HAWSONS IRON LTD — Interim / Quarterly Report 2013

Oct 16, 2012

ASX ANNOUNCEMENT

Quarterly Report

ABN: 63 095 117 981 | ASX: CAP

We find it. We prove it. We make it possible.

For the Quarter ended 30[th] September 2012

17 October 2012

ABOUT CARPENTARIA:

Carpentaria is an exploration company focused on discovering and developing base, precious metals and bulk commodities in eastern Australia. The company currently has interests in iron ore, tungsten, tin, gold, copper and nickel exploration projects.

CARPENTARIA’S AIM:

With a strong geoscientific team discover and build a strong cash flow generating mining operation.

Highlights

• HAWSONS IRON PROJECT:

• First step of Mining Lease approval taken with the lodgement of the Preliminary Environmental Assessment.

• Preliminary metallurgical test work results confirm low power requirements.

• Strategies identified with potential to reduce water usage and reduce costs.

• Revised resource estimate for YANCO GLEN TUNGSTEN deposit underway following ore grade intersections last quarter.

DISCOVERIES TO DATE:

Hawsons Iron Project - NSW Euriowie Tin Project - NSW

CAPITAL STRUCTURE: Ordinary Shares 105,991,301

• Encouraging DTR results received for TORROWANGEE IRON drilling.

PLANNED EXPLORATION: Drilling is due to commence on the Braemar JV to test the potential of the Braemar Iron Formation for additional magnetite iron resources.

MAJOR SHAREHOLDERS:

Conglin In’t Invest’ Group 9.89%

Mr. Conglin Yue 3.46%

Project Locations

Silvergate Capital 17.79%

Management, Including Unlisted Options 13.31%

FINANCIAL Cash and deposits on hand as at 16/10/12 A$5,862,470

Guildford Coal Shares value $0.48 as at 16/10/12 $1,048,584

Level 6, 345 Ann Street, Brisbane Queensland 4000 PO Box 10919 Adelaide Street, Brisbane Queensland 4000 e-mail: info@capex.net.au

For further information contact: Nick Sheard Executive Chairman Phone: +61 7 3220 2022

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ASX ANNOUNCEMENT

PLANNED DECEMBER QUARTER EXPLORATION ACTIVITIES

Hawsons Iron Project

The Hawsons Iron project will achieve State Significant Development status when the NSW Department of Planning and Infrastructure completes the review the Preliminary Environmental Assessment lodged in August 2012 and provides the Director General’s Requirements (DGR’s) for an Environmental Impact Statement (EIS). A Planning Focus meeting will be held in Broken Hill in mid-October to finalise the DGR’s, which will then be issued so that the EIS can commence. It is anticipated that the DGR’s will be issued in the December Quarter.

Small scale pilot closed circuit grinding and magnetic separation test work on 6 tonnes of crushed drill core will continue. The results of this test work will be used to finalise the process flowsheet leading into the Bankable Feasibility Study (BFS) and full scale pilot plant test work.

Additional test work is scheduled to determine the suitability of high density paste thickening. Paste thickening has the capacity to reduce water consumption and earth works by reducing the size of the tailings dam for example. If successful this would reduce both capital and operating costs.

The project team has identified the potential to more efficiently remove the overburden at the project and this will be investigated this quarter in preparation for the Bankable Feasibility Study. If successful it is likely there will be improvement to the project economics.

Braemar JV

A 600m RC drilling program will be completed in the December Quarter to test the magnetite bearing Braemar Iron Formation in the EL.

Broken Hill Tin/Tungsten/Base Metals Project

An updated resource estimate based on recent and historical drilling at Yanco Glen will be completed. A channel sampling and mapping program will be conducted over prospective tin bearing pegmatites in the Kantappa EL.

Torrowangee

Evaluation of the project potential will be undertaken given the encouraging DTR results from recent drilling.

Barellan

Mapping, geochemical surveying and possibly a gradient array induced polarisation (geophysics) survey will be conducted to assist drill targeting on the gold rich stockwork zone previously observed and sampled at surface.

Tooloom

Evaluation of existing data will continue while awaiting grant.

Temora Gold/Copper Project

An approval from NSW Department of Lands to commence drilling is still awaited.

Mt Agate

Further evaluation of the granite breccia systems and the associated rare earth occurrences will be conducted.

