GENESIS RESOURCES LIMITED — Interim / Quarterly Report 2015

Oct 29, 2015

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GENESIS RESOURCES LIMITED  Level 1  61 Spring Street  Melbourne  VIC 3000

T +61 3 9286 7500  F +61 3 9662 1472  www.genesisresourcesltd.com.au  ABN 22 114 787 469

Quarterly Activities Report – September 2015

HIGHLIGHTS

Plavica Au-Ag-Cu Project

• The extensional and infill drilling program continued at Plavica during the quarter ended 30 September 2015 ( Quarter ). A total of 19 core holes were drilled for a total of 5,035.3m. The highlight was a new 100m+ (uncut) zone of over 1% copper mineralisation to the east of the main Plavica body of mineralisation. This zone included 12m @ 5.97 % Cu from 100m down-hole.

• Assay results have now been received for the four holes which were drilled at Maricanski Rid during the previous Quarter. This prospect lies 800m south of the main Plavica Mineralisation. Results are very encouraging and included 24m @ 6.39 g/t Au from surface (0m).

EXPLORATION & DEVELOPMENT PROGRESS DURING THE QUARTER

REPUBLIC OF MACEDONIA

PLAVICA HIGH SULPHIDATION EPITHERMAL GOLD-COPPER-SILVER PROJECT (Figures 1 & 2)

Following the granting of the 30 year Exploitation Licence at Plavica, drilling has focussed in 2015 on extending and better understanding the previously known mineralisation. Nineteen holes were drilled during the Quarter for 5,035.3m of HQ drill core. Of these 19 holes (PNDD050 to PNDD069), results have been returned for all but the last five (PNDD065 to PNDD069). In addition, results have also been returned for the 10 holes drilled last Quarter. Six of these are from Plavica and four are from Maricanski Rid, some 800m to the south of Plavica. Collar locations are shown in Table 1 and Figure 2.

Results from the eastern part of Plavica were encouraging and included:

PNDD058: 34m @ 1.10 g/t Au from 133m PNDD062: 38m @ 0.99 g/t Au from 32m PNDD062: 49m @ 1.05 g/t Au from 106m

In addition, a copper-rich zone was intersected just to the east of the previously defined gold mineralisation over eastern Plavica. Intervals included:

PNDD046: 12m @ 5.97 % Cu, 0.42 g/t Au, 390 g/t Ag from 100m PNDD046: 14m @ 1.61 % Cu, 1.07 g/t Au, 140 g/t Ag from 124m PNDD046: 17m @ 1.37 % Cu, 0.50 g/t Au from 209m

The true thickness of this copper zone is yet to be defined and will be followed up with more drilling.

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

Page 1

A number of holes drilled over the Western part of Plavica were slightly disappointing with best results of:

PNDD049: 11m @ 0.88 % Cu, 0.43 g/t Au from 43m PNDD052: 16m @ 0.61 % Cu from 84m PNDD052: 13m @ 0.82 g/t Au, 0.51 % Cu from 170m

At Maricanski Rid, assays from four holes drilled in the June Quarter (MRDD006 to MRDD009) were returned and were very encouraging. The holes were drilled 100m apart along the silica cap, targeting the vuggy silica zones intersected in RC drilling in 2013. Highlights include:

MRDD006: 24m @ 6.39 g/t Au from 0m MRDD006: 69m @ 1.06 g/t Au from 28m MRDD008: 23m @ 2.22 g/t Au from 4m

Drill collar details are shown in Table 1 and their locations are shown in Figure 2. Composites from results received this Quarter are shown in Tables 2, 3 and 4. A section through Maricanski Rid is shown in Figure 3.

Drilling is ongoing at Plavica and Maricanski Rid. Genesis aims to complete a JORC compliant Resource in early 2016. Genesis then expects to complete a feasibility study before October 2017, and has agreed to commit up to US $7.5m for these activities.

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Figure 1 (above) Location of the Plavica Gold-Copper-Silver Project, Republic of Macedonia.

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

Page 2

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Figure 2 Location of Holes drilled or assays reported, QTR 3 2015, Plavica Gold-Copper-Silver Project. Gauss Kruger Co-ordinate System.

