GBM RESOURCES LIMITED. — Interim / Quarterly Report 2015

Apr 29, 2015

ASX Announcement 30 April 2015

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ABN 91 124 752 745

REPORT FOR THE QUARTER ENDED 31[st ] March 2015

Highlights

Mount Coolon Gold Project, Queensland

• GBM completed the acquisition of Mt Coolon Gold Mines Pty Ltd (MCGM) from Drummond Gold Limited.

• MCGM’s mining and exploration tenements host defined resources containing over 280,000 ounces of gold.

• Mt Coolon’s assets are located in the Drummond Basin, one of Australia’s most prominent regions for large, epithermal vein and stockwork style gold.

• These tenements host a number of high order exploration targets in addition to known resources.

Mount Morgan Copper Gold Project, NW Queensland

• Detailed airborne magnetic survey covering the Bajool (Limonite Hill and Ultimo Prospects) intrusive target area has been completed.

• Interpretation of this data has provided further support for the occurrence of a cluster of mineralised porphyries with associated magnetic lows resulting from magnetite destruction by large scale hydrothermal systems in the Mount Morgan Project area.

Pan Pacific/Mitsui Farm-in Projects, NW Queensland

• Pan Pacific Copper Co., Ltd. and Mitsui & Co., Ltd. approved a $2.2M exploration budget for the 2015/16 year.

• Further drill testing planned for Bronzewing Bore IOCG discovery and the nearby Brother magnetic target in the Bungalien Project Area

• Geophysical surveys and drilling of targets in the Mount Margaret West Project area adjacent to the Ernest Henry Cu-Au Mine planned for 2015.

ASX Code: GBZ

COMPANY DIRECTORS

Peter Thompson Managing Director/ Executive Chairman

Neil Norris Exploration Director – Executive Frank Cannavo Non -Executive Director

Chiau Woei Lim Non-Executive Director HunSeng Tan Non- Executive Director

CONTACT DETAILS

Principal & Registered Office Suite 8, 7 The Esplanade, Mt Pleasant, WA 6153

Exploration Office 10 Parker Street, Castlemaine, Victoria 3450

Website www.gbmr.com.au

Email info@gbmr.com.au

Phone +61 (8) 9316 9100

Fax +61 (8) 9315 5475

Phone (Exploration Office) +61 (3) 5470 5033

• GBM manages the exploration programmes on behalf of its partners.

Lubuk Mandi Gold Mine, Malaysia

• First gold pour completed at Lubuk Mandi.

• Commissioning is nearing completion with steady state gold production forecast by June 2015.

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• Flotation is achieving high recoveries (+90%) and is the technical key that has unlocked value at Lubuk Mandi.

• GBM’s Board believes that a planned Initial Public Offering of AASB on the Singapore Stock Exchange in 2015 remains a key value driver for the Company.

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Figure: GBM Resources Limited project location plan.

SAFETY AND ENVIRONMENT

No LTI or environmental incidents were reported during the quarter. The Company has now completed 43 consecutive months with no LTI’s and 89 consecutive months with no significant environmental incidents. During the quarter the company staff and consultants reviewed the safety and environment policies and will continue to review the management standards in the coming quarter as part of a commitment to continuous improvement in all aspects of safety and environment management.

100% GBM Gold Projects

Mount Coolon Gold Project, Queensland

In January GBM announced the signing of a binding Share Sale Agreement (“SSA”) with Drummond Gold Limited (ASX: DGO) where GBM would acquire a 100% interest in all of the issued capital of Mt Coolon Gold Mines Pty Ltd, a wholly owned subsidiary of DGO by the issue of 50,000,000 ordinary fully paid GBM shares and $850,000 cash. This transaction was completed during April (see ASX release dated 13[th] April 2015). The Mt Coolon project area is located 250km west of Mackay in Queensland in the northern Drummond Basin. The Drummond Basin is an established gold mining region with past production of more than 4.5 Mozs and a total known gold endowment of over 7.5 Mozs of gold. Depositstyles range from bonanza grade epithermal veins (eg. Pajingo 3.0 Mozs), to bulk tonnage intrusive related gold deposits (eg. Mt Leyshon 2.1 Mozs).

The tenement package includes four granted Mining Leases, three granted exploration permits and one exploration permit application covering a total area of 761 km[2] . These tenements are summarised in the table below. Independent review of these tenements confirm that all are in good standing and key mining licences have recently been renewed until 2024.

Tenement	Holder Equity Project Name Granted Expiry Date Area (km2)	Holder Equity Project Name Granted Expiry Date Area (km2)	Holder Equity Project Name Granted Expiry Date Area (km2)	Holder Equity Project Name Granted Expiry Date Area (km2)	Holder Equity Project Name Granted Expiry Date Area (km2)	Holder Equity Project Name Granted Expiry Date Area (km2)
EPM 7259 EPM15902 EPM 25365 EPMA25850 ML 1029 ML 1085 ML 1086 ML 10227	Mount Coolon Gold Mines PtyLtd	100%	Conway	5/18/1990	5/17/2019	38.4
	Mount Coolon Gold Mines PtyLtd	100%	Mt Coolon	6/13/2008	6/12/2018	320.0
	Mount Coolon Gold Mines PtyLtd	100%	Mt Coolon North	9/18/2014	9/17/2019	144.0
	Mount Coolon Gold Mines PtyLtd	100%	Mt Coolon East	-	-	256.0
	Mount Coolon Gold Mines PtyLtd	100%	Koala 1	5/30/1974	1/31/2024	0.71
	Mount Coolon Gold Mines PtyLtd	100%	Koala Camp	1/27/1994	1/31/2024	0.05
	Mount Coolon Gold Mines PtyLtd	100%	Koala Plant	1/27/1994	1/31/2024	0.98
	Mount Coolon Gold Mines PtyLtd	100%	Glen eva	12/5/1996	12/31/2016	1.27

Table: Mount Coolon Gold Mines Limited tenement summary (current at 31[st] March 2015).

