

Jul 30, 2012

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ABN 91 124 752 745
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ASX Announcement 31 July 2012

REPORT FOR THE QUARTER ENDED 30[th] JUNE 2012

Key Exploration Highlights:

Milo IOCG- Rare Earth Project:

• The completed seven hole program (numbers MIL014 to MIL20A) has successfully confirmed that the mineralisation remains open to the north and south and at depth.

• Drill Hole MIL015 returned 2m @ 6.2% copper which demonstrated that a phase of high grade copper mineralisation exists at Milo.

• Five of the seven holes returned significant rare earth element and copper equivalent results.

• MIL017 intersected 70m @ 0.8% CuEq, including 18 metres @ 1.3% CuEq. MIL018 returned 51 metres @ 0.8% CuEq, MIL019 7m@1.2% CuEq and MIL014 11m@1.2% CuEQ.

• Significant Rare Earth element intersections include 20 metres @ 3,979ppm in MIL017 and 11 metres @1,382ppm in MIL020A. MIL015 returned 9m@3505ppm and 6m@2749ppm.

• The program confirms that both the southern extension and northern extension of the mineralised system are beyond the previous maiden rare earth resource outline.

• Geochemical sampling results have identified three areas of strong anomalism in copper (Cu) and Lanthanum (La) (which is taken to be indicative of general REE suite) and demonstrate significant potential to further grow Milo

• The Milo system is linked to the regionally significant Cloncurry Flexure and to further define the size of the Milo mineralising system, extensive soil geochemistry and mapping is in progress to target additional zones of mineralisation within this extensive hydrothermal system.

Registered Office: Suite 8, 7 The Esplanade, Mt Pleasant, Western Australia 6153 Tel: (08)9316 9100 • Fax: (08)9315 5475 • Web: www.gbmr.com.au Exploration Office: 10 Parker Street, Castlemaine, Victoria 3450 Tel: (03) 5470 5033

Pan Pacific / Mitsui Farm In projects NW Queensland

• Drilling commenced in the quarter on Pan Pacific/Mitsui Projects.

• $3.8 million to be spent on Farm-in project areas this year.

• All 4 project areas have potential for Iron Oxide Copper Gold (IOCG) style deposits

• Drilling and field programs will run through to March 2013.

• GBM to manage the exploration programs.

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Figure: GBM Resources Project Location Plan

SAFETY AND ENVIRONMENT

No LTI, MTI or environmental incidents were reported during the quarter. The Company has now completed 12 consecutive months with no LTI’s and 56 consecutive months with no significant environmental incidents.

GBM will continue to target zero injuries and environmental incidents in line with the Company’s policy of striving to achieve the highest standards in safety and environmental management.

QUEENSLAND EXPLORATION ACTIVITIES Mount Isa Region Copper Gold Projects

1. Brightlands Project, 100% GBM.

Milo IOCG and Rare Earth Project:

Drilling recommenced during March with the objective of testing the known Milo IOCG – REE deposit and to further investigate the previously exhibited potential to significantly extend the size of the known mineralisation. A seven hole, 2996 metre, diamond drilling program was completed, testing both the north (4 holes) and south (3 holes) of the current resource boundary. In addition, a large soil sampling programme was commenced and detailed structural mapping was also initiated.

Milo is a large IOCG-REE breccia style deposit with a maiden inferred resource announced in the previous quarter of 103Mt containing an estimated 83,500 tonnes of total rare earth elements and yttrium oxide (TREEYO). The mineralisation identified to date is considered to be part of a much larger mineralising system. Work is currently underway to:

• Demonstrate the economic potential of the known resource, with a scoping study to be completed in the September Quarter.

• Extend the known resource along strike to both the north and south, with the recently completed drilling the first phase of this work.

• Further define the size of the Milo mineralising system using soil geochemistry and geological mapping to identify additional zones of mineralisation.

Drilling Programme

Results from two holes MIL014 & 015 drilled on the southern end of the Milo IOCG-REEY resource have demonstrated that REEY mineralisation extends beyond the previous drilling to the south and that the mineralisation remains open to the south and at depth. In addition, MIL015 intersected high grade copper mineralisation associated with chalcopyritecarbonate veining. This mineralisation returned 2 metres downhole averaging 6.2% copper and is significant in demonstrating that a phase of high grade copper mineralisation exists at Milo.

Results from four holes MIL017 to 020A drilled on the northern area of the Milo IOCG-REEY resource have demonstrated that CuEq and REEY mineralisation extends beyond the previous resource to the North and that the mineralising system remains open to the North and at depth.

All holes completed will contribute to a revision of the current resource model of 103Mt at an average grade of 760ppm TREEYO, containing 83,500 tonnes of total rare earth elements and Yttrium (TREEYO).

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The intersections are summarised in tables below followed by the drillhole location map.

Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*	Hole ID Interval Length Cu Au Co Ag Mo U Cu Equiv Cut-off m m % ppm ppm ppm ppm ppm % % CuEq*
MIL014	2 to 33		31		0.05		0.03		204		0.1	21	15		0.2		0.1
	Incl. 16 to 25		9		0.08		0.06		303		0.2	14	11		0.3		0.2
	77 to 219		141		0.06		0.07		264		0.2	22	23		0.3		0.1
	incl. 116 to 137		21		0.06		0.01		676		0.2	3	3		0.5		0.2
	incl. 207 to 218		11		0.21		0.87		241		0.6	197	182		1.2		0.5
MIL015	53 to 78		25		0.05		0.00		264		0.3	10	14		0.2		0.1
	89 to 140		89		0.03		0.01		70		0.1	10	3		0.1		0.1
	163 to 165		2		6.19		0.05		79		1.9	41	15		6.3		1.0
	180 to 192		12		0.10		0.13		127		1.2	89	67		0.4		0.2
MIL016	111 to 129		18		0.14		0.00		43		0.8	20	7		0.2		0.1
MIL017	166 to 236		70		0.30		0.17		218		6.2	114	111		0.8		0.2
	incl. 167 to 185		18		0.50		0.33		260		11.6	231	236		1.3		1
MIL018	224 to 275		51		0.30		0.06		198		6.3	204	171		0.8		0.5
	304 to 333		29		0.15		0.08		105		4.2	91	80		0.4		0.1
	incl. 309 to 320		11		0.24		0.10		192		5.8	145	145		0.7		0.5
MIL019	92 to 99		7		0.39		0.56		279		11.0	175	153		1.2		0.5
MIL020A	238 to 243		5		0.14		0.03		116		0.7	45	40		0.3		0.2
Hole ID from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Other ppm TREEYO ppm Cut-off ppm
MIL014	6	112		106		591		405		85	12.9	3.6	162	53		60		1372		250
MIL014	incl. 25	80		55		939		644		127	19.8	5.6	253	83		92		2164		500
MIL014	Incl. 48	63		15		1562		1085		180	29.6	8.1	421	142		142		3569		1000
MIL014	153	316		163		353		233		58	9.2	3.1	101	32		40		828		250
MIL014	incl. 157	209		52		793		558		100	17.3	6.9	226	73		77		1852		500
MIL014	incl. 174	209		35		864		606		112	19.3	5.6	254	81		86		2028		1000
MIL014	189	197		8		1148		860		155	26.9	7.8	355	113		120		2846		2000
MIL015	0	77		77		710		500		101	15.3	4.9	198	66		69		1664		250
MIL015	incl. 21	27		6		1148		815		200	28.5	8.8	320	107		122		2749		2000
MIL015	incl. 47	56		9		1470		1049		198	31.9	8.5	451	150		148		3505		2000
MIL016	207	321		114		134		69		41	6.6	2.1	47	13		26		339		250
MIL017	167	187		20		343		14		84	2.2	5.4	110	5		182		3979		500
MIL017	236	275		39		456		317		62	9.5	2.4	109	35		43		1033		500
MIL018	166	194		28		180		111		56	9.8	2.8	61	17		38		475		250
MIL018	222	452		230		227		139		48	7.5	4.2	67	20		33		546		250
MIL018	Incl. 327	386		59		411		252		76	12.2	3.0	126	37		57		974		500
MIL019	70	99		29		236		146		51	7.7	4.2	60	20		31		555		250
MIL019	incl. 93	99		6		706		494		48	7.5	12.5	129	50		35		1482		1000
MIL019	112	150		38		175		90		34	5.5	1.7	59	17		27		409		250
MIL020A	264	275		11		441		290		64	9.7	2.4	120	37		44		1008		500
MIL020A	310	349		39		313		217		54	7.9	2.3	85	27		34		741		250
MIL020A	incl. 319	344		25		417		291		65	9.4	2.9	111	36		42		974		500
MIL020A	Incl. 326	337		11		596		422		83	12.0	4.3	157	52		55		1382		1000

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As part of a strategy to define the global potential of the Milo Project area, a staged programme of soil sampling in the ‘Greater Milo’ area has been initiated. This is the second stage of soil sampling completed to date which extends the previous coverage as several areas of anomalism remained open.

Results have identified three areas of strong anomalism in copper (Cu) and Lanthanum (La) (which is taken to be indicative of general REE suite). The results have identified:

1. A coherent linear zone of coincident high tenor Cu-Au-La in soil extending for over 600 metres to the west from GBM drillhole BTD014 in the Milo West Prospect area. This anomaly contains peak values of 4,550 ppm Cu, 650ppm La, and 0.7 ppm Au. Drillhole BTD014 intersected 12.0 metres, averaging 0.7% CuEq*[1,2] ; including 0.32%Cu and 0.15 g/t Au from 69 to 81m.