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

Page 3

Hole	Final Depth (m)	East_GK	North_GK	Dip	Azm	RL	Type
PNDD050	349.6	7597750	4656560	-60.00	360	1189.0	DD
PNDD051	163.2	7597613	4657003	-45.00	360	1236.0	DD
PNDD052	321	7596600	4656850	-60.00	360	1083.0	DD
PNDD053	209.1	7596550	4656950	-45.00	360	1100	DD
PNDD054	305.1	7596907	4657062	-45.00	360	1176.0	DD
PNDD055	272	7596802	4657113	-55.00	360	1182.0	DD
PNDD056	246	7597050	4657092	-55.00	360	1178	DD
PNDD057	175.3	7597350	4657090	-70.00	360	1190	DD
PNDD058	224	7597450	4657032	-50.00	360	1197	DD
PNDD059	396.1	7597553	4656470	-55.00	360	1159.0	DD
PNDD060	289.4	7597750	4656800	-60.00	360	1230	DD
PNDD061	215	7597702	4656858	-60.00	360	1221	DD
PNDD062	180.2	7597534	4657034	-50.00	360	1212	DD
PNDD063	191.1	7597150	4657145	-55.00	360	1178	DD
PNDD064	281.3	7596940	4656982	-45.00	360	1140	DD
PNDD065	391.4	7596850	4657000	-45.00	360	1147	DD
PNDD066	210.4	7596750	4657130	-50.00	360	1170	DD
PNDD067	227.2	7596850	4657115	-45.00	360	1187	DD
PNDD068	216.7	7596950	4657160	-50.00	360	1200	RC
PNDD069	171.2	7596950	4657160	-55.00	180	1200	DD

Table 1 Details of Holes drilled, QTR 3 2015, Plavica Gold-Copper-Silver Project. Gauss Kruger Co-ordinate System. NB Collars have not yet been surveyed.

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

Page 4

Hole_ID	From	To	Interval	**AU_ppm **	CU %	AG_ppm		Hole_ID	From	To	Interval	**AU_ppm **	CU %	AG_ppm
PNDD045	87	92	5	0.65	0.29	32.80		PNDD051	100	112	12	1.52	0.02	4.42
PNDD045	101	106	5	0.66	0.30	1.60		PNDD052	69	73	4	1.07	0.46	3.25
PNDD045	121	132	11	1.17	0.03	3.09		PNDD052	152	159	7	0.96	0.52	2.72
PNDD045	139	172	33	0.63	0.29	7.91		PNDD052	170	183	13	0.82	0.51	9.46
PNDD046	21	26	5	0.80	0.02	6.20		PNDD054	226	236	10	0.72	0.45	13.80
PNDD046	106	110	4	0.83	11.59	740.00		PNDD055	163	166	3	0.62	0.15	61.67
PNDD046	122	131	9	1.48	2.34	211.22		PNDD055	196	199	3	0.96	0.50	66.00
PNDD046	140	147	7	2.04	0.33	55.00		PNDD055	217	221	4	0.76	0.18	9.75
PNDD046	173	177	4	0.47	0.11	1.75		PNDD058	10	13	3	0.44	0.02	1.00
PNDD046	186	192	6	0.46	0.05	1.00		PNDD058	35	39	4	0.59	0.05	2.50
PNDD046	211	214	3	0.48	0.43	3.00		PNDD058	51	54	3	0.80	0.06	1.00
PNDD046	253	258	5	0.94	0.23	2.40		PNDD058	63	68	5	0.97	0.12	1.00
PNDD046	288	294	6	0.59	0.28	41.17		PNDD058	109	122	13	1.81	0.02	3.54
PNDD047	110	113	3	0.79	0.02	1.67		PNDD058	133	167	34	1.10	0.03	1.96
PNDD047	187	197	10	0.61	0.29	8.50		PNDD058	183	194	11	1.04	0.06	54.43
PNDD047	245	252	7	1.66	0.07	23.71		PNDD059	3	37	34	0.61	0.01	3.71
PNDD048	11	19	8	1.32	0.02	25.00		PNDD059	113	117	4	0.81	0.10	1.00
PNDD048	136	139	3	2.39	0.12	34.67		PNDD059	230	236	6	0.63	0.32	2.17
PNDD049	0	10	10	0.97	0.07	25.90		PNDD060	10	23	13	1.03	0.03	2.62
PNDD049	44	59	15	0.47	0.67	29.40		PNDD060	29	35	6	0.66	0.03	3.67
PNDD049	63	78	15	0.63	0.49	49.53		PNDD060	99	109	10	0.78	0.40	17.70
PNDD049	85	98	13	0.80	0.04	8.08		PNDD061	94	102	8	0.77	0.02	67.75
PNDD050	7	12	5	0.56	0.00	4.00		PNDD062	0	18	18	1.15	0.03	2.06
PNDD050	44	49	5	0.79	0.03	1.00		PNDD062	32	71	39	0.99	0.04	1.51
PNDD050	59	64	5	0.87	0.03	2.80		PNDD062	106	155	49	1.05	0.09	6.43
PNDD050	79	82	3	0.43	0.01	1.00		PNDD064	45	56	11	0.60	0.03	6.00
PNDD050	170	173	3	0.90	0.06	4.33		PNDD064	63	68	5	0.50	0.02	11.40
PNDD050	256	276	20	0.56	0.01	1.60		PNDD064	164	168	4	1.39	1.48	79.75
PNDD050	289	335	46	0.78	0.16	1.80		PNDD065	47	52	5	0.62	0.00	9.40
PNDD051	24	43	19	1.72	0.02	2.26		PNDD065	111	114	3	0.54	0.21	7.00

