GBM RESOURCES LIMITED. — Interim / Quarterly Report 2018

Oct 22, 2017

23 October 2017

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ABN 91 124 752 745

ASX Code: GBZ

REPORT FOR THE QUARTER ENDED 30[th] SEPTEMBER 2017

COMPANY DIRECTORS

HIGHLIGHTS:

• Mount Coolon Gold Project

The Company has engaged Mining One Consultants to complete a scoping study in conjunction with a range of other specialists, on the Mount Coolon Gold Project.

• The scope of this study was primarily focused on building on previous work but also includes an assessment of the potential economic viability of an underground mine at Koala.

• The Scoping Study was extended in August due to an increase in the options being assessed. The study is nearing completion and expected to be completed now in November.

• Mt Usher Gold Prospect (part of the Mount Morgan Copper –Gold Project, QLD)

Historical (1900) Mt Usher Gold Prospect produced over 150,000 ounces from alluvial and hard-rock mining, hard-rock production averaged in excess of 1 oz per ton.

At the Mt Usher Gold Prospect recent field activities have identified:

• Results from rock chip samples confirm high grade gold is present.

• Potential new gold discovery with multiple lodes, strike length > 5km and 500 m wide.

• Very high grade epithermal-type gold system– similar metal suite and alteration style to Mt Morgan Gold Mine.

• Two viable exploration models – high-grade epithermal fissure vein and high-grade bulk tonnage Mt Morgan Mine style VHMS/Intrusive-Related composite.

Peter Thompson Managing Director/ Executive Chairman Neil Norris Exploration Director – Executive

Hun Seng 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

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• No drilling and only minimal modern exploration.

• Pan Pacific Joint Venture (Projects Located in North West province, Qld)

Pan Pacific Copper Co Ltd , through their Australian registered subsidiary Cloncurry Exploration & Development Pty Ltd have completed the farm in phase and have elected to continue exploration and development of the tenement areas. The Joint Venture Agreement was executed in October 2017.

The Joint Venture Agreement with a major strategic global partner continues to support a key strategy for GBM where the Iron Oxide Copper Gold projects can be further explored with the level of funding required to realise a new discovery.

SAFETY AND ENVIRONMENT

No LTI or environmental incidents were reported during the September Quarter. GBM is committed to continuously improving safety and environment systems with the clear aim of achieving zero harm and have now completed 71 consecutive months with no LTI’s and 117 consecutive months with no significant environmental incidents.

Gold Projects

Mount Coolon Gold Project, Queensland (100% GBM)

Scoping Study Commissioned

During the last year the Company has completed a range of studies and field activities to assess the potential for recommencing mining at Mount Coolon.

The Scoping Study was commissioned in July 2017 and will incorporate the current mineral gold resources of the Koala, Glen Eva and Eugenia deposits. Process options to be considered will include both on site treatment with a Carbon in Leach gold plant, Heap Leach and/or Toll Milling.

The Scoping Study was extended in August to review the potential of new development options and is designed to bring together key aspects of the work completed to date into one coherent document providing a blue print for the future redevelopment of the Mount Coolon Project.

Additional new developments under review include:

• I. Inclusion in the Scoping Study of a starter pit south of the current Koala North pit which may represent a lower startup capital cost and an improved time line regarding the environmental approval processes.

• II. At Koala the main decline and shaft are reported to be in good condition and there is potential to go underground to access ore below the floor of the current pit design, potentially increasing gold production at Koala.

• III. Consideration of a staged approach to construction of the processing facility which has been designed based on a relocatable CIL plant. The CIL circuit to be constructed as phase one which would provide the flexibility to initially treat the old tailings material. The second construction phase to follow with the crushing and grinding circuits to process fresh ore.

Key tasks being undertaken in the Scoping Study to include:

• Re-optimisation of the Koala, Glen Eva and Eugenia open pit designs based on upgraded resources using inputs derived from recently completed metallurgical testwork, current plant design and geotechnical data from recent drilling.

• Preliminary treatment plant design and scale.

• Mine layout design and infrastructure.

• Tailings Storage.

• Water management plan.

• Ore sale and or toll milling opportunities.

Since acquiring the Mount Coolon Gold project the Company has been updating and expanding the known resources at Koala, Glen Eva and Eugenia, to support options for near term production. The Study is now nearing completion.

Background to the Mount Coolon Gold Project

In January 2015 GBM announced the signing of a binding Share Sale Agreement with Drummond Gold Limited (ASX: DGO) pursuant to which GBM acquired a 100% interest in the issued capital of Mt Coolon Gold Mines Pty Ltd. This transaction was completed during April (refer ASX announcement 13 April 2015) .