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ASX ANNOUNCEMENT

EXPLORATION UPDATE

Hawsons Iron Project JV

The Hawsons Iron Project is located 60km SW of Broken Hill (Figure 1) and includes an Inferred magnetite Resource of 1.4Bt at a Davis Tube Recovery (DTR) of 15.5% (12% cut off) for 220 million tonnes of high grade (69.9% Fe) iron concentrate and an exploration target[1] of 6-11Bt at 14-17% DTR . The results of a pre-feasibility study (PFS) were updated following a mining optimisation study and were released to the ASX on 21[st] November 2011. The study estimated an NPV9% of $3.2 billion on a base case of 20 million tonnes per annum (mtpa) concentrate.

The project is well located with existing power, water, rail and port infrastructure available for a 5- 10Mtpa start –up operation.

Infrastructure

Carpentaria has initiated discussions with TransGrid, the power supply authority in NSW, to determine the requirements for connecting the proposed mining operation to the NSW power grid. The Transgrid owned power line is a major piece of infrastructure capable of providing Hawsons with the power it needs, and is located 30km from the Hawsons Project site. Transgrid has confirmed that sufficient power can be supplied to the site (subject to detailed study). Carpentaria anticipates that this will provide power at very competitive capital and operating costs and results of discussions have been consistent with estimates made in the Prefeasibility Study. These discussions will provide a firmer basis for cost estimates and also start a long lead delivery process.

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Figure 1. Location of the Hawsons Project and Braemar Project (EL 4395 and 3998)

Processing Optimisation

Small scale pilot testing of 6 tonnes of crushed drill core samples from the initial drilling campaign was started this Quarter to support the proposed process flow design. The work includes impact crushing, grinding using ball mills and concentration via magnetic separators.

Initial indications confirm again that the Hawsons ore is extremely soft and comminution of the ore can be achieved with low power consumption. The results of the early phase of this test work produced similar results to those previously returned by the CSIRO and highlights that the innovative use of conventional crushing and grinding equipment has the potential to reduce comminution costs significantly compared to the PFS base case.

Other test work will investigate the potential for reducing water consumption and will determine the suitability of high density paste thickening. Paste thickening has the capacity to reduce water consumption and earth works by reducing the size of the tailings dam for example. If successful this would reduce both capital and operating costs.

1 The term "Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve

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ASX ANNOUNCEMENT

Approvals

The New South Wales environmental approval process for mining was commenced in August with the submission of a request for Director General’s Requirements (DGRs) for State Significant Developments. A Development Application and a Preliminary Environmental Assessment (PEA) was lodged for this purpose. The lodgement of these documents with the NSW Government is an important step as the PEA begins the official environmental approval process and from the PEA, the NSW government will issue guidelines for the Environmental Impact Statement (EIS).

A Planning Focus Meeting (PFM) is scheduled for mid-October 2012 and this meeting will include attendees from the various NSW government stake holders to ensure that the EIS addresses the relevant community and environmental issues. Carpentaria understands that the completion of the EIS is the longest lead approval required for the granting of a Mining Lease, anticipated to be approximately 18 months.

Joint Venture

On 3[rd] May 2012 Carpentaria’s partner Bonython Metals Group (BMG) was placed into liquidation by the Federal Court.

Under the joint venture agreement (JVA) terms, for BMG to continue in the JV and move to a 51% interest, BMG must have, before close of business on 15[th] May 2012, contributed $25m cash to Carpentaria and committed to a bankable feasibility study. This did not occur and thus BMG has elected not to continue with the JV and its percentage share will remain at 40%.

Notwithstanding the liquidation, under the terms of the JV, the election not to continue by BMG (in Liquidation) has meant that many rights revert to Carpentaria which places Carpentaria in a strong position. Included in these rights is that of first refusal over the assignment of BMG’s interest. In addition if Carpentaria is approached by a third party with a bona fide offer to acquire all of BMG’s percentage share then BMG must sell its percentage share in the JV to that party for consideration at least equal to the amount of the total cash contributions made by BMG to the Hawsons Project at that time, totaling $13m.

During this quarter the Liquidator has advertised BMG’s 40% share. Carpentaria will have the first right of refusal on any offer.

Braemar JV (CAP earning in)

EL 3998

EL3998 is located along the highly prospective Braemar Iron Formation which hosts Carpentaria’s flagship $3.2 billion Hawsons Iron Project in NSW (Figure 1). The Braemar JV tenement covers over 20 line kms of highly magnetic Braemar Iron Formation and is contiguous to Carpentaria’s South Dam JV EL4395 (Figure 2).