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Figure: Mt Coolon project tenement group location plan.

Exploration & Mining History

Gold was first discovered in the district in 1912 and hard rock mining began in 1915 at Police Creek (near the current township of Mount Coolon). Mount Coolon Gold Mines was established in 1930 to work a contiguous group of five mine leases centred on the Koala mine. Underground production began in 1932 at Koala and stoping extended over a length of 525m to 140m below surface. Treatment was by very fine grinding, cyanidation, precipitation using zinc dust, followed by roasting and smelting. Mining continued until 1938, when grades became uneconomic. Ore dumps were cleaned up and treated in 1939. The operation closed in 1940 and the leases were surrendered. Total recorded production from 1914-1939 was 179,460 oz of gold bullion from 303,400 tonnes of ore treated, for an average recovered grade of 18.4 g/t Au.

Modern exploration and development initially focussed on the Koala mine lease, held variously by Saracen Minerals, Renison Limited, ACM Gold Ltd and Poseidon. In the late 1990’s Ross Mining trial mined by open cast methods at the Koala mine, recovering 47,000oz Au at a head grade of 5.53 g/t and a recovery of 98% until ground conditions halted production.

Ross joint-ventured the project with Newmont (then Normandy) focussing on the Eugenia and Verbena Sinter prospects.

Drummond Gold Limited acquired the tenements in 2006.

Geology & Mineralisation

The tenement package is located on the western margin of the eastern arm of the Drummond Basin, proximal to the contact of the Late Devonian to Early Carboniferous Drummond Basin with the Anakie Inlier. The Anakie Inlier is a north-trending basement block of greenschist facies metavolcanic and metasedimentary rocks of Neoproterozoic to Lower Cambrian age. The Drummond Basin has developed both east and west of the Anakie Inlier, extending for 450km north-south and 100 to 150km east-west, and contains up to 7,600m of Middle Devonian to Early Carboniferous sedimentary and volcanic rocks.

Duval Mining discovered the Pajingo low-sulphidation epithermal system in the northern Drummond Basin in 1983, and identified the Scott Lode in November 1984. Scott Lode was mined from 1987 to 1993, followed by the Vera-Nancy underground vein system from 1994 to present. This find triggered a stampede of interest in the potential for nearsurface epithermal gold mineralisation in this previously neglected area. Subsequently, the Wirralie and Yandan lowsulphidation epithermal gold deposits were discovered and mined, along with the Koala and Glen Eva open cut mines located within EPM 15902. Other epithermal deposits within EPM 15902 that have not yet been developed include the Eugenia, Verbena Sinter and Golden Bar prospects. In addition, a cupriferous skarn at Midway Dam (TPM Prospect) near Mount Coolon township shows interesting potential as an intrusion-related gold deposit.

Glen Eva is an epithermal low sulphidation quartz-adularia-pyrite gold vein system located in the basal sequence (Cycle 1) of the Drummond Basin. Mineralisation occurs under the pit as colloform and crustiform quartz veins within hydrothermal brecciated dacitic volcanics. The system is structurally complex with several episodes of mineralisation. The lode is between 3-6m in true width, is continuous for 330m of strike and is intersected in drillholes at vertical depths up to 120m below surface. A typical high level bonanza fissure vein, the significant sinter volume suggests significant depth continuity and size potential beyond the current drilling extent.

The mineralisation at Koala and nearby Golden Bar and Footwall Reef prospects is considered to be part of the same epithermal system, hosted within volcanic and sub-volcanic andesitic rocks of the basal Drummond Basin Cycle 1 sequence. A well-developed vertical zonation indicates the mineralisation is open to depth and along strike to the south.

Eugenia mineralisation is hosted by a quartz latite ignimbrite beneath thin Tertiary Suttor Formation sediments. Outcrop is sparse but where present occurs as gold-bearing quartz-pyrite breccia. Vein textures and geochemistry indicate that the mineralisation is low-sulphidation epithermal in nature

. The potentially high grade feeder (‘bonanza’) zone of this system has not yet been identified and there is significant potential to upgrade the current resource if it is found.

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Figure: Mt Coolon project tenement and prospect location plan.

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Resource

Mount Coolon Gold Mines have published resources containing a total of 283,000 ounces of gold (these resources are tabulated below). The inventory is comprised of three deposits of which the largest, Eugenia contains 63% of the total defined resource is considered to be of immediate potential by GBM. Eugenia (previously referred to as Police Creek) is considered to represent the upper levels of a low sulphidation epithermal system. Mineralisation is hosted by quartz veins and sulphide stringers and breccias forming a broad mineralised zone dipping gently to the west. Mineralisation is hosted by a thick dacitic ignimbrite unit. The area is extensively covered by shallow, post mineralisation sediments beneath which potential to extend the deposit with further drilling exists. In addition, to date no feeder zone has been identified and potential exists for the discovery of high grade fissure veins through further exploration.