The project 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. Deposit styles range from bonanza grade epithermal veins (eg. Pajingo 3.0 M ozs) to bulk tonnage intrusive related gold deposits (eg Mt Leyshon 2.1 M ozs).

The tenement package includes four granted Mining Leases, and four granted exploration permits covering a total area of 773 km[2] . Independent review of these tenements has confirmed that all are in good standing and key mining licences are current until 2024.

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Figure: Mt Coolon Project tenement group and prospect location plan

Copper Gold Projects

- Pan Pacific Copper Farm in Projects, Mount Isa Region, Queensland

Introduction

During 2016-17 Pan Pacific Copper through their Australian registered subsidiary Cloncurry Exploration & Development Pty Ltd ( CED) have completed the Farm In Phase covering the Mt Margaret, Bungalien , Chumvale (within the Brightlands ) and Talawanta / Grassy Bore Project areas.

A Joint Venture Agreement has been finalized and executed in October 2017 and will formally commence when CED provide official notice. CED will hold approximately 51.3% and GBM 48.7% interest respectively in the projects. Under the terms of the JV, GBM will continue as manager and retain its free carried interest of 10% through to completion of a bankable feasibility study. The signing of a Joint Venture Agreement represents a key step forward in that the projects can be further advanced and have the required level of funding to target a potential new discovery.

Work Program

A budget of $430,000 has been agreed to for exploration on the Cloncurry Projects for the current year (to March 30[th] 2018). During the September quarter, gravity programs were designed and executed at FC2 and Tommy Creek prospects and a 3DIP program designed for FC2 (see figures below).

At the FC2 prospect a total of 266 ground gravity points were measured as infill to the existing GBM grid. Grid point spacing is now at 100x100m over key areas of the prospect. Processing of the merged gravity dataset to remove the very steep regional gradient (high-pass filter) reveals a large and discrete anomaly of approximately 2 mgal intensity over a >4 km[2] area at FC2. An overlay of gravity contours on the detailed GBM airborne magnetics data shows the gravity and magnetic response is generally coincident.

GBM drilled two diamond holes in 2014/15 to test an overlapping gravity-magnetic-IP chargeability high on the eastern edge of the greater FC2 anomaly (drill holes MMA007 & 010). The drilling returned encouraging copper-gold mineralisation and IOCG-type alteration. Elevated downhole rock density, magnetic response and sulphide concentration indicates the three geophysical survey methods in combination are effective IOCG target generators at FC2 prospect. This encouragement justified the planning of 3DIP grid extensions to cover the remainder of the FC2 gravity-magnetic anomaly. The 3DIP program is scheduled to commence early in the December quarter.

At the Tommy Creek prospect 269 infill ground gravity points were measured resulting in grid point spacing of 100x50m over the main portion of the anomaly. The regional gradient at Tommy Creek is not as pronounced as at FC2 and processing reveals a very well defined double-peak anomaly of greater than 2 mgals intensity. The western ‘lobe’ is the stronger of the two and coincides with a cuspate magnetic high. Reprocessing of the broad-spaced IP survey data completed by Xstrata showed electrical geophysical methods at Tommy Creek are influenced by conductive overburden and as such further IP surveying is not planned by GBM. The Tommy Creek anomaly is interpreted to lie beneath approximately 100m of cover sediments and has never been drill tested.

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Figure: Merged and processed ground gravity data highlighting a complex, coincident gravity-magnetic anomaly at FC2. Gravity grid (top image) and gravity contours on TMI RTP magnetics grid (bottom image).

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Figure: Merged and processed ground gravity data at Tommy Creek. Gravity grid (top image) and gravity contours on TMI RTP magnetics grid (bottom image).

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Figure: Location map showing Farm-in Areas and GBM tenements in the North West Mineral Province, Queensland.

Mount Morgan Project, Rockhampton Region, Queensland

Mt Usher Gold Project

During the quarter, GBM undertook an initial program of surface mapping, rock-chip sampling and airborne drone topographic-imagery surveying at the Mt Usher prospect. A review of historical mine references and modern exploration was also completed. Mapping has defined for the first time a continuous fault, sulphide alteration and lode quartz corridor of at least 5 km in strike length and 500 m wide enclosing the Mt Usher mine and numerous lesser production centres including the Anglo Saxon, Caledonian and Victor mines. This fault zone is hosted by mixed Devonian volcanic and sedimentary rocks at the eastern and western ends and by magnetic diorite or tonalite in the central zone. Gold mineralisation has developed in all rock types within the corridor.