2. The likely continuation of this zone on the south west flank of the main ridge at Milo. This remains largely untested by drilling to date.

3. A large copper soil geochemical anomaly (peak assay values of 1.44% Cu, 0.35ppm Au and 120ppm La) associated with a strong magnetic and topographic high to the south west of the Milo Prospect.

Location of samples and thematic plans of the results and location of anomalies are presented in figures below. Further sampling is in progress to infill and further extend geochemical coverage of the area, and results of the next stage are expected to be complete during the September Quarter. (Soil samples were submitted to ALS laboratories in Mount Isa for sieving to -80#, grinding and analyses by Au-AA21 and ME-ICP61 for a suite of 35 elements including Lanthanum.)

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Scoping Study

The Milo Scoping Study has been extended to include the results of a revised resource estimate currently underway. During the quarter metallurgical testing continued to build on early testwork indicating that mineralisation is hosted by Apatite and also a range of carbonate minerals.

Initial flotation test work indicated approximately 70% of the Yttrium and 25% of other REE’s could be captured in an apatite concentrate. Apatite minerals are a group of phosphate minerals and are a common source for phosphate for fertiliser and other uses. Laser ablation analyses completed at CODES at the University of Tasmania confirm that the rare earth carbonates present contain high concentrations of REE. Tests returned an average value of 43% TREEY from 22 analyses. This work also confirmed that a saleable copper concentrate could be produced.

Work included as part of the scoping study which will include;

1. Delineation of a maiden copper equivalent resource;

2. Metallurgical testing for both the copper equivalent metals and rare earth elements;

3. Preliminary geotechnical review;

4. Preliminary mine and processing plant design;

5. Financial Modelling; and

6. Other preliminary studies.

Key external consultants appointed include Mining One Pty Ltd who will complete the mining studies and have overall management of the scoping study. Brisbane based Core Process Engineering Pty Ltd will undertake the metallurgical test work and Geomodelling Pty Ltd will continue with the development of the resource work covering both the rare earth and copper equivalent mineralisation.

Forward Programme

Completion of a revised resource estimate, and inclusion of this resource into the scoping study are scheduled to be completed during the September Quarter. This will include completion of the current programme (stage 2) of metallurgical testing, and will provide the basis to lead into the next development phase for Milo - the Pre-feasibility Study to be undertaken as soon as practicable.

Milo is an expanding IOCG-REE breccia style deposit with a large maiden resource already announced. New geochemical evidence of a continuation of mineralisation in the Milo area, both to the north and also to the south west, strongly supports the concept that Milo is part of an extensive mineralising system. On a larger scale the Milo system is linked to the regionally significant Cloncurry Flexure, a clearly defined deep structural feature with extensive evidence of widespread hydrothermal activity.

Milo IOCG-REE Deposit is considered to be part of a large mineralising system and work underway is designed to demonstrate its potential size, but also the potential of the greater area to yield additional resources.

2.0 Pan Pacific Copper/ Mitsui Farm in Projects

This Farm In Agreement is now in its third year and has an approved budget of $3.8M. Under the Farm-in Agreement, Pan Pacific / Mitsui, through their co-established Australian subsidiary Cloncurry Exploration and Development Pty Ltd (“CED”), can spend up to A$55million on the development of new copper–gold exploration and mining projects in northwest Queensland. Activity ramped up during the June quarter as geophysical surveys refined targets and drilling commenced during June.

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Figure:

Location map showing Farm in Areas.

2.1 Chumvale Breccia Project

The Chumvale Breccia project covers an area of 8km[2] within the Brightlands EPM 14416. The project area encloses a prominent WNW-ESE trending massive breccia outcrop broadly located along structural corridors that are highly prospective for Cu-Au mineralisation. Two scout holes drilled into the breccia in 2011 by GBM returned anomalous Zn and Cu, confirming results of rock-chip and soil sampling within the area. The two holes were drilled into an apparent steeply-dipping conductive body (s) defined by NSAMT survey lines over the outcropping breccia in 2011. Work completed on the Chumvale prospect in the June quarter consisted of a single-line IP survey, rock-chip sampling and mapping, and drill target evaluation and selection.

Forward Programme

A total of ca. 1050 metres of drilling has been budgeted for Chumvale in 2012 and is planned to be completed in the September quarter.

Bungalien Project

The Bungalien Project refers to four tenements to the SW of Cloncurry, namely: Bungalien, EPM 14355; Malbon 2, EPM 14120; Horse Creek, EPM 15150; and Limestone Creek, EPM 17849. As of the 24th May 2012, EPM 15355 has been incorporated into the newly-granted tenement EPM 18207 (Bungalien 2). The exploration strategy has been focussed on investigation of discrete magnetic features under a cover of younger sediments of the Georgina Basin. These features are consistent with magnetite-bearing hydrothermal alteration associated with IOCG Cu-Au deposits. Scout drilling in 2011 successfully encountered IOCG-style mineralisation at the Bronzewing Bore prospect including a 219m intercept in drill-hole BNG001 that averaged 842ppm Cu between 361-580m downhole.

