GBM RESOURCES LIMITED. — Interim / Quarterly Report 2012

Apr 29, 2012

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ABN 91 124 752 745
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ASX Announcement 30 April 2012

REPORT FOR THE QUARTER ENDED 31[st] March 2012

Key Highlights:

Milo IOCG- Rare Earth Project:

• Maiden 82,500 tonne Rare Earth Inferred Resource.

• Current drilling extends the mineralised zone both north and south by over 400m.

• Drill hole MIL011 returned 124m @ 0.5% Cu Eq; including 21m @ 1% Cu Eq with a rare earth elements of 17 m @ 1411ppm of TREEYO.

• Drill hole MIL012 returned 25m @ 1% Cu Eq; including 9m @ 2% Cu Eq with rare earth elements of 24m @ 2457ppm and 18m @ 1460ppm of TREEYO.

• Scoping Study on track for completion midyear.

Other Exploration Activities:

• GBM acquired the highly prospective Mayfield Exploration Permit (EPM14111) in North West Queensland Mineral Province. IOCG-style targets identified in previous exploration.

• Two large intrusive related gold and copper mineralisation systems discovered near the historical Mt Morgan mine where the company holds 8 licenses covering 1000km2.

Corporate Activities:

• Appointment of Sunny Loh as Non-Executive Director. Mr Loh brings extensive financial market experience (particularly in Asia) and the appointment builds on the strong relationship with Swift Venture Holdings. Mr Loh is also substantial shareholder in GBM.

• GBM to realise $3.3million in fully paid shares in IPO from the Sale of its 30% interest of the Queensland Phosphate Project. A Shareholder meeting is to be held on 25[th] May to approve 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.

• On 16 April GBM received firm commitments to place the balance left within the Company’s 15% capacity of 16.7million shares at an issue price of 8 cents per share to raise approximately $1.3million. Tranche one was completed on 24 April with the issue of 6,812,500 shares. Settlement of Tranche two of $755,000 is scheduled for 10 May.

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

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Figure: GBM Resources Project Location Plan

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SAFETY AND ENVIRONMENT

No LTI, MTI or environmental incidents were reported during the quarter. The Company has now completed 9 consecutive months with no LTI’s and 53 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:

GBM Resources 2012 exploration program will focus on the Milo Prospect area and its immediate surrounds as a scoping study now in progress to establishe the potential of the project to move towards ultimate production. The scoping study is scheduled for completion midyear.

Drilling recommenced late March with three holes completed at the time of writing. The objective of the current drilling is to extend the previously announced maiden rare earth inferred resource. Drilling will delineate extensions both to the north and south of the maiden inferred resource of 103Mt containing an estimated 83,500 tonnes of total rare earth elements and yttrium oxide (TREEYO). Improvements to access tracks completed prior to the end of the 2011 field season, has enabled the company to gain early access in 2012. During the March quarter results have been received for three holes completed late in the December quarter of 2012.

In the quarter the company announced a maiden rare earth resource and further significant drill results for the Milo Iron Oxide Copper Gold (IOCG) and Rare Earth Elements and Yttrium (REEY) Project.

Important aspects of this work include:

• The maiden inferred resource includes 103 million tonnes containing an estimated 80,000 tonnes of TREEYO at an average grade of 760 g/t TREEYO based on a 400 g/t cut-off grade.

• Inferred Resource 200m wide and continuous over 800m.

• The inferred resource contains appreciable quantities of Neodymium, Yttrium, Dysprosium and Europium. These metals are designated as likely to be in critical undersupply.(US Department of Energy Dec 2011: Critical Materials Strategy).

• Initial metallurgical testwork indicates that beneficiation of TREEYO (bearing minerals) is favourable.

• Drill hole MIL011 returned 124m @ 0.5% Cu Eq; including 21m @ 1% Cu Eq with a rare earth elements of 17 m @ 1411ppm of TREEYO.

• Drill hole MIL012 returned 25m @ 1% Cu Eq; including 9m @ 2% Cu Eq with rare earth elements of 24m @ 2457ppm and 18m @ 1460ppm of TREEYO.

• Both Scout holes MIL012 and 13 confirm northern extension of system beyond the resource outline. Drilling has now recommenced at Milo to further test the North and South extensions of the system.