A total of 96 rock-chip samples have so far been collected from within the Mt Usher fault system. Results for the first 19 rock-chip sample assays received from ALS Laboratories confirm high-grade gold is present in pyritic/limonitic quartz veins within the volcanic package at Mt Usher mine and the diorite at the Caledonian mine along strike to the west (peak 14.4 g/t Au). Anomalous Ag, Cu, Pb and Zn is also present, confirming the old miners’ reports of ‘blackjack(sphalerite), galena and carbonates of copper’ with pyrite in the ore zone. Highly anomalous Te (peak 10.1 ppm) shows a strong association with gold and silver in conjunction with Mo, Bi, Sb and As. This metal assemblage is similar to that reported from the ore system at Mt Morgan (Lawrence, 1974), with the addition of silver from galena, and is characteristic of higher-temperature epithermal and/or intrusive-related gold systems.

Sample_ID	MGA_N	MGA_E	Sample_Description	Assay_Results	Assay_Results	Assay_Results	Assay_Results	Assay_Results	Assay_Results	Assay_Results	Assay_Results	Assay_Results	Assay_Results	Assay_Results
					Au	Ag	As	Bi	Cu	Mo	Pb	Sb	Te	Zn
				Unit	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm	ppm
				Detection Limit	0.01	0.01	0.2	0.01	0.2	0.05	0.5	0.05	0.05	2
MUR001	7387978	242153	Qtz vein		13.55	15.8	98	3.15	79.8	0.38	19	3.48	8.84	2050
MUR002	7387965	242155	Mullock		0.83	0.79	91.8	1.1	15.2	0.9	13.5	5.47	0.61	143
MUR003	7387876	242435	Mullock		0.46	0.43	31.9	0.56	27.3	30.3	16.8	2.06	0.27	833
MUR004	7387975	242562	Fault/qtz vein		0.15	0.62	22.2	0.19	8.9	1.12	22	2.78	0.31	226
MUR005	7387928	242605	Qtz vein in adit		0.03	0.22	21.9	0.12	11.2	1.77	9.9	7.78	<0.05	360
MUR006	7387928	242605	Qtz vein in adit		0.05	0.06	9.4	0.03	4.4	0.43	3.7	1.29	<0.05	139
MUR007	7387920	242590	Qtz vein at adit		0.19	0.57	18.6	0.08	107.5	0.31	4.8	7.46	0.23	1320
MUR008	7387929	242603	Qtz vein at adit		1.16	4.35	93.4	1.45	1160	2.18	479	7.6	1.34	2230
MUR009	7387887	242712	Qtz vein		14.35	17.05	104.5	1.04	341	2.48	19.4	19.15	10.05	1140
MUR010	7387957	242820	Qtz vein/fault		<0.01	0.05	6.7	0.22	12.9	0.67	3.5	0.54	<0.05	29
MUR011	7387882	241771	Fault in adit		0.06	0.29	12.6	0.29	47.6	1.4	618	1.8	0.11	500
MUR012	7387888	242750	Fault in adit		0.1	0.93	22.4	0.4	160	1.43	357	2.37	0.08	977
MUR013	7388122	241871	Openpit sample		0.01	0.34	3.4	0.43	25.2	0.46	5.2	0.88	0.07	19
MUR014	7387880	242768	Altered volcanic rock		0.01	1.11	13.6	0.37	21.9	0.4	19.8	1.99	0.05	1440
MUR015	7387870	242760	Altered volcanic rock		<0.01	0.05	2.4	0.19	7.4	0.23	5.4	0.63	0.05	20
MUR016	7387882	242747	CuOx in shear		0.06	5.89	13	0.71	1030	5.31	1875	1.8	0.15	329
MUR017	7387889	242700	Qtz-Lim vein		2.66	3.74	81.6	1.27	56.3	2.75	51.3	10.7	1.14	132
MUR018	7387927	242587	Shear zone		0.08	0.32	37.4	0.19	6.2	2.05	26.2	11.25	<0.05	62
MUR019	7387927	242587	Qtz vein float		3.82	4	57.5	0.25	4420	0.52	15	19.2	0.12	8540

Table: Assay results received to date for Mt Usher rock-chip samples (ALS Laboratories, Brisbane). Refer ASX announcement 12 September 2017.