Project	Location	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	000' t Aug/t Au ozs Total	000' t Aug/t Au ozs Total	000' t Aug/t Au ozs Total	Cut-off
		000' t Aug/t Au ozs Measured			000' t Aug/t Au ozs Indicated			000' t Aug/t Au ozs Inferred
Koala	Hecorina Pit				15	2.6	1,300				15	2.6	1,300	None
	Underground Extension				205	5.9	39,600	39,600	5.3	10,600	267	5.7	49,300	3.0
	Tailings	305	1.6	15,800	11	1.6	500	6	1.5	300	322	1.6	16,700	None
	Total	305 1.6 15,800 231 5.5 40,400 604 305 67,200
Eugenia	In Whitllepit							428	1.5	20,800	428	1.5	20,800	0.5
	Outside pit							3,988	1.2	157,500	3,988	1.2	157,500	0.5
	Total	4,416 1.3 178,200 4,416 1.3 178,200 0.5
Glen Eva	Belowpit.				132	7.8	33,200	21,000	5.9	4,000	154	7.5	37,200	3.0
	Total	305 1.6 15,800 363 6.3 73,600 4,506 1.3 193,100 5,174 1.7 283,000

Table: Mount Coolon Gold Proprietary limited consolidated gold resources (Drummond Gold Limited annual report for the year ended 30 June 2014, released to the ASX 30 September 2014).

Future Work

The Mount Coolon Gold Mines acquisition provides an opportunity to rapidly upgrade the confidence levels of the key Eugenia resource, and to quickly add further resources from known project areas. This upgraded resource base will provide the foundation to investigate near term production options, including from heap leaching of oxidised ores at Eugenia. GBM will evaluate a range of funding options to progress the Mount Coolon holdings. These options may include approaching companies with which we are developing strong relationships, capital raisings or a combination of these and other funding options.

Mount Morgan Copper –Gold Project

Exploration Results relating to the Mt Morgan Copper-Gold Project were previously reported pursuant to JORC 2004: This information has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Following the re-logging of historic core last quarter from Limonite Hill prospect and the confirmation of porphyry alteration, mineralization and vein styles at the prospect, an airborne magnetic-radiometric survey was commissioned and flown during the March quarter.

The survey comprised over 4,400 line kilometres at 50m line spacing and approximately 30m terrain clearance. The survey parameters were designed to produce high definition of the numerous magnetic low anomalies distributed throughout the Permian Bajool Diorite complex. The magnetic lows are interpreted to result from magnetite destruction associated with porphyry-style hydrothermal alteration. Analysis of the historic core from Limonite Hill supports this conclusion.

At least 13 discrete mag lows are present within the complex, most of which are concealed beneath a thin veneer of Quaternary cover sediments(see photograph below). Wherever outcrop occurs within these mag low features (less than 5% of the total area from historic mapping), it displays classic porphyry system signatures and is anomalous for Cu-Mo +- Au mineralization. A number of magnetic high anomalies have also been defined from the recent survey and these may represent skarn or replacement mineralization in reactive host rocks at the margin of the porphyry intrusives.

A structural interpretation of the magnetic data (RTP and Analytic Signal) indicates a complex intrusive history of pulsed phases and cross-cutting boundaries, hornfelsing of host rocks, and a complex fault pattern including a number of large through-going shear zones. Some of the more significant magnetic low anomalies are associated with interpreted structural intersections, loci for emplacement of mineralized porphyry stocks or apophasis.

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Photograph: Outcrop at Limonite Hill prospect. Intensely sericite-silica-pyrite (limonite) altered granodiorite with abundant sheeted sulphide-bearing quartz veins.

Forward Program

Early next quarter will see consultant global porphyry specialist, Greg Corbett, complete a review of GBM’s Mt Morgan project, focusing on the porphyry potential within the company’s tenement holding. Included within the scope of the assessment will be an analysis of the Mt Morgan deposit for porphyry characteristics, synthesizing this with knowledge from GBM’s exploration activities over the last seven years to produce a project-scale deposit model and refined exploration strategy.

The Mount Morgan Project is centred 40km south west of Rockhampton in Queensland in close proximity to the world class Mt Morgan Gold/Copper deposit which produced in excess of 8.0M ounces of Au and 400,000 tonnes of Cu metal. The existence of a deposit of this scale in isolation is extremely rare in mineral districts around the world, and GBM considers that on a statistical basis alone, there is a high probability that a number of previously un-mined or underexploited gold-copper deposits exist within the region. Interestingly, the second largest recorded gold producer in the area, the Mount Usher Mine with 30,000 ounces of recorded production is included within the boundaries of GBM’s new licence application.

GBM is now the beneficial holder of nine granted tenements in the area, Dee Range, Boulder Ck, Bajool, Black Range, Smelter Return, Limonite Hill, Limonite Hill East, Mt Hoopbound and Mt Victoria. One tenement, Mountain Maid is still in application.

Project status was approved in May 2014 over seven of the nine granted licences. These include Dee Range, Boulder Ck, Black Range, Smelter Return, Limonite Hill, Limonite Hill East and Mt Hoopbound (Bajool and Mt Victoria were still in application when Project Status was approved). The tenement group, including applications, covers an area of approximately 860 square kilometres.

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Figure: GBM airborne magnetic survey data. Image is Total Magnetic Intensity Reduced To Pole (TMI RTP). Interpreted intrusive margins showing complex pulsed and cross-cutting history. Fault interpretation from RTP and Analytic Signal (AS) data indicates many mag low anomalies are associated with fault intersections and dilatant structural settings.

