Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

LAKE RESOURCES N.L. Interim / Quarterly Report 2016

Jan 30, 2017

65240_rns_2017-01-30_ae7d1e32-323e-470f-9159-76355b089097.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

31 January 2017

Lake Resources N.L. ASX:LKE

Shares on Issue: 188,993,026

Options Unlisted: 51,539,250 (incl. 26,539,250 vested)

Market Capitalisation: $11 million (@ $0.06/share)

Cash (at 31 Dec 16): $1.2 million

Contact: +61 2 91887864 steve@ lakeresources.com.au

==> picture [85 x 84] intentionally omitted <==

LAKE RESOURCES N.L. QUARTERLY REPORT

ENDING 31 DECEMBER 2016 ABN 49 079 471 980

HIGHLIGHTS

  • Aggressive exploration programme underway over lithium brine lease applications in Argentina.

  • Initial surface sampling programme nearing completion at Kachi Lithium Brine Project in Catamarca with results expected soon.

  • Large lease position (~90,000 Ha) in 3 areas over prime lithium brine bearing basins in NW Argentina among largest players in lithium sector.

  • Leases expanded with key contiguous title (3900 Ha) at Kachi Project new acquisitions.

  • Leases/applications lie within Lithium Triangle which accounts for 49% of current global lithium production.

  • Transaction with Lith NRG Pty Ltd completed 14 Nov 2016 to focus company on lithium brine projects.

  • New management and board appointed.

  • Capital raising completed Nov/Dec 2016.

Lake Resources N.L. (ACN 079 471 980) ASX:LKE Suite 4, Level 9, 341 George St, Sydney NSW 2000, Australia T: +61 2 9188 7864 E: [email protected]

0

LAKE RESOURCES N.L. QUARTERLY REPORT – ENDING 31 DEC 2016

OPERATIONS

Kachi Lithium Brine Project - Catamarca Province, Argentina

An aggressive exploration programme commenced over lithium brine lease applications in the Kachi Lithium Brine Project in Catamarca province, Argentina.

The initial surface auger sampling programme, commenced in late 2016, is nearing completion. The auger brine sampling programme is being conducted on lines approximately 1km apart over the salt lakes within the current Lake leases. Results are anticipated soon.

Preparations are underway for a ground electrical geophysics study. An initial drill programme is planned, with location of drillholes to be based on results from geophysics and sampling.

The Kachi Lithium Brine Project is composed of almost 50,000 Ha of mining leases either granted or under application held 100% by Lake’s local subsidiaries. Leases have been granted to allow exploration over 9000 hectares. An additional 3,900 hectares of leases have recently been acquired contiguous to the area of active exploration. A series of adjoining leases are anticipated for similar granting soon.

The Kachi Lithium Brine Project is located in Catamarca province, approximately 100km south of FMC’s Hombre Muerto Lithium brine operation in production. The Project overlies an area of leases and lease applications centred around a salt lake within a large basin almost 100km long. This area has been recently recognised as a potential lithium brine bearing basin.

The largest company in the lithium sector, Albemarle Ltd, recently secured leases over the basin immediately to the west of the area. Other companies have recently completed geophysics surveys over leases adjacent to Lake’s leases and are planning to drill targets soon.

Olaroz/Cauchari & Paso Lithium Brine Projects - Jujuy Province, Argentina

Lake holds mining lease applications over almost 45,000 hectares in two areas in Jujuy Province, in NW Argentina. Most of the area was reapplied for in November when a moratorium was lifted. The initial applications from March 2016 are under an appeal process. The application process is anticipated to progress in early 2017. Leases/applications are held 100% through Lake’s local subsidiaries.

The leases cover areas in and around Orocobre Limited, currently in production, and Lithium Americas Corporation, currently developing a project with the major lithium producer SQM, in the Cauchari/Olaroz basin in Jujuy Province, Argentina. Although data is limited within the properties, the tenements may cover potential extensions to the Cauchari/Olaroz projects with potential extensions to aquifers.

Exploration will commence as soon as access is available to the areas. Substantial ground geophysics and drilling has been completed in the surrounding leases at Olaroz/Cauchari.

