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HELIX RESOURCES LIMITED Interim / Quarterly Report 2014

Jul 23, 2014

65059_rns_2014-07-23_1bdfbe19-8635-4ee2-95b6-eb394e77a2a2.pdf

Interim / Quarterly Report

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JUNE 2014 QUARTERLY REPORT

Highlights

CHILE

BLANCO Y NEGRO

Drill program to test extension of Blanco Y Negro high-grade copper-gold mineralisation (with previous drill intersections including 19.5m @ 2% Cu and 1.1 g/t Au); Up to 1,000m drilling planned in 6-7 holes commencing first week August.

JOSHUA COPPER PROJECT

Codelco report confirms porphyry potential of Joshua Project; several industry participants complete field visits to the Joshua Project during the quarter.

NSW

BROWN’S PROSPECT (MURIEL TANK)

Brown’s Prospect gold-in-soil anomaly confirmed with strike of at least 1km and peak soil assays to 294ppb Au. Rockchips of up to 15.5g/t Au collected from within the soil anomaly area confirming potential for high-grade gold; maiden drilling program has received approval.

COLLERINA PROJECT

Mapping and Rockchips returning up to 3% Copper and 9.3g/t Gold from the Collerina Prospect. Work has confirmed Collerina Prospect strike of at least 500m - identified from sub-cropping gossan within a regional 15km long prospective corridor. Land access agreements are being finalised and preparations are underway for a detailed soil auger sampling program and geophysics in 3Q14.

CORPORATE

Non-Executive Director Mr Gordon Dunbar retired from the Board during the quarter.

A Placement of 30 Million FPO shares at $0.025 to raise $0.75M to Sophisticated Investors was completed. Funds raised are to be used to advance Chile and Australian exploration assets and for working capital.

Helix Resources Limited
Suite 7 / 29 Ord Street, West Perth WA 6005
Telephone: +61 8 9321 2644 Fax: +61 9321 3909
www.helix.net.au
For Further Information please contact:
Mick Wilson – Managing Director
Email: [email protected]
Pasquale Rombola- Chairman
Email: [email protected]

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PROJECT ACTIVITIES

CHILE - COPPER AND GOLD PROJECTS

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Figure 1: Location of Helix’s Projects near the town of Ovalle – Region IV Chile

Blanco Y Negro Project[100%]

A 100% owned Mining lease and surrounding 100km² of exploration concessions (Huallillinga Project) in Region IV Chile. The project sits within a major regional mineralised shear system with multiple mineral occurrences evident throughout broader project and surrounding district.

Helix has mapped the main mineralised shear over a strike of 1.3km (offset by cross cutting faults) within the mining lease. The company has drilled 10 holes into the main shear position with the best result being 19.5m @ 2% Cu and 1.1 g/t Au from the central 240m of strike.

A drilling program of up to 1,000m is planned to commence in early August. Up to 4 holes will test a further 250m of strike of the main shear (Figure 2). Three shallow holes are also planned within the known mineralised envelope to improve geological knowledge and confirm grade continuity closer to the surface.

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Figure 2: 3D Schematic of Blanco y Negro with panel being targeted by drilling program (proposed holes in blue).

Helix Resources Limited
Suite 7 / 29 Ord Street, West Perth WA 6005
Telephone: +61 8 9321 2644 Fax: +61 9321 3909
www.helix.net.au
For Further Information please contact:
Mick Wilson – Managing Director
Email: [email protected]
Pasquale Rombola- Chairman
Email: [email protected]

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Joshua Copper Porphyry Project [100%]

The Joshua Project is located in Region IV Chile, 40km East of Ovalle [Population 100,000], at low altitude (less than 1700m), with excellent nearby infrastructure. Four porphyry targets have been identified to date in a regionally significant NW structural corridor within the total project area of 100km². The main porphyry system (Target 1, Carmelita & Target 4) is defined by an IP anomaly covering 10km² and coincident soil geochemistry over the target zone (Figure 3). To date Helix has drill tested only 10% of the target– (2,000m RC& DDH) with the best result: DDH2 400m @ 0.3%Cu + 0.1g/t Au from surface to EOH.

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Figure 3: Joshua main porphyry target with pXRF copper results draped on topography

During the quarter, CODELCO, the World’s largest copper producer presented Helix with a report following their review of the Joshua Project. The evaluation was conducted over a 6 week period and assessed the geological model for the Joshua Project and evaluated potential economic scenarios based around that model.