• Milo Scoping Study on track to be completed by midyear.

cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY	cutoff (TREEYO) tonnes TREEYO (ppm, t) P2O5 (%, t) CeO2 (ppm, t) La2O3 (ppm, t) Nd2O3 (ppm, t) Pr2O3 (ppm, t) Sm2O3 (ppm, t) Eu2O3 (ppm, t) Gd2O3 (ppm, t) Y2O3 (ppm, t) Dy2O3 (ppm, t) Er2O3 (ppm, t) Others (ppm, t) LREEO HREEY
Grades			760	0.85	340	180	95	30	14	5	12	57	9	5	10
Tonnages	400	103,000,000	82,500	873,000	34,600	18,600	9,800	3,080	1,460	520	1,190	5,900	970	550	1,080

Table: total tonnages and grades of TREEYO contained within the Milo Inferred Resource. (*designates elements assessed as being in critical supply by the US Dept. of Energy, Dec 2011: Critical Materials Strategy, P4.)

				LREEO					HREEY
											Others
	CeO2	La2O3	Nd2O3	Pr2O3	Sm2O3	Eu2O3	Gd2O3	Y2O3	Dy2O3	Er2O3	(ppm, t)
REEYO Prices (US$/t)	24,500	24,000	130,000	130,000	86,000	3,010,000	103,000	130,000	1,160,000	N/A
(metalpages 5 April 2012)

Table: available REE prices (red denotes elements in critical undersupply, US Dept. of Energy, Dec 2011: Critical Materials Strategy) .

The Maiden inferred resource is based on GBM’s two initial drilling programmes, soil sampling, geological mapping, structural interpretation and collected a range of geotechnical data since acquiring the area in 2009. Based on this work an inferred resource has been estimated by Geomodelling Pty. Ltd., an independent New Zealand based consultancy. This estimate confirms that Milo is a poly-metallic deposit containing significant quantities of a range of metals including REEY, Cu, Mo, Au, Ag and U. In addition significant quantities of phosphate and magnetite are also present in the deposit.

Geological and geochemical data were used to produce a 3D outline of the broad zone of REEY mineralisation at Milo. The REEY resource is summarised for a range of cut off grades in table below. At a 400ppm TREEYO cut-off grade the resource is 103M tonnes averaging 760ppm TREEYO and containing an estimated 82,500 tonnes of TREEYO . It is noteworthy that 21% of this material is comprised of Neodymium, Europium, Yttrium and Dysprosium, elements that have recently been deemed as in critical supply for the short to medium term by the US Department of Energy.

The resource is contained within a broad mineralised zone and at lower cut-off grades the tonnage potential increase markedly representing significant upside to within the current resource outline subject to outcomes of the scoping study.

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Figure: Milo resource tonnage curve for changing cut-off grades.

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Figure: Milo resource grade curve for varying TREEYO cut-off grades.

Within the REE zone there is zone with elevated Cu-Au-Ag-Mo-U-Co values which contains significant quantities of this suite (CuEq suite) of metals. This zone still has significant exploration upside as indicated by recent drilling. Drillholes MIL011 and 012 completed during December intersected sulphide mineralisation suggesting that the mineralised system may extend significantly further to the North. This result is not included in the maiden Milo resource estimate, and further drilling will be undertaken during the coming field season extend and further delineate the CuEq suite mineralisation.

Metallurgical test work and petrography has commenced to determine the host minerals for TREEYO mineralisation and to investigate potential means of beneficiation and concentration. Early testwork indicates that a 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.

The resource estimate was completed using a database of 22 drillholes, 3,696 samples analyses for a total TREEY suite, largely from one metre intervals of NQ diamond drill core. Samples were selected on a nominal one metre intervals were cut using a diamond saw and samples submitted to ALS laboratories in Mt Isa for ICPMS40. Estimation used ordinary Kriging for blocks 5m high, 40m long and 20 metres across strike. An bulk density of 2.84 was used for fresh rock although this was varied to reflect increased density with sulphur (as pyrite). Oxidation was modelled to be between 10 and 20 metres deep and a bulk density was assumed for material.

GBM has now commenced a 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 including engagement with various stakeholder groups .

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.

Drilling has recommenced, a diamond drill rig was mobilised to site during March to commence the 2012 programme.

