ION VIDEO LTD — Interim / Quarterly Report 2014

Oct 22, 2014

QUARTERLY REPORT DECEMBER 2013 PAGE 1

HIGHLIGHTS

• First phase drilling completed.

• Copper intersected at all three core prospects

OPERATIONAL SUMMARY

Following on from the last quarter, the Company has now concluded its initial investigations into the distribution of copper at the Copper ridge prospect, and can confirm copper is widespread and not just a surface phenomenon. The drilling has also stated to assist in the development of mineralisation models, with work continuing on possible metal zonation particularly silver and copper.

Full interpretation and investigation of the drilling results as the first of a major geochemical survey at the area continues, and plans for deeper (greater than 100 metres drilling are under development.

Much of the copper identified to date is at or very near to surface.

Notwithstanding the positive results to date, the Directors have determined that it is appropriate to ensure the Company has sufficient cash for its continuing operations in the current difficult environment. For this reason, while the Directors continue to assess the results for Copper Ridge, additional short term exploration will not involve any major programs so as to conserve the funds raised under the placement completed on 23 October 2014 ($850,000).

The Directors have also completed a review of the Company’s existing projects and have decided to surrender all the Western Australian exploration projects so as to reduce cash outgoings associated with rents and rates and in addition, eliminate the commitment to exploration expenditure required to maintain the exploration tenements.

The Company had 48,000,000 shares on issue with 16,300,000 options at the end of the quarter and under the placement referred to above has subsequently issued a further 42,500,000 shares to raise $850,000. This means that the Company has sufficient capital to go forward at a time of market uncertainty.

QUARTERLY REPORT SEPTEMBER 2014 PAGE 2

Copper Ridge Project – Utah USA. (100% Firestrike Resources Limited)

The Copper Ridge Project near Salt Lake City in Utah now comprises 184 claims which the Company holds in its own right.

The first phase Drilling reported in June, August and in this quarterly was conducted using a man portable light-weight coring drill rig, the result of the drilling campaign has demonstrated that the copper is pervasive and not just a surface which penetrated up to 15 metres below surface with the majority of holes terminating around 10 metres due to broken or fractured ground which results in lost circulation and poor core recovery.

Drilling was predominantly at the Harrison prospect (the site of historical mining with heap leach processing during the late 1970’s), the Xaz prospect where previous small scale mining has taken place and the Mealey Prospect (also the site of historical leaching operations).

Results include;

Harrison:

• 5 feet @ 0.46% copper including 1 foot @ 0.84% copper

• 12 feet @ 0.56% copper including 3 feet @ 0.76% copper

• 4 feet @ 0.51% copper 4 feet @ 17 g/t silver

• 4.5 feet @ 0.68% copper

• 21.5 feet @ 28 g/t silver incl. 3 feet @ 65 g/t silver

• 9 feet @ 23 g/t silver incl. 2 feet @ 56 g/t silver

• 9.5 feet @ 15 g/t silver incl. 1 foot @ 31 g/t silver

Xaz:

• 10.5 feet @ 0.28% copper incl. 1 foot @ 0.67% copper

• 1 foot @ 0.54% copper

• 2 feet @ 0.51% copper

• 16 feet @ 97.5 g/t silver incl. 6 feet @ 297 g/t silver

• 1 foot @ 0.46% copper and 13 feet @ 13 g/t silver

• 1 foot @ 0.78% copper, 104 g/t silver

• 12 feet @ 22.7 g/t silver

• 3 feet@ 12 g/t silver

• 5 feet @ 16 g/t silver

• 16 feet @ 16 g/t silver

Mealey:

• 30 feet @ 0.55% copper incl. 8 feet @ 1.09% copper

The tenor of grade from this drilling is very similar to the grade at the successfully producing Lisbon valley Copper mine some 80 miles to the south of Copper Ridge.

QUARTERLY REPORT SEPTEMBER 2014 PAGE 3

The results particularly from the Mealy is further supported by previous exploration data which has recently come to light and suggests that other explorers may have drilled as deep as 200 feet into anomalous copper at the prospect identifying up to three mineralised zones. Current drilling has averaged just 22 feet in depth.

The drilling completed by the company encountered heavily fractured and strongly bedded ground limiting the drills capability to reach the planned depth. These ground conditions also impacted upon the core quality and appears to have led to some core loss within copper zones. This offers encouragement to the Company that the loss may be understating the actual copper grade when compared to surface sampling and vertical sampling of the nearby cliff exposure.

