IONIC RARE EARTHS LIMITED — Interim / Quarterly Report 2003

Apr 28, 2003

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

$Rule 4.7B$

Appendix 4C

Quarterly report
for entities admitted on the basis of commitments

Introduced 31/3/2000.

Name of entity EZENET LIMITED
ACN or ARBN 083 646 477		Quarter ended ("current quarter") 31 MARCH 2003
Consolidated statement of cash flows	Current quarter	Year to date (9 months) \$A'000
Cash flows related to operating activities Receipts from customers 1.1 (a) staff costs Payments for 1.2 (b) advertising and marketing (c) research and development (d) leased assets	\$A'000 94 (109) (14) $\pmb{x}$	219 (240) (62) (404)
(a) other working capital Dividends received 1,3 Interest and other items of a similar nature received 1.4 Interest and other costs of finance paid 1.5 GST paid - Recoverable ex ATO 1.6 Other (provide details if material) 1.7	(106) $\overline{2}$ (3) (136)	7 (15) (495)

Net operating cash flows

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Appendix 4C Page 1

⁺ See chapter 19 for defined terms.

Appendix 4C Quarterly report for entities admitted on the basis of commitments

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		Current quarter \$A'000	Year to date $(9 \text{ months})$ \$A'000
	Net operating cash flows (carried forward)	(136)	(495)
1.3 1.9 1.10	Cash flows related to investing activities Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (a) other non-current assets Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets	(132) ۰	(303)
1.11 1.12 1.13 ¥ 1.14	Loans to other entities Loans repaid by other entities Other (provide details if material) Net investing cash flows Total operating and investing cash flows	(132) (268)	٠ (303) (798)
1,15 1,16	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings	262 (8)	262 25 (16)
1.17 1.18 1.19 1,20	Repayment of borrowings Dividends paid Other (provide details if material) Net fin ancing cash flows	$\frac{1}{254}$	271
	Net increase (decrease) in cash held	(14) 166	(527) 679
1.21 1.22 £ 1.23	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 Cash at end of quarter	152	152

The amount included in item 1.15 represents a share placement of 5,235,00 ordinary shares at \$0.05 each made in January 2003.

The amounts included in items 1.17 and 1.18 relate to a short term insurance premiums funding
facility which will be repaid in monthly instalments by 31 July 2003.

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⁺ See chapter 19 for defined terms.

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

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

		$-$ \$A'000
	Aggregate amount of payments to the parties included in item 1.2	56
1.24
1.25	Aggregate amount of loans to the parties included in item 1.11
1.26	Explanation necessary for an understanding of the transactions The amount included in item 1.24 includes \$18,670 directors fees to 31 December 2002 including to directors I feel the board. The research board of directors are not currently drawing directors fees.

who have resigned from the board. The balance of the amount is the salary of the executive director.

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and

2.1	$\sim$ Details of illiancing and managers are $\sim$ liabi lities but did not involv e cash flows → → →

None Details of outlays made by other entities to establish or increase their share in businesses in which the reporting $2.2$

entity has an interest

None

Financing facilities available $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$ $\therefore$

	$\mathbf{u}$ and there is a set of $\mathbf{u}$	I. Amount available \$A'000	Amount used \$A'000 Nil
3,1	Loan facilities	Nil	Νı
3.2	Credit standby arrangements	Ni

1/7/2000

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⁺ See chapter 19 for defined terms.

Appendix 4C Quarterly report for entities admitted on the basis of commitments

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	Current quarter \$A'000	Previous quarter \$A'000
in the accounts is as follows.	22	41
Cash on hand and at bank 4.1	130	125
Deposits at call 4.2
Bank overdraft 4.3
Other (Bank Commercial Bills) 4.4	152	166
Total: cash at end of quarter (item 1.22)

Acquisitions and disposals of business entities

		Acquisitions (Item 1.9(a))	Disposals (item 1.10(a)) Not Applicable
5,1	Name of entity	Not Applicable
5.2	Place of incorporation of registration
5.3	Consideration for acquisition or disposal
5.4	Total net assets
5.5	Nature of business

Compliance statement

• This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law (except to the extent that information is not $\ddagger$ required because of note 2) or other standards acceptable to ASX.
• This statement gives a true and fair view of the matters disclosed.

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,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Director/Secretary

Date: 24 APR 2003

Sign here:

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$\overline{a}$

SIMON WATSOM

Print name:

• See chapter 19 for defined terms.

Appendix 4C Page 4

1/7/2000

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Appendix 4C Quarterly report for entities admitted on the basis of commitments

Notes

• 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 $\mathbf{L}$ entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below. 2.
• reconciliation of cash flows arising from operating activities to $6.2$ é
  • operating profit or loss
  • itemised disclosure relating to acquisitions $9.2$
  • itemised disclosure relating to disposals 9.4
• 12.1(a) policy for classification of cash items
• disclosure of restrictions on use of cash $12.3$
• $\bullet$ - comparative information $13.1$ ٠
• 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, $\overline{3}$ . the Australian standard on that topic (if any) must be complied with.

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⁺ See chapter 19 for defined terms.