LCL RESOURCES LIMITED — Interim / Quarterly Report 2014

Apr 30, 2014

ASX ANNOUNCEMENT

30 April 2014

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QUARTERLY ACTIVITIES REPORT & APPENDIX 5B

3 MONTHS TO 31 MARCH 2013

Activities for the Quarter ending 31 March 2014 focused on advancing the Mollacas Copper Leach Project, preparatory work for the planned Pre-Feasibility Study at Los Calatos and progressing discussions with parties interested in investing in Los Calatos.

Mollacas Copper Leach Project - Chile

Financial modelling completed during the quarter has demonstrated the robust nature of the economics for the Project. This is largely attributable to the positive Phase 3 metallurgical results, as well as reduced operating and capital costs. Highlights from the aforementioned work include the following:

• Tonnes Mined: 14.5 million tonnes at 0.52% CuT (0.42% CuSol)

• Production rate: up to 8,000tpa copper cathode

• Pre-Production Capex: US$47.1 million

• C1 Cash Costs: US$1.23/lb

• NPV (after tax @ 8%): US$74.9 million (unlevered)

• IRR (after tax): 37.2% (unlevered)

Based on the positive economics for the project, the decision was made to proceed with a Feasibility Study and Environmental Impact Study.

In March 2014, the Court of Appeal, IV Region, ruled that the First Extension Easement for Mollacas, which would have facilitated permitting for mining, was invalid. The Court of Appeal did however confirm that the Original Easement granted in 2004 by the First Court of Ovalle permitting access to the project area (viz. Exploration and Exploitation Concessions), remains current and is in full force and effect.

On 3 April 2014, the Company lodged an appeal against the ruling by the Court of Appeal with the Supreme Court of Chile on the basis that the Court of Appeal had incorrectly interpreted the Mining Act and Mining Code and that the ruling contained several judicial flaws.

Los Calatos Project - Peru

• Further work undertaken in support of the planned Pre-Feasibility Study

• Discussions continued with a number of parties who have expressed an interest in investing in Los Calatos.

Corporate

• Cash position as at 31 March 2014 was approximately A$5.5 million (US$5.1 million); and

• Following the conclusion of the recent update of the Mollacas Scoping Study, and the optimisation work completed by Runge Pincock Minarco on the Los Calatos Project, the Company has a total in situ mining inventory of 3.9 million tonnes (8.5 billion lbs) contained copper.

Mr William Howe, Managing Director, commented: “The quarter represented a significant milestone in delivering the positive results of the metallurgical testwork and revised financial modelling at Mollacas. Metminco will now look to fast track the Feasibility Study together with its Environmental Impact Study as part of the process of obtaining the required mining permits to develop the project.

The ruling of the Court of Appeal is a natural distraction, however we remain confident that the Company’s appeal to the Supreme Court of Chile will yield a positive outcome.”

Metminco Limited ABN 43 119 759 349	Level 6, 122 Walker Street, North Sydney, NSW, 2060
ASX Code: MNC.AX; AIM Code: MNC.L	Tel: +61 (0) 2 9460 1856; Fax: +61 (0) 2 9460 1857
	www.metminco.com.au

ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

MOLLACAS PROJECT

Introduction

The Mollacas Project is located in the IV Region, Chile, at an altitude of 1,200 to 1,500 metres above sea level. It is situated approximately 65 km east of the city of Ovalle, and can be accessed from Ovalle via 53 km of asphalt road to the town of Rapel, and then by 12 km of a well-maintained dirt road east of Rapel.

The Company holds title to 20 Exploitation Concessions covering the Mollacas deposit and surrounding area, as well as 179 ha of surface rights adjacent to the proposed open pit operation. The infrastructure for the mine will be located on Company owned land including the leach pads, processing plant, administration facilities and mine workshops. Metminco also owns water rights to approximately 175 litres/sec from two canals which traverse the properties. The estimated water usage for the operation will be 40 litres/sec.