Initial analysis already indicates strong silver–copper association is present and very strong silver results at Xaz with very high grade silver present (maximum value of 6 feet @ 297 g/t silver from 3 feet (14XA-01 ). In addition lead and zinc are present throughout all three prosects in varying concentrations suggesting discrete metal zoning may be present thought out the 7 kilometres strike length of mineralised system.

HARRISON DRILLING ASSAY RESULTS

HOLE ID	Easting	Northing	Azimuth	DIp	Total Depth	Mineralisation
14-HA-01*	608840	4300045	0	vertical	25' 5"	0 - 5' @ 0.46% copper(Cu) including 1’ @ 0.84% Cu 6’ –19’ @ 0.19% Cu 12’ – 21’6” @ 15 g/t Silver (Ag) including 1’@ 31 g/t Ag. Ended in copper and silver mineralisation.
14-HA-02*	608866	4300029	0	vertical	22' 11"	0 - 12' @ 0.56% Cu including 3’ @ 0.76% Cu 16' - 22'11'' @ 0.31% Cu. Ended in copper and silver mineralisation.
14-HA-03*	608904	4299995	0	vertical	15'	No significantresult.
14-HA-04*	608875	4300001	0	vertical	31’6"	No significant result.
14-HA-05*	608842	4299997	0	vertical	16'	No significant result.
14-HA-06*	608792.	4300060	0	vertical	21'7"	0 – 21’7” @0.68% Lead (Pb)including 3’ @ 1.36% Pb and 3’6” @ 1.5% Pb 0 – 21’7” @ 28.1 g/t Ag including 3’ @ 65 g/t Ag. Ended in lead and silver mineralisation.
14-HA-07*	608775	4300007	0	vertical	14'3"	0- 4'@ 0.51% Cu and 17g/t Ag.
14-HA-08*	608731	4300024	0	vertical	31' 7"	0 to 6’ @ 0.20% Cu 12’ – 31’7” @ 0.39% Cu including4’6” @ 0.68% Cu. Ended in anomalous copper, silver and lead mineralisation.
14-HA-09*	608812	4300021	0	vertical	4'	0 to 4' @ 0.38% Cu and 9 g/t Ag. Ended in anomalous copper, silver and lead mineralisation.
14-HA-10*	608621	4300120	0	vertical	19' 10"	Noreportableresult.
14-HA-11*	608596	4300086	0	vertical	27'10"	19’ to 27' 10" @ 0.14% Cu. 18’ to 27’ 23 g/t Ag including 2’@ 56

QUARTERLY REPORT SEPTEMBER 2014 PAGE 4

						g/t Ag. Ended in silver and copper mineralisation.
14-HA-12*	608567	4300036	0	vertical	28’ 3”	5’ to 26’ @ 9 g/t Ag. Ended inanomalous Ag.
14-HA-13*	608511	4300114	0	vertical	16’	9’ to 12’2” @ 0.12% Pb. Ended inanomalous Pb and Ag.
14-HA-14*	608459	4300171	0	vertical	15’	9’ to 12’ @ 8 g/t Ag 6’ to 12’ @ 0.45% Pb. Ended in anomalous Pb and Ag mineralisation.
14-HA-15	609156	4299927	0	vertical	15’	No significantresult.
14-HA-16	609302	4299801	0	vertical	46’	No significant result.
14-HA-17	609244	4299945	0	vertical	18’	Not sampled.
14-HA-18	609225	4299961	0	vertical	24’	No significant result.
14-HA-19	608874	4300301	0	vertical	15’	Not sampled.
14-HA-20	608879	4300281	0	vertical	14’	Not sampled.
14-HA-21	608908	4300302	0	vertical	28	Not sampled
14-HA-22	608865	4300214	0	vertical	13	Not sampled.
14-HA-23	608825	4300195	0	vertical	4	Not sampled.
14-WC-01	608126	4301022	0	vertical	12	No significant result.
14-WC-02	608104	4301005	0	vertical	28	No significant result.

XAZ DRILLING ASSAY RESULTS

HOLE ID	**EASTING **	NORTHING	**Azimuth **	DIp	TOTAL DEPTH	**Mineralisation **
14-XA-01*	610478	44297698	0	vertical	26’	0 - 16' @ 97.5 g/t Ag including 6’ @ 297 g/t Ag 0-16’ @ 0.23% Cu including 2’ @ 0.77%. 3’ – 6’ @ 0.11% Zn. Ended in copper and silver mineralisation.
14-XA-02*	610778	4297679	0	vertical	22' 6"	6’ - 12' @ 63.5 g/t Ag including 3’ @ 170 g/t Ag. 2’ – 4’ @ 0.22% Cu 6’ – 9’ @ 0.28% Cu 12’ – 22’6” @ 0.28% Cu including1’ @ 0.67% Cu 15’ – 22’6” @ 16 g/t Ag. Ended in anomalous lead, zinc and silver mineralisation.
14-XA-03*	610825	4297643	0	vertical	29’2”	0 - 12' @ 0.25% Cu including2’ @ 0.42% 0-12’ @22.7 g/t Ag including 2’ @ 35 g/t Ag 27’ – 29’2” @ 0.18% Cu and16 g/t Ag. Ended in anomalous copper, silver and anomalous lead and zinc mineralisation.
14-XA-04*	610880	4297624	0	vertical	19’	12’ - 15' @12 g/t Ag. Ended in anomalous copper and zinc

