IONIC RARE EARTHS LIMITED — Interim / Quarterly Report 2009

Oct 28, 2008

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. Amended 30/9/2001

Name of entity

Name of entity
EZENET LIMITED
ABN84 083 646 477	Quarter ended (“current quarter”)
84 083 646 477	30 September 2008

Consolidated statement of cash flows

Cash flows related to operating activities1.1Receipts from customers1.2Payments for(a) staff costs(b) advertising and marketing(c) research and development(d) leased assets(e) other working capital1.3Dividends received1.4Interest and other items of a similar naturereceived1.5Interest and other costs of finance paid1.6Income taxes paid1.7Other (provide details if material)Net operating cash flows	Current quarter$A’000	Year to date(...3....months)$A’000
	1128(236)(3)(583)3(63)(3)(4)	1128(236)(3)(583)3(63)(3)(4)
	239	239

• See chapter 19 for defined terms.

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

	Current quarter$A’000	Year to date(...3..months)$A’000
1.8Net operating cash flows (carried forward)	239	239
Cash flows related to investing activities1.9Payment for acquisition of:(a) businesses (item 5)(b) equity investments(c) intellectual property(d) physical non-current assets(e) other non-current assets1.10Proceeds from disposal of:(a) businesses (item 5)(b) equity investments(c) intellectual property(d) physical non-current assets(e) other non-current assets1.11Loans to other entities1.12Loans repaid by other entities1.13Other (provide details if material)Net investing cash flows1.14Total operating and investing cash flows	(60)(350)	(60)(350)
	(410)	(410)
	(171)	(171)
Cash flows related to financing activities1.15Proceeds from issues of shares, options, etc.1.16Proceeds from sale of forfeited shares1.17Proceeds from borrowings1.18Repayment of borrowings1.19Dividends paid1.20Other – Convertible NotesNet financing cash flows	100(37)(100)	100(37)(100)
	(37)	(37)
Net increase (decrease) in cash held1.21Cash at beginning of quarter/year to date1.22Exchange rate adjustments to item 1.201.23Cash at end ofquarter	(208)498	(208)498
	290	290

• 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
1.24	Aggregate amount of payments to the parties included in item 1.2	29
1.25	Aggregate amount of loans to the parties included in item 1.11
1.26	Explanation necessaryfor an understandingof the transactions
	In 1.2(a) there is an amount of $29,166 which represents Directors and Secretarial fees paid

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 businesses in which the reporting entity has an interest

Financing facilities available

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

		Amount available	Amount used
		$A’000	$A’000
3.1	Loan facilities	1000	472
3.2	Credit standby arrangements	Nil	Nil

• See chapter 19 for defined terms.

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

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.	Current quarter$A’000	Previous quarter$A’000
4.1Cash on hand and at bank4.2Deposits at call4.3Bank overdraft4.4Other (provide details)	238	446
	52	50
Total: cash at end of quarter(item 1.22)	290	496

Acquisitions and disposals of business entities

5.1Name of entity5.2Place of incorporationor registration5.3Consideration foracquisition or disposal5.4Total net assets5.5Nature of business	Acquisitions(Item 1.9(a))	Disposals(Item 1.10(a))

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement give a true and fair view of the matters disclosed.

(Original signed by Simon Watson)

Sign here: ............................................................ Date: 29/10/2008 (Director/Company secretary)

Print name: SIMON WATSON

Notes

• See chapter 19 for defined terms.

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

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 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.

   • 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

   • • 9.2 - itemised disclosure relating to acquisitions • 9.4 - itemised disclosure relating to disposals • 12.1(a) - policy for classification of cash items • 12.3 - disclosure of restrictions on use of cash • 13.1 - comparative information

3. 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.

• See chapter 19 for defined terms.

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