Metminco has recently updated the original 2008 Scoping Study to incorporate the results of the pit optimisation study completed by the Company in 2013, as well as the updated mining and processing costs, which provide for contract mining and the results of the recent metallurgical testwork. Capital estimates were updated and adjusted for the revised production profile, in addition to providing for the use of mining contractors.

Pit Optimisation Study

The pit optimisation study completed in 2013 by the Company was based on the most recent Mineral Resource Estimate completed by SRK Consulting, Chile (Table 1), as well as the input parameters summarised in Table 2.

Table 1: Mineral Resource Statement for the Oxide and Secondary Mineralisation for Las Mollacas Copper Project, Ovalle, Chile, SRK Consulting (Chile) S.A., July 06, 2012.

Category	Tonnes (million)	CuT %	CuSol (%)
Measured	11.2	0.55	0.44
Indicated	4.3	0.41	0.29
Total Measured and Indicated	15.5	0.51	0.40

Note: Reported at a 0.2% TCu cut-off.

Table 2: Modelling Parameters - Pit Optimisation Study (2013) and Revised Financial Model (2014).

Description	Factor	Factor
	Pit Optimisation (2013)	Financial Model (2014)*
Mining Cost (material mined)	US$2.04/t	US$1.90/t
Processing Cost (ore processed)	US$7.70/t	US$5.20/t
G&A Cost (ore processed)	US$0.50/t	US$0.50/t
Selling Cost (cathode)	US$52.90/t	US$105.29/t
Copper Price	US$2.71/lb	US$3.10/lb

* Includes updated mining and processing costs based on work completed by the Company in Q1 2014.

The pit optimisation work, using a 0.15% TCu cut-off, resulted in a provisional production profile comprising 14.5 million tonnes at 0.52% CuT (0.42% CuSol) over the life of the pit, with an in-situ soluble copper content of 60,753 tonnes.

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

As the pit optimisation study completed in 2013 does not provide for the latest copper recovery rates, as well as the updated mining and processing costs, further optimisation work will be conducted as part of the planned Feasibility Study. This work will result in the definition of a Mineral Reserve Estimate in accordance with the JORC Code (2012 Edition).

Metallurgy

The primary leach design parameters resulting from the recent metallurgical testwork have been incorporated into an updated Life of Mine production schedule. When compared to the original Scoping Study, it is clear that the reduction in acid consumption rates per tonne of ore leached (derived from Phase 3 metallurgical testwork) has more than offset the higher prevailing acid price, as well as the increase in power costs in Chile. The primary leach design parameters resulting from the recently completed metallurgical testwork are:

• Ore crush size: P80 12 mm to 16 mm

• Agglomeration acid addition: 10 kg/t (may be reduced after further testing)

• Stacked ore depth: 6 metres

• Stacked dry-bulk density (maximum): 1.7 t/m³

• A two-stage leach:

• i) 90-day Primary Leach Stage @ 5 L/hm² at 6 g/L H2SO4

• ii) 210-day Secondary Leach Stage @ 2.5 L/hm² at 3 g/L H2SO4

• Solution Management Scheme: The staged leach and acid concentration values can be met with a series/parallel SX configuration, where the Primary Leach PLS feeds the two in series SX extraction stages, and the Secondary Leach PLS feeds the parallel extraction stage

Additional column leach testwork has been initiated to determine the lowermost limit of acid addition in the agglomeration stage with the objective of ascertaining whether acid consumption can be reduced further.

Life of Mine Financial Model

At a mining rate of 6,108 tonnes per day, the Project has a Life of Mine of some 7 years producing up to 8,000 tonnes of cathode copper per annum. Table 2 lists the operating costs used in the revised financial model.

Capital costs for the Life of Mine, including sustaining capital and an allowance for the purchase of further surface title, is estimated to be US$52.3 million.

The results of the Life of Mine Financial Model are summarised in Table 3 below, and support the robust nature of the economics for the Project, and hence the decision to progress with the development of the Project.

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

Table 3: Summary of results from Life of Mine Financial Model .