QUARTERLY REPORT SEPTEMBER 2014 PAGE 5

						mineralisation.
14-XA-05	610927	4297639	0	vertical	12’	Not sampled
14-XA-06	610851	4297682	0	vertical	7’	2’ - 7' @16 g/t Ag.
14-XA-07	610900	4297679	0	vertical	20’	Not sampled
14-XA-08	611041	4297596	0	vertical	20’	Not sampled
14-XA-09	610866	4297725	0	vertical	40’	0 – 1’ @ 0.54% Cu 1’ – 4’ not sampled. 5’ – 18’ not sampled. 21’ – 22’ @ 0.14% Cu 22’-25’ not sampled.
14-XA-10	610796	4297734	0	vertical	38’	0-6’ not sampled.6 – 7’ @ 0.46% Cu 0-6’ to 19’ @13 g/t Ag. Ended inanomalous silver.
14-XA-11	610762	4297719	0	vertical	34’	0 – 1’ not sampled. 1 – 5’ @ 0.17% Cu and 16 g/t Ag. 5’ – 7’ not sampled. 7’ - 18‘ @ 0.29% Cu ( incl 1 ft @ 0.78% Cu) and 10.4 g/t Ag. Ended inCu mineralization.
14-XA-12	610722	4297705	0	vertical	44’	0 – 26’ not sampled. 26 –31’@ 6g/t Ag
14-XA-13	610704	4297761	0	vertical	20’	0 – 6’ not sampled. No anomalous Ag or Cu
14-XA-14	610758	4297626	0	vertical	36’	0 – 24’ not sampled. No anomalous Ag or Cu
14-XA-15	610790	4297636	0	vertical	20’	0 – 16’ @ 16g/t Ag 12-14’@0.51% Cu
14-XA-16	610849	4297682	0	Vertical	15’	Not sampled.

NOTE”: * reported previously

MEALEY DRILLING ASSAY RESULTS

HOLE ID	Easting	Northing	**Azimuth **	DIp	Total Depth	**Mineralisation **
14-ME-01	613198	4295671	0	vertical	30’	0 –30’ @ 0.55% Cu incl 8’ @ 1.09% Cu. Ended incopper mineralisation.
14-ME-02	612927	4295744	0	vertical	30’	0–30’ @ 0.29% Cu. Ended inCu mineralisation.
14-ME-03	612894	4295783	0	vertical	16’	0–16’ @0.16% Cu Ended inCu mineralisation.

NOTE: all drilling in feet as is the drilling equipment. For conversion to metres 1 foot = 0.3014 metres.

QUARTERLY REPORT SEPTEMBER 2014 PAGE 6

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Property location map, Copper Ridge, Salt Valley Moab Utah USA

QUARTERLY REPORT SEPTEMBER 2014 PAGE 7

The project was secured late in 2013, and within the tight time frame of 6 months has seen a high level of exploration activity which has focused on extensive surface sampling throughout the project area. Whilst the project is primarily prospective for copper the project hosts other base metals including cobalt, silver and uranium.

This work has discovered a number of prospects at surface. The discoveries confirm that the ridge is sporadically mineralised along its entire 7 kilometre length and up to 1 kilometre back from the range front with over 6 specific prospects already requiring drilling to define the nature, depth and extent of the copper identified.

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Upper photo: Mineralisation at Xaz prospect. Lower photo: View from Harrison prospect looking into Salt Valley

QUARTERLY REPORT SEPTEMBER 2014 PAGE 8

Nabberu lead and zinc Project EL 69/3225 and ELA69/3226 (100% Firestrike Resources Limited)

The Directors have decided to surrender this project in the December quarter.

Grants Creek Project P80/1576, 1577, 1578, 1579, 1580, 1582, 1760. (100% Firestrike Resources Limited) Angelo Project, Halls Creek E80/2707 (100% Firestrike Resources Limited)

The Directors have decided to surrender this project in the December quarter.