The work consisted of a review of Helix’s activities to date, 1:5000 scale field mapping completed by CODELCO Geologists and compilation of the information into a series of potential economic scenarios. Scenario analysis for the Project was centred on the Target 1 area and the recommendation from the CODELCO report was to conduct drilling to confirm the copper porphyry geological model.

Industry interest in the Joshua Project remains high and Helix is currently engaged with a number of production focussed companies under Confidentiality Agreements. The Company continues to work toward securing a Joint Venture arrangement that will adequately test the geological model and advance the Joshua asset.

Embrujado Project[100%]

The Embrujado covers a 100km² zone of prospective geology and structural settings within the regionally significant Los Mantos Fault system. Mapping and identification of zones of interest continued during the quarter with several targets identified for follow-up work during 2H14.

Helix Resources Limited
Suite 7 / 29 Ord Street, West Perth WA 6005
Telephone: +61 8 9321 2644 Fax: +61 9321 3909
www.helix.net.au
For Further Information please contact:
Mick Wilson – Managing Director
Email: [email protected]
Pasquale Rombola- Chairman
Email: [email protected]

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COPPER & GOLD PROJECTS - NSW

Helix holds approximately 100km strike of prospective VMS Copper terrain and +50km strike of epithermal Gold terrain in the Cobar-Girilambone District. Helix is carrying out targeted geochemistry and geophysics to isolate drill targets for testing in this highly prospective region.

BROWNS PROSPECT - MURIEL TANK PROJECT [ Helix Resources 70% : Glencore 30% ]

Muriel Tank (EL6739) forms part of Helix’s Isokind JV with Glencore. The project is located 20km east of the Canbelego township on the Barrier Highway in NSW. Gold lode mineralisation was historically mined in the 192030’s from the goldfield, most commonly associated with chlorite shears. Gold is also associated with mixed sedimentary (turbidite) sequences in fold hinge zones and in localised kink zones, where previous Helix rock chips have returned results of >30g/t Au.

A program of hydraulic auger soil sampling at 50m spacing by 10m along line sampling has confirmed a strong continuous zone of gold anomalism (up to 294ppb Au) over 1 km of strike at the Browns Prospect (Figure 5).

The target zone at Browns Prospect corresponds with a subtle magnetic high feature of which the only observed sub-crops comprise of a chlorite altered shale breccia with quartz/carbonate/ex-sulphide matrix to the south end and strongly deformed chloritic shale with traces of blue quartz veining to the north.

The company recently received government approvals for a maiden RC drilling program to test the anomaly.

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Figure 4: Muriel Tank Project: known historic prospect locations and interpreted fold feature at Browns Prospect area on aeromagnetics .

Helix Resources Limited For Further Information please contact: Suite 7 / 29 Ord Street, West Perth WA 6005 Mick Wilson – Managing Director Telephone: +61 8 9321 2644 Fax: +61 9321 3909 Email: [email protected] www.helix.net.au Pasquale Rombola- Chairman Email: [email protected]

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Figure 5: Brown’s Prospect soil sampling on detailed magnetics.

Helix Resources Limited For Further Information please contact: Suite 7 / 29 Ord Street, West Perth WA 6005 Mick Wilson – Managing Director Telephone: +61 8 9321 2644 Fax: +61 9321 3909 Email: [email protected] www.helix.net.au Pasquale Rombola- Chairman Email: [email protected]

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COLLERINA [ Helix Resources 100% of precious & base metal discoveries]

Work during the quarter has highlighted copper and gold mineralised sup-cropping gossanous material over a strike of at least 500m. Rockchips with up to 3% Copper and 9.3g/t Gold were returned from sampling along the strike of the prospect area.

The high grades of gold (7 samples >1g/t Au and associated silver up to 13g/t Ag) and copper (3 samples > 1% Cu) may be associated with separate mineralisation phases, which provides scope for multiple target styles within this prospective system (refer to Table 1 and Figure 6 & 7).

Table 1: Significant copper and gold rockchips from the Collerina Prospect Area

PROJECT SITE_ID EASTING NORTHING Auppb CUppm Znppm Ag ppm Asppm Pbppm
EL6336 266631 505074 6455043 9320 1740 64 12.5 195 125
EL6336 266632 505069 6455041 109 13300 358 10 1240 125
EL6336 266633 505065 6455037 2540 650 26 15 130 72
EL6336 COL001 505234 6454971 6 13300 116 BDL 49 2
EL6336 COL002 505234 6454971 2370 7340 70 13 359 114
EL6336 COL003 505234 6454971 47 30100 306 BDL 27 4
EL6336 COL006 505220 6454950 1570 2650 374 4 303 642
EL6336 COL009 505300 6454950 1270 2490 74 2 340 248
EL6336 COL011 505320 6454930 1800 1600 258 4 346 4350
EL6336 Z76530 505364 6454909 1840 438 78 3.5 52 94

Refer to ASX announcement 11 June 2014 for full details

Samples collected during the mapping program were from sub-cropping gossan, bedrock host lithology, gossanous float and spoil from historical workings.