Physicals	Units	Parameter
Mining Rate Crushing Rate (max throughput) Tonnes leached Average CuSol Grade Payable Cu Life of Mine Time to Production	(tpd)¹ (000 tpa) (000's t) (%) (tonnes) (years) (years)	6,108 2,500 14,500 0.42% 51,765 7.00 2.50
Financials
Feasibility Study and Permitting Development Capital (includes pre-stripping) Sustaining Capital Total Capital Expenditure C1 Cash Operating Costs Operating Cost Government Royalties Project Economics (ungeared) Project NPV (After-Tax1) at 8.0% IRR (After-Tax) Payback Project Economics (geared)* Interest Rate (US Libor + 4.5%pa) Gearing Ratio (Debt /Equity) NPV (After-Tax²) at 8.0% IRR (After-Tax)	(US$ 000) (US$ 000) (US$ 000) (US$ 000) (US$/lb Cu) US$/tonne crushed (US$ 000) % years % ratio (US$ 000) %	6,600 40,456 5,250 52,306 1.23 9.68 n/a 74,921 37.2% 2.44 6.3% 70%:30% 74,416 41%
Copper Price
Average Copper Price	(US$/lb)	3.10

1 Tonnes delivered to leach pad.

2 Effective tax rate of 20% assumes profits are not repatriated.

Legal

The surface rights which cover the planned open pit are held by a Chilean company, Agrícola Bauzá Ltda. Appendix 1 shows the extent of the Company’s Exploitation Concessions, surface rights, Original Easement (or “Servidumbre”), as well as the extent of the First Easement Extension.

Since 2004 Agrícola Bauzá Ltda has filed various actions against Metminco’s wholly owned subsidiary, Minera Hampton Chile Limitada (“Hampton Chile”), and the previous owners of the Exploitation Concessions, with respect to access and environmental matters, all of which have been vigorously defended. The Chilean judiciary have ruled in favour of Hampton Chile and the previous owners of the Exploitation Concessions in respect of all matters heard by the judiciary prior to March 2014.

In March 2014 Metminco was advised that the Court of Appeal of the IV Region, Chile, (the “IV Region Court of Appeal”) had ruled that the Company’s First Easement Extension (the “First Extension”) was invalid on technical grounds. The First Extension was initially granted by the Third Court of Ovalle on 11 November 2011.

The IV Region Court of Appeal did however confirm that the Original Easement permitting access to the Company’s Mollacas Copper Project (viz. exploration and exploitation concessions), granted in 2004 by the First Court of Ovalle, remains current and is in full force and effect.

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

Based on legal advice received by Metminco, the Company believes that the ruling by the IV Region Court of Appeal is inconsistent with the current Mining Legislation of Chile, and that the ruling contained several judicial flaws. Hampton Chile, as a holder of the relevant Exploitation Concessions, lodged an appeal with the Supreme Court of Chile on 3 April 2014.

Way Forward

As the Original Easement remains in full force and effect, the Company is permitted to continue with its plans to progress the Feasibility Study and Environmental Impact Study at Mollacas.

Should Hampton Chile’s appeal to the Supreme Court regarding the Court of Appeal’s ruling on the First Extension Easement be unsuccessful, the Company has various alternatives under the Chilean Mining Legislation and Mining Code to obtain the requisite permitting for mining activities.

LOS CALATOS PROJECT

Introduction

In March 2013, NCL Ingeniería y Construcción Ltda (“NCL”) completed a Mining Scoping Study on Los Calatos, which resulted in a Preferred Mining Scenario comprising an open pit operation to a depth of 500 metres below surface with a life of 7-years, and an underground bulk mining operation below this depth with a life of 24-years.

The Company subsequently commissioned Runge Pincock Minarco (“RPM”) to review the Preferred Mining Scenario, as well as subsequent pit optimisation work completed by Metminco, with the objective of optimising production and reducing operating costs and capital expenditure. This work resulted in an open pit that mines to a depth of 700 metres below surface with a life of 14-years, followed by an underground mining operation with a life of 20-years (Optimised L3_Model). The results of the RPM work were announced by Metminco on 12 August 2013, and presently constitute the reference base for the project going forward.