SCHEDULE OF TENEMENTS

Held as at 30 September 2014

Project name	Tenement ID	Number of tenements or claims	Ownership
Grants Creek, Western Australia	From PL 80/1576 to PL80/1580 inclusive, PL 80/1582,PL 80/1760	7	100% Firestrike Resources Limited
Angelo, Western Australia	EL80/2707	1	100% Firestrike Resources Limited
Nabberu, Western Australia	EL69/3225	1	100% Firestrike Resources Limited
Copper Ridge Utah USA	From CR#001 to CR#184 inclusive	184	100% Firestrike Resources Limited

Disposed of during the quarter

Nil

Acquired during the quarter

Nil

QUARTERLY REPORT SEPTEMBER 2014 PAGE 9

JORC TABLE 1

– Section 1 Sampling Techniques and Data Rock chip sample results:

Criteria	Explanation
Sampling techniques	The samples were collected as outcrop rock chip grab samples and continuous channel rock chip samples. Equipment used was predominately hammer and electric rock chisel with the collection of rock fragments within a gouge or track of up to 10 cm wide for the channel sampling. No prescriptive methodology has been employed in grab samples however where possible one or more rock fragments over an area of 10cmx10cm has been taken.
Drilling techniques	No drillingresults have been reported in this release
Drill sample recovery	No drillingresults have been reported in this release
Logging	Brief descriptions of samples have been collected in field notes but not to a level of detail that would support mineral estimation,miningstudies and metallurgical studies.
Sub sampling techniques and sample preparation	Every effort was made to remove visual sampling bias. No check or repeat samples have yet been submitted for analysis. The complete sample collected was submitted to the laboratory for analysis. Each sample was weighed at the preparation laboratory and the weights recorded along with analytical results. No specific quality control procedure has been adopted for the collection of the samples other than due care exercised to maintain an unbiased and uniform sample as possible. Samples collected during 2013 were shipped to SGS laboratories in Ely Nevada for drying and pulverizing and splitting to prepare a pulp of approx. 200 grams which was then shipped to SGS Perth for analytical determinations. Subsequent assays during 2014 have been sent to ALS in Nevada for preparation and sent to ALS Vancouver for final determinations.
Quality of assay data and laboratory tests	Average sample weight submitted for prep was approx. 0.7kg with a range from 0.36kg to 1.34kg. Analysis was by acid digestion with ICP-OES determinations. Samples were pulverised to minus 75 microns before a split was taken for analysis. This is an accepted industry analytical process appropriate for the nature and style of mineralisation under investigation. No company generated blanks or standards were incorporated into the sampling procedure. SGS and ASL as accredited laboratories have undertaken their own internal checks and blanks.
Verification of sampling and assaying	No verification work has been conducted yet. This will be in the forward work programmes now that the analytical results from this initial sampling are known. No independent or alternative companyhasyet been engaged to verifyresults.
Location of data points	All samples sites have been located using a hand held GPS unit and cross checked onto aerial photographs where relevant. The GPS recorded locations used the WGS 84 datum Zone 12 North.
Data spacing and distribution	The data is not expected to be incorporated into any Mineral Resource or Ore Reserve estimation and is primarily an initial exploration reconnaissance sampling programme. As such the determination of data spacingand distribution is not relevant at this time
Orientation of data in relation to geological structure	Wherever possible channel sampling across stratigraphy has been perpendicular to bedding and where sampling is in the plane of bedding the sampling has been continuous from either start to end of identified mineralisation or continuous from start to finish of outcropexposure.
Sample security	All samples were collected in calico sample bags with sample number tickets included in each bag and the same identification externally on the bag. Bags were then checked against field manifests and loaded into plastic buckets with tape sealed lids for transportation. Given the initial phase of exploration combined with the limited number of field staff involved, the security over sample dispatch is considered adequate for these samples at this time.
Audits or reviews	No audits or reviews have yet been conducted on the exploration data presented in this release.