Following this success further IP and SQITEM surveys were completed over the project area including down-hole IP surveys in the three scout drill-holes at Bronzewing Bore.

Forward programme

The forward program at Bungalien will see completion of data analysis of both the 3D IP and DHEM survey at Bronzewing Bore. One line of infilling 2D IP over the anomaly west of BNG001 is planned and a 3 hole drill program for Bronzewing Bore is planned for the September quarter.

A ground gravity survey has been planned over an area displaying complex gravity and magnetics to the north of Bronzewing Bore. This survey links with the detailed survey completed over the Bronzewing Bore area in 2011. This survey is scheduled to commence in early July.

It is also planned to complete a soil geochemistry program over the Malbon 2 IOCG target to confirm a soil Cu anomaly defined by previous explorers.

Mount Margaret West Project

The Mount Margaret West group of tenements lie in close proximity to the Ernest Henry Cu-Au mine, the largest and most outstanding IOCG deposit in the Cloncurry district, and to the recently defined, 50 million tonne, E1 Camp deposit is located 8km to the east of Ernest Henry. Although much of the Proterozoic basement in the tenement areas lies beneath only shallow cover (on the order of 50-100m thick) previous drilling was predominantly shallow in nature (typically <200m depth) and rarely penetrated far into the basement.

Work completed in the June quarter included ongoing review and evaluation of existing geophysical, geological and drilling data over the tenements, infill IP surveys over three prospects, and gravity surveys over two prospects. A very large quantity of additional historical data was located during the quarter.

IP surveys were carried over the FC6, FC4_south and FC2 prospects in June. Gravity surveys over part of the FC4_south prospect and FC6 was conducted in late June. The FC6 area had been only lightly covered with relatively broadly spaced with gravity stations in previous work.

The infilling IP and gravity surveys over the three prospects will improve confidence in drill-targeting based on the existing geophysical and drilling data base. A number of anomalies have been confirmed in the recent IP program. Integration of the new results, historical data and historical drilling will potentially lead to the identification of new drill targets for the JV, and with an expanded geophysical program, the identification of new prospects.

Forward Programme

A large ground gravity survey has been planned for a lightly surveyed area of complex gravity and magnetics to the west and southwest of the FC2 prospect. This survey is likely to begin in mid-July. This survey is designed to help identify additional, previously unknown prospective areas. Acquisition and review of previous exploration data is ongoing.

The selection of drill targets will be finalised as soon as possible after the completion of the analysis of the geophysical surveys in each area. It is planned to drill-test FC2, FC4 and FC6 in the September quarter.

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Search Exploration Services conducting an IP survey over the FC4_south prospect, June, 2012.

Talawanta - Grassy Bore Project

The Talawanta-Grassy Bore project consists of two granted exploration permits: EPM15406 Talawanta, and EPM15681 Grassy Bore. The tenements include a north-south trending zone of prominent magnetism. Limited drilling indicates that the Proterozoic basement lies beneath some 300m (Grassy Bore) to 650m (Talawanta) of younger cover rocks. Anomalous Cu-Au intersections associated with intense metasomatic alteration were recorded in the core from limited drilling in this area by previous explorers. A ground gravity survey carried out by GBM in 2010 and 2011 demonstrated that none of the previous holes were collared close to the peak of the gravity and magnetic anomalies.

Extensive hydrothermal alteration system intersected in two scout drill holes at the Ibis and Ibis-south prospects in 2010/2011, GBM is pursuing these and similar targets in the Grassy Bore area, and several untested targets in the Talawanta area.

The results of a 3D inversion of the existing air-borne magnetic data was combined with the detailed ground-gravity survey of 2011 to design a two-hole scout-drilling program to test a pair of prominent, coincident gravity and magnetic anomalies over the Landing Ground prospect. The Landing Ground prospect is approximately 10km NNW of the Ibis Prospect in the Grassy Bore tenement where an extensive magnetite-rich, hydrothermal alteration system had been intersected in a 2010 drill-hole (TGD001) by the JV. The two selected sites are around 5km apart and have been are termed Landing Ground North (LGN) and Landing Ground South (LGS).

Drilling of TGD004 (LGS) began on the 19th June and the hole was completed to a depth of 710m (EOH) by the 26th June. Drill-hole TGD005 (LGN) was commenced on the 27th June.

Drill-hole TGD005 (-90 dip) passed through the unconformity separating the flat-lying Cambrian sediments from the Proterozoic basement at ca. 340m down-hole. From 340m to 710m (EOH) the drill-hole intersected altered mafic and felsic igneous rocks that include minor porphyry and pegmatite. Alteration is intense locally and is predominantly magnetite-feldspar-actinolite-chlorite. Magnetite occurs throughout the Proterozoic section and is typically in the range 1-10% although it is up to 70% locally. Minor pyrite (and chalcopyrite locally) occurs from 653m to 710m. The hole is currently being logged and sampled for assay.