This early work has already shown promise with field logging of Hole MIL014 core indicates a broad zone of sulphide mineralisation extending for approximately 150 metres downhole from about 50 metres, including a zone of massive and semi-massive pyrite from 100 metres to 135 metres downhole (see Photograph 1). This mineralisation is located above previously drilled hole MIL001 which returned the best REE mineralisation encountered in drilling at Milo to date. In Hole MIL015 field observations highlight obvious chalcopyrite from 164m -169m (see Photograph 2). Assay results are expected during the June quarter.

Assay results have now been received for drill holes MIL011, 012 and 013 which were completed in late December 2011. All holes encountered broad zones of mineralisation confirming the northward extension of the system beyond the resource outline.

Significant results are summarised in the table below and illustrated in the plan view in the attached figure. Both holes were cored from surface at declinations of approximately 60[0] degrees toward 270[0] (Milo Grid). Samples were half NQ or HQ size core.

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
MIL011	82 to 206	124	0.18	0.05	162	3.9	104	96	0.5	0.1
	incl. 128 to 136	8	0.26	0.08	231	8.0	186	177	0.8	0.5
	incl. 149 to 170	21	0.39	0.10	275	9.1	184	188	1.0	0.7
	incl. 188 to 192	4	0.29	0.05	238	6.8	172	157	0.8	0.5
MIL012	41 to 66	25	0.36	0.11	330	1.7	131	257	1.0	0.1
	55 to 64	9	0.66	0.22	637	3.3	253	571	2.0	1
	201 to 227	27	0.05	0.00	179	0.1	8	9	0.2	0.1
MIL013	49 o 71	22	0.09	0.01	108	0.7	66	67	0.3	0.1

Table; CuEq results summary for Milo drillholes MIL011 (reported previously), MIL012 and MIL013

Hole ID	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm	selected from to interval CeO2 ppm La2O3 ppm Y2O3 ppm Dy2O3 ppm Eu2O3 ppm Nd2O3 ppm Pr2O3 ppm Tb2O3 ppm Yb2O3 ppm Other ppm TREEYO ppm
MIL011	81	273	192	208	168	54	7.6	4.4	67	20	1.3	3.9	27	561
Incl.	249	266	17	547	474	94	12.4	3.4	169	54	2.2	5.1	51	1411
MIL012	41	65	24	848	18	167	3.3	2.4	66	26	3.6	19.8	461	2457
MIL012	89	155	66	129	61	32	5.6	1.4	47	13	1.0	2.7	21	313
MIL012	202	220	18	654	455	81	12.2	4.0	149	47	2.4	4.9	50	1460

Table; significant TREEYO intersections from recent drillholes. ( note complete REE results not available for hole MIL013).

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Photograph 1: massive sulphides (largely pyrite) in wet drill core from 132 metres in drill hole MD014 (NQ2 drill core, diameter 53mm).

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Photograph 2: Hole MIL015 showing obvious chalcopyrite from 164m-169m

Forward Programme

The diamond drilling programme initiated in December was recommenced in March. Sampling of core drilled during March is in progress with a number of results expected to be received progressively throughout the June quarter. This will be accompanied by further detailed geological mapping and extension of soil sampling grids in the Milo area to test for further extensions of REE and Cu soil anomalies identified in previous surveys.

GBM is on track to complete a scoping study in the first half of the 2012 calendar year and will provide the basis to lead into the next development phase for Milo - the Pre-feasibility Study to be undertaken in the second half of this year.

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Figure; Milo Plan showing completed drillholes in relation to the mineralised zone outlined by previous GBM drilling.

2. Acquisition of Mayfield Exploration Permit EPM14111

Key Points:

• IOCG-style targets identified in previous exploration.

• Preliminary research has identified copper mineralization in previous drilling including 79m at 0.27% Cu at Clarries Prospect and base metal mineralisation at Maiden Creek Prospect including 48m averaging 1.23% Zn, 0.17% Pb, 0.1% Cu and 7.4 g/t Ag.

• Exploration Permit EPM14111 surrounds the Trekelano Copper Gold Mine now being explored by Ivanhoe Australia and is adjacent to the bonanza grade Tick Hill Gold Mine previously worked by MIM.

