HELIX RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 25, 2012

Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

QUARTERLY REPORT 30[th] JUNE 2012

HIGHLIGHTS

CHILE

JOSHUA COPPER PROJECT

• IP Survey completed on extensions of Target 1 and additional lines on Targets 2, 3 & 4. Modelling is underway.

• Mapping and sampling at Target 4 confirms 2[nd] porphyry prospective target.

• Positive response from Chilean based producers/investors during recent investor briefings and site visits.

HUALLILLINGA PROJECT

Blanco Y Negro Mine Acquisition

• Acquisition of Blanco y Negro mine nearby to operating mills. - Rock-chips up to 1.1% Cu and 1.3g/t Au over strike length of +900m, with IP survey identifying +600m wide chargeable feature below surface mine workings.

• Further fieldwork underway to finalise 2H12 drill targets.

Regional

• Initial mapping, sampling and IP survey identifies a number of exploration targets. Large Cu/Au systems are being mapped and sampled for 2H12 drill testing.

HADO COPPER PROJECT

• IP survey identifies a number of large chargeable features including a target associated with a hydrothermal breccia mapped over +1,500m x 500m with historical gold workings and rock-chips to 0.6g/t Au. Work is underway to surface sample the target prior to maiden drill program.

AUSTRALIA

RESTDOWN JV (AND REGIONAL PROJECTS) – NSW

• Auger soil sampling continues to identify robust Au/Cu systems in the district.

• RC drill program to commence end July 2012 to test targets generated from regional geochemistry:

• Multiple repetitions of Sunrise style gold systems on Restdown JV.

• Additional Sunrise style gold systems on 100% Helix tenements.

• Epithermal gold target on 100% Little Boppy Project

• Copper/Gold target on Quanda, south of Straits Tritton Mine

OLARY MAGNETITE

• MoU signed where Lodestone pays $0.5M cash and funds $2M drilling program to determine JORC resource for 50% interest, with an option to acquire remaining 50% interest for between $5M and $9M.

TUNKILLIA GOLD JV – SA

• Mungana Goldmines Ltd [ASX: MUX] increase 2012 work program from $3M to $6.2M to complete PFS, with HLX diluting to ±30% at 31 Dec 2012

• HLX strategy remains to dilute our interest to ±20% at Decision to Mine [assumes MUX spend further $8M in 2013 for BFS], become a gold producer or sell de-risked project.

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Capital Structure

	ASX Ticker Code	HLX
	Share Price (as at 25 July 2012)	AU$0.04
	Market Cap	$8M
	Issued Capital (Fully Diluted)	204M
	12 Month Range	AU$0.032 - $0.08

Directors and Management

	Greg J Wheeler	Executive Chairman/MD
	Michael Wilson	Executive Technical Director
	John den Dryver	Non-Executive Director
	Gordon Dunbar	Non-Executive Director
	Craig Johnson	Exploration Manager – Aust
	Alamiro San Francisco	Exploration Manager - Chile

Assets

	Cash/Investments	$1.8 Million
	Restdown JV (70%)	2.6Mt @ 1.2g/t Au
	Canbelego JV (51%)	1.5Mt @ 1.2% Cu
	Yalleen Iron Ore JV (30%)	84.3Mt @ 57.2% Fe
	Tunkillia Gold JV (45%)	800,000oz Au

For Further Information please contact:

Helix Resources Limited Suite 7 / 29 Ord Street, West Perth WA 6005

Telephone: +61 8 9321 2644 Fax: +61 9321 3909 Email: greg.wheeler@helix.net.au Email: mick.wilson@helix.net.au www.helix.net.au

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Gold, Copper, Iron Ore in Australia and Chile

Helix Resources Limited

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

PROJECT ACTIVITIES

CHILE - COPPER AND GOLD PROJECTS

Background

Chile hosts world class copper & gold mines and mineralized systems, with the mining sector being one of the major pillars of the Chilean economy given copper exports account for +30% of GDP. Chile is a politically stable democracy with strong financial institutions and sound economic policy providing it the strongest sovereign debt rating in South America. Chile is very supportive of foreign investment and Helix considers it an appropriate location to achieve geographic diversification.