The initial drill-hole at the Landing Ground prospect has intersected a magnetite-bearing alteration assemblage with the presence of minor sulphides within the Fe-rich alteration is encouraging with respect to the IOCG potential of the prospect. Further comment will be made when data collection and analyses from the current drilling is complete.

Forward Programme

The 2nd scout drill-hole at the Landing Ground prospect (TGD005) will be completed in July.

At Talawanta MT surveys and the two drill holes are planned for later this year.

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Magnetic image and contours (TMI_RTP) over the Landing Ground Prospect showing the collar positions for scout drill-holes TGD004 and TGD005

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Gravity image and contours (HP5K) over the Landing Ground Prospect showing collar positions for scout drill-holes TGD004 (completed in June to 710m, EOH) and TGD005 (started late-June).

QUEENSLAND EXPLORATION ACTIVITIES Mount Morgan Copper Gold Project Region

Resumption of field work in the Mount Morgan area was delayed by a long wet season with limited geological mapping and sampling commencing during the quarter. Compilation of this work is expected to be completed in the September Quarter. However, heavy unseasonal rains at the time of writing are likely to further hinder progress in this area.

Results from extensive soil and rock sampling programmes completed during 2011 are summarised below.

• Intrusive Related gold and copper mineralisation (IRGS) at Smelter Return and Sandy Creek Prospects, near Mt Morgan.

• Large high-tenor Au (+Cu) soil anomalies associated with major structures.

• Rock-chip assays to 39% Cu, 8.5g/t Au and 44ppm Ag at Sandy Creek.

• Within structural corridor hosting Mt Morgan mine.

• Anomaly is open along fault strike into GBM ground towards Mt Morgan.

Definition of large zones of anomalous gold and copper in soil in the Mount Morgan project area along the Mount Battery Fault, a structural trend extending through the Sandy Creek Prospect, and Smelter Return Prospect to Mount Morgan. The Mount Morgan Project is located 40km south west of Rockhampton in Queensland in close proximity to the world class Mt Morgan Copper-Gold mine which produced in excess of 8.0M ounces of gold (Au) and 400,000 tonnes of copper (Cu) metal.

The project area includes eight licenses (five granted) covering over 1,000 km2. Within these existing titles, numerous targets are defined ranging from early stage stream sediment anomalies to drill ready geophysical / geochemical targets.

Historic exploration in the Mount Morgan area has primarily focused on the discovery of a Mount Morgan analogue which has, up until recently, been interpreted by many as a VHMS (massive sulphide) type. Until recent GBM work, no activity targeting intrusion related systems had been completed nor had there been thorough examination and interpretation of geophysical datasets or detailed compilation of existing exploration data.

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Figure showing targets and Tenements

VICTORIAN EXPLORATION ACTIVITIES

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Malmsbury Project (includes EL5415 Malmsbury & EL5120 Lauriston)

A total of 271 soil sample assays were received from ALS during the month. The soil grid at Malmsbury is now 100mx50m within the state forest block. The grid density was selected to assist future structural/lode interpretation and drill target planning.

Computer plotting and gridding of geochemical data for a range of elements has been completed and while gold results outline a broad east-north-east trending corridor, results of other elements including Bismuth outline a strong circular anomaly centred on Belltopper Hill. Bismuth, along with Tungsten, are key indicators of Intrusive Related Gold Systems. This data strongly supports the existence of a large IRGS centred on or around Belltopper Hill. See figure below.

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Figure: Malmsbury All_GBM_Soils gridded and thematic mapped for Bismuth. Data is gridded by ID2 and all below detect assays filtered. 51 ppm outlier also filtered. Whilst assay values are low (<5 ppm) data grids nicely showing ovid pattern over Belltopper Hill. Further sampling to east is required.

Forward Programme

The soil grid needs to be extended to the east. Existing sampling shows strong gold anomalism at the east end of a number of grid lines. Historic Molopo drilling logs (3 diamond holes in the Panama-Missing Link area) entered into the database. Review of the recommendations from the structural geological review report will be completed in the September quarter.

Willaura Project (includes EL4631 Lake Bolac, ELA 5423 Lake Bolac 2 & EL5346 Willaura)

An reduced program (approx. 30 line km) of ground magnetics was completed at Willaura over buried airborne magnetic targets Anomalies ‘H’ and ‘I’ during April using a rented Geometrics G858 continuous-sampling magnetometer with inbuilt GPS. Modern Mag processed 28 line km of data, concluding that data quality over Anomaly ‘H’ was insufficient for meaningful processing. Better results were produced from Anomaly ‘I’ (located near the north boundary of EL4631). A gridded image produced by Modern Mag is attached below. The data mimics the general airborne magnetic geometry but shows much more internal detail including local strong mag highs of up to 800nT amplitude. Such detail will enable more precise drill collar positioning. Ground magnetics should be completed for all airborne magnetic based targets proposed for drill testing.

