IONIC RARE EARTHS LIMITED — Interim / Quarterly Report 2008

Apr 29, 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
EZENET LIMITED
ABN	Quarter ended (“current quarter”)
84 083 646 477		31 March 2008

Consolidated statement of cash flows

		Current quarter	Year to date
Cash	flows related to operating activities	$A’000	(...9....months)
			$A’000
1.1	Receipts from customers	856	2633
1.2	Payments for(a) staff costs	(187)	(576)
	(b) advertising and marketing	(5)	(17)
	(c) research and development
	(d) leased assets
	(e) other working capital	(436)	(1282)
1.3	Dividends received
1.4	Interest and other items of a similar nature	6	25
	received
1.5	Interest and other costs of finance paid	(60)	(206)
1.6	Income taxes paid
1.7	Other (provide details if material)	26	(23)
	Net operating cash flows	200	554

• See chapter 19 for defined terms.

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

	Current quarter$A’000	Year to date(...9..months)$A’000
1.8Net operating cash flows (carried forward)	200	554
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	0(249)0	(5)(1345)391
	(249)	(959)
	(49)	(405)
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	(40)(0)	(56)(50)
	(40)	(106)
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	(89)531	(511)953
	442	442

• 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 1.25 Aggregate amount of loans to the parties included in item 1.11

• 1.26 Explanation necessary for an understanding of the transactions

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).

3.1Loan facilities3.2Credit standby arrangements	Amount available$A’000	Amount used$A’000
	1000	405
	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 (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
4.1Cash on hand and at bank	391	386
4.2Deposits at call	50	145
4.3Bank overdraft
4.4Other (provide details)
Total: cash at end of quarter(item 1.22)	441	531

Acquisitions and disposals of business entities

		Acquisitions	Disposals
		(Item 1.9(a))	(Item 1.10(a))
5.1	Name of entity
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

• 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: 30/04/2008 (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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