Exploration commenced on the Braemar licence last quarter with a 174 line km ground magnetic survey over the interpreted most prospective areas Areas B and D. The interpretation of the ground magnetic data confirmed the potential for large bodies of

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Figure 2. Magnetic image showing the Braemar Iron Formation as green and red and CAP’s tenements and prospective areas for drilling

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ASX ANNOUNCEMENT

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Figure 3. Magnetic model over anomaly D, red indicating high magnetic susceptibilities interpreted to equate to in situ magnetite and drill holes to be drilled next quarter

magnetite mineralisation within the tenement with the modelled target zone in Area D alone interpreted to be over 1400m long and up to 160m thick with maximum magnetic susceptibilities up to 0.20SI. At Hawsons, regression analyses on magnetic susceptibility measurements of RC drill samples showed magnetic susceptibilities of 0.12 SI equate to a DTR grade of 12-14% (Figure 3).

Following 3D modelling and interpretation of ground magnetic data, a 600m drilling program has been designed over the most prospective

zones, Areas B and D, to test potential grade and depth of large bodies of potential magnetite mineralisation concealed by cover.

The Exploration Work Approval for drilling was approved by the South Australian Government this Quarter. A drilling contractor has been secured following a tender process and drilling will commence mid-October.

The tenement is close to key existing transport infrastructure, being 45km south-west of the national rail line and highway, 150km east of Port Pirie and 200km north-east of Port Adelaide (Figure 1). Importantly both the South Dam and Braemar licences are over perpetual lease hold land titles that have extinguished Native Title.

Carpentaria can earn 60% of the JV if it defines 200Mt of magnetite resource within three years and has an opportunity to achieve 100% interest through additional work.

Broken Hill Tin and Tungsten/Base Metal Project (100% CAP) ELs 7475, 6936, 7829, 7921, 7957

Carpentaria’s strategic objective in this region is to establish a cluster of tin and/or tungsten deposits with coarse grained surface mineralisation close to Broken Hill that can be easily mined by low cost methods and processed with a single, centrally located plant. The acquisition of strategic EL’s prospective for tin and tungsten has been maintained culminating in the Corona EL 7957 being granted this quarter. This has resulted in a quality large land holding that could have the potential to deliver economic mining opportunity (Figure 4).

During the previous quarter a 21 hole, 2320 m reverse circulation (RC) drilling program at the Yanco Glen tungsten prospect (EL 7829) (Figure 4) was completed, designed to increase confidence in and extend the existing resource (Figure 5).

This quarter detailed interpretation and analysis of the new drilling and completion of quality control on the existing historical database was completed. Independent geological consultants H&S, (formally Hellman and Schofield) is using this work to update the existing inferred tungsten resource. This JORC compliant resource is expected early next Quarter.

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Figure 4. Location of Broken Hill Tin Tungsten Project EL’s

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ASX ANNOUNCEMENT

Elsewhere in the project, initial grab samples from the historic Kantappa Tin Mine area returned values of 1% - 4% Tin (Sn) (Figure 6). The area includes several un-tested pegmatite bodies with potential for high grade, near surface tin deposits.

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Figure 5. Yanco Glen results from resource drilling

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Figure 6. Location of tin samples on Kantappa EL Assay method – ALS code XRF-15B (fused Lithium Borate Button)

McDougalls/Torrowangee - (100% CAP) – Iron Ore Project ELs 7655, 7656, 7657, 7741, 7823

The Torrowangee licence covers similar Neo-Proterozoic sediments to the rest of the McDougalls project that correlate to the strata hosting the Hawsons Magnetite Project. A high amplitude magnetic anomaly and historic drill hole PD81YA2 indicated potential for magnetite mineralisation in this EL (Figure 7).

During the previous quarter a RC drill hole (RC12TW001) was drilled adjacent to PD81YA2. This hole was abandoned at 39m due to excessive water. However, highly magnetic quartz magnetite gneiss was intersected from 32m to the bottom of hole. The DTR results for drill hole RC12TW001 for four two metre composite samples (31m - 39m) gave concentrate results with an average of 30% Davis Tube Recovery (DTR), 70% Fe, <1% SiO2 and low Al, P and S for all grind sizes 106, 75, 53 and 38 microns.

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Figure 7. Torrowangee location plan over simplified geology

These results are being assessed together with the magnetic data to establish the economic potential of the EL. However the results show that a very valuable concentrate can be produced from the material and mass recoveries are similar to other hard banded iron formations found in other parts of Australia. It is noted that this rock type is very different from the targeted “softer” and “younger” rocks at the Hawsons Iron Project.

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ASX ANNOUNCEMENT

Barellan (100% CAP)

EL 7896

As noted last Quarter Carpentaria has confirmed the presence of an iron stained, hairline quartz stock work zone that contains high gold grades with a maximum rock chip value of 5.6 ppm gold and associated arsenic and antimony anomalism (0.2%As and 0.7% Sb, Figure 8). This material is located in an area where, in the 1980s, Aberfoyle generated a surface trench rock traverse result of 60m at 1.5g/t Au (incl. 10m at 4.5 g/t Au) within a plus 50ppb weathered bedrock anomaly measuring 400m x 100m (Figure 8).