Corporate activity in the area adjacent to Lake’s leases has been substantial. Lithium Americas Corporation announced an equity investment of C$106 million, from Gangfeng, an important Chinese producer, and BCP Innovation. Both Chinese investors will also provide US$205 million in a debt facility with offtake commitments, sufficient to develop Lithium Americas share in the Stage 1 production from Olaroz/Cauchari.

Advantage Lithium Corporation announced a transaction to earn 65-75% equity in some of Orocobre’s leases, raising C$40 million in the market.

Lake Resources N.L. (ACN 079 471 980) ASX:LKE Suite 4, Level 9, 341 George St, Sydney NSW 2000, Australia T: +61 2 9188 7864 E: [email protected]

1

CORPORATE

Transaction with Lith NRG Pty Ltd

Lake completed a transaction in November 2016 to acquire the unlisted company Lith NRG Pty Ltd. Lake now has exciting lithium brine projects in three large packages of tenement applications (over 90,000 Ha) around salt lakes in North West Argentina. The property portfolio has been established over a ten month period, mostly prior to the recent ‘rush’ by majors into Argentina due to its proven prospectivity and recently improved foreign investment climate.

The transaction was detailed in a Notice of AGM & Explanatory Statement released on 1 September 2016, approved by shareholders on 4 October 2016. Subsequent final due diligence and documentation was completed and finalised on 14 November 2016.

Securities comprised of 50 million shares, with 25 million attached options (at $0.05, 18 mth expiry) have been issued as vendor consideration for the acquisition, together with three tranches of performance rights (50 million in total) with attached options (25 million at $0.05, 18 mth expiry) which vest upon completion of three future milestones. Two million shares were issued as consideration for the interest payment on a loan provided to Lith NRG Pty Ltd. A committed placement of $0.5 million (25 million shares at $0.02) was part of the transaction announced in May 2016 at a significant premium to the share price at the time. This placement was approved by shareholders and shares were issued at the same time as closure of the transaction. Details of the share issuance, placement, vendor consideration and use of funds was contained in the Notice of 1 September 2016, approved under Resolutions 3,4,5 and 11 by shareholders on 4 October 2016.

Board and Management Changes

The Company appointed two new Directors to the Board in November, with the resignations of two Directors, together with Management changes.

Mr Stephen Promnitz was appointed as Managing Director, with considerable technical and commercial experience in Argentina, a geologist fluent in Spanish. Mr Promnitz has previously been CEO or senior management of mid-tier mineral explorers/producers and with major mining companies (Rio, WMC) and in corporate finance roles with investment banks. He also provides services to Sentient Advisory.

Mr Stuart Crow was appointed Non-Executive Chairman with global experience in financial services, corporate finance, investor relations, salary packaging and stock broking. He is currently CEO/Director at Salaris Consulting Pty Ltd, Non-Executive Director at TNG Limited (ASX:TNG), Non-Executive Director at AIM listed Iron Ridge Resources Limited (AIM:IRR) and Director at Ballyhoo Marketing.

Mr Peter Gilchrist remained on the Board, utilizing his breadth of experience over 30 years as an engineer in mining, construction and manufacturing in Australia and the USA. Mr Gilchrist has recent global experience as Executive Chairman of the Aquatec Maxcon Group, a successful manufacturer/installer of water treatment equipment in the municipal, power and mining industries.

Mr Andrew Bursill became the Company Secretary and is a qualified Chartered Accountant with positions as outsourced CFO and Company Secretary with numerous ASX listed companies covering mineral and oil and gas exploration, biotechnology, technology, medical devices and retail. He is currently a director of Argonaut Resources NL and ShareRoot Limited and the Company Secretary of Aguia Resources Limited, Argonaut Resources NL, Austral Gold Limited, Eagle Nickel Limited, Netcentric Limited, ShareRoot Limited, and zipMoney Limited.

Mr Ross Johnston and Mr Jim Clavarino, asked to step down from the Board after more than 10 years’ service and the successful acquisition of Lith NRG Pty Ltd. Mr Johnston and Mr Clavarino have provided many years of service and were thanked for their assistance and good guidance.