Priority targets for further work have been defined on a range of features including; soil, rock-chip and historic drilling, Cu-Au + Mo anomalism, presence of porphyry or IRGS alteration assemblages in surface rocks, geophysical signature, prospective host rocks, structural setting or proximity to Mt Morgan orebody, and size potential.

On this basis a number of key targets have been identified for further exploration including: Smelter Return, Limonite Hill and other buried targets within the Bajool Project, Sandy Creek and Oakey Creek and the Mt Gordon porphyry system.

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Figure; Mount Morgan Project area plan showing key targets and Tenement status.

GRAPHITE PROJECTS, Queensland – GBM 100% INTEREST

Milo Project – Graphite Mineralisation

A December quarter review of the Milo REE project indicated extensive areas of graphitic shale were present within the REE and Cu envelope. A reconnaissance rock-chip sampling program returned high-grade TGC (Total Graphitic Carbon) up to 23.2% TGC and re-assaying of existing drilling sample pulps returned a 45m intersection above 10% TGC peaking at 25.7% TGC (reported previously).

A suite of rock-chip and drilling samples were sent for petrographic analysis and grain-size determination. Results showed that the graphite at Milo is generally very fine grained (5-70 micron), often amorphous, occurring at grain boundaries or as inclusions within quartz or feldspar. Whilst assay results and potential volumes are encouraging, the fine grain size downgrades the graphite prospectivity at Milo. As a result, no further work is planned at Milo or the company’s other graphite prospect, Sevastopol, located north-east of Cloncurry at this time.

LUBUK MANDI GOLD MINE PROJECT, MALAYSIA – GBM 30% INTEREST

(Refer ASX announcements 26 November 2013, 31 January 2014, 25 February 2014, 12 May 2014 and 23 June 2014 for Lubuk Mandi JORC 2012 disclosures). The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and the form and context of the announcement have not been materially modified.

The Lubuk Mandi Gold Mine is located on the east coast of the Malaysian Peninsula in the state and Sultanate of Terengganu, approximately 7 km south of the state capital city Kuala Terengganu. Gold was discovered in 1989 at the site and initially worked as alluvial deposits along a 2 km strike length prior to hard rock mining at Lubuk Mandi. A CIP/CIL plant operated between 1993 and 1999, producing over 107,000 ounces of gold and approximately 11,000 ounces of silver. All mining was by open pit methods.

GBM’s Malaysian Joint Venture partners are working to develop the Lubuk Mandi Mine to a sufficient scale to incorporate this operation into a new Company to be listed on the Catalyst Board of the Singapore Stock Exchange.

As reported in the company’s ASX release dated the 8th of April 2015, the first gold pour has demonstrated that the process and equipment was functioning as planned. It was also noted in this release that the plant was moving to operate on a continuous basis during the June Quarter, with mining on day shift at a sufficient rate to supply the mill around the clock. While this remains the objective, mechanical availability, key staffing appointments and design modifications remain to be rectified before this objective can be achieved.

The Lubuk Mandi plant is designed initially to treat 300,000 tpa at an average head grade of 0.7g/t Au (based on resource published in GBM’s 2014 annual report, see table below). While there are still some design modifications to be completed, performance during commission confirms that the plant can operate at design capacity. Many components of the plant have been designed with contingency to double throughput to 600,000tpa, and gold production to an estimated 9,000 ozs per annum.

Early investigations by GBM (in association with process specialist group Core Resources) identified flotation as holding the potential to significantly beneficiate tailings material at Lubuk Mandi. Subsequent testwork confirmed that flotation could effectively concentrate over 90% of the gold remaining in tailings at Lubuk Mandi into a concentrate of around 10% of the original tailings mass. This allowed economic treatment and gold extraction. Flotation is achieving high recoveries (+90%) and is the technical key to unlocking value at Lubuk Mandi.

Mining is currently progressing with a conventional excavator and dump truck fleet with plans to modify this approach in deeper levels of the tailings deposit and as the wet season approaches. Production levels during commissioning are reported to have achieved design throughput.

Initial indications are that the head grade of tailings is in line with resource estimates and that recoveries are approaching forecast based on laboratory test work. Flow sheet development testwork completed in January 2013 indicated that overall recoveries of 71% should be expected. Results obtained during commissioning confirm that these predicted recoveries are achievable.

Indicated + Inferred Grade Tonnes Grammes Ounces ppm Au % Tonnage Contained Gold	Indicated + Inferred Grade Tonnes Grammes Ounces ppm Au % Tonnage Contained Gold	Indicated + Inferred Grade Tonnes Grammes Ounces ppm Au % Tonnage Contained Gold	Indicated + Inferred Grade Tonnes Grammes Ounces ppm Au % Tonnage Contained Gold	Indicated + Inferred Grade Tonnes Grammes Ounces ppm Au % Tonnage Contained Gold	Indicated + Inferred Grade Tonnes Grammes Ounces ppm Au % Tonnage Contained Gold
Indicated	1,445,000	1,009,000	32,400	0.70	94%
Inferred	87,000	72,000	2,300	0.80	6%
Total	1,532,000	1,081,400	34,800	0.70	100%

Table; Resource summary for Lubuk Mandi tailings deposit. (ASX announcement 24th October 2013, GBM Annual report 2014)

The mine staff includes many local employees, some of whom have experience in the previous operation at Lubuk Mandi. Mine staff have recently been supported by Core Resources during commissioning. Training of operators and procurement of suitably qualified technical staff is ongoing.