Only limited work has been undertaken this Quarter which included planning the next campaign of mapping, geochemical sampling and possibly undertaking an induced polarisation survey (IP). The geophysics, when combined with the mapping will be used to define drill targets coincident with high polarisation that could represent gold associated with sulphide. Access for drilling is restricted to the period after wheat harvesting in December.

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Figure 8. Barellan licence over regional aeromagnetic image

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The licence is located 240km North West of Canberra in the western Lachlan fold belt and was secured based on known surface gold occurrences on open ground. The main mineralised occurrence is hosted by stock work quartz veining in an interpreted granite roof zone. This highly prospective geological setting is similar to that of the major tin occurrences at Ardlethan 20km to the east (Figure 9).

Figure 9. Barellan location plan

Tooloom (100% CAP)

ELA 4683

During this quarter a replacement ELA with different dimensions has been lodged covering the existing ELA and extended to include other mineral occurrences that have become available since the initial application. The application is located in northern New South Wales 60km north east of Tenterfield (Figure 10). The application is located within the southern New England Fold Belt (NEFB) and covers over 130 mineral occurrences, of which nearly 100 are gold. The tenement is awaiting grant.

The NEFB is host to porphyry Cu-Mo, Cu skarn and Cu-Au breccia pipe mineralisation associated with Permo-Triassic age intrusions. The most significant mineralisation in the area is the active Mt Rawdon breccia hosted gold mine that has produced 1Moz of gold from a resource base of approximately 2Moz.

The major focus of exploration will be discovery of Permo-Triassic intrusion related zones of stock-work and/or breccia hosted gold mineralisation or bulk alteration zone gold-silver-base metal

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Figure 10. New Application location plan

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ASX ANNOUNCEMENT

mineralisation. A number of magnetic anomalies interpreted as possible Permo-Triassic intrusions have been identified in the licence. Carpentaria will continue to review historical data while the grant of the licence is pending.

Temora Project (100% CAP) – Gold – Copper

ELs 6901, 7256, 7375 & 7680

This 940 km[2 ] project is located within the Lachlan Fold Belt approximately 80km north of Wagga Wagga.

Delays granting access to drill on crown land via agreement with the NSW Department of Lands continues to frustrate Carpentaria’s plans at the highly prospective Mother Shipton gold prospect. Upon receipt of approvals, detailed work will commence with drill testing of porphyry or related Au-Cu mineralisation beneath an historic gold field and anomalous weathered bedrock geochemistry defined by previous explorers.

Mount Agate EPM 14955 – Copper, Gold (ActivEX Ltd earning 75%)

The Mt Agate tenement south of Cloncurry was farmed out to ActivEX Ltd in April 2010. Exploration is targeting iron oxide copper and gold (IOCG) deposits similar to the Ernest Henry deposit. During the previous quarter ActivEX completed a 7 hole, 1231m RC drilling program targeting coincident geochemical, geophysical and geological features considered prospective for iron oxide copper gold mineralisation at the Sterling Prospect (Figure 11). ActivEX has reported: that all holes intersected varying hematite altered and brecciated granite and small mineralised intervals of chalcopyrite, molybdenite and rare earth elements (REO) were identified in all drill holes with pyrite and hematite.

Intersections of:

• AST002; 23 metres @ 97ppm Mo, 648ppm TREO (total REO)

• AST003; 5 metres @ 0.34% Cu, 0.12g/t Au, 382ppm Mo and 1118ppm TREO

More work is planned to further evaluate these granite breccia systems and the associated REO occurrences.

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Figure 11. Sterling Prospect - Drill hole collars on geophysical conductivity image (courtesy of ActivEX)

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ASX ANNOUNCEMENT

Koonenberry (100% CAP) – Nickel/PGE

ELs 7735, 7736, 7737, 7738, 7739 & 7740

The Koonenberry Nickel/PGE Project consists of six exploration licences for 1,800km[2] and is located 160km north of Broken Hill. The ELs cover a 180km belt of Neoproterozoic to Cambrian geology prospective for the occurrence Ni-Cu mineralised ultramafic rocks (Figure 12).

Rehabilitation of all previous work was completed this Quarter.

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Nick Sheard

Executive Chairman

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Figure 12. Koonenberry location plan inset over TMI airborne magnetics

We find it. We prove it. We make it possible.