A new exploration licence application, EL5423, encompassing most of the original EL4631 grant area and some additional areas has been lodged, following statutory relinquishment of some of this area recently by the company. During the quarter EL4751 Woorndoo was been surrendered.

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Yea Project (includes Tin Creek EL5292 & Monkey Gully EL5293)

Prospect-scale (1:4,000) mapping of Monkey Gully prospect was completed during May. Results will be plotted and interpreted next month. Preliminary findings indicate a set of substantial tonalite dykes trend NW (parallel to long axis of W soil anomaly) through the centre of the prospect. A set of dacite dykes also traverse the prospect, sub-parallel to, and cross-cutting, the tonalite. Drill hole MGDD08 was collared in between two of the tonalite dykes and likely intersected one at around 110m downhole, suggesting a steep northerly dip to the dykes. The best tungsten intersection from MGDD08 was located at the contact of tonalite-granodiorite. Given the number of dykes present, a significant volume of potentially mineralised and largely untested ‘dyke contact’ exists at Monkey Gully. The presence of these dykes gives more supports the existence of a hidden, and also potentially margin-mineralised, tonalite intrusion within the granodiorite. Downhole magnetic susceptibility was completed on the MGDD08 drill core showing the tonalite has magnetic susceptibility approximately 5 times that of the granodiorite and dacite (likely due to pyrrhotite). Detailed ground magnetic coverage has a good chance of defining dyke and possibly intrusion geometry beneath the prospect. A representative set of lithologies from MGDD08 (5 rock types) was submitted for thin section work. Rehabilitation of tracks and drill site at Monkey Gully was completed in April.

FORWARD PROGRAM

Interpretation of mapping (2D and 3D) at Monkey Gully. Petrology of five representative lithologies should be received and reviewed in the current quarter.

CORPORATE

The Company spent A$2.015 million in the quarter, of which $1,657,000 was for exploration and $358,000 for administration costs. Cash at 30 June 2012 was $1.5 million.

Other key events/transactions in the quarter:

1. A Shareholder meeting held on 25[th] May approved the distribution of 16.5 million fully paid ordinary shares in Swift Resources Ltd in specie to GBM shareholders. This will provide GBM shareholders one fully paid ordinary in listed public company Swift Resources Limited for approximately every 14.4 GBM shares. The transaction is dependent on Swift Resources Ltd listing by 10 October 2012.

2. On 1 June GBM successfully placed 13,937,500 shares at an issue price of 8 cents per share out of the maximum number of 16.7million raising $ 1,115,000 before costs of the issue.

On the 17 July, subsequent to the end of the quarter, the company announced a Share Purchase Plan in which eligible shareholders as at the Record Date of 16 July 2012, can subscribe for up to $15,000 worth of fully paid ordinary shares in the Company at a price of 5 cents per share.

The Offer closes on Friday 10 August 2012.

For Further information please contact:

Peter Thompson Colin Hay Managing Director Professional Public Relations GBM Resources Limited Tel: 0 415 056 432 Tel: 08 9316 9100 E:Colin.Hay@ppr.com.au

Explanatory notes:

*[1] Copper Equivalent calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result. However it is the company’s opinion that elements considered here have a reasonable potential to be recovered. It should also be noted that current state and federal legislation may impact any potential future extraction of Uranium. Prices and conversion factors used are summarised below, rounding errors may occur.

Commodity	Price		Units	unit value		unit	Conversion factor
							(unit value/Cu % value)
copper		6836	US$/t		68.36	US$/%	1.0000
gold		1212	US$/oz		38.97	US$/ppm	0.5700
cobalt		40000	US$/t		0.04	US$/ppm	0.0006
silver		18	$/oz		0.58	US$/ppm	0.0085
uranium		40	US$/lb		0.08	US$/ppm	0.0012
molybdenum		38000	US$/t		0.04	US$/ppm	0.0006

*[2] Intersections quoted are length weighted averages of results for individual sample intervals. Samples were taken at 1 metre intervals in RC drilling by multistage splitter and generally 1 metre intervals of half sawn core with maximum of 2 metres for diamond drilling. Analyses were completed by ALS in Mt Isa for all elements other than gold by ME-ICP61, over limit (>1%) Cu by Cu-OG46 and AU by Au-AA25 in Brisbane. Holes range in declination from 50[0] to 70[O] to 225[0] MGA at Milo and 270[0] MGA at Tiger. Mineralised zones are interpreted to dip steeply in the opposite direction, holes are therefore drilled approximately perpendicular to the interpreted strike of mineralised zones.