QUARTERLY REPORT SEPTEMBER 2014 PAGE 10

Section 2 Reporting of Exploration results

Criteria	Explanation
Mineral tenements and land tenure status	All claims are current and 100% owned by Firestrike Resources (or its wholly owned US subsidiary). There are no outstanding issues regarding access or ownership. Claim numbers are: From CR#001 to CR#184 inclusive and within Grand County, Utah USA. They are unpatented claims on Federal Land
Exploration done by other parties	Historical drill holes exist at the Mealey and Harrison prospects as well as numerous mine shafts, adits and surface workings. No further technical information has yet been found to verify and validate the previous work done other than Geological Survey reports from the State of Utah.
Geology	The mineralisation is seen as predominantly disseminated copper (as malachite and azurite)with lesser lead and zinc in sandstones as a result of fluid flow along major structures on the limb of a collapsed salt dome anticline within the Paradox Basin , Utah USA. Reports from other workings close by included silver, cobalt and Manganese. This is a recognised style of mineralisation and one that is common to the Moab district of Utah USA
Drill hole Information	No drillingresults have been reported in this release
Data aggregation methods	Aggregation of samples has only occurred in summary reporting in this release. No aggregation of actual samples material has takenplace.
Relationship between mineralisation width and intercept lengths	The mineralisation is strata bound and wherever possible sampling has either been along the bedding plane where exposed or normal to the stratigraphy to estimate where possible across true rather than apparent width. There is no guarantee that all channel sampling represents true width as in some instances exposure was limited or a truly normal section was inaccessible.
Diagrams	Attached to the release is a map highlighting the location of assay results that are above 0.1% copper. This map sufficiently shows the location of the tabled results and includes appropriate coordinates and scale bar. Datum is WGS83 zone 12 North.
Balanced reporting	The report to which these results are attached has identified the number of samples taken, the number above a cut off of 0.1% copper and the number of samples considered by the company to be “ high grade” i.e. above 1.0% copper. Not all samples have been presented in this release; however the summary of data is considered to be representative of both the distribution and tenor of grade. Other than lead and zinc additional elements have not been included in the release as the focus for the exploration is copper. Lead and zinc have only been mentioned where the analysis was considered as “high grade” i.e above 1% or where it was in association with a copper sample result.
Other substantive exploration data	The evaluation of old workings, previous mining activity and interpretation of satellite imagery is ongoing. At this stage the sample results in this release simply relate to the surface sampling as it stands. Further geological work including detailed prospect scale mapping and verification of samples and sample sites will be needed to improve confidence in the results.
Further work	These results will need to be verified in the field and duplicate test work conducted to ensure repeatability. In addition shallow first phase drilling is to be done to determine the sub surface nature and extent of the disseminated copper within the sandstones. Further metallurgical test work will also need to be conducted to give first indications of the potential to recover copper identified within the mineralised rocks.

The information in this announcement to which this statement is attached relates to Exploration Results, Mineral Resources or Ore Reserves compiled by Mr D. J. Holden, who is the Managing Director of the Company and is a Member of The Australian Institute of Mining and Metallurgy, with over 25 years’ experience in the mining and resource exploration industry. Mr Holden has sufficient experience, as to qualify as a Competent Person as defined in the 2012 edition of the “Australian Code for Reporting of Mineral Resources and Ore reserves”. Mr Holden consents to the inclusion in the report of the matters based on information in the form and context in which it appears.

QUARTERLY REPORT SEPTEMBER 2014 PAGE 11

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Firestrike Resources Limited

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ABN
84 149 796 332
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Quarter ended (“current quarter”) 30 September 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 Other - tenement rehabilitation bond (refundable) Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	- (84) - - (117) - - - - -	- (84) - - (117) - - - - -
	(201)	(201)
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)	- - - - - - - - -	- - - - - - - - -
	-	-
	(201)	(201)

QUARTERLY REPORT SEPTEMBER 2014 PAGE 12

1.13 Total operating and investing cash flows (brought forward)	(201)	(201)
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 – Capital Raising costs Net financing cash flows	- - - - - (2)	- - - - - (2)
	(2)	(2)
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	(203) 327 -	(203) 327 -
	124	124

Payments to directors of the entity and associates of the directors

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

1.2 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	1.2 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		66
		-
1.25 on-cas 2.1 2.2	Explanation necessary for an understanding of the transactions
	Consulting fees and salaries
	h financing and investing activities Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	Not Applicable
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	Not Applicable

Non-cash financing and investing activities

QUARTERLY REPORT SEPTEMBER 2014 PAGE 13

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
		-
		-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	50
	-
	-
	95
Total	145

Reconciliation of cash

econciliation 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)	124	327
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	124	327

Changes in interests in mining tenements

Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

QUARTERLY REPORT SEPTEMBER 2014 PAGE 14

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 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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	47,999,985	47,999,985
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/Cancelled during quarter	16,300,000	16,300,000	Exercise price $0.04	Expiry date 31 December 2016
	3,000,000	3,000,000
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

compliance statement

QUARTERLY REPORT SEPTEMBER 2014 PAGE 15

• 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.

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Sign here: ............................................................ Date: 23/10/2014 Print name: Paul Lloyd

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 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.

QUARTERLY REPORT SEPTEMBER 2014 PAGE 16