The Devonian volcanic-sedimentary package at Mt Usher is interpreted to be part of the Mt Warner Volcanics, the same rock suite that hosts Mt Morgan located 12 km to the south-west. A major north-east trending lineament links the two deposits. The Mt Morgan Lineament is defined by mapped faults, magnetics and gold occurrences and is orientated parallel with Mt Morgan mine faults. Modern analysis indicates that the overprinting of pre-existing volcanic massive sulphide mineralisation (VHMS) by later intrusive-related Au-Cu bearing fluids from the adjacent tonalite unit was responsible for ore genesis at Mt Morgan. The fluid signature and the metal assemblage are indicative of an epithermal setting for the main mineralizing event (Ulrich, 2002), a theory supported by recent work by Corbett for GBM (Internal report, 2015).

GBM believes the Mt Usher fault corridor is highly prospective for near surface, high-grade vein-hosted, epithermal gold-silver mineralisation and that evidence is mounting for the existence of a deeper, large tonnage, high-grade Mt Morgan analogue within the prospect area. It seems remarkable given the extensive modern exploration effort to find another Mt Morgan that such limited attention has been paid to the second biggest producer, Mt Usher.

Further work at Mt Usher will include continued mapping and comprehensive rock-chip and soil sampling across the entire fault zone. Due to the steep topography and multiple parallel lodes, 3D modelling using GBM generated data and historical mine data will be critical for drill planning. A small diamond drilling program of three to four circa 300m holes in the vicinity of the main workings is scheduled late in 2017. Electrical geophysical methods will be considered to test for large, blind, massive-sulphide Mt Morgan style mineralisation.

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Figure: Mount Usher prospect. Mapped system strike length to date with historical gold production notes, GBM rock-chip sample locations and planned soil sampling lines.

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Figure: Mount Morgan Project tenement and prospect/target location map.

TENEMENT SUMMARY

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

Renewals were submitted for EPM’s 18811 Limonite Hill, 25362 Bajool and 16622 Cotswald in the Mount Morgan area. Annual Census forms were completed for all EPM and MLs. Annual royalty and statistical returns were completed for all MLs.

Project / Name **Tenement No. **	Owner Manager Interest Status Granted Approx Area (km2)
Victoria
Malmsbury
Belltopper EL4515	GBMR*1/Belltopper Hill GBMR 100% pending 06-Oct-05 25
Yea
Monkey Gully EL5293	GBMR GBMR 100% Granted 23-Mar-11 86
Queensland
Mount Morgan (Project
Dee Range EPM16057 Boulder Creek EPM17105 Black Range EPM17734 Smelter Return EPM18366 Limonite Hill EPM18811 Mt Hoopbound EPM18812 Limonite Hill East EPM19288 Mt Victoria EPM25177 Bajool EPM25362 Mountain Maid EPM25678 Moonmera EPM19849	GBMR GBMR 100% Granted 27-Sep-07 36 GBMR GBMR 100% Granted 26-Mar-08 88 GBMR GBMR 100% Granted 20-May-09 81 GBMR GBMR 100% Granted 21-Jun-12 62 GBMR GBMR 100% Granted 21-Nov-12 153 GBMR GBMR 100% Granted 26-Jul-12 23 GBMR GBMR 100% Granted 31-Oct-13 16 GBMR GBMR 100% Granted 26-Aug-14 3 GBMR GBMR 100% Granted 27-Nov-14 111 GBMR GBMR 100% Granted 09-Apr-15 26 GBMR*3 GBMR 100% Granted 12-Apr-13 16
Mount Isa Region Mount Margaret (Project Status)
Mt Malakoff Ext EPM16398 Cotswold EPM16622 Dry Creek EPM18172 Dry Creek Ext EPM18174 Mt Marge EPM19834 Corella EPM25545 Tommy Creek EPM25544	GBMR2 /Isa Tenements GBMR 100% Granted 19-Oct-10 85 GBMR2 /Isa Tenements GBMR 100% Granted 30-Nov-12 16 GBMR2/Isa Tenements GBMR 100% Granted 13-Jul-12 189 GBMR2/Isa Tenements GBMR 100% Granted 25-Oct-11 23 GBMR/Isa Tenements GBMR 100% Granted 04-Mar-13 3 GBMR/Isa Tenements GBMR 100% Granted 20-Mar-15 59 GBMR/Isa Tenements GBMR 100% Granted 11-Nov-14 33
Brightlands
Brightlands EPM14416 Brightlands West Ext. EPM18672	GBMR*2/Isa Brightlands GBMR 100% Granted 5-Aug-05 127 GBMR/Isa Brightlands GBMR 100% Granted 16-Jun-16 16
Bungalien
Bungalien 2 EPM18207 The Brothers EPM25213	GBMR*2/Isa Tenements GBMR 100% Granted 24-May-12 120 GBMR/Isa Tenements GBMR 100% Granted 16-Oct-14 10
Mayfield
Mayfield EPM19483	GBMR*2,/Isa Tenements GBMR 100% Granted 11-Mar-14 172
Mt Coolon
Mt Coolon EPM15902 Mt Coolon North EPM25365 Mt Coolon East EPM25850 Conway EPM7259	GBMR/MCGM GBMR 100% Granted 13-Jun-08 325 GBMR/MCGM GBMR 100% Granted 18-Sep-14 146 GBMR/MCGM GBMR 100% Granted 07-Sep-15 260 GBMR/MCGM GBMR 100% Granted 18-May-90 39
Koala 1 ML 1029 Koala Camp ML 1085 Koala Plant ML 1086 Glen Eva ML 10227	GBMR/MCGM GBMR 100% Granted 30-May-74 0.7 GBMR/MCGM GBMR 100% Granted 27-Jan-94 0.0 GBMR/MCGM GBMR 100% Granted 27-Jan-94 1.0 GBMR/MCGM GBMR 100% Granted 05-Dec-96 1.3
TOTALS	2350