*[3] It should be noted that this is an exploration target only, potential quantity and grade is conceptual in nature, 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. The tonnage estimate is based on a 475 metre strike length with an average combined width of 80 metres and depth of 500 metres being the volume broadly tested by drilling to date. A nominal bulk density of 3.0 t/m[3 ] was assumed. An accuracy of +/- 50% was assumed to provide a tonnage range reflecting the conceptual nature of this target estimate. Grade ranges represent the range of downhole intersections available over significant widths to date.

*[4 ] All holes at Bungalien are vertical, drilled by reverse circulation method and sampled on one metre interval using a three tier riffle splitter. Samples were submitted to Beureau Veritas Mt Isa Laboratory for analyses of 22 elements by SC202/IC3E/M.

*[5] note downhole intersections are across the mineralised zone using a nominal 70 ppm La cutoff , the downhole average is an estimate with La multipled by 3.8 to provide an estimate for TREEYO for the small number of intervals where full analyses are not available

The information in this report that relates to Exploration Results and Mineral Resources (Malmsbury) 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.

The information in this report that relates to Mineral Resources is based on information compiled by Kerrin Allwood, who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy. Mr Allwood is a full-time employee of the Geomodelling Pty. Ltd a New Zealand based consultancy. Mr Allwood 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 Allwood consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

==> picture [543 x 229] intentionally omitted <==

TENEMENT SUMMARY

Tenement maintenance, including reporting and renewals has been ongoing during the quarter. The current status of GBM tenements is summarised below.

							Approx	sub-	Status
Project / Name	Tenement No.	Owner	GBMR Equity	Manager	Granted	Expiry	Area (km2)	blocks/gr ats		State
Victoria
Malmsbury
Belltopper	EL4515*1	GBMR/Belltopper Hill	100%	GBMR	06-Oct-05	05-Oct-13	25	25	Granted	Vic
Lauriston	EL5120	GBMR	100%	GBMR	17-Dec-08	16-Dec-13	81	81	Granted	Vic
Willaura
Lake Bolac	EL4631	GBMR	100%	GBMR	21-Mar-02	20-Mar-14	20	20	Granted	Vic
Willaura	EL5346	GBMR	100%	GBMR	02-Jun-11	01-Jun-14	11	11	Granted	Vic
Lake Bolac	ELA5423	GBMR	200%	GBMR			218	218	Appl'n	Vic
Yea
Monkey Gully	EL5293	GBMR	100%	GBMR	23-Mar-11	22-Mar-16	442	442	Granted	Vic
Tin Creek	EL5292	GBMR	100%	GBMR	23-Mar-11	22-Mar-16	442	442	Granted	Vic
Rubicon	EL5347	GBMR	100%	GBMR	27-Feb-12	26-Feb-17	155	155	Granted	Vic
Queensland
Drummond Basin
Diamond Creek	EPM 19193	GBMR	100%	GBMR	27-Jun-11	26-Jun-14	247	76	Granted	Q'ld
Dee Range
Dee Range	EPM16057	GBMR	100%	GBMR	27-Sep-07	26-Sep-12	88	14	Granted	Q'ld
Boulder Creek	EPM17105	GBMR	100%	GBMR	26-Mar-08	25-Mar-10	178	54	Renewal	Q'ld
Mt Morrisey	EPM17163	GBMR	100%	GBMR	23-May-08	23-May-10	161	29	Renewal	Q'ld
Black Range	EPM17734	GBMR	100%	GBMR	20-May-09	19-May-14	150	50	Granted	Q'ld
Smelter Return	EPMA18366	GBMR	100%	GBMR	21-Jun-12	20-Jun-17	195	60	Granted	Q'ld
Limonite Hill	EPMA18811	GBMR	100%	GBMR			260	80	Proposal	Q'ld
Limonite Hill East	EPMA19288	GBMR	100%	GBMR			29	9	Appl'n	Q'ld
Mt Hoopbound	EPMA18812	GBMR	100%	GBMR			23	7	Proposal	Q'ld
Mount Isa Region
Talawanta - Grassy Bore
Talawanta	EPM15406	GBMR*2 /Isa Tenements	100%	GBMR	15-Jan-08	14-Jan-11	325	100	Renewal	Q'ld
Grassy Bore	EPM15681	GBMR*2 /Isa Tenements	100%	GBMR	28-Sep-07	28-Sep-10	325	100	Renewal	Q'ld
Talawanta2	EPMA19255	GBMR/Isa Tenements	100%	GBMR			325	100	Appl'n	Qld
Grassy Bore2	EPMA19256	GBMR/Isa Tenements	100%	GBMR			322	99	Appl'n	Qld
Mount Margaret
Mt Margaret W. Ext	EPM16227	GBMR*2 /Isa Tenements	100%	GBMR	31-Jul-07	30-Jul-12	36	11	Renewal	Q'ld
Mt Margaret West	EPM14614	GBMR*2 /Isa Tenements	100%	GBMR	2-Aug-05	1-Aug-10	130	40	Renewal	Q'ld
Mt Malakoff Ext	EPM16398	GBMR*2 /Isa Tenements	100%	GBMR	19-Oct-10	18-Oct-15	84	26	Granted	Q'ld
Cotswold	EPMA16622	GBMR*2 /Isa Tenements	100%	GBMR			45	14	Appl'n	Q'ld
Dry Creek	EPMA18172	GBMR/Isa Tenements	100%	GBMR			227	70	Proposal	Qld
Dry Creek Extended	EPM18174	GBMR/Isa Tenements	100%	GBMR	25-Oct-11	24-Oct-14	39	12	Granted	Qld
Brightlands
Brightlands	EPM14416	GBMR*2/Isa Brightlands	100%	GBMR	5-Aug-05	4-Aug-12	253	78	Renewal	Q'ld
Brightlands West	EPMA18051	GBMR/Isa Brightlands	100%	GBMR			6.5	2	Appl'n	Q'ld
Brightlands West Ext.	EPMA18672	GBMR/Isa Brightlands	100%	GBMR			97	30	Appl'n	Q'ld
Wakeful	EPM18454	GBMR/Isa Brightlands	100%	GBMR	23-Jan-12	22-Jan-17	13	4	Granted	Q'ld
Highway	EPM18453	GBMR/Isa Brightlands	100%	GBMR	23-Jan-12	22-Jan-17	36	11	Granted	Q'ld
Bungalien
Horse Creek	EPM15150	GBMR*2 /Isa Tenements	100%	GBMR	13-Jul-06	12-Jul-11	81	25	Renewal	Q'ld
Limestone Creek	EPM17849	GBMR/Isa Tenements	100%	GBMR	20-Oct-10	19-Oct-15	78	24	Granted	Q'ld
Malbon 2	EPM14120	GBMR*2 /Isa Tenements	100%	GBMR	24-Aug-04	23-Aug-10	16	5	Renewal	Q'ld
Bungalien 2	EPM18207	GBMR/Isa Tenements	100%	GBMR	24-May-12	23-May-17	325	100	Granted	Q'ld
Horse Creek 2	EPMA18208	GBMR/Isa Tenements	100%	GBMR			325	100	Proposal	Q'ld