Commissioning of the Lubuk Mandi tailings treatment plant is a major step forward for AASB as it moves towards developing a positive sustainable cashflow to assist in further development of the Lubuk Mandi Gold Mine, and to explore other opportunities in Peninsular Malaysia.

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Photograph; Carbon stripping column.

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Photograph; Flotation cells in operation at Lubuk Mandi as the first stage of concentrating gold from existing tailings for recovery.

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Photograph: Tailings mining operations in progress at Lubuk Mandi Gold Mine.
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Mount Isa Region Copper Gold Projects

Pan Pacific Copper/ Mitsui Farm-in Projects

During March the company received confirmation that our partners had approved the exploration budget and proposed program outline for the year to 31 March 2016 on the Farm In Projects, this in line with the long term project expenditure schedule. This major Farm In Agreement with multinational companies Pan Pacific Copper and Mitsui Corporation is now commencing the final year of an initial six year farm-in period.

The exploration budget for the year ending 31 March 2016 is approximately $2.2M. 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$55 million on the development of new copper–gold exploration and mining projects in northwest Queensland to earn 90% in the projects.

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Figure: Location map showing Farm-in Areas.

Activity Overview:

Work during the quarter focussed on prospect ranking, program planning and budget development for the 2015 field season. A structural and prospect review by consultants Solid Geology Pty Ltd for the CED JV project was received during the quarter. This review produced a number of useful targeting concepts that fed into the program planning process.

During February, analysis of drill core structural measurements and assay data from diamond holes completed last year on the Bungalien and Mt Margaret projects was undertaken. Field crews mobilised to Cloncurry late March to begin preparations for the 2015 field season.

Bungalien Project

Tenements: EPM 18207, Bungalien 2; EPM 18208, Horse Creek 2; EPM 17849, Limestone Creek; and EPM 25213, ‘The Brothers’.

The Bungalien project is located adjacent to the major Pilgrim Fault within the Mount Isa Block Eastern Fold Belt. The Proterozoic basement lies beneath up to 500m of Georgina Basin cover rocks and is dominated by felsic volcanics, mafic volcanics and quartzite intruded by a large pluton and associated stocks of Wimberu Granite. The Wimberu Granite is a member of the 1550-1500Ma Williams Batholith plutonic suite which has a close spatial relationship to copper-gold mineralisation in the Eastern Succession. Nearby to the west of the project area lie the Trekelano (Cu-Au) and Tick Hill (Au) deposits, and to the east the Mount Dore mineralised corridor which contains past and producing Cu-Au deposits including Starra, Mount Dore, Mount Elliot, and the Merlin Mo-Re deposit.

Due to the depth of cover, exploration at Bungalien has been driven by the acquisition and interpretation of geophysical data. Eight deep diamond drill holes have been completed at Bungalien since program inception, all targeting potentialfield or electrical geophysical anomalies. All drill holes have intersected IOCG-style alteration (magnetitie-Kspar-albiteactinolite-carbonate) and a number have returned significant low-grade mineralised intercepts.

Bronzewing Bore & The Brothers Prospects

The proposed program for 2015 includes drill testing at least one of three defined targets. The three targets were identified based on the latest constrained 3D inversion models of magnetic and gravity data. The figure below shows a depth slice through the magnetic inversion model with corresponding gravity contours.

Proposed hole Prop_01 targets an intense magnetic anomaly with offset gravity response; ‘The Brothers’. An attempt to test this anomaly was made previously with BNG003, however very low magnetic susceptibility throughout the drill core to end of hole indicates the magnetic anomaly was not intersected. Basement in this hole was altered Wimberu Granite.

The second proposed hole is planned to intersect a previously untested magnetic anomaly which forms part of the main Bronzewing Bore magnetic ridge. This anomaly is likely part of the same magnetite-sulphide -bearingIOCG alteration system intersected in holes BNG001 and BNG008.

Proposed hole Prop_03 is planned to test down plunge the Cu-Au mineralization intersected in BNG001-008 at Bronzewign Bore. Mineralisation is hosted by magnetite-actinolite-apatite breccias best developed at the contacts of Wimberu Granite and older mafic volcanics. Structural analysis of mineralized veins in drill core and cross-section interpretation suggests the breccia system plunges shallowly to the NNW parallel to the long axis of the magnetic anomaly. The cross-section below shows the interpretation, concept model and planned hole trace.

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Figure: Bronzewing Bore & The Brothers Prospects: Slice through magnetic inversion model at -291m RL with corresponding gravity model slice contours. Planned drill collars and traces in green.

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Figure: Bronzewing Bore prospect interpreted drilling cross-section and proposed drill hole Prop_03 (green).

Mount Margaret West Project

The Mount Margaret group of tenements consist of Mt Malakoff Ext (EPM 16398) Dry Creek (EPM 18172) Dry Creek Ext (EPM 18174) Cotswold (EPM 16622), Mt Marge (EPM 19834), Tommy Creek EPM 25545 and Corella EPMA 25544.

The Mount Margaret tenements are in an area of shallow cover (<100m) over Proterozoic rocks that include the host to the nearby Ernest Henry Cu-Au-magnetite mine. A number of named IOCG prospects are located within the CED JV tenements and these have been explored by other companies to varying degrees. Exploration by the CED has been focussed on examining the historical work (drilling, geophysics, soil sampling) conducted by companies such as Chevron, BHP, WMC, MIMEX and Xstrata with the aim to identify gaps in the previous exploration efforts and to delineate and explore new areas that remain untested (e.g. FC2_West).