The Company’s new office address is Suite 4, Level 9, 341 George St, Sydney NSW 2000 and the new telephone contact is: +61 2 9188 7864

Lake Resources N.L. (ACN 079 471 980) ASX:LKE Suite 4, Level 9, 341 George St, Sydney NSW 2000, Australia T: +61 2 9188 7864 E: [email protected]

2

Capital Raising

A capital raising was successfully completed in December 2016 with $1.05 million raised, before costs, via private placement of approximately 16.1 million new LKE shares at $0.065 per share to sophisticated and professional investors. Shareholder approval was previously provided for the capital raising under Listing Rule 7.3 as part of Resolution 7 in the Notice of AGM and Explanatory Statement. The company paid fees to intermediaries and financial arrangers which included issuing 1.54 million unlisted options with an exercise price of $0.10 and an 18-month expiry period.

Funds are being used to enable the exploration programme over lithium brine basins in Argentina, controlled 100% by Lake, among some of the largest players in the lithium sector. Funds will also be used for corporate costs and working capital.

Lake has 188,993,026 shares on issue as at 31 Dec 2016.

Unlisted options include 25,000,000 options with an exercise price of $0.05 (expiry 4 Apr 2018) and 1,539,250 options with an exercise price of $0.10 (expiry 14 Jun 2018). Another 25,000,000 unlisted options and 50,000,000 performance rights were included in the transaction with Lith NRG Pty Ltd and have yet to reach the required hurdles for vesting.

Cash Position

Lake holds cash of $1.16 million as at 31 December 2016 with no debt.

For further information, please contact:

Steve Promnitz Managing Director Lake Resources N.L. T: +61 2 9188 7864 E: [email protected]

_______________

Background on Lake Resources NL (ASX:LKE)

Lake Resources NL (ASX:LKE, Lake) is a lithium exploration company undertaking an aggressive programme to explore prime lithium basins in Argentina, among some of the largest players in the lithium sector. Mining leases and applications are located in the Lithium Triangle which accounts for 49% of current lithium production.

Lake recently completed the acquisition of an early mover in Argentina, Lith NRG Pty Ltd, who had secured an extensive strategic package of ~90,000 Ha, prior to a significant ‘rush’ to secure projects by major companies in the sector. This is one of the largest tenement packages in Argentina, controlled 100% by Lake.

Lake has three key areas that have similar settings to major world class projects being developed – Olaroz/Cauchari, Paso and Kachi in the highly prospective Jujuy and Catamarca Provinces. Upcoming exploration in lithium brine basins, one which is adjacent to some of the leading lithium producers/developers, including Orocobre and SQM, may provide several catalysts for growth as the areas are assessed for major discoveries. Significant corporate transactions continue in adjacent leases with development recently funded in Olaroz/Cauchari through Lithium Americas Corporation.

Lake Resources N.L. (ACN 079 471 980) ASX:LKE Suite 4, Level 9, 341 George St, Sydney NSW 2000, Australia T: +61 2 9188 7864 E: [email protected]

3

==> picture [134 x 211] intentionally omitted <==

==> picture [243 x 212] intentionally omitted <==

==> picture [379 x 203] intentionally omitted <==

==> picture [505 x 107] intentionally omitted <==

==> picture [375 x 199] intentionally omitted <==

Figure 1: Images from the Kachi Lithium Brine Project (top 3 photos), Cauchari Project and Paso Project

Lake Resources N.L. (ACN 079 471 980) ASX:LKE Suite 4, Level 9, 341 George St, Sydney NSW 2000, Australia T: +61 2 9188 7864 E: [email protected]

4

==> picture [317 x 356] intentionally omitted <==

Figure 2: Kachi Lithium Brine Project leases showing recently acquired 3,900 hectare areas in light blue

==> picture [313 x 347] intentionally omitted <==

Figure 3: Location map of Lake Resources lithium brine projects in NW Argentina

Lake Resources N.L. (ACN 079 471 980) ASX:LKE Suite 4, Level 9, 341 George St, Sydney NSW 2000, Australia T: +61 2 9188 7864 E: [email protected]