Table; GBM Resources Tenement Summary dated 13[th] July 2012.

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, 30/9/01, 01/06/10, 17/12/10

Name of entity

Name of entity
GBM Resources Limited
ABN 91 124 752 745 Consolidated statement of cash flows		Quarter ended (“current quarter”)
		30 June 2012
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for: (a) exploration and evaluation (including JV Farm-in spend) (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 – Grants and JV management fees NetOperating Cash Flows		Current quarter $A’000	Year to date (12 months) $A’000
		- (1,657) - - (358) - 21 - - 113	- (6,538) - - (1,231) - 121 - - 325
		(1,881)	(7,323)
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 - JV Farm-in contributions received Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - - - - - - - 941	- - (39) - - - - - 2,711
		941	2,672
		(940)	(4,651)

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(940)	(4,651)
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	1,115 - - - - (71)	1,115 - - - - (71)
	1,044	1,044
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	104 1,487 -	(3,607) 5,198 -
	1,591	1,591

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'000 159 -
1.25	Explanation necessaryfor an understandingof the transactions
	Director remuneration – fees and consultancy.

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

• 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 Expenditure for the quarter of $268,124 incurred by other entities under joint venture farm-in agreements on projects held by the Company has been included at 1.2(a).

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
	-	-
	-	-

• 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 4.3 Production 4.4 Administration	$A’000
	500
	300
Total	800

Reconciliation of cash

Total Reconciliation of cash		800
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)	1,473	1,369
	118	118
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,591	1,487

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
6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	EL4751 Woorndoo	Surrendered Vic	100%	nil
	EPM 18207 Bungalien Project Area	Granted QLD	nil	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 note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter	-
	-
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	236,181,003	236,181,003
	14,587,500 -	14,587,500 -
7.5 +Convertible debt securities (description) 7.6 Changes during quarter	-	-
	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	129,493,124	129,493,124	Exercise price $0.20	Expiry date 30/6/2013
	-	-
	-	-
	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes (totals only)	-	-
7.13 Performance Share Rights (description and vesting dates) 7.14 Issued during quarter 7.15 Exercised during quarter 7.16 Expired during quarter	350,000	-	Vesting date 31/12/2012	Expiry date 31/12/2017
	-	-
	650,000	-	22/3/2012	22/3/2017
	300,000	-	31/12/2012	31/12/2017

• 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 5).

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

Sign here: ............................................................ Date: 31 July 2012 Company Secretary

Print name: Kevin Hart

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 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 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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