FC2/FC2W Prospects.

An IP survey program (200m x 200m dipoles) for the 2015 exploration season was planned during the quarter. The survey is designed to infill and extend the existing survey completed during the 2014 field season. IP lines will test for chargeability response within the parallel magnetic belts at FC2W and within an area of elevated MMI partial leach soil anomalism in the NW corner of FC2W.

The survey line locations are shown in the image below. A total of 4 new lines are proposed to cover areas not surveyed at FC2W in 2014 as well as westerly extensions to the 2 most northern lines from the 2014 IP Program. A further 3 new lines are proposed to cover the FC2_Prop5 magnetic/gravity anomaly on the southern end of the attenuated western limb at FC2. A 3DIP survey is also proposed over the MMA007 target area at FC2.

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Figure: FC2/FC2W prospect 2015 proposed IP program (black dashed 2DIP lines and black 3DIP square) - CED JV collars shown on background TMI-RTP image with HP10K gravity contours. Ten 2014 IP lines (blue) are also shown.

Drilling of the IP chargeability anomaly at FC2NW, planned for December quarter 2014 but deferred due to early onset of the monsoon, will be completed in the June or September quarters. Inversion of JV and historic IP data in 2014 produced a pronounced, strong linear anomaly in basement associated with a magnetic low adjacent to the FC2 ironstone belt. Figure below.

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Figure: FC2NW Prospect: East-West slice (looking north) through 3DIP model showing chargeability model (pink and red shells) and 2D IP inversion model and contours along CED JV IP line 7756750mN (MGA co-ordinates). The trace of the proposed drill hole is also shown.

Tommy Creek Prospect

With the recent granting of EPM25544 (Tommy Creek), located immediately south of FC2W prospect area, a proposal was put forward to conduct a gravity survey over the new EPM to test 3 magnetic/gravity (gravity based on very sparse data) anomalies within the new tenement. The proposed gravity survey (red hatched enclosure in image below) will provide infill to link with the 2014 FC2W gravity survey and the regional gravity dataset.

The survey area is about 19 km2 in area and comprised of ca. 570 points at 200m x 200m spacing. No historical drilling has been undertaken within the tenement. The area was originally part of the historical FC10 prospect and recently relinquished by Red Metals.

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Figure: Tommy Creek prospect. Proposed gravity survey area (stippled) over background image of TMI_RTP and showing gravity contours. Existing detailed CED JV gravity stations adjoining to the north also shown, along with sparse regional gravity stations (crosses). Pink enclosed areas A, B and C are identified gravity/magnetic areas of interest. Historic drilling also shown.

FC4NW Prospect

A review and reprocessing of the historical data from FC4NW prospect, located NW of Ernest Henry mine, identified a number of untested MIMDAS anomalies in a highly prospective area with strong down-hole Cu results in nearby drillholes. Associated with the anomalies are a number of inferred structures/faults interpreted from the magnetics.

The image below shows 4 prospective target areas (A1 - A4) with strong - modest MIMDAS anomalies that have been determined from inversion models (red lines) and pseudo-sections (black dashed line). Anomalies A1, A3 and A4 have not been drill-tested and A2 has been drill-tested in the southern end. From these anomalies, three drill-holes have been proposed Prop_1 – Prop_3 with Prop_1 being the priority drill target.

The blue polygons are target areas selected in the Solid Geology consultant review with one coinciding with A3 (Prop_2) target area.

==> picture [487 x 366] intentionally omitted <==

----- Start of picture text -----

A4
A1
A2
A3
----- End of picture text -----

Figure: FC4NW – MIMDAS anomalies and historical drill-collars over background image of merged magnetic grids with JV and historic merged gravity contours. Historical collars with max depth and max Cu. Blue polygons are anomalies selected by Solid Geology. Props 1-3 are also shown.

==> picture [543 x 314] intentionally omitted <==

– Figure: FC4NW MIMDAS inversion section line 7749720N with magnetic intensity profile beneath.

Forward Program

The June quarter will see modelling of regional magnetic flight line data and a downhole structural data review to help focus final drill hole planning at Bronzewing Bore and The Brothers prospects at Bungalien. The drill program is scheduled to commence late in the June quarter.

The IP program at Mt Margaret FC2/FC2W prospects will be completed in the June quarter along with the Tommy Creek ground gravity survey. Prioritising of drill targets within the Mt Margaret project will then lead to program design and commencement late in the quarter.

==> picture [543 x 68] intentionally omitted <==

TENEMENT SUMMARY

Throughout the March quarter reports and payments have been lodged as required. Technical reports continue to be lodged and are up to date in line with the Department requirements.

During the quarter Corella EPM25545 in the Mt Margaret West group of tenements was granted for two years.

The Company is still awaiting transfer documents for Mayfield (EPM 19483) from Newcrest Mining Limited to be signed. These are yet to be finalised and sent to the Department.

GBM holds 30% interest in the Lubuk Mandi mineral assets via its 30% ownership of Angka Alamjaya Sdn Bhd, a Malaysian company which holds the mining for the Lubuk Mandi Gold Project.

Tenements owned by Mount Coolon Gold Mines Pty Ltd (MCGM) which was acquired by GBM subsequent to the end of the March quarter are included in the tenement table for completeness.