Helix plans to follow-up these encouraging results with a detailed soil auger program.

The Collerina Prospect

The Collerina Prospect is prospective for copper and gold mineralisation. It is located on a 15km long corridor of prospective volcanic/sedimentary sequence within the tenement (refer Figure 8). The project is located within a +200km VMS belt and is close to infrastructure including the operating Tritton Mine and associated deposits to the north, and the Tottenham Cu/Au deposits to the south.

The Collerina Prospect has an historic copper working (early 1900’s) and was subject to a broad-spaced 3 hole drilling program by CRA in the 1980’s, where copper mineralisation was intersected in all three holes (4m @ 2.4% Cu from 54m, 48m @ 0.6% Cu from 30m and 4.6m @ 1.1% Cu from 65m). There has been limited exploration activity on the Prospect since.

Helix Resources Limited
Suite 7 / 29 Ord Street, West Perth WA 6005
Telephone: +61 8 9321 2644 Fax: +61 9321 3909
www.helix.net.au
For Further Information please contact:
Mick Wilson – Managing Director
Email: [email protected]
Pasquale Rombola- Chairman
Email: [email protected]

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Figure 6: The Collerina Prospect: Copper rockchip result locations and historic drill collars draped on magnetics and air photo image.

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Figure 7: The Collerina Prospect: Gold rockchip result locations draped on magnetics and air photo image with position of proposed auger soil grid.

Helix Resources Limited
Suite 7 / 29 Ord Street, West Perth WA 6005
Telephone: +61 8 9321 2644 Fax: +61 9321 3909
www.helix.net.au
For Further Information please contact:
Mick Wilson – Managing Director
Email: [email protected]
Pasquale Rombola- Chairman
Email: [email protected]

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Figure 8: Location of EL6336 on regional magnetics

Helix Resources Limited For Further Information please contact: Suite 7 / 29 Ord Street, West Perth WA 6005 Mick Wilson – Managing Director Telephone: +61 8 9321 2644 Fax: +61 9321 3909 Email: [email protected] www.helix.net.au Pasquale Rombola- Chairman Email: [email protected]

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NON- CORE ASSETS

OLARY IRON PROJECT – SA

Helix remains in discussions with Lodestone Equities Limited (Lodestone) after granting an extension to the deferred payment of the $1.75m due on 31 March 2014 for the sale of the Olary Magnetite asset in South Australia.

Helix holds a 1% FOB Royalty over Fe production from this project and is to receive deferred cash payments of$2.575M (+ interest) from Lodestone to complete the sale of this asset.

TUNKILLIA GOLD PROJECT JV - SA

Helix Resources has a 30% interest in the Tunkillia Gold Project in the Gawler Craton in South Australia. The project was discovered by Helix in the 1990’s and has a total resource of 878,000 ozs of gold and 2.5m ozs of silver ( refer to resources table ).

In May 2014, WPG Resources became a 70% holder and manager of the Tunkillia Project purchasing Mungana’s share of the project. Helix welcomes WPG as a well-funded partner with a proven track record to advance the asset to the benefit of the Joint Venture, particularly in relation to the following points:

  • An exploration focus targeting new high-grade pods suitable for early development

  • Pursuing the grant of the Mining Lease covering the Tunkillia deposit

  • Review to optimise the Tunkillia Resource to focus on improving gold grades

  • Re-assessing treatment options to optimise economic returns from the asset

Helix looks forward to WPG executing its strategy at Tunkillia and welcomes the potential value this could add to the Project.

YALLEEN IRON ORE PROJECT – WA

Yalleen Project has a resource 84Mt @ 57% Iron ore in Indicated and Inferred Resources (refer to resources table below) on 575km² of tenements in the West Pilbara owned by Helix Resources – API JV: iron ore rights only

Helix is currently diluting to Royalty over iron ore production from the tenements. Recent corporate activity resulting in Aquila Resources being acquired by Baosteel and Aurizon is being monitored.