Granted licence EPM14111 surrounds the Trekelano Copper Mine and extends southwards to within close proximity of the Tick Hill Gold Mine. The Trekelano Copper mine which is a high grade structurally hosted copper gold deposit with a known metal inventory[1] (production and resources) of 63,000tonnes of copper and 73,000 ounces of gold. Trekelano is currently being explored by Ivanhoe Australia who have recently reported high grade copper intersections including 44metres @ 5.7% Cu & 1.4 g/t Au (TRNQ53, Presentation to Global Resources Conference 26-27 September 2011). Tick Hill gold Mine has produced[2] 513,333 ounces from 705,000 tonnes of ore at an average grade of 22.6 g/t Au ranking it as one of the highest grade significant gold producers in Australia’s modern mining era.

Preliminary research by the company has identified a number of promising results in data obtained from open file exploration reports. These include significant copper intersections from the Clarries Prospect and base metal intervals in drilling at Maiden Creek (see table below). In addition, a soil geochemical survey at Kiama indentified a semi circular feature at plus 100ppm Cu which is 1.2 kilometres long and 120 metres wide located immediately south of an untested magnetic high.

The company will complete a review of available data to assist with designing an exploration programme to advance this tenement with field work anticipated to commence within the coming field season.

The agreement with Newcrest requires GBM to make a cash payment of $10,000 and to expend $100,000 on exploration of the area within 18 months of the title being transferred. Newcrest also retain a 2% royalty over minerals produced from the licence area.

GBM consider this tenement to hold considerable potential for future discovery. This acquisition further enhances the company’s extensive and prospective holding in Queensland’s world class North West Mineral Province.

Notes;

*1 Trekelano metal inventory based on figures form Newcrest Annual Report for EPM1411 2006.

*2 Tick Hill Gold Mine production from MIM Holdings Annual reports in Diatreme Resources Limited website.

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1.0 Pan Pacific Copper/ Mitsui Farm in Projects

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 was at a reduced level on projects within the Farm In as access was restricted by the wet season.

Assay results were received for an additional 100 drill-core samples from diamond hole TGD002 at the Ibis south prospect, Grassy Bore tenement and an additional 21 samples from drill-hole BNG001 at the Bronzewing Bore prospect. The additional sampling from BNG001 resulted in an increase in the length of the Cu intersection in this hole to 219m @ 842ppm Cu.

A 3D IP model was created for the Bronzewing Bore prospect using the lines of 2D IP data already obtained. The model enhanced the apparent shallow anomaly to the SE of BNG001 and displays a subtle feature corresponding to the known conductive and chargeable mineralization intersected in this hole. A 3D magnetic inversion model was created using the airborne magnetic data over the Bronzewing Bore area. The model generated suggests the possible continuation of magnetite-associated mineralisation to the north, south and east of BNG001. In addition downhole IP was completed on hole BNG001.

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Figure: Location map showing Farm in Areas

Forward Programme.

Talawanta-Grassy Bore Project: A 3D inversion of the magnetic data over the Landing Ground prospect (2012 drill target) ca. 10km NNW of Ibis is being constructed. This inversion will assist with targeting an initial scout drill-hole over this very strong, discrete, coincident gravity and magnetic anomaly.

Mt Margaret West Project: Planning for the 2012 exploration program is well-advanced at the time of writing, the proposed program includes gravity and IP surveys over three prospects (FC2, FC6 and FC4-south), and follow-up drilling of targets identified by the geophysics.

Bungalien Project: Completion of the geophysical survey program over Bronzewing Bore as soon as these can be arranged, as well as the inversions of the magnetic and gravity data. A survey crew is expected at Bungalien within about 3 weeks. Planning of a further drill program at Bronzewing Bore will continue, focusing on expanding the mineralized area adjacent to BNG001, and testing the newly-defined apparent shallow linear chargeable anomaly further to the east. This program will be finalized after completion of the geophysical program

Chumvale Breccia Project: A further rock-chip sampling program will be undertaken over the coming weeks. This is intended to complement existing data and to try to further refine Cu anomalies found in previous sampling efforts.

Two lines of IP will be carried out as soon as a crew can be arranged and access permits. The lines are planned to pass close to the 2011 drill-hole (BTD044) that intersected zones of anomalous Zn and Cu. Follow up drilling will be planned based upon results of IP and other available data.

QUEENSLAND EXPLORATION ACTIVITIES Mount Morgan Copper Gold Project Region

Results from extensive soil and rock sampling programmes completed during the December Quarter were received and evaluated during the quarter.

Highlights from this work include:

• Intrusive Related gold and copper mineralization (IRGS) at Smelter Returns 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 Returns 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.