During the past quarter, the February 2013 Mineral Resource Statement was updated to correspond with the Optimised L3_Model, so as to provide for those mineral resources that are amenable to open-pit mining to a vertical depth of 700 metres below surface (viz. above an elevation of 2,300 metres above sea level), and those resources amenable to underground bulk mining below this depth (Appendix 2 Tables A2-1 to A2-4). It must be emphasised that the updated Mineral Resource Statement merely reflects an adjustment in the elevation at which the Mineral Resource is reported (and accompanying cut-off grades) to better reflect the Optimised L3_Model (Life of Mine Model) developed by RPM, and as such does not impact on the production profile.

Mineral Resource Estimate

The Mineral Resource Estimate completed by SRK (Chile) in February 2013, which was originally reported using the cut-off grades and elevations that formed the basis of the work completed by NCL, is summarised in Table 4 below.

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

Table 4: Total Mineral Resource (February 2013).

Potential mining method	Tonnes (million)	Cu (%)	Mo (%)
Open Pit Underground – bulk mining	304 1,058	0.36 0.51	0.018 0.025
Total Mineral Resource	1,362	0.48	0.024

Note:

• i) SRK Mineral Resource Estimate of February 2013.

• ii) Open Pit (above 2,500m amsl): Mineral Resource Estimate reported at a 0.15% CuEq cut-off grade. iii) Underground (below 2,500m amsl): Mineral Resource Estimate reported at a 0.35% CuEq cut-off grade.

• iv) Includes Measured, Indicated and Inferred Mineral Resource categories.

The Mineral Resource Statement that was updated in support of the Optimised L3_Model is summarised in Table 5 below.

Table 5: Total Mineral Resource (January 2014).

Potential mining method	Tonnes (million)	Cu (%)	Mo (%)
Open Pit Underground – bulk mining	493 926	0.38 0.51	0.023 0.022
Total Mineral Resource	1,419	0.47	0.022

Note:

• i) SRK Mineral Resource Estimate of February 2013.

• ii) Open Pit (above 2,300m amsl): Mineral Resource Estimate reported at a 0.15% CuEq cut-off grade.

• iii) Underground (below 2,300m amsl): Mineral Resource Estimate reported at a 0.35% CuEq cut-off grade.

• iv) Includes Measured, Indicated and Inferred Mineral Resource categories.

From Table 5 it is evident that the estimated tonnes that are amenable to open pit mining have increased by 62%, whereas the estimated tonnes amenable to undergound bulk mining have reduced by 12%. Overall, however, the revised total tonnage has increased by 4%. Of note is the fact that the copper grade for the mineral resources amenable to open pit mining to a depth of 700 metres has increased from 0.36% to 0.38%, which relates to the fact that the potential open pit now includes the upper sector of a prior, higher grade, block cave stope (Appendix 2).

Way Forward

Work continues in preparation for the planned Pre-Feasibility Study, key to which will be the ability to find a funding partner.

OTHER PROJECTS

During the quarter, a site visit was conducted by senior exploration management to the Camaron and Isidro Projects, as a follow-up to targets that had been identified by earlier exloration work, principally in the form of field mapping, remote sensing and soil geochemistry. Following the conclusion of the visit, and a reappraisal of all exploration results acquired to-date, the decision was made to terminate further exploration activities on these projects.

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

CORPORATE

Cash Position and Funding

Metminco’s cash position as at 30 March 2014 was A$5.5 million (US$5.1 million).

Expenditure for the March 2014 quarter totalled A$1.8 million, as per forecast.

In January 2014 the Company terminated its engagement with its Strategic Advisor who had been contracted to assist with the identification of a suitable Strategic Partner for the development of Los Calatos. However, the Company continues to hold discussions with a number of parties who have expressed an interest in investing in Los Calatos.

The Company is currently reviewing its plans going forward, and in particular, is evaluating opportunities to fund the development of the Los Calatos and Mollacas projects.