Table 2 (above): Significant Core Drilling Gold Results received, QTR 3 2015, Plavica Prospect Area. Compositing done with a 0.4 g/t Au cut-off, minimum 3m interval, maximum 3m internal waste. Core samples are all orientated standard HQ size core split in two using a core saw. Half the core was sampled at 1m intervals and the other half retained for reference purposes. All core was logged and photographed prior to sampling. Samples were sent to SGS Laboratories in Ankara, Turkey. Samples were assayed for gold by 30g Fire Assay and other elements by ICP. Standards, Blanks and Duplicates were also submitted for Laboratory Quality Assurance / Quality Control (QAQC). Intercept widths are not necessarily true widths.

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

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**Hole_ID **	**From **	**To **	**Interval **	**CU % **	**AU_ppm **	AG_ppm
PNDD045	140	149	9	0.57	1.06	7.89
PNDD045	167	172	5	0.34	0.56	11.20
PNDD046	88	96	8	1.09	0.21	28.88
PNDD046	100	112	12	5.97	0.42	390.33
PNDD046	124	138	14	1.61	1.07	140.57
PNDD046	209	226	17	1.37	0.50	6.59
PNDD046	236	240	4	0.96	0.36	1.00
PNDD046	247	251	4	0.45	0.19	4.00
PNDD046	274	279	5	0.48	0.32	7.20
PNDD047	68	77	9	0.49	0.07	5.78
PNDD047	186	190	4	0.82	0.36	7.00
PNDD048	61	64	3	0.39	0.02	5.33
PNDD048	92	95	3	0.42	0.02	8.00
PNDD048	150	155	5	0.35	0.12	4.60
PNDD049	33	40	7	0.32	0.18	3.57
PNDD049	43	54	11	0.88	0.43	35.64
PNDD049	62	78	16	0.50	0.62	49.25
PNDD049	179	182	3	0.60	0.52	50.67
PNDD050	191	197	6	0.39	0.22	7.17
PNDD050	320	324	4	0.80	0.65	2.50
PNDD050	333	336	3	0.43	0.29	3.00
PNDD050	345	348	3	0.44	0.20	1.00
PNDD052	64	67	3	0.36	0.05	1.00
PNDD052	69	74	5	0.44	0.87	2.80
PNDD052	84	100	16	0.61	0.09	1.00
PNDD052	104	119	15	0.43	0.17	1.87
PNDD052	150	159	9	0.53	0.79	4.00
PNDD052	170	179	9	0.67	1.02	4.11
PNDD052	196	205	9	0.38	0.27	10.00
PNDD053	121	126	5	0.52	0.29	19.60
PNDD054	221	229	8	0.72	0.46	13.13
PNDD056	175	178	3	0.53	0.02	2.33
PNDD059	183	188	5	0.31	0.24	1.00
PNDD059	211	216	5	0.31	0.08	1.00
PNDD059	231	235	4	0.45	0.49	2.75
PNDD060	98	109	11	0.41	0.73	16.18
PNDD060	166	185	19	0.64	0.17	16.79
PNDD061	159	163	4	0.64	0.27	33.25
PNDD061	175	187	12	0.59	0.14	6.58
PNDD064	163	168	5	1.65	1.13	77.20
PNDD064	181	185	4	0.58	0.09	1.25
PNDD065	120	123	3	0.98	0.40	9.00
PNDD065	187	194	7	0.63	0.20	8.29