The information in this announcement that relates to Exploration Results and Resources is based on information compiled by S.N.Sheard, who is a Fellow of the Australian Institute of Geoscientists and has had 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'. S.N.Sheard is an employee of Carpentaria and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Appendix 5B Mining exploration entity quarterly report

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Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001 ,01/06/2010.

Name of entity

Carpentaria Exploration Limited

ACN or ABN

63 095 117 981

Quarter ended (“current quarter”) 30-Sep-12

Consolidated statement of cash flows

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13	Cash flows related to operating activities Receipts from product sales and related debtors	Current quarter $A’000	Year to date (3 months) $A’000
		-	-
	Payments for
	(a) exploration and evaluation (b) development (c) production (d) administration	(890)	(890)
		-	-
		-	-
		(445)	(445)
	Dividends received	-	-
	Interest and other items of a similar nature received	80	80
	Interest and other costs of finance paid	(4)	(4)
	Income taxes received	653	653
	Other (provide detail if material)	-	-
	Net Operating Cash Flows	(606)	(606)
	Cash flows related to investing activities Payment for purchases of:
	(a)prospects (b)equity investments (c) other fixed assets	-	-
		-	-
		(12)	(12)
	Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets
		-	-
		-	-
		-	-
	Loans to other entities	-	-
	Loans repaid by other entities	-	-
	Other - Exploration Advance	-	-
	Net investing cash flows	(12)	(12)
	Total operating and investing cash flows (carried forward)	(618)	(618)

+See chapter 19 for defined terms

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

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1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22	Total operating and investing cash flows (brought forward)	(618)	(618)
	Cash flows related to financing activities
	Proceeds from issues of shares, options, etc.	109	109
	Proceeds from sale of forfeited shares	-	-
	Proceeds from borrowings	-	-
	Repayment of borrowings	(25)	(25)
	Dividends paid	-	-
	Other (provide detail if material)	-	-
	Net financing cash flows	84	84
	Net increase (decrease) in cash held	(534)	(534)
	Cash at beginning of quarter/year to date	6,338	6,338
	Exchange rate adjustments to item 1.20
	Cash at end of quarter	5,804	5,804

Payments to directors of the entity and associates of the directors

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

	Payments to related entities of the entity and associates of the related entities
1.23 1.24		Current quarter $A'000
	Aggregate amount of payments to the parties included in item 1.2	101
	Aggregate amount of loans to the parties included in item 1.10	0

• 1.25 Explanation necessary for an understanding of the transactions

Item 1.23 relates to Directors Remuneration, Fees and Superannuation Contributions.

Non-cash financing and investing activities

• Details of financing and investing transactions which have had a

• 2.1 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

+See chapter 19 for defined terms

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

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Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 3.2 4.1 4.2 4.3 4.4 5.1 5.2 5.3 5.4		Amount available $A’000	Amount used $A’000
	Loan facilities	194	194
	Credit standby arrangements	-	-
	Estimated cash outflows for next quarter	$A’000
	Exploration and evaluation*		593
	Development		0
	Production		0
	Administration		497
		Total	1,090
	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. Cash on hand and at bank	Current quarter $A’000	Previous quarter $A’000
		1,035	193
	Deposits at call	4,769	6,145
	Bank overdraft Other (provide details)
	Total: cash at end of quarter(item 1.22)	5,804	6,338

Changes in interests in mining tenements

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

+See chapter 19 for defined terms

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

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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.

7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12		Number quoted	Issue price per security (see note 3)
	Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
	+Ordinary securities Quoted	98,591,301
	Options Quoted
	+Ordinary securities Un-Quoted(restricted) Changes during quarter
	(a) Increases through issues	800,000	0.136
	(b) Decreases through returns of capital, buy-backs
	+Convertible debt securities(description) Changes during quarter (a) Increases through issues (b) Exercise of Options
	Options (description and conversion factor) Unlisted Options CAPAK	Number	Exercise price Expirydate
		2,000,000	0.150 26-Nov-12
	Unlisted Options CAPAW	600,000	0.250 16-Feb-13
	Unlisted Options CAPAM	1,300,000	0.850 30-Mar-13
	Unlisted Options CAPAK	2,600,000	0.290 15-Dec-14
	Issued during quarter	-
	Exercised during quarter	800,000
	Expired during quarter	-
	Debentures	-
	(totals only) Unsecured notes(totals only)	-

+See chapter 19 for defined terms

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Appendix 5B Mining exploration entity quarterly report

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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 4).

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

_______ 15/10/2012 Company Secretary Chris Powell

• 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 1022: Accounting for Extractive Industries and AASB 1026: 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

Appendix 5B Page 5

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