JAMESON RESOURCES LIMITED — Interim / Quarterly Report 2011

Jan 30, 2012

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

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.

Name of entity

JAMESON RESOURCES LIMITED

	ABN 89 126 398 294 Consolidated statement of cash flows		Quarter ended (“current quarter”) 31 December 2011	Quarter ended (“current quarter”) 31 December 2011
			31 December 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration (e) project generation 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 (BC mineral tax refund) 1.7 Other – Payment for security deposit NetOperating Cash Flows		Current quarter $A’000		Year to date (6 months) $A’000
		(193) - - (284) (216) - 5 - - -		(391) - - (474) (344) 25 - 168 -
		(688)		(1,016)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (Nexx and Saturn) (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 – Payment for the Acquisition of Dunlevy Energy Inc Settlement Costs and Preferred Share Payment Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		(175) - - - - - - - (165) (77)		(175) - (9) - - - - - - - (165) (77)
		(417)		(426)
		(1,105)		(1,442)

• See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,105)	(1,442)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from exercise of options 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – capital raising costs 1.20 Other – Proceeds from issues not yet allotted Net financing cash flows	3,119 - - - - (195) 401	3,119 - - - - (195) 401
	3,325	3,325
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	2,220 1,207 -	1,883 1,533 11
	3,427	3,427

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		182
		-
1.25	Explanation necessaryfor an understandingof the transactions
	1.23 Includes gross salaries and fees to directors, and rental / administration fees paid to Zephyr Consulting Pty Ltd, an entity in which Mr Holmes has an interest.

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

• See chapter 19 for defined terms.

Appendix 5B Page 2

30/9/2001

Appendix 5B Mining exploration entity quarterly report

On 22 December 2011 the Company finalised the acquisition of Dunlevy Energy Inc, a Canadian based company, through its subsidiary NWP Coal Canada Ltd ( NWPC ) in consideration for partial cash and partial equity being non-voting, convertible, redeemable, preferred shares ( Exchangeable Shares ) in NWPC. A total of 12,000,000 Exchangeable Shares have been issued to the Dunlevy Shareholders pursuant to the acquisition. The Exchangeable Shares will be exchangeable for fully paid ordinary shares of Jameson (“Jameson Shares”) on a one for one share basis, upon the performance of the milestones detailed in the ASX Announcement dated 20 October 2011, and detailed in the Company’s Notice of Meeting dated 14 November 2011.

On 22 December 2011 the Company also completed the has completed the transaction to acquire certain assets of Nexx Coal Inc. (“Nexx”) including the Graham River, Peace Reach and Carbon East coal projects (“Nexx Projects”), through its subsidiary NWP Coal Canada Ltd ( NWPC ) in consideration for partial cash and partial equity being non-voting, convertible, redeemable, preferred shares ( Exchangeable Shares ) in NWPC. A total of 10,000,000 Exchangeable Shares have been issued to the Nexx Coal Inc. Shareholders pursuant to the acquisition. The Exchangeable Shares will be exchangeable for fully paid ordinary shares of Jameson (“Jameson Shares”) on a one for one share basis, upon the performance of the milestones detailed in the ASX Announcement dated 20 October 2011, and detailed in the Company’s Notice of Meeting dated 14 November 2011.

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Nil

• See chapter 19 for defined terms.

Appendix 5B Page 3

30/9/2001

Appendix 5B Mining exploration entity quarterly report

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 Project Generation 4.4 Administration	$A’000
	148
	-
	-
	298
Total	373

Reconciliation of cash

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
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other	134	161
	3,293	1,046
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	3,427	1,207

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

• See chapter 19 for defined terms.

Appendix 5B Page 4

30/9/2001

Appendix 5B Mining exploration entity quarterly report

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	10,000,000 performance shares 10,400,000 Performance Rights	- -	Nil Nil	Nil Nil
	10,400,000 -	- -	Nil	Nil
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	124,783,676	124,783,676	-	Fully Paid
	11,200,000 17,754,811	11,200,000 17,754,811	$0.12 per share $0.10 per share	$0.12 per share $0.10 per share
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted	22,000,000 Exchangeable Shares issued in Jameson Resource’s Canadian subsidiary NWP Coal Canada Ltd.	-	Nil	Nil
	22,000,000 (per above)	-	Nil	Nil
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired / cancelled during quarter	175,000 175,000 9,233,333	- - -	Exercise price 35 cents 50 cents 15 cents	Expiry date 31 May 2012 31 March 2013 30 September 2014
	9,233,333	-	15 cents	30 September 2014
	-	-
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

Appendix 5B Page 5

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 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.

Sign here: ................................................................. Date: 31 January 2012 Company Secretary

Print name: Suzie Foreman

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.

• See chapter 19 for defined terms.

Appendix 5B Page 6

30/9/2001