Table 3 (above): Significant Core Drilling Copper Results received, QTR 3 2015, Plavica Prospect Area. Compositing done with a 0.3 % Cu cut-off, minimum 3m interval, maximum 3m internal waste. Intercept widths are not necessarily true widths.

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

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Prospect	Hole_ID	From	To	**Interval **	**AU_ppm **	**CU % **	AG_ppm
Maricanski Rid	MRDD006	0	24	24	6.39	0.01	13.96
Maricanski Rid	MRDD006	28	97	69	1.06	0.00	4.58
Maricanski Rid	MRDD006	102	107	5	0.61	0.00	1.20
Maricanski Rid	MRDD006	137	149	12	0.62	0.00	2.83
Maricanski Rid	MRDD006	161	172	11	0.44	0.00	3.55
Maricanski Rid	MRDD007	4	38	34	1.15	0.01	3.88
Maricanski Rid	MRDD007	70	74	4	0.45	0.01	4.50
Maricanski Rid	MRDD007	161	166	5	0.52	0.29	2.60
Maricanski Rid	MRDD007	175	180	5	0.66	0.17	1.40
Maricanski Rid	MRDD008	4	27	23	2.22	0.01	4.22
Maricanski Rid	MRDD008	55	59	4	0.42	0.02	2.00
Maricanski Rid	MRDD008	67	106	39	0.60	0.02	1.67
Maricanski Rid	MRDD008	110	113	3	0.44	0.05	1.00
Maricanski Rid	MRDD009	25	62	37	0.64	0.01	2.38
Maricanski Rid	MRDD009	123	140	17	0.95	0.01	6.59
Maricanski Rid	MRDD009	197	201	4	0.81	0.02	1.50
Maricanski Rid	MRDD009	235	242	7	0.78	0.00	6.14

Table 4 (above): Significant Core Drilling Gold Results received, QTR 3 2015, Maricanski Rid Prospect Area. Compositing done with a 0.4 g/t Au cut-off, minimum 3m interval, maximum 3m internal waste. Core samples are all orientated standard HQ size core split in two using a core saw. Half the core was sampled at 1m intervals and the other half retained for reference purposes. All core was logged and photographed prior to sampling. Samples were sent to SGS Laboratories in Ankara, Turkey. Samples were assayed for gold by 30g Fire Assay and other elements by ICP. Standards, Blanks and Duplicates were also submitted for Laboratory Quality Assurance / Quality Control (QAQC). Intercept widths are not necessarily true widths.

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Figure 4 Maricanski Rid Section 7597490E Gauss Kruger, looking East. Section shows MRDD006 plus previous Genesis RC holes PNRC068 and PNRC069 and previous Rio Tinto hole PLV004 .

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

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Figure 3 Location of Australian Projects.

AUSTRALIA

ARLTUNGA PROJECT: Copper, Gold, (GES 100%)

The Arltunga Gold Project consists of Exploration Licence EL25238 covering 95.2 sq km, is located approximately 110 km northeast of Alice Springs (Figure 3) in the vicinity of the Arltunga Goldfield. Thirty three historical gold mines and prospects are known in the licence area.