Chile Strategy

• Confirm Joshua Target 1 copper porphyry size potential[[COMPLETED 1H12]] ; attract JV partner to fund Target 1 Resource and technical/economic studies; advance up ‘value curve’ and realise value to invest in advancing our other Chile Projects.

• Confirm Joshua Target 2, 3 and 4 copper porphyry potential; track construction and DDH drilling of targets identified from IP survey/ground magnetics; repeat Joshua Target 1 strategy.

• Huallillinga Project – drill +600m wide IP chargeable feature below Blanco y Negro mine to confirm Cu/Au mineralisation at depth; drill regional targets identified from IP survey and geological mapping which identified mineralisation associated with the regionally significant Los Mantos Fault.

• Hado Project – geochemistry program over Au target +1,500m long x 500m wide at surface prior to RC drill program; drill test IP chargeable feature to confirm nearby Cu porphyry target.

Joshua Project [100%]

The Joshua Project is Helix’s most advanced project in Chile, is 100% owned with no option payments or royalties, and located 40km SE of Teck’s Carmen de Andacollo porphyry deposit (400Mt @ 0.38% Cu Reserve) in Region IV Chile. The Project is located 40km East of the township of Ovalle [Population 100,000], at low altitude (less than 1700m), with excellent nearby infrastructure. Since drilling 1st commenced mid-2011, with subsequent 200m spaced pole-dipole IP and ground magnetics leading to a DD program 1H12, the Company has outlined potential for a large scale, bulk tonnage copper(+gold) project likely to be amenable to open pit mining.

• 1[st] Program 1,200m RC Results 3Q11 – all from surface

• 256m @ 0.32% Cu Eq to EOH, incl. 27m @ 0.58% Cu Eq

• 156m @ 0.26% Cu Eq*

• 143m @ 0.27% Cu Eq*

• 2[nd] Program 1,000m DD Results 1H12 – all from surface

• DDH2 - 0 to 400m @ 0.33% Cu Eq to EOH, with 70m @0.41% Cu Eq from 82m.

• DDH3 – 0 to 242m @ 0.14% Cu Eq* to EOH

Drilling to date has been confined to the only access track developed to the SE flank of the system testing approximately 0.2km² of a 1.5km² target area. Access tracks onto the larger N flank of the system are the next stage and results to date suggest that the system could improve both in grade and widths through this zone and is considered a priority target for future drilling.

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Helix Resources Limited

Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

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Figure 1: Helix Region IV Projects (incl. Joshua Project) with neighboring mines/deposits and infrastructure

Huallillinga Copper/Gold Project

Huallillinga Project is a large 95km² area with significant potential for shear hosted copper and gold, with little evidence of modern exploration in the district.

From the field activities undertaken to date, Helix has recognised at least two mineralising events associated with large structures (5 to 30 metres wide) controlled by a regional shear zone. The first mineralising event appears to be cut by the second event and overall the systems appear to exceed the 3 km of strike in several areas. Artisanal workings in the area exploit both mineralisation events. It is also important to note that artisanal workings have only exploited areas of outcrop with structures clearly continuing under shallow cover throughout the district.

The entire area is controlled by a significant regional fault system associated with the Los Mantos Fault, which hosts several significant copper and gold systems particularly to the south including the Punitaqui Mines (Glencore).

Helix is advancing exploration at two levels. Firstly, we have identified and are negotiating with several local smallscale miners with the aim to consolidate several small prospects and our surrounding ground into a meaningful near term production operation; and secondly, we are targeting regional prospectivity to identify significant mineralised systems using geochemistry, geophysics and drilling.