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William Howe

Managing Director

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

Company Background

Metminco is a dual ASX and AIM listed company with a portfolio of copper, molybdenum and gold projects in Peru and Chile.

Projects and Mineral Resources

The Los Calatos Project, located in southern Peru, has an open pittable Mineral Resource of 493 million tonnes at 0.38% Cu and 0.023% Mo (at cut-off grade of 0.15% CuEq) to a vertical depth of 700 metres below surface and an underground bulk mining Mineral Resource of 926 million tonnes at 0.51% Cu and 0.022% Mo (at a cut-off grade of 0.35% CuEq) commencing at an elevation of 2,300 metres (approximately 700 metres below surface).

The Chilean assets include the Mollacas Copper Project with a Mineral Resource of 15.5 million tonnes consisting of a Measured Resource of 11.2 million tonnes at 0. 55% Cu and 0.12g/t Au and an Indicated Resource of 4.3 million tonnes at 0.41% Cu and 0.14g/t Au(at a 0.2% copper cut-off); and the Vallecillo Project with a Mineral Resource of 8.9 million tonnes consisting of a Measured Resource of 5.5 million tonnes at 0.84g/t Au, 9.99g/t Ag, 1.12% Zn and 0.32% Pb, an Indicated Resource of 2.6 million tonnes at 0.80g/t Au, 10.23g/t Ag, 0.94% Zn and 0.35% Pb and an Inferred Resource of 0.8 million tonnes at 0.50g/t Au, 8.62g/t Ag, 0.48% Zn and 0.17% Pb (at a cut-off grade of 0.2g/t Au).

The Company also has a number of early stage exploration projects where initial exploration activities have identified anomalous copper, molybdenum and gold values.

Competent Persons Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Colin Sinclair, BSc, MSc, who is a Member of the Australasian Institute of Mining and Metallurgy and is employed by the Company in Chile.

Colin Sinclair has sufficient experience (over 30 years) which is relevant to the style of mineralisation, type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results’. Mr Sinclair, as Competent Person for this announcement, has consented to the inclusion of the information in the form and context in which it appears herein.

Forward Looking Statement

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ‘’anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”, “opportunity”, “plan”, “potential”, “project”, “seek”, “will” and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco’s actual results to differ materially from the results expressed or anticipated in these statements.

The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

For further information contact:

Office: +61 (0) 2 9460 1856

METMINCO LIMITED

William Howe – Managing Director Stephen Tainton – Executive Director Phil Killen – Company Secretary & CFO

Mobile: +61 (0) 2 9460 1856 Mobile: +61 (0) 477 299 411 Mobile: +61 (0) 408 609 916

BROKERS

Canaccord Genuity (UK)

Neil Elliot/Emma Gabriel Liberum Capital Limited (UK)

Tim Graham

FINANCIAL PUBLIC RELATIONS Buchanan (UK) Gordon Poole/Tim Thompson

Office: +44 (0) 20 7523 8000 Office: +44 (0) 20 3100 2222

Office: +44 (0) 207 466 5000

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

APPENDIX 1

Mollacas Project - Mineral and surface rights held by Metminco.

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

APPENDIX 2

Los Calatos Project: Section 10300E showing the Los Calatos Block Model, the planned Open Pit and certain of the underground Block Cave Stopes.

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

Updated Mineral Resource Statement

Table A2-1: Mineral Resources to a vertical depth of 700 metres below surface (above 2,300 masl).

Category	Tonnes (million)	Cu (%)	Mo (%)
Measured Indicated	222 191	0.37 0.38	0.031 0.020
Measured & Indicated	413	0.37	0.026
Inferred	80	0.42	0.009

Note:

• i) Open Pit: Mineral Resource Estimate reported at a 0.15% CuEq cut-off grade.

• ii) Modified after SRK Consulting (Chile) S.A. February 2013 Mineral Resource Statement.

Table A2-2: Mineral Resources sub-700 metres below surface (below 2,300 masl).