The Licence Renewal was approved on 6 February 2015 for a term of 2 years and will expire on 7 November 2016. All 31 sub-blocks were retained.

A full review of all available data is currently underway, with the aim of defining targets for Reverse Circulation drilling in Q1 2016.

No field work was carried out during the current Quarter.

ALICE SPRINGS PROJECT: Copper, Gold, Iron (GES 100%)

The Alice Springs Project consists of Exploration Licence EL24817 covering 372.59 sq km, is located approximately 110155 km northeast from Alice Springs in the Northern Territory (Figure 3) .

A Licence Renewal Application was lodged on 1 April 2014. It was approved on 13 October 2014 for a further term of 2 years and will expire on 17 April 2016. All 118 sub-blocks were retained.

No field work was carried out. In addition a full review of all available data is underway to define targets for RC drill testing during Q1 2016.

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

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GLADSTONE-MOUNT MILLER PROJECT: Manganese (GES 100%)

The Gladstone-Mount Miller Project consists of Exploration Licence (EPM15771) covering 63.93 sq km and Mining Lease Application (MLA80166) covering 32.24 Ha and is located approximately 15 km by road from the port of Gladstone on the east coast of central Queensland (Figure 3) .

The largest mine on the tenements controlled by Genesis was at Mount Miller. The mine opened in 1895 and operated intermittently until 1916 and then from 1958 to 1960. A total of 21,785 tonnes of ore was mined with a grade which ranged from 71% to 75% MnO2.

The Licence Renewal was approved on 7 May 2013 for a term of 5 years and will expire on 18 June 2017. All 21 subblocks were retained.

The 8[th] Annual Technical Report was lodged on 15 July 2015.

No field work was carried out. A review of all available data is underway to confirm if more drilling is necessary at the Mt Miller mine and if other prospect areas on the tenement require drill testing during Q2 2016.

PIONEER PROJECT: Gold (GES 100%)

The Pioneer Project consists of one granted Exploration Permit Mineral (EPM15619) covering 6.23 sq km approximately 70 km by road from Bundaberg via the Bruce Highway in Queensland (Figure 3) .

The project lies within the Gaeta Goldfield and has undergone previous exploration for gold, uranium and base metals, with numerous historical gold workings located throughout the area. Historical mining was primarily focused on the Pioneer Reef which was the largest producer, but mining activities also included several other reefs including Gympie, Lord Nelson, West Yorkshire and Happy Jack.

A Licence Renewal Application was lodged on 14 April 2014 requesting another two year period. The Application for renewal was approved on 15 May 2014 and the licence now expires on 2 August 2016.

As per the conditions of the exploration permit Genesis were required to relinquish 2 sub blocks from EPM 15619. Pursuant to section 793 of the Mineral Resources Act 1989 (MRA ), the relinquishment was accepted by the Department of Natural Resources and Mines Queensland on 22 August 2013. The tenement area has been reduced from 12.67 sq km to 6.23 sq km.

The 9[th] Annual Technical Report was lodged on 3 August 2015.

No field work was carried out. A review of all available data is underway to compile all geological mapping and define targets for drill testing during Q2 2016.

McARTHUR RIVER PROJECT: Manganese (GES 100%)

The McArthur River project consists of Exploration Licence EL24814 covering 380.88 sq km and is located approximately 850 km south east of Darwin in the Northern Territory and 450 km north-west of Mount Isa in Queensland (Figure 3) .

The project area contains the Masterton No2 manganese occurrence.

The Licence Renewal was approved on 13 October 2014 for a term of 2 years and will expire on 17 April 2016. All 116 sub-blocks were retained.

No field work was carried out. A full review of all data available is underway to guide further exploration on the tenement.

LAURA RIVER Au-Pt PROJECT: (EMP15242) (GES:100%)

The Laura River project consists of Exploration Licence EPM15242 covering 165.35 sq km is centered on the Cape York Peninsular township of Laura, 210km north-west of Cairns and 88km west of Cooktown in North Queensland (Figure 3) . The area is prospective for gold. Several historical alluvial workings are found in the vicinity of the Laura River and tributaries.