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Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

Blanco Y Negro Mine

Helix recently acquired the Blanco y Negro mine located within the Huallillinga Project to fast-track our goal of defining economically exploitable Cu/Au resources attractive to nearby operating mills. Anecdotal information suggests artisanal mining at the rate of 10 tonnes per day recovering material with a grade of 1.5% to 2% Cu.

First-pass rock-chips have returned up to 1.1% Cu (over 4.5m) and up to 1.3g/t Au (over 4.2m) in channel samples taken from outcrop. Of 43 channel samples collected from workings and sub-crop, the results averaged 0.4% Cu, 0.2g/t Au and 47ppm Mo, over a strike exceeding 900m, providing evidence that a large Cu/Au target is present. More detailed sampling is planned to define drill targets.

As part of the Company’s geological due diligence prior to acquisition, an IP survey was conducted over the mining concession and surrounding area. The survey identified a +600m wide chargeable feature below surficial mine workings, providing further evidence for a large mineral system being present. A 3D Model of the IP data is currently underway, with a maiden drill program planned for 2H12.

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Figure 2 & 2a: Map of Blanco Y Negro mining concession showing channel sample results and location of IP lines & IP Chargeability inversion for central IP line.

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Blanco Y Negro Mine Workings
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Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

Hado Gold/Copper Project

The Hado Project targets the same geological domain as the Joshua Area (Cretaceous volcanics intruded by Paleocene intrusives) and is situated 25km S of Joshua and 18km by road from the township of Monte Patria. Hydrothermal breccias, brecciated andesite, diorite porphyry and intrusive granodiorite lithologies have been identified in first-pass geological mapping. The hydrothermal breccia is overprinted with alteration including argillic assemblages with abundant limonite and hematite weathering after sulphides. The system covers an area exceeding 5km² and is semi-circular in shape, with historic artisanal workings identified in Qtz (+Cu & Au) veins striking N-S and NNW throughout the system.

The recent IP survey has identified both a Cu and Au target for follow up.

The gold target is +1,500m x 500m with historical gold workings present. A small number (5) of sub-crop rockchips have returned up to 0.6g/t Au. A detailed sampling program has commenced in preparation for drilling in 2H12. The copper target is less well defined due to its size and additional mapping and sampling is required.

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Figure 3 & 3a. Hado gold target with first-pass sampling and mapping; IP Chargeability inversion over gold target

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Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

COPPER & GOLD PROJECTS - NSW

Background

Helix has a significant ground holding in Central NSW covering 2,000km² of tenements through joint ventures it controls and 100% tenement acquisitions. The area has been targeted for its Cu and Au mineral prospectivity, excellent infrastructure [including nearby copper and gold processing plants, some with excess capacity]; and the presence of mining-focused companies in the district (Straits; Mincor; Glencore; YTC; NewGold, Oz Minerals and Polymetals).

Strategy

• Grow Resource from current 100,000 oz Au and 18,000t Cu within our 2,000 km[2] tenement holding in mineral prospective and infrastructure rich region; potential to toll-treat ore at nearby mines with excess capacity

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Figure 4: Location of Helix project Central NSW

RESTDOWN JV & MURIEL TANK JV PROJECTS

EL 6140, EL6501& EL6739:-

Helix Resources 70% - Glencore International AG 30% (Contributing)

The Projects are located 40km to 70 km SE of Cobar in Central West, NSW with the tenement package covering an area of approximately 278km² (Restdown JV Project 188km², Muriel Tank JV Project 90km²).

Restdown Gold Project

Helix has concentrated on completing regional geochemical sampling (~650 auger soil samples) in the first half of 2012 to confirm the continuance of the gold mineralised corridor to over 7km and has highlighted six Priority 1 target zones which are to be tested by a RC drill program scheduled to commence end July.

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Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

During 2011 Helix concentrated on defining a maiden resource at the Sunrise and Good Friday prospects. An inferred resource of 2.6Mt @ 1.2g/t Au for 100,000oz[(see resource table)] was defined and remains open in all directions.