5

SCHEDULE OF TENEMENTS (Appendix 5B)

TOTAL NUMBER TENEMENTS: 56

TOTAL AREA TENEMENTS:

98,023 Ha

REF TENEMENT NAME NUMBER AREA
Ha
INTEREST
%
PROVINCE STATUS
OLAROZ - CAUCHARI
AREA
Cauchari Bajo I 2156-P-2016 375 100 Jujuy Application
Cauchari Bajo II 2157-P-2016 363 100 Jujuy Application
Cauchari Bajo III 2158-P-2016 125 100 Jujuy Application
Cauchari Bajo IV 2155-P-2016 30 100 Jujuy Application
Cauchari Bajo V 2154-P-2016 952 100 Jujuy Application
Cauchari Bajo VI 2159-P-2016 32 100 Jujuy Application
Cauchari Centro I 2150-P-2016 32 100 Jujuy Application
Cauchari Centro II 2151-P-2016 10 100 Jujuy Application
Cauchari Centro III 2152-P-2016 10 100 Jujuy Application
Cauchari Centro IV 2153-P-2016 10 100 Jujuy Application
Cauchari West I 2160-P-2016 1938 100 Jujuy Application
Cauchari West II 2161-P-2016 10 100 Jujuy Application
Olaroz Centro I 2163-D-2016 35 100 Jujuy Application
Olaroz Centro II
2164-D-2016
268
100
Jujuy
Application
Olaroz Centro III
2165-D-2016
25
100
Jujuy
Application
Olaroz Centro IV
2166-D-2016
32
100
Jujuy
Application
Olaroz East I
2167-D-2016
3344
100
Jujuy
Application
Olaroz East II
2168-D-2016
2072
100
Jujuy
Application
Olaroz East III
2169-D-2016
3033
100
Jujuy
Application
Olaroz East IV
2170-D-2016
3034
100
Jujuy
Application
Olaroz East V
2171-D-2016
3007
100
Jujuy
Application
PASO AREA
Paso I
2135-P-2016
3482
100
Jujuy
Application
Paso II
2136-P-2016
3196
100
Jujuy
Application
Paso III
2137-P-2016
2950
100
Jujuy
Application
Paso IV
2138-P-2016
2985
100
Jujuy
Application
Paso V
2139-P-2016
3195
100
Jujuy
Application
Paso VI
2140-P-2016
2210
100
Jujuy
Application
Paso VII
2141-P-2016
3227
100
Jujuy
Application
Paso VIII
2142-P-2016
3070
100
Jujuy
Application
Paso IX
2143-P-2016
3321
100
Jujuy
Application
Paso X
2144-P-2016
1913
100
Jujuy
Application

Lake Resources N.L. (ACN 079 471 980) ASX:LKE Suite 4, Level 9, 341 George St, Sydney NSW 2000, Australia T: +61 2 9188 7864 E: [email protected]

6

REF TENEMENT NAME NUMBER AREA Ha INTEREST
%
PROVINCE STATUS
KACHI AREA
Kachi Inca 13-D-2016 1273 100 Catamarca Application
Kachi Inca I
16-D-2016
3354
100
Catamarca
Application
Kachi Inca II 17-D-2016 2823 100 Catamarca Application
Kachi Inca III
47-M-2016
3354
100
Catamarca
Application
Kachi Inca IV 46-M-2016 186 100 Catamarca Application
Kachi Inca V
45-M-2016
310
100
Catamarca
Application
Kachi Inca VI 44-M-2016 110 100 Catamarca Application
Dona Amparo I
22-D-2016
3000
100
Catamarca
Granted
Dona Carmen 24-D-2016 873 100 Catamarca Granted
Debbie I
21-D-2016
1501
100
Catamarca
Granted
Divina Victoria I 25-D-2016 1265 100 Catamarca Granted
Daniel Armando
23-D-2016
3325
100
Catamarca
Application
Maria II 14-D-2016 888 100 Catamarca Granted
Maria III
15-D-2016
1395
100
Catamarca
Granted
Morena 1 72-M-2016 3024 100 Catamarca Application
Morena 2
73-M-2016
3024
100
Catamarca
Application
Morena 3 74-M-2016 3024 100 Catamarca Application
Morena 6
75-M-2016
1606
100
Catamarca
Application
Morena 7 76-M-2016 2805 100 Catamarca Application
Morena 8
77-M-2016
2961
100
Catamarca
Application
Morena 12 78-M-2016 2704 100 Catamarca Application
Morena 13
79-M-2016
3024
100
Catamarca
Application
Pampa I 129-S-2013 2312 100 Catamarca Granted
Pampa II
128-F-2005
1119
100
Catamarca
Granted
Pampa III 130-S-2013 477 100 Catamarca Granted
56 Leases/Applications 98023 Ha 100% LKE