Project / Name	Tenement No.	Owner	Interest	Status	Granted	Expiry	Application Date	Approx Area (km2)	**sub-blocks **	State
Victoria
Malmsbury
Belltopper	EL4515*1	GBMR/Belltopper Hill	100%	Granted	06-Oct-05	05-Oct-15		25	25	Vic
Lauriston	EL5120	GBMR/Belltopper Hill	100%	Granted	17-Dec-08	16-Dec-15		8	8	Vic
Willaura
Willaura	EL5346	GBMR	100%	Granted	02-Jun-11	01-Jun-16		8	8	Vic
Lake Bolac2	EL5423	GBMR	100%	Granted	03-Dec-12	02-Dec-17		218	218	Vic
Yea
Monkey Gully	EL5293	GBMR	100%	Granted	23-Mar-11	22-Mar-16		316	316	Vic
Tin Creek	EL5292	GBMR	100%	Granted	23-Mar-11	22-Mar-16		329	329	Vic
Rubicon	EL5347	GBMR	100%	Granted	27-Feb-12	26-Feb-17		104	104	Vic
Queensland
Mount Morgan
Dee Range	EPM16057	GBMR	100%	Granted	27-Sep-07	26-Sep-16		46	14	Q'ld
Boulder Creek	EPM17105	GBMR	100%	Granted	26-Mar-08	25-Mar-17		88	27	Q'ld
Black Range	EPM17734	GBMR	100%	Granted	20-May-09	19-May-16		81	25	Q'ld
Smelter Return	EPM18366	GBMR	100%	Granted	21-Jun-12	20-Jun-17		98	30	Q'ld
Limonite Hill	EPM18811	GBMR	100%	Granted	21-Nov-12	20-Nov-17		260	80	Q'ld
Limonite Hill East	EPM19288	GBMR	100%	Granted	31-Oct-13	30-Oct-18		29	9	Q'ld
Mt Hoopbound	EPM18812	GBMR	100%	Granted	26-Jul-12	25-Jul-17		23	7	Q'ld
Mt Victoria	EPM25177	GBMR	100%	Granted	26-Aug-14	25-Aug-17		3	1	Q'ld
Bajool	EPM25362	GBMR	100%	Granted	27-Nov-14	26-Nov-17		110.50	34	Q'ld
Mountain Maid	EPM25678	GBMR	100%	Granted	09-Apr-15	08-Apr-18		26	8	Q'ld
Mount Isa Region
Talawanta - Grassy Bore
Talawanta2	EPM19255	GBMR*2/Isa Tenements	100%	Granted	26-Aug-14	25-Aug-19		325	100	Qld
Grassy Bore2	EPM19256	GBMR*2/Isa Tenements	100%	Granted	27-Jun-14	26-Jun-18		322	99	Qld
Mount Margaret
Mt Malakoff Ext	EPM16398	GBMR*2 /Isa Tenements	100%	Granted	19-Oct-10	18-Oct-15		85	26	Q'ld
Cotswold	EPM16622	GBMR*2 /Isa Tenements	100%	Granted	30-Nov-12	29-Nov-17		46	14	Q'ld
Mt Marge	EPM19834	GBMR/Isa Tenements	100%	Granted	04-Mar-13	03-Mar-18		3	1	Q'ld
Dry Creek	EPM18172	GBMR/Isa Tenements	100%	Granted	13-Jul-12	12-Jul-17		189	58	Q'ld
Dry Creek Ext	EPM18174	GBMR/Isa Tenements	100%	Granted	25-Oct-11	24-Oct-16		39	12	Q'ld
Corella	EPM25545	GBMR/Isa Tenements	100%	Granted	20-Mar-15	19-Mar-15		59	18	Q'ld
Tommy Creek	EPM25544	GBMR/Isa Tenements	100%	Granted	11-Nov-14	10-Nov-16		33	10	Q'ld
Brightlands
Brightlands	EPM14416	GBMR*2/Isa Brightlands	100%	Granted	5-Aug-05	4-Aug-16		254	78	Q'ld
Brightlands West	EPM18051	GBMR/Isa Brightlands	100%	Granted	22-Oct-13	21-Oct-18		7	2	Q'ld
Brightlands West Ext.	EPMA18672	GBMR/Isa Brightlands	100%	Appl'n			04-May-10	16	5	Q'ld
Wakeful	EPM18454	GBMR/Isa Brightlands	100%	Granted	23-Jan-12	22-Jan-17		13	4	Q'ld
Highway	EPM18453	GBMR/Isa Brightlands	100%	Granted	23-Jan-12	22-Jan-17		20	6	Q'ld
Bungalien
Limestone Creek	EPM17849	GBMR/Isa Tenements	100%	Granted	20-Oct-10	19-Oct-15		49	15	Q'ld
Bungalien 2	EPM18207	GBMR*2/Isa Tenements	100%	Granted	24-May-12	23-May-17		163	50	Q'ld
Horse Creek 2	EPM18208	GBMR*2/Isa Tenements	100%	Granted	2-Aug-12	1-Aug-17		163	50	Q'ld
The Brothers	EPM25213	GBMR/Isa Tenements	100%	Granted	16-Oct-14	15-Oct-19		10	3	Q'ld
Mayfield
Mayfield	EPM19483	GBMR*2, 4/Isa	100%	Granted	11-Mar-14	10-Mar-19		302	93	Q'ld
Malaysia
Lubuk Mandi	ML1/2007 & ML2/20	AASB*5	0%	Granted		March 2017		2.215
Mt Coolon
Mt Coolon	EPM15902	MCGM	100%	Granted	13-Jun-08	12-Jun-18		325	100	Q'ld
Mt Coolon East	EPMA25850	MCGM	100%	Appl'n			19-Dec-14	260	80	Q'ld
Mt Coolon North	EPM25365	MCGM	100%	Granted	18-Sep-14	17-Sep-19		146.25	45	Q'ld
Conway	EPM7259	MCGM	100%	Granted	18-May-90	17-May-19		39	12	Q'ld
Koala 1	ML 1029	MCGM	100%	Granted	30-May-74	31-Jan-24		0.71		Q'ld
Koala Camp	ML 1085	MCGM	100%	Granted	27-Jan-94	31-Jan-24		0.049		Q'ld
Koala Plant	ML 1086	MCGM	100%	Granted	27-Jan-94	31-Jan-24		0.98		Q'ld
Glen Eva	ML 10227	MCGM	100%	Granted	05-Dec-96	31-Dec-16		1.3		Q'ld