Helix Resources Limited
Suite 7 / 29 Ord Street, West Perth WA 6005
Telephone: +61 8 9321 2644 Fax: +61 9321 3909
www.helix.net.au
For Further Information please contact:
Mick Wilson – Managing Director
Email: [email protected]
Pasquale Rombola- Chairman
Email: [email protected]

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Project Location Map

Capital Structure

ASX Ticker Code HLX
Share Price AU$0.037
Market Cap $8.7M
Fully Paid Shares 235M
September 2014 Options [ex $0.015]
35M
Directors and Management
Pasquale Rombola Non-Executive Chairman
Michael Wilson Managing Director
Jason Macdonald Non-Executive Director
Assets
Cash $1.7 Million
NSW- Restdown Gold JV (70%) 2.6Mt @ 1.2g/t Au (100%) – (JORC 2004)
NSW - Canbelego JV (70% ) 1.5Mt @ 1.2% Cu (100%) – (JORC 2004)
NSW – Cobar Region Au/Cu projects with advancing targets
NSW – Collerina Project Earn 100% of precious and base metal discoveries on EL6336
Chile – Joshua Project Significant Cu porphyry
Chile – Huallillinga Project Blanco Y Negro Deposit: 1.4Mt @ 1.4% Cu + 0.5g/t Au (JORC 2012)
Chile – Hado Project Large Cu/Au porphyry targets
Chile – Embrujado High-grade Cu/Au and porphyry targets

Helix Resources Limited For Further Information please contact: Suite 7 / 29 Ord Street, West Perth WA 6005 Mick Wilson – Managing Director Telephone: +61 8 9321 2644 Fax: +61 9321 3909 Email: [email protected] www.helix.net.au Pasquale Rombola- Chairman Email: [email protected]

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Resource Inventory

Commodity Category Category Project Interest Resource
Iron Ore Indicated
Inferred
Yalleen JV,
WA
30%
(Diluting)
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
(+Gold)
Inferred Blanco Y
Negro,
Chile
100% Helix 1.4Mt @ 1.4% Cu for 20,000t Contained
Cu + 0.5g/t for 23,000oz Au(at 0.4% Cu
Cut-off)– 2012 JORC**
Copper Inferred Canbelego
JV, NSW
70%(Straits
Contributing30%)
1.5Mt @ 1.2% Cu for 18,000t* Contained
Cu (at 0.3% Cu Cut-off)
Gold Inferred Restdown
JV
70%
(Glencore
Contributing30%)
2.6Mt @ 1.2g/t Au for 100,000oz
(0.3 g/t Au cut off)
Gold Measured
Indicated
Inferred
TOTAL
Measured
Indicated
Inferred
TOTAL**
Tunkillia
JV, SA
28%
(Diluting)
4.9Mt @ 1.32 g/t – 209,000 oz Au
16.5Mt @ 1 g/t – 512,000 oz Au
5.6Mt @ 1 g/t – 173,000 oz Au
27.0Mt @ 1 g/t – 894,000 oz Au
4.9Mt @ 3.7 g/t – 563,000 oz Ag
16.5Mt @ 2.7 g/t – 1,412,000 oz Ag
5.6Mt @ 3.0 g/t – 545,000 oz Ag
27.0Mt @ 2.9 g/t – 2,543,000 oz Ag
Mungana Goldmines Ltd JV Manager and 72% JV participant. Mungana has submitted a Mining Lease application. Helix has
elected to dilute, with our equity positionpresently28%-(subject to adjustment relatingto an R&D rebate to the Manager).

Details of the assumptions underlying the above estimations are contained in previous ASX releases or at www.helix.net.au_ * _Refer to ASX announcement 20 November 2013 for Table 1 details and CP Statements

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 2012 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.

The information in this announcement that relating to previous reported 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

Helix Resources Limited For Further Information please contact: Suite 7 / 29 Ord Street, West Perth WA 6005 Mick Wilson – Managing Director Telephone: +61 8 9321 2644 Fax: +61 9321 3909 Email: [email protected] www.helix.net.au Pasquale Rombola- Chairman Email: [email protected]

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

HELIX RESOURCES LIMITED

ABN
27 009 138 738
Quarter ended (“current quarter”)
27 009 138 738 30 June 2014

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
Environmental bond refund
Environmental bond payment
Research and development rebate
Other (provide details if material)
Net Operating Cash Flows
Current quarter
$A’000
Year to date
(12 months)
$A’000
-
(230)
-
-
(173)
-
8
-
-
96
(80)
-
-
-
(1,984)
-
-
(716)
-
46
-
-
96
(80)
506
63
(379) (2,069)
Cash flows related to investing activities
1.08
Payment for purchases of: (a) prospects
(b) equity investments
(c) other fixed assets
1.09
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
Lodestone Equities Ltd instalment payment for
Olary Magnetite Project
Net investing cash flows
1.13
Total operating and investing cash flows
(carried forward)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
175
- 175
(379) (1,894)
1.13
Total operating and investing cash flows
(brought forward)
(379) (1,894)
Cash flows related to financing activities
  • See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