At these deposits, zones of gold mineralisation were identified to be associated with sandy sediments intersected by regional and localised shears and became apparent that the surrounding area has significant potential for repeat deposits with the host lithologies and controlling structures evident throughout the mineral field. The recent auger geochem has confirmed that theory.

The Restdown Project is ±25km SW of the historic Mt Boppy Gold Mine (produced ~500,000 oz at +10g/t Au, now owned by PolyMetals) and ±35km N of YTC’s Nymagee and Hera development projects.

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Figure 5: Gold in auger soil results from 1H12 regional sampling highlighting previously unknown areas of significant gold anomalism where 3Q12 drilling will be concentrated.

These new zones provide encouragement that multiple repeats of Sunrise-style mineralisation are present in the district, and should assist in the company’s strategy of proving up an economic resource within trucking distance to several nearby processing operations.

CANBELEGO JV – NSW [ Helix Resources 51%, moving to 70% - Straits 49% (Diluting)]

Following the recent success of Straits at their Avoca Tank Prospect and YTC at their Nymagee Prospect, the evidence for high grade plunging shoots within the broader mineralised footprints of these discrete copper systems is considered a compelling target at Canbelego and a recent review of the resource area (1.5Mt @ 1.2% Cu for 18,000t inferred) at the Canbelego Mine Prospect has highlighted several zones below and along strike of the drilling that indicate untested plunges may exist. A small ground-based EM survey over Canbelego, Canbelego West and regional targets Caballero and Mullen is being undertaken, with any significant conductors planned to be drill tested in a 2H12 drilling program.

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Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

OTHER NSW PROJECTS – (LITTLE BOPPY– QUANDA – FIVEWAYS- TOTTENHAM) [Helix 100%]

Helix considers the region, dominated by VMS style copper and gold systems, has significant exploration and development potential. The company has isolated a series of key structural, geochemical and lithological controls that are being used to prioritise targets within our large tenement holding and with subsequent positive drill results, rapidly build on our resource base in the district.

During the quarter Helix took possession of a mounted Auger rig, purpose built and fitted onto one of our Landcruiser utilities.

This Auger rig has the ability to sample to a depth of approximately 15-20m and is considered ideal for targeting a consistent sample media in the areas of extensive (albeit shallow) soil and gravel cover on the eastern VMS projects. The rig has commenced work on the Northern half of the Quanda tenement, which is considered highly prospective for Tritton/Avoca Tank-style copper(+gold) systems.

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Figure 6: Helix Auger Rig will allow our field team to sample a consistent soil horizon across areas of variable cover (up to max 20m). This will be used to identify drill targets on the southern extensions of the Tritton and Kurrajong VMS trends to work up targets for drill testing in 2H12.

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Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

OLARY MAGNETITE PROJECT – SA [Helix Resources Ltd 100% - EL4022; EL3956]

Strategy

• Attract JV partner to fund Resource and technical/economic studies in this new iron ore region whilst concurrently seeking approvals for a 12,000m resource RC drill program.

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Figure 7: Helix Olary Project showing surrounding project ownership and results/resources

Memorandum of Understanding Signed

Helix has entered into a Memorandum of Understanding (MOU) with Lodestone Equities Ltd regarding the Olary Magnetite Project with the intention of the parties to complete the following transaction (without being legally bound):-

• Lodestone shall acquire a 50% shareholding in the Helix wholly owned subsidiary, Olary Magnetite Pty Ltd, whose sole assets are EL3956 and 4022 in South Australia, by the cash payment of $0.5M and shall fund a $2M work programme to establish a JORC compliant resource

• Lodestone shall have one month after receipt of the JORC Report to elect whether to acquire the remaining 50% shareholding in Olary by a cash payment calculated in accordance with the following formula: Cash Payment = JORC Resource tonnes x DTR% x $0.035 x 150% with a minimum floor of $5M and a capped maximum of $9M. [Example: 1 billion tonnes times 16% DTR times $0.035 times 150% equals $8.4M]