Smelter Returns Prospect

Recent sampling along the Mt Battery Fault within the prospect produced an extensive area of >100ppb Au in soil. A number of higher-tenor zones of >150ppb Au occur within the main anomaly, the largest over 700m[2] in area and open along fault strike to the north-east towards Mt Morgan and into ground under application by GBM. Anomalous copper is coincident with gold and altered volcanics and monzonite were observed in the field.

The Smelter Returns Au-Cu anomaly was first defined by Dominion in the early 1990’s from regional stream and rock sampling. Twenty four shallow RC holes (60m maximum depth) were completed for best results of 8m @ 0.33% Cu & 0.84g/t Au from 32m in DRP08 and 4m @ 0.68% Cu from 16m in DRP09 1 . Peak assays from 2m intervals were 0.99% Cu and 1.78g/t Au. Widespread propyllitic alteration was mapped surrounding local zones of potassic alteration, silicification and stratabound skarn. Dominion’s conclusion was that the mineralisation at Smelter Returns may be ‘a manifestation of reworked significant mineralisation at depth’ and that the numerous dyke phases and alteration styles is ‘possible evidence for the existence of an intrusive porphyry’. Dominion then relinquished all interest in the area due to company restructuring and no further work was completed at Smelter Returns prior to GBM’s exploration program in 2011.

Following data compilation of Dominion’s encouraging work, GBM staff recognized the prospective structural and lithological setting and noted the occurrence of a string of K:Th radiometric anomalies along the main fault trend, analogous to the pattern observed at the nearby Sandy Creek prospect. A program of grid soil sampling was then completed over the Mt Battery Fault zone at 100m x 100m 2 . Of the 309 samples collected, 58% returned greater than 100ppb Au and 21% returned greater than 150ppb Au with a peak soil assay of 320ppb Au. The Cu anomaly pattern is similar to Au with 36% of all assays greater than 100ppm Cu and a peak assay of 703ppm Cu.

Although outcrop is minimal in the prospect area, a variety of rock types were observed. The host sedimentary and mixed volcanic units are intruded by a variety of fine-grained or porphyritic igneous rocks including monzonite, rhyolite, granodiorite porphyry and gabbro. Alteration is widespread and includes K-feldspar, sericite, silica, pyrite, epidote and chlorite, associated with local magnetite skarn development and spherulitic (quartz-eye) textures.

The figures below show current surface sampling assay results from the Smelter Returns prospect and proposed soil grid extensions for the 2012 field season.

GBM believes Smelter Returns ranks highly as an exploration target given the high-tenor soil results, IRGS alteration assemblage, suite of variable intrusive and volcanic rock types, and the favourable structural setting in close proximity to the world-class Mt Morgan mine.

==> picture [416 x 256] intentionally omitted <==

Figure : GBM tenement and prospect location plan showing historic mines (green dots), major structural linears, and GBM defined prospects (red/white) on state magnetics and geology. Smelter Returns and Sandy Creek prospects are shown within NE-trending Mt Morgan Linear.

1. Based on a nominal 500ppm cut-off, holes were vertical RC drillholes sampled in two metre intervals and analysed by methods G001/4 and PM219 at ALS laboratory Townsville (Alston, A. J., January 1994. Annual Report, Dominion Mining Ltd, QDEX No. CR25805A).

2. All soil samples were collected from the base of A-horizon (nominally 150mm depth) and sieved at the collection point. The minus 200 µ fraction was then pulped and assayed at ALS Laboratories Brisbane by methods ME-ICP61 and Au-AA23.

==> picture [56 x 143] intentionally omitted <==

==> picture [428 x 393] intentionally omitted <==

Figure : Gold in soil at Smelter Returns prospect. Polygons; Red = planned soil grid extensions, Pink = soil grid infills for 2012 program. Stippled areas (black) show outcropping magnetite/hornblende skarn. Blue/white points = Dominion shallow RC drill collars. Background image is state airborne K:Th radiometrics and GeoEye satellite data.

==> picture [53 x 173] intentionally omitted <==

==> picture [430 x 395] intentionally omitted <==

Figure : Copper in soil at Smelter Returns prospect.

Sandy Creek Prospect

==> picture [502 x 308] intentionally omitted <==

Figure : GBM tenement and prospect location plan showing historic mines (green dots), major structural linears, and GBM defined prospects (red/white) on state magnetics and geology. Sandy Creek prospect in south-west corner.

