IONIC RARE EARTHS LIMITED — Interim / Quarterly Report 2003

Jan 20, 2003

TELEPHONE: (08) 9486 8598

FACSIMILE: (08) 9486 8597

FACSIMILE

TO.	COMPANY ANNOUNCEMENTS PLATFORM (ASX)
FAX NO.	1300 300 021
FROM:	Ezenet Limited
DATE:	21 January 2003
TOTAL PAGES:	6	(INCLUDING COVER PAGE)
SUBJECT:	APPENDIX 4C

Attached is Appendix 4C for the quarter ended 31 December 2002.

On 10 January 2003 the company raised \$261,750 by way of a share placement to progress the business of the company and to supplement working capital.

Why Ory

William M Day Company Secretary

GROUND FLOOR, ZURICH HOUSE 66 KINGS PARK ROAD, WEST PERTH WA 6005

EMAIL: linton@ezenet.com.au EZENET LIMITED ACN 083 646 477

Common Contract

$-$

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Jatroduced 31/3/2000.

Name of entity

EZENET LIMITED

ACN or ARBN

083 646 477

Quarter ended ("current quarter") 31 DECEMBER 2002

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter \$A'000	Year to date (6 months) SA 000
1.1	Receipts from customers	84	125
12	(a) staff costs Payments for (b) advertising and marketing (c) research and development leased assets (d). (e) other working capital	(87) (16) (173)	(131) (48) (298)
13 14 1.5 1.6 1.7	Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid GST paid - Recoverable ex ATO Other (provide details if material)	2 (12)	5 (12)
	Net operating cash flows	(202)	(359)

$\overline{+}$ See chapter 19 for defined terms.

1/7/2000

$Z - J$

Appendix 4C Page 1

		Current quarter \$A'000	Year to date (3 months) SA000
1.8	Net operating cash flows (carried forward)	(202)	(359)
	Cash flows related to investing activities
1.9	Payment for acquisition of: (a) businesses (item 5)
	(b) equity investments
	(c) intellectual property	(57)	(171)
	(d) physical non-current
	assets
	(e) other non-current assets
1.10	Proceeds from disposal of: (a) businesses (item 5) (b) equity investments
	(c) intellectual property
	(d) physical non-current
	assets
	(e) other non-current
	assets
1.11	Loans to other entities
1.42	Loans repaid by other entities
1.13	Other (provide details if material)
		(57)	(171)
	Net investing cash flows		(530)
1.14	Total operating and investing cash flows	(259)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.
1.16	Proceeds from sale of forfeited shares
1.17	Proceeds from borrowings	25	25
1.18	Repayment of borrowings	(8)	(8)
1.19	Dividends paid
1.20	Other (provide details if material)	$\overline{17}$	17
	Net financing cash flows
	Net increase (decrease) in cash held	(242)	(513)
1.21 1.22	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	408	679
1.23	Cash at end of quarter	166	166

Notes

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

Appendix 4C Page 2

1/7/2000

$\frac{1}{3}$

$^{\circ}$ d $\varepsilon$

$+$ See chapter 19 for defined terms.

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
1,24	Aggregate amount of payments to the parties included in item 1.2	39
1.25	Aggregate amount of loans to the parties included in item 1.11
	.

Explanation necessary for an understanding of the transactions 1.26

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and $2.1$ liabilities but did not involve cash flows

None

Details of outlays made by other entities to establish or increase their share in businesses in which the reporting $22$ entity has an interest

None

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amount available SA000	Amount used SA 000
3.1	Loan facilities	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

1/7/2000

$\frac{1}{l}$

Appendix 4C Page 3

⁺ See chapter 19 for defined terms.

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
4.1	Cash on hand and at bank	41	115
	Deposits at call	125	18
4.2
4.3	Bank overdraft
4.4	Other (Bank Commercial Bills)		275
	Total: cash at end of quarter (item 1.22)	166	408

ાર્કસ્કાંતહ્ય્⊕_સcquisitions and disposals_

		Acquisitions (Item $1.9(a)$ )	Disposals (item 1.10(a))
5.1	Name	Not Applicable	Not Applicable
5.2	Place of incorporation or 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 $\bf{l}$ standards as defined in the Corporations Law (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• This statement gives a true and fair view of the matters disclosed. $\mathbf{2}$

Sign here:

WWW Oay
Date: 21 January 2003 Company Secretary

William Michael Day

Print name:

.......................................

• See chapter 19 for defined terms.

Appendix 4C Page 4

$\mathbf{b}^{\dagger}$ G.

$1/7/2000$

L6989876 80

ON XVH

LINHZH PS:SI ANI 80-NVM-12

Notes

• The quarterly report provides a basis for informing the market how the entity's $\mathbf{1}$ . 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.
• The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to $2.$ this report except for the paragraphs of the Standard set out below.
• reconciliation of cash flows arising from operating activities to $6.2$ ٠
  • operating profit or loss
  • itemised disclosure relating to acquisitions $9.2$
• itemised disclosure relating to disposals 94
• 12.1(a) policy for classification of cash items
• disclosure of restrictions on use of cash $12.3$ $\blacksquare$
• comparative information 13.1
• Accounting Standards. ASX will accept, for example, the use of International $\overline{3}$ . 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.

1/7/2000

$\mathbf{b}^{\prime}$ 9

Appendix 4C Page 5