• If the Option to acquire the remaining 50% is not exercised by Lodestone, the parties will operate Olary as a corporate joint venture

• The parties are targeting 31 August 2012 for deal completion following Lodestone due diligence

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Helix Resources Limited Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

About Lodestone

Lodestone is an investment company associated with Mr Gordon Toll BE Hons (Mining);MSc. (Business) who has 44 years’ experience in mining including Chairman of Fortescue Minerals Group Limited during the critical engineering and funding of that company’s initial US$3.3billion development of its Pilbara iron ore interests; Founder and former Chairman of Ferrous Resources Ltd, a Brazilian iron company; Deputy Chairman of Ivanhoe Mines including responsibility for one of the largest copper discoveries of the past two decades; Rio Tinto - Group Mining Executive; and has raised or helped to raise more than $5 billion for mining and associated infrastructure projects in the past decade.

NON MANAGED JOINT VENTURES

TUNKILLIA GOLD PROJECT JV - SA

Strategy

• HLX strategy remains to dilute our interest to ±20% at Decision to Mine 3Q13 [assumes MUX spends $6M in 2012 for PFS and $8M in 2013 for BFS], become a gold producer or sell de-risked project. HLX holds tenements 100% and JV agreement requires 100% participant approval to move to mine development.

Mungana Gold Mines [ASX:MUX] as JV operator (55% JV interest purchased from Minotaur Nov 2011 for $6M) increased calendar 2012 work program from $3M to $6.2M to complete PFS, with HLX electing to not contribute and therefore diluting to ±30% at 31 Dec 2012.

MUX announced 19 July 2012 the acquisition of the Tarcoola Gold Project located 60km NW of Tunkillia which provides strong potential to contribute an additional 20,000 oz Au per annum in high grade feed to the Tunkillia process plant and improve Tunkillia project economics.

YALLEEN IRON ORE PROJECT – WA

Strategy

• Helix strategy to negotiate acceptable JV agreement with API; await WPIOP infrastructure solution and access terms; re-assess Project viability; become iron ore producer or sell Project tenements and interest.

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Helix Resources Limited

Gold, Copper, Iron Ore in Australia and Chile

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Helix Resources Limited (ASX:HLX) is a minerals exploration company focused on identification, acquisition and development of projects in Australia and Chile

Resource Inventory	Resource Inventory	Resource Inventory	Resource Inventory	Resource Inventory	Resource Inventory
Commodity	Category		Project	Interest	Resource
Iron Ore	Indicated Inferred		Yalleen JV, WA	30% (Contributing)	47.9Mt @ 57.3% Fe (Channel Iron) 36.4Mt@ 57.1% Fe(Channel Iron) **
Joint ventured with API Management Pty Ltd (50% Aquila Resources, 50% AMCI) and forms part of their West Pilbara Iron Ore Project[WPIOP]which comprises multiple JV’s.
Copper	Inferred		Canbelego JV, NSW	51% (Moving to 70%)	1.5Mt @ 1.2% Cu for 18,000t Contained Cu*(at 0.3% Cu Cut-off)
Joint venture with Straits Resources
Gold		Inferred	Restdown JV	70% (Glencore Contributing 30%)	2.6Mt @ 1.2g/t Au for 100,000oz (0.3 g/t Au cut off)
Gold		Oxide Measured Indicated Inferred Primary Indicated Inferred Inferred Total	Tunkillia JV, SA	45% (Diluting)	1.2Mt @ 1.8 g/t – 66,000 oz 2Mt @ 1.3 g/t – 86,000 oz 2.5 Mt @ 1g/t – 77,000 oz 4.2Mt @ 2 g/t – 270,000 oz 4.4Mt @ 2.1 g/t – 300,000 oz 8.6Mt @ 5.7 g/t – 1.6M oz Silver *0.8M oz Au and 1.6M oz Ag **
Mungana Goldmines Ltd JV Manager and 55% JV participant. $6.2M exploration budget for calendar 2012 to complete PFS. Mungana has stated it wants the project to be production ready in 2014 with initial scope for a conventional open- pit operation and 1.5/2Mtpa CIP plant. Helix has elected to dilute, with our equity position expected to be around 30% at the end of the calendar 2012program spend.