Initial data compilation and interpretation of the Sandy Creek area by GBM staff in 2011 noted that the prospect is spatially associated with a strong and discrete K:Th radiometric anomaly adjacent to a major north-east trending fault which is of similar orientation to the Mt Morgan / Mt Chalmers mineralised structural linear. A number of linear magnetic features adjacent to and parallel with the nearby Kyle Mohr Intrusive Complex margin also trend through the prospect. Some affinities with the geological setting of the Mt Morgan orebody were also noted

Initial results from a GBM ridge and spur sampling program across the K:Th radiometric anomaly area were encouraging. Clustered anomalous Au-Cu in soils along with a broad zone of hematite-chlorite-altered intermediate volcanics, in places brecciated, and some strong rock-chip numbers from Cu-gossan and banded rhyolites were reported (peak 39% Cu, 8.6g/t Au, 20ppm Ag). Three phases of grid soil sampling were then completed, pushing further south east to cover increasingly intense alteration within the intermediate volcanics. Results received to date show a broad correlation between Cu-in-soils and alteration. Au-in-soil is also anomalous and appears to show more structural control.

The intense central alteration zone is approximately 1,500m x 700m. A variety of igneous intrusives and volcanic dykes occur within the alteration envelope, including porphyritic monzonite, granite and dacite(?). Of the 102 rock-chip assays received to date from across the prospect, 21 have returned greater than 0.2% Cu and 14 of those have returned greater than 0.5% Cu.

The figures below show current surface sampling assay results and alteration / lithology interpretations from the Sandy Creek prospect.

Based on alteration and mineral assemblage, the diversity of volcanic and intrusive rock types, the proximity to a large intrusive system and a complex faulted setting the Sandy Creek prospect in interpreted as a large intusive related copper-gold system.

Forward Program

Extension and infill sampling and detailed mapping along the mineralised fault trend will be completed in the coming field season, in readiness for initial drill testing of both prospects during 2012.

In addition, GBM will continue ongoing collation and interpretation of both new GBM and historic exploration data. For prospects with historic drilling data (Smelter Returns, Dee Copper Mines, Mt Gordon, Limonite Hill), simple 3D Discover models will be generated and work programs planned accordingly.

==> picture [427 x 321] intentionally omitted <==

Figure: Mount Morgan Project Summary, tenement areas and initial targets.

VICTORIAN EXPLORATION ACTIVITIES

==> picture [550 x 35] intentionally omitted <==

Malmsbury Project (includes EL5415 Malmsbury & EL5120 Lauriston)

During the quarter a total of 271 soil samples were collected across Belltopper Hill during the month (samples at lab). Samples were taken from 500mm depth (B-horizon) using the power auger to minimise contamination from old workings. The soil grid at Malmsbury is now 100mx50m within the state forest. Such grid density should assist structural/lode interpretation and drill target planning. Missing historic drilling data was entered into the database to assist a structural interpretation of Belltopper Hill initiated during the quarter with the final report due in the June Quarter .

Willaura Project (includes EL4631 Lake Bolac & EL4751 Woorndoo)

A program of ground magnetics over three buried airborne mag targets was designed during March. Three anomalies along the Moysten Fault and on a fault splay in the SE corner of the lease were chosen for testing. Approximately 80-100 line kilometres at 100-200m line spacing is planned using an auto-reading magnetometer (1 reading per second). The program has commenced and should take two weeks to complete. RC drill collar positions will be finalised once mag data is interpreted

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

All assay results for the Monkey Gully soil grid extension were received. The results confirm the linear NW-trending corridor of W-anomalism with the Gully forming the SE-boundary to high-tenor anomalism, possibly fault-related. The copper anomaly is also extensive and is best developed in the NW grid area, and may continue beneath alluvial cover to the NW. Anomalous Au and Bi is also present at the NW margin of the grid.

FORWARD PROGRAM

Rehabilitation of drill site and tracks at Monkey Gully has will completed when suitable equipment is availble. Other work will include; prospect-scale mapping of Monkey Gully prospect, completion of roadside soil sampling over Black Range flexure zone (50m spacing).

==> picture [543 x 41] intentionally omitted <==

CORPORATE

The Company spent A$1.025 million in the quarter, of which $751,000 was for exploration and $274,000 for administration costs. Cash at 31 March 2012 was $1.5 million.