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. On all or part of the tenement area.

*[3] subject to 1% smelter royaly and other conditions to Rio Tinto; transfer documents with Department

Figure: GBM Tenement summary table as at 15[th] of October 2017.

CORPORATE

1. The Company spent a total of A$775,000 in the quarter, of which A$620,000 was for exploration and project development and A$155,000 for corporate administration costs. Cash at 30 September was A$1,262,000.

2. During the September quarter the Company received funds of $963,204 on the sale of 14,018,618 shares in Anchor Resources Limited (Anchor). As at the end of the quarter the Company held 17,610,618 shares in Anchor.

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

References:

JACK, R. L., 1898: Mount Morgan and Other Mines in the Crocodile Goldfield. Geological Survey of Queensland Publication 132, Brisbane.

LAWRENCE, L.J., 1974: The nature and origin of the ore minerals of Mount Morgan. In Southern & Central Queensland Conference 1974. Australasian Institute of Mining and Metallurgy, p417-424.

MORWOOD, D. A., 2003: Mineral occurrences – Mt Morgan 1:100,000 sheet area. Queensland Geological Record 2002/3, Queensland Government Natural Resources and Mines.

ULRICH, T. (et al), 2003: Different mineralization styles in a volcanic-hosted ore deposit: the fluid and isotopic signatures of the Mt Morgan Au-Cu deposit, Australia. Ore Geology Reviews, 22 1-2: 61-90.

Explanatory notes:

The information in this report that relates to Exploration Results, Exploration targets and Mineral Resources 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 respective announcements and all material assumptions and technical parameters underpinning the resource estimates with those announcements continue to apply and have not materially changed.

The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.

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

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

GBM Resources Limited

ABN

91 124 752 745

Quarter ended (“current quarter”)

30 September 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (incl. farm-in management fee) 1.9 Net cash from / (used in) operating activities	- (620) - - (71) (125) - 2 - - - 39	- (620) - - (71) (125) - 2 - - - 39
	(775)	(775)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets – bonds/deposits	- - - -	- - - -

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets – bonds/deposits 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Farm-in partner exploration contributions 2.6 Net cash from / (used in) investing activities	- - 963 10 - - 324	- - 963 10 - - 324
	1,297	1,297
3. Cash flows from financing activities 3.1 Proceeds from issues of shares and options 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - - - - - -
	-	-
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	740 (775) 1,297 - -	740 (775) 1,297 - -
	1,262	1,262

• See chapter 19 for defined terms 1 September 2016

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

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,156 106 - -	637 103 - -
	1,262	740
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 125 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		125
		-

Remuneration and fees paid to directors.

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000
	-
	-

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

N/a

8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

• See chapter 19 for defined terms 1 September 2016

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

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	200 - - 75 175 -
	450

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	none
10.2 Interests in mining tenements and petroleum tenements acquired or increased	none

Compliance statement

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

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

Sign here: Company secretary Print name: Kevin Hart

Date:23 October 2017

• See chapter 19 for defined terms

1 September 2016

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

Notes

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

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

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

4. See chapter 19 for defined terms 1 September 2016

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