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

Page 9

The Licence Renewal was approved on 11 March 2015 for a term of 2 years and will expire on 23 August 2016. All 50 sub-blocks were retained.

The 8[th] Annual Technical Report was lodged on the 24 August 2015.

No field work was carried out.

FENN GAP Mn-Fe PROJECT: (EMP24839) (GES:100%)

The Fenn Gap project consists of one Exploration Licence EL24839 which covers a total area of 26.93 sq km, is located approximately 25 km south west of Alice Springs in the Northern Territory (Figure 3) . The project is 25 km from major infrastructure such as the Stuart Highway and Alice to Adelaide Railway.

A Licence Renewal Application requesting another two year period was approved on 23 December 2014. The new expiry date is 5 May 2016.

Genesis was issued with a Partial Cancellation Notice (Loss of Block Penalty) for Fenn Gap on 23 June 2014, requesting the relinquishment of 13 sub blocks. EL24839 now comprises of 14 sub blocks covering 26.93 sq km.

A Mining Management Plan Update was lodged on 7 September 2015. This was approved on 16 September 2015.

No field work was carried out. A full review of existing data has been completed. A further, more detailed review of drilling data is underway to determine if drilling has adequately tested the known manganese mineralisation.

TENEMENTS AS AT 30 SEPTEMBER 2015

PROJECT TENEMENT NUMBER COMMODITY	PROJECT TENEMENT NUMBER COMMODITY	COMPANY’S BENEFICIAL INTEREST CURRENT AREA (KM2) CURRENT HOLDER COUNTRY/ STATE
	EL24817 Copper-Iron- Gold	100% 372.59 Genesis NT
Alice Springs
Arltunga	EL25238 Gold-PGE	100% 95.2 Genesis NT
	EL24839 Iron-Manganese	100% 26.93 Genesis NT
Fenn Gap
Laura River	EMP15242 Gold-PGE	100% 165.35 Genesis QLD
Pioneer	EPM15619 Gold EL24814 Manganese- Base Metals EPM15771 Manganese	100% 6.23 Genesis QLD
McArthur River		100% 380.88 Genesis NT
Gladstone		100% 63.93 Genesis QLD
Mt Miller	MLA80166 Manganese	100% 32.24 Ha Genesis QLD
Plavica & Crn Vrv	19-6648/1 Gold-Silver- Copper
		62% 16.85 Silgen Resources Macedonia

All tenements noted above are Exploration Licences except Plavica in Macedonia which is an Exploitation Licence.

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

Page 10

CORPORATE UPDATES

Events during the Quarter

Board changes

As announced to the market on 28 September 2015, following a strategic review of the organisational structure of Genesis, a number of changes were made to Genesis’ Board and management structure as follows:

• Mr Eddie Pang stepped down from his role as Chairman of the Board, in order to assume an executive role as Managing Director of Genesis;

• Mr Kin Po Yu was appointed as Chairman of the Board; and

• Mr Zilong Dai, who was appointed Non-Executive Director of Genesis on 26 June 2015, assumed the role of Executive Director and Chief Executive Officer.

Events subsequent

On 9 October 2015, Mr Zilong Dai resigned as Director and Chief Executive Officer of the Company.

Securities on issue as at 30 September 2015:

CLASS OF SECURITIES	NO. OF SECURITIES ON ISSUE
Fully paid ordinary shares	300,743,205

Board and Management as at 30 September 2015

Mr Eddie Pang Managing Director Mr Deric Wee Non-Executive Director Mr John Zee Non-Executive Director Mr Kinpo Yu Non-Executive Chairman Mr Zilong Dai Executive Director Ms Sophie Karzis Company Secretary Ms Patricia Wong Chief Financial Officer Mr James Patterson* Exploration Manager

*as noted above, subsequent to 30 September 2015, Mr Dai resigned as Director of the Company effective 9 October 2015.

COMPETENT PERSON

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by James Patterson, a Competent Person who is a Member of the Australian Institute of Geoscientists. James Patterson is a full-time employee of Genesis. James Patterson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’. James Patterson consents to the inclusion in the report of the matters based on his information in the form and context of which it appears.