Other key events/transactions in the quarter:

1. Appointment of Sunny Loh as Non-Executive Director on 1 March 2012. Mr Loh brings extensive financial market experience (particularly in Asia) and the appointment builds on the strong relationship with Swift Venture Holdings. Mr Loh is also a substantial shareholder in GBM.

2. GBM to realise $3.3million in fully paid shares in IPO from the Sale of its 30% interest of the Queensland Phosphate Project. A Shareholder meeting is to be held on 25[th] May to approve 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.

3. On 16 April GBM received firm commitments to place the balance left within the Company’s 15% capacity of 16.7million shares at an issue price of 8 cents per share to raise $1.3million. Tranche one funds of $545,000 have been received and settlement of Tranche two of $755,000 is scheduled for 10 May.

For Further information please contact:

Peter Thompson Colin Hay Managing Director Professional Public Relations GBM Resources Limited Tel: 0404 683355 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 2metres 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 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 243] intentionally omitted <==

TENEMENT SUMMARY

Tenement maintenance, including reporting and renewals has been ongoing during the quarter.

Project / Name	Tenement	Owner	GBMR	Manager	Granted	Expiry	Approx	Status	State
	No.		Equity				*Area3 **
							(km2)
Victoria
Malmsbury
Belltopper	EL4515*1	GBMR/Belltopper Hill	100%	GBMR	6/10/2005	5/10/2012	25	Granted	Vic
Lauriston	EL5120	GBMR	100%	GBMR	17/12/2008	16/12/2013	81	Granted	Vic
Willaura
Lake Bolac	EL4631	GBMR	100%	GBMR	21/03/2002	20/03/2012	98	Granted	Vic
Woorndoo	EL4751	GBMR	100%	GBMR	19/11/2003	18/11/2012	23	Granted	Vic
Willaura	EL5346	GBMR	100%	GBMR	02-Jun-11	01-Jun-14	11	Granted	Vic
Yea
Tin Creek	EL5292	GBMR	100%	GBMR	23-Mar-11	22-Mar-16	442	Granted	Vic
Monkey Gully	EL5293	GBMR	100%	GBMR	23-Mar-11	22-Mar-16	442	Granted	Vic
Rubicon	EL5347	GBMR	100%	GBMR			155	Appl'n	Vic
Queensland
Dee Range
Dee Range	EPM16057	GBMR	100%	GBMR	27-Sep-07	26-Sep-12	88	Granted	Q'ld
Boulder Creek	EPM17105	GBMR	100%	GBMR	26-Mar-08	25-Mar-10	178	Renewal	Q'ld
Mt Morrisey	EPM17163	GBMR	100%	GBMR	23-Apr-08	23-Apr-10	161	Renewal	Q'ld
Black Range	EPM17734	GBMR	100%	GBMR	20-May-09	19-May-14	150	Granted	Q'ld
Smelter Return	EPMA18366	GBMR	100%	GBMR			195	Appl'n	Q'ld
Limonite Hill	EPMA18811	GBMR	100%	GBMR			260	Appl'n	Q'ld
Mt Hoopbound	EPMA18812	GBMR	100%	GBMR			23	Appl'n	Q'ld
Limonite Hill East	EPMA19288	GBMR	100%	GBMR			29	Appl'n	Q'ld
Drummond Basin
Diamond Creek	EPM 19193	GBMR	100%	GBMR	27-Jun-11	26-Jun-14	247	Granted	Q'ld
Mount Isa Region
Talawanta - Grassy Bore
Talawanta	EPM15406	GBMR*2 /Isa Tenements	100%	GBMR	15-Jan-08	14-Jan-11	325	Renewal Pending	Q'ld
Grassy Bore	EPM15681	GBMR*2 /Isa Tenements	100%	GBMR	28-Sep-07	28-Sep-10	325	Renewal Pending	Q'ld
Talawanta	EPMA 19255	GBMR/Isa Tenements	100%	GBMR			325	Appl'n	Qld
Grassy Bore	EPMA 19256	GBMR/Isa Tenements	100%	GBMR			322	Appl'n	Qld
Mount Margaret
Mt Margaret W. Ext	EPM16227	GBMR*2 /Isa Tenements	100%	GBMR	31-Jul-07	30-Jul-12	36	Granted	Q'ld
Mt Margaret West	EPM14614	GBMR*2 /Isa Tenements	100%	GBMR	2-Aug-05	1-Aug-10	129	Renewal Pending	Q'ld
Mt Malakoff Ext	EPM16398	GBMR*2 /Isa Tenements	100%	GBMR	19-Oct-10	18-Oct-15	84	Granted	Q'ld
Cotswold	EPM16622	GBMR*2 /Isa Tenements	100%	GBMR			45	Appl'n	Q'ld
Dry Creek	EPM 18172	GBMR/Isa Tenements	100%	GBMR			227	Appl'n	Qld
Dry Creek Extended	EPM 18174	GBMR/Isa Tenements	100%	GBMR	25-Oct-11	24-Oct-14	39	Granted	Qld
Brightlands
Brightlands	EPM14416	GBMR*2/Isa Brightlands	100%	GBMR	5-Aug-05	4-Aug-12	251	Granted	Q'ld
Wakeful	EPM18454	GBMR/Isa Brightlands	100%	GBMR			13	Appl'n	Q'ld
Highway	EPM18453	GBMR/Isa Brightlands	100%	GBMR			36	Appl'n	Q'ld
Brightlands West Ext.	EPM18672	GBMR/Isa Brightlands	100%	GBMR			97	Appl'n	Q'ld
Brightlands West	EPM18051	GBMR/Isa Brightlands	100%	GBMR			99	Appl'n	Q'ld
Bungalien
Bungalien	EPM14355	GBMR*2 /Isa Tenements	100%	GBMR	13-Oct-04	12-Oct-09	61	Renewal Pending	Q'ld
Horse Creek	EPM15150	GBMR*2 /Isa Tenements	100%	GBMR	13-Jul-06	12-Jul-11	80	Granted	Q'ld
Limestone Creek	EPM17849	GBMR/Isa Tenements	100%	GBMR	20-Oct-10	19-Oct-15	72	Granted	Q'ld
Malbon 2	EPM14120	GBMR*2 /Isa Tenements	100%	GBMR	24-Aug-04	23-Aug-10	15	Renewal Pending	Q'ld
Bungalien 2	EPM18207	GBMR/Isa Tenements	100%	GBMR			325	Appl'n	Q'ld
Horse Creek 2	EPM18208	GBMR/Isa Tenements	100%	GBMR			325	Appl'n	Q'ld
							4532
_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.
	* 3 For Q'ld tenements, 1 sublock ~3.2km 2. Underlined areas indicate			the tenement is contained in new		application area.