*Details of the assumptions underlying the above estimations are contained in previous ASX releases or at www.helix.net.au

Copper Equivalent Calculation

Copper Equivalent (also Cu Eq*) Calculation represents the total metal value for each metal, multiplied by the conversion factor, added and expressed in equivalent copper percentage. These results are exploration results only and a 10% allowance has been made for recovery losses that may occur should mining eventually result. It is the Company’s opinion that elements considered here have a reasonable potential to be recovered as evidenced in similar multi-commodity natured porphyry mines elsewhere in Chile.

Copper Eq values calculated using a copper price of $US7400/tonne and gold price of $US1580/Oz (spot prices 25th July 2012), Cu Eq = (Cu_ppm) + (Au_ppm x 0.7).

Competent Persons Statement

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson 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 M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Details of the assumptions underlying any Resource estimations are contained in previous ASX releases or at www.helix.net.au

Exploration Target

References to exploration target size and target mineralisation in this announcement are conceptual in nature and should not be construed as indicating the existence of a JORC Code compliant mineral resource. Target mineralisation is based on projections of established grade ranges over appropriate widths and strike lengths having regard for geological considerations including mineralisation style, specific gravity and expected mineralisation continuity as determined by qualified geological assessment. There is insufficient information to establish whether further exploration will result in the determination of a mineral resource within the meaning of the JORC Code

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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining 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

Name of entity
Helix Resources Limited
ABN 27 009 138 738	Quarter ended (“current quarter”)
27 009 138 738	30 June 2012

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 (12months) $A’000
	(851) (70) 22 -	(2,997) (625) 158 271
	(899)	(3,193)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	(45) (3)	(58) (3)
	(48)	(61)
	(947)	(3,254)

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(947)	(3,254)
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 (provide details if material) Net financing cash flows	17	46
	17	46
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 of quarter	(930) 2,006	(3,208) 4,284
	1,076	1,076

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

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Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 167
1.24 Aggregate amount of loans to the parties included in item 1.10
1.25 Explanation necessary for an understanding of the transactions
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
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Financing facilities available

Add notes as necessary for an understanding of the position.

• See chapter 19 for defined terms.

Appendix 5B Page 2

17/12/2010

Appendix 5B Mining exploration entity quarterly report

Amount available Amount used $A’000 $A’000

3.1 Loan facilities 3.2 Credit standby arrangements

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	400
	100
Total	500

Reconciliation of cash

Total Reconciliation of cash		500
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)	144	110
	932	1,896
Total: cash at end of quarter(item 1.22)	1,076	2,006

Changes in interests in mining tenements

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

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

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 note3) (cents)	Amount paid up per security (see note3) (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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	204,649,072	204,649,072
	200,000	200,000
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			Exercise price	Expiry date
	2,500,000 2,500,000 2,500,000*	Nil Nil Nil	$0.08 $0.125 $0.175	31 March 2014 31 March 2014 31 March 2014
	* Refer ASX announcement 28 March 2012 for vesting conditions

• See chapter 19 for defined terms.

Appendix 5B Page 4

17/12/2010

Appendix 5B Mining exploration entity quarterly report

7.10 Expired during quarter
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

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.

25 July 2012 Sign here: ............................................................ Date: ............................ (Company secretary) Joneen McNamara Print name: .........................................................

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.

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly 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.

Appendix 5B Page 6

17/12/2010