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

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
Net financing cash flows
765
-
-
-
-
-
775
-
-
-
-
-
765 775
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
386
1,335
(10)
(1,119)
2,840
(10)
1,711 1,711

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

1.26
1.27
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
62
-
1.28 Explanation necessaryfor an understandingof the transactions
Directors’ fees and salaries - $62,000

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
reportingentityhas an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1
Loan facilities
3.2
Credit standby arrangements
Amount available
$A’000
Amount used
$A’000
- -
- -
  • See chapter 19 for defined terms.

Appendix 5B Page 2

01/05/2013

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

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1
Exploration and evaluation
4.2
Development
4.3
Production
4.4
Administration
$A’000
320
-
-
230
Total 550

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown
in the consolidated statement of cash flows) to the
related items in the accounts is as follows.
Current quarter
$A’000
Previous quarter
$A’000
5.1
Cash on hand and at bank
5.2
Deposits at call
5.3
Bank overdraft
5.4
Other (provide details)
1,711 1,335
- -
- -
- -
Total: cash at end of quarter(item 1.22) 1,711 1,335

Changes in interests in mining tenements and petroleum tenements

Tenement
reference and
location
Nature of interest
(note (2))
Interest at
beginning
ofquarter
Interest at
end of
quarter
6.1
Interests in mining
tenements and
petroleum tenements
relinquished, reduced
or lapsed
EL7619,
EL7961,
EL8021,
EL8108,
EL8109,
EL7566,
Central NSW
100% 100% 0%
6.2
Interests in mining
tenements and
petroleum tenements
acquired or increased

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.

  • See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

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

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
236,474,341 236,474,341
7.4
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy-
backs
1,000,000
30,000,000
1,000,000
30,000,000
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)
34,929,853 34,929,853 Exercise price
$0.015
Expiry date
30 Sept 2014
7.8
Issued during
quarter
7.9
Exercised during
quarter
1,000,000 1,000,000 $0.015 30 Sept 2014
7.10
Expired during
quarter
7.11
Debentures
(totals only)
7.12
Unsecured
notes(totals
only)

Compliance statement

  • See chapter 19 for defined terms. Appendix 5B Page 4

01/05/2013

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

  • 1 This statement h a s been pre p ared under a ccounting p o licies whic h comply wi t h acc o unting stan d ards as defi n ed in the C o rporations A ct or other s tandards ac c eptable to ASX (see not e 5).

  • 2 This statement d o es give a tr u e and fair v iew of the m atters discl o sed.

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S i gn here: ............................................................ Date 24/07/2014 Comp a ny Secretar y

P r int name: Micha e l Naylor

Notes

  • 1 The quarterly re p ort provide s a basis for i nforming t h e market ho w the entity’s acti v ities have b e en finance d for the past quarter and the effect o n its cash po s ition. An e ntity wanti n g to disclos e additional i nformation i s encouraged to do so, i n a note or n o tes attache d to this repo r t.

  • 2 The “Nature of i n terest” (ite m s 6.1 and 6.2) includes options in r e spect of int e rests in min i ng tenemen t s and petrol e um teneme n ts acquired, exercised o r lapsed dur i ng the reporting period. If the entit y is involve d in a joint v e nture agree m ent and th e re are con d itions prece d ent which w ill change i t s percentag e interest in a mining te n ement or petr o leum tene m ent, it shoul d disclose the change of p ercentage i n terest and con d itions prece d ent in the l i st required f or items 6.1 and 6.2.

  • 3 Issued and quoted securities The issue p rice and a m ount paid u p is not requ i red in items 7.1 and 7. 3 for fully p a id securities .

  • 4 The definitions i n , and provi s ions of, AA S B 6: Explo r ation for an d Evaluatio n of Min e ral Resour c es and AAS B 107: State m ent of Cas h Flows appl y to this rep o rt.

  • 5 Accounting Standards AS X will accept, for exampl e , the use of Internation a l Financial Repor t ing Standar d s for foreig n entities. If the standar d s used do n o t add r ess a topic, t he Australi a n standard on that topic ( if any) mus t be complie d with. == == == = = ==

  • S ee chapter 19 for defined ter m s.

01/05/2013 Appendix 5B Page 5