Table; GBM Resources Tenement Summary.

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”)
		31 March 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 (9 months) $A’000
		- (751) - - (274) - 17 - - 65	- (4,877) - - (873) - 100 - - 212
		(943)	(5,438)
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)		- - (1) - - - - - 544	- - (43) - - - - - 1,770
		543	1,727
		(400)	(3,711)

• 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)	(400)	(3,711)
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	- - - - - -	- - - - - -
	-	-
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	(400) 1,887 -	(3,711) 5,198 -
	1,487	1,487

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
	During the quarter the Company issued 700,000 fully paid ordinary shares and 5,700,000 listed
	options exercisable at 20 cents each on or before 31 June 2013 to consultants in lieu of cash
	remunerationfor theprovision of corporate and company promotional services.
2.2	Details of outlays made by other entities to establish or increase their share in projects in which the
	reportingentityhas an interest
	Expenditure for the quarter of $261,722 has been incurred by other entities under joint venture
	farm-in agreements onprojects held by the Company.

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.

Appendix 5B Page 2

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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
	700
	250
Total	950

Reconciliation of cash

Total Reconciliation of cash		950
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)	1,369	1,769
	118	118
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,487	1,887

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
	N/a
	N/a

• 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	221,593,503	221,593,503
	700,000 -	700,000 -
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
	5,700,00	5,700,000	$0.20	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	650,000 650,000	- -	Vesting date 22/3/2012 31/12/2012	Expiry date 22/3/2017 31/12/2017
	650,000 650,000	- -	22/3/2012 31/12/2012	22/3/2017 31/12/2017
	-	-
	-	-

• See chapter 19 for defined terms.

Appendix 5B Page 4

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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: 30 April 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.

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• See chapter 19 for defined terms.

Appendix 5B Page 5

17/12/2010