Figure; GBM Tenement summary table as at March 31[st] 2015.

CORPORATE

1. The Company spent a total of $795,000 in the quarter, of which $500,000 was for exploration and $295,000 for administration costs. Cash at 31 March 2015 was $1.04 million. The Company completed a Share Placement on the 9[th] April 2015 and raised funds of approximately $567,000 at the Company’s prevailing market price.

The Placement of 22.7 million shares (Placement Shares) at an issue price of $0.025 per share was made under the Company’s 15% annual issuing capacity for the purposes of ASX Listing Rule 7.1 and therefore shareholder approval for the issue of the Placement Shares is not required.

1. The Company announced on the 14 April 2015 Board Changes which included Mr Tan Hung Seng’s appointment as a Non-Executive Director of the Company. Mr Tan has a special duty role to manage GBM’s investment with joint venture partners Angka Alamjaya Sdn Bhd which holds The Lubuk Mandi Gold Project.

Mr Tan’s appointment follows Mr Frank Cannavo who stepped down from the position of Executive Director, in order to pursue other opportunities, and will remain part of the Board in the role as Non-Executive Director.

Mr Tan has over 30 years’ experience in the process engineering sector both in China and Singapore. He was founder of BMS Technology PL, a manufacturer for the hard disk industry in Singapore and China. Mr Tan led the BMS Technology in a successful merger and later 100% acquisition of that company by Nidec Corporation of Japan which is listed on both the New York and Tokyo stock exchanges.

Mr Tan holds a Master of Business Administration from University of Hull, United Kingdom and obtained his Advanced Diploma in Management Study and production Engineering. Mr Tan has a proven track record in business development and extensive business relations in China and the Asia capital markets.

For Further information please contact:

Peter Thompson Media Managing Director Karen Oswald GBM Resources Limited Marko Communications Tel: 08 9316 9100 Tel: 0423 602 353

Explanatory notes:

Competent Person’s Statement for Exploration Results included in this report that were previously reported pursuant to JORC 2004: This information has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

The information in this report that relates to Exploration Results is based on information compiled by Neil Norris, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australasian Institute of Geoscientists. Mr Norris is a full-time employee of the company, and is a holder of shares and options in 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 Exploration Results is based on information compiled by Neil Norris, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australasian Institute of Geoscientists. Mr Norris is a full-time employee of the company, and is a holder of shares and options in 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 2012 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 Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and the form and context of the announcements have not been materially modified.

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

GBM Resources Limited

ABN 91 124 752 745	Quarter ended (“current quarter”)
ABN 91 124 752 745	31 March 2015

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for: (a) exploration and evaluation (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 - R&D concession refund NetOperating Cash Flows	Current quarter $A’000	Year to date (9 months) $A’000
	- (500) - - (295) - 8 - - 18 -	- (2,300) - - (857) - 19 - - 166 -
	(769)	(2,972)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets (d) bonds 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets (d) bonds redeemed 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)	- (50) - - - - - - (9) 500 148	- (100) (1) (23) - - - 15 (275) 700 1,381
	589	1,697
	(180)	(1,275)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(180)	(1,275)
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	- - - - - -	2,000 - - - - (210)
	-	1,790
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	(180) 1,222 -	515 527 -
	1,042	1,042

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'000 150 -
1.25	Explanation necessaryfor an understandingof the transactions
	Director remuneration – fees and salaries.

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 $254,583 ($1,422,407 year to date) incurred by other entities under joint venture farm-in agreements on projects held by the Company has been included at 1.2(a).

• See chapter 19 for defined terms.

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Appendix 5B GBM Resources Limited Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		-	-
		-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation1 4.2 Development 4.3 Production 4.4 Administration	$A’000
	700
	250
Total	950

1The forecast cash outflows for the period include expenditure on the farm-in projects subject to the agreement with Mitsui and Pan Pacific. During April 2015 the Company received $790,000 in respect of the June 2015 quarter work program from its farm-in partners.

Reconciliation of cash

Reconciliation of cash
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)	942	1,123
	100	99
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,042	1,222

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 of quarter	Interest at end of quarter
	EPM 25545	100%	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	485,194,121	485,194,121
	- -	- -
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	177,746,562	177,746,562	Exercise price $0.035	Expiry date 30 Jun 2016
	-	-
	-	-
	-	-
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	-	-	Vesting date	Expiry date
	-	-
	-	-
	-	-

• 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: ............................................................ Company Secretary

Date: 30 April 2015

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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