-ENDS

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

Page 11

About Genesis Resources Limited

Genesis Resources Limited is an Australian company with a portfolio of quality gold, iron, manganese, uranium and base metal (copper-zinc-silver) in the highly prospective Proterozoic and Phanerozoic metallogenic provinces of northern and central Australia.

Genesis has signed a Joint Venture over an advanced copper-gold project (Plavica) within the Former Yugoslav Republic of Macedonia. The Plavica Project lies within Carpathian Volcanic Arc, a major epithermal province running through Eastern Europe, which is highly prospective for gold, copper and silver mineralisation.

Genesis’ projects are close to established infrastructure including railways, shipping ports, highways, power stations and populated areas.

The Company’s objective is to provide rapid capital growth through mineral discoveries and development of economic deposits in Australia and overseas.

For more information please visit the Company’s website at: www.genesisresourcesltd.com.au

Genesis Resources Limited | Quarterly Activities Report | July 2015 – September 2015

Page 12

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, 01/05/2013

Name of entity

Name of entity
GENESIS RESOURCES LIMITED
ABN 22 114 787 469	Quarter ended (“current quarter”)
22 114 787 469	30 September 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 & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	(924) - - (498) - - 2 (4) -	(924) - - (498) - - 2 (4) -
	(1,424)	(1,424)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets (d) other non current assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets (d) other non current assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carriedforward)	- (5) (7) - - - - - - - -	- (5) (7) - - - - - - - -
	(12)	(12)
	(1,436)	(1,436)

• See chapter 19 for defined terms.

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

1.13 Total operating and investing cash flows (broughtforward)	(1,436)	(1,436)
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 Unallocated shares application fund 1.20 Transaction costs Net financing cash flows	- - - (442) - - -	- - - (442) - - -
	(442)	(442)
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	(1,878) 2,035 (22)	(1,878) 2,035 (22)
	135	135

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

1.23 1.24	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
			-
			-
1.25 Explanation necessaryforanunderstanding ofthe transactions None Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets andliabilities but didnotinvolve cash flows None 2.2 Details of outlays made by other entities to establish or increase their share in projects in whichthereporting entityhas an interest None		Explanation necessaryforanunderstanding ofthe transactions
		None
	None
	Details of outlays made by other entities to establish or increase their share in projects in whichthereporting entityhas an interest
	None

• See chapter 19 for defined terms.

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Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available	Amount used
		$A’000	$A’000
3.1	Loan facilities (refer to (i) and (iii) below)	7,000	2,600
3.2	Credit standby arrangements
		-	-

• (i) In September 2013, the Company entered into a loan agreement with an unrelated Malaysian based financing company pursuant to which the financing company made available a loan facility to the Company, with a $3 million facility limit ( First Loan Facility ). In April 2014, the parties reached an agreement to increase the First Loan Facility limit from $3 million to $7 million on the same terms and conditions provided for in the existing loan agreement. Total funds of $4.4 million remain available for draw down by Genesis under the First Loan Facility.

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	791
	-
	-
	318
Total	1,109

(ii) Whilst the Company expects that its estimated cash flows will exceed its cash currently at hand, the Company has access to the loan facilities as detailed above.

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 therelateditemsinthe accountsis asfollows.	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 (Term deposit – bank guarantee)	135	2,035
	-	-
	-	-
	98	98
Total: cash at end ofquarter(item 1.22)	233	2,133

• See chapter 19 for defined terms.

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

Changes in interests in mining tenements and petroleum tenements

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

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.

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 (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	-	-	-	-
	-	-	-	-
7.3 +Ordinary securities	300,743,205	300,743,205	Fully paid	Fully paid

• See chapter 19 for defined terms.

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Mining exploration entity and oil and gas exploration entity quarterly report

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	-	-	-	-
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-	-	-
	-	-	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	-	-	-	-
	-	-	-	-
	-	-	-	-
	-	-	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes(totals only)	-	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas 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.

Eddie Pang Executive Chairman

30 October 2015

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 and petroleum 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 or petroleum 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 Financial Reporting 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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