Lake Resources N.L. (ACN 079 471 980) ASX:LKE Suite 4, Level 9, 341 George St, Sydney NSW 2000, Australia T: +61 2 9188 7864 E: [email protected]

7

REF TENEMENT NAME NUMBER AREA Ha INTEREST
%
PROVINCE STATUS
OLAROZ - CAUCHARI & PASO REAPPLICATION AREA OLAROZ - CAUCHARI & PASO REAPPLICATION AREA OLAROZ - CAUCHARI & PASO REAPPLICATION AREA
MASA 1 2223-M-2016 375 100 Jujuy Application
MASA 2 2224-M-2016 363 100 Jujuy Application
MASA 3 2225-M-2016 125 100 Jujuy Application
MASA 4 2226-M-2016 952 100 Jujuy Application
MASA 5 2227-M-2016 1937 100 Jujuy Application
MASA 6 2228-M-2016 268 100 Jujuy Application
MASA 7 2229-M-2016 2072 100 Jujuy Application
MASA 8 2230-M-2016 2950 100 Jujuy Application
MASA 9 2231-M-2016 2985 100 Jujuy Application
MASA 10 2232-M-2016 2210 100 Jujuy Application
MASA 11 2233-M-2016 1913 100 Jujuy Application
MASA 12 2234-M-2016 3000 100 Jujuy Application
MASA 13 2235-M-2016 3000 100 Jujuy Application
MASA 14 2236-M-2016 3000 100 Jujuy Application
MASA 15 2237-M-2016 3000 100 Jujuy Application
MASA 16 2238-M-2016 3000 100 Jujuy Application
MASA 17 2239-M-2016 3000 100 Jujuy Application
MASA 18 2240-M-2016 3000 100 Jujuy Application
MASA 19 2241-M-2016 3000 100 Jujuy Application
MASA 20 2242-M-2016 3000 100 Jujuy Application
MASA 21 2243-M-2016 3000 100 Jujuy Application
MASA 22 2244-M-2016 2548 100 Jujuy Application
MASA 23 2245-M-2016 2406 100 Jujuy Application
23 Lease Applications 51104 Ha 100% LKE

Lake Resources N.L. (ACN 079 471 980) ASX:LKE Suite 4, Level 9, 341 George St, Sydney NSW 2000, Australia T: +61 2 9188 7864 E: [email protected]

8

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

LAKE RESOURCES N.L.

ABN Quarter ended (“current quarter”) 49 079 471 980 31 Dec 2016

Consolidated statement of cash flows Current quarter
$A’000
Year to date
(6 months)
$A’000
1.
Cash flows from operating activities
1.1
Receipts from customers
1.2
Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) staff costs
(e) administration and corporate costs
1.3
Dividends received (see note 3)
1.4
Interest received
1.5
Interest and other costs of finance paid
1.6
Income taxes paid
1.7
Research and development refunds
1.8
Other (provide details if material)
1.9
Net cash from / (used in) operating
activities
0
(30)
0
0
(29)
(39)
0
0
0
0
0
0
(30)
(29)
(92)
(88) (141)
2.
Cash flows from investing activities
2.1
Payments to acquire:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
0
(70)
0
0
(70)