Category	Tonnes (million)	Cu (%)	Mo (%)
Measured Indicated	206 437	0.49 0.52	0.032 0.020
Measured & Indicated	643	0.51	0.024
Inferred	283	0.52	0.018

Note:

• i) Underground: Mineral Resource Estimate reported at a 0.35% CuEq cut-off grade.

• ii) Modified after SRK Consulting (Chile) S.A. February 2013 Mineral Resource Statement.

Table A2-3: Total Mineral Resource Estimate: Open Pit and Underground Block Cave.

Category	Tonnes (million)	Cu (%)	Mo (%)
Measured Indicated	428 628	0.43 0.48	0.031 0.020
Measured & Indicated	1,056	0.46	0.025
Inferred	363	0.50	0.016
Total Mineral Resource	1,419	0.47	0.022

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ASX ANNOUNCEMENT

METMINCO LIMITED

30 April 2014

Table A2-4: Optimised L3_Model – Total Tonnes Mined (RPM August 2013).

Mining Operation	Tonnes (million)	Cu (%)	Mo (%)
Open Pit Underground – Bulk Mining	362 449	0.37 0.56	0.023 0.035
Total	811	0.47	0.029

Note:

i) Based on the Preferred Mining Scenario modelled by NCL.

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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.

Name of entity

Metminco Limited ABN Quarter ended (“current quarter”) 43 119 759 349 31 March 2014

Consolidated statement of cash flows

Consolidated statement of cash flows
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 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 paid 1.7 Other (Peruvian IGV (GST) recovery) Net Operating Cash Flows	Current quarter $A’000	Year to date 3.months $A’000
	(974) - - (1,087) - 3 - 131 -	(974) - - (1,087) - 3 - 131 -
	(1,927)	(1,927)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) 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 Net investing cash flows 1.13 Total operating and investing cash flows (carriedforward)	- (1) - - - - - -	- (1) - - - - - -
	(1)	(1)
	(1,928)	(1,928)

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,928)	(1,928)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. Costs of issue 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (proceeds from equity swap) Net financing cash flows	- - - - - - -	- - - - - - -
	-	-
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 of quarter	(1,928) 7,808 (395)	(1,928) 7,808 (395)
	5,485	5,485

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
		313
		-
1.25	Explanation necessaryforanunderstanding ofthe transactions
	Item 1.23 includes aggregate amounts paid to directors for the period 01 Jan 14 – 31 Mar 14 for: Directors’ fees: $297,501 Directors’services and consultingfees:$16,111

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 None

• 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 None

• See chapter 19 for defined terms.

Appendix 5B Page 2

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 Production 4.4 Administration
		$A’000
		800
		-
		-
		800
Total		1,600

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(provide details)	5,485	5,485
	-	-
	-	-
	-	-
Total:cash at end of quarter (item 1.22)	5,485	5,485

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 ofquarter	Interest at end of quarter

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 3

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
7.3	+Ordinary securities		1,749,543,023		1,749,543,023
7.4	Changes during Quarter: (a) Increases through Issues (b) Decreases through returns of capital, buy backs, redemptions
7.5	+Convertible Debt securities (description)
7.6	Changes during quarter: (a) Increases through issues (b) Decreases through Securities matured, converted
7.7	Options (description and conversion factor)		Unlisted: 2,500,000 2,500,000 2,000,000 2,000,000 250,000 250,000		Unlisted: 2,500,000 2,500,000 2,000,000 2,000,000 250,000 250,000	Exercise price A$ 0.215 A$ 0.260 A$ 0.175 A$ 0.210 A$ 0.075 A$ 0.089	Expiry date: 05 Dec 2014 05 Dec 2014 15 Jun 2015 15 Jun 2015 28 Jan 2016 28 Jan 2016
7.8	Issued during quarter
7.9	Exercised during quarter

• See chapter 19 for defined terms.

Appendix 5B Page 4

30/9/2001

Appendix 5B Mining exploration entity quarterly report

7.10	Expired during quarter
7.11	Debentures(totals only)
7.12	Unsecured notes (totals only)

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:

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Date: 30.04.2014

(Company secretary) Print name: Philip Killen

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.

30/9/2001