LKE App 5B Quarterly Report ended 31 Dec 2016

Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows Current quarter
$A’000
Year to date
(6 months)
$A’000
2.2
Proceeds from the disposal of:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.3
Cash flows from loans to other entities
2.4
Dividends received (see note 3)
2.5
Other (provide details if material)
2.6
Net cash from / (used in) investing
activities
0
0
0
0
0
0
0
(70) (70)
3.
Cash flows from financing activities
3.1
Proceeds from issues of shares
3.2
Proceeds from issue of convertible notes
3.3
Proceeds from exercise of share options
3.4
Transaction costs related to issues of
shares, convertible notes or options
3.5
Proceeds from borrowings
3.6
Repayment of borrowings
3.7
Transaction costs related to loans and
borrowings
3.8
Dividends paid
3.9
Other (provide details if material)
3.10
Net cash from / (used in) financing
activities
1550
0
0
(32)
0
(250)
0
0
0
1550
(32)
(250)
1297 1297
4.
Net increase / (decrease) in cash and
cash equivalents for the period
4.1
Cash and cash equivalents at beginning of
period
4.2
Net cash from / (used in) operating
activities (item 1.9 above)
4.3
Net cash from / (used in) investing activities
(item 2.6 above)
4.4
Net cash from / (used in) financing activities
(item 3.10 above)
4.5
Effect of movement in exchange rates on
cash held
4.6
Cash and cash equivalents at end of
period
21
(88)
(70)
1297
0
74
(141)
(70)
1297
0
1160 1160

LKE App 5B Quarterly Report ended 31 Dec 2016

Page 2

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5.
Reconciliation of cash and cash
equivalents
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
Current quarter
$A’000
Previous quarter
$A’000
5.1
Bank balances
5.2
Call deposits
5.3
Bank overdrafts
5.4
Other (provide details)
5.5
Cash and cash equivalents at end of
quarter (should equal item 4.6 above)
1160 21
1160 21
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 29
6.2 Aggregate amount of cash flow from loans to these parties included 0
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2

7. Payments to related entities of the entity and their associates

Current quarter $A'000

7. Payments to related entities of the entity and their
associates
Current quarter
$A'000
7.1 Aggregate amount of payments to these parties included in item 1.2
7.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2

LKE App 5B Quarterly Report ended 31 Dec 2016

Page 3

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

8.
Financing facilities available
Add notes as necessary for an
understanding of the position
Total facility amount
at quarter end
$A’000
Amount drawn at
quarter end
$A’000
8.1
Loan facilities
0
0
8.2
Credit standby arrangements
8.3
Other (please specify)
8.4
Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.
Total facility amount
at quarter end
$A’000
Amount drawn at
quarter end
$A’000
0 0
Facility of $250k in Lith NRG Pty Ltd was repaid after completion of transaction between LKE and
Lith NRG Pty Ltd

Facility of $250k in Lith NRG Pty Ltd was repaid after completion of transaction between LKE and Lith NRG Pty Ltd

9.
Estimated cash outflows for next quarter
$A’000
9.1
Exploration and evaluation
9.2
Development
9.3
Production
9.4
Staff costs
9.5
Administration and corporate costs
9.6
Other (provide details if material)
9.7
Total estimated cash outflows
(180)
0
0
(36)
(24)
0
(240)
10.
Changes in
tenements
(items 2.1(b) and
2.2(b) above)
Tenement
reference
and
location
Nature of interest Interest at
beginning
of quarter
Interest
at end of
quarter
10.1
Interests in mining
tenements and
petroleum tenements
lapsed, relinquished
or reduced
Kachi Area
Catamarca
Pampa I,II,
III
Acquired 100% 0% 100%
10.2
Interests in mining
tenements and
petroleum tenements
acquired or increased

LKE App 5B Quarterly Report ended 31 Dec 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

  • 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

31 January 2017 Sign here: ............................................................ Date: ............................................. (Director/Company secretary)

Andrew Bursill Print name: .........................................................

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

  2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

  3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

LKE App 5B Quarterly Report ended 31 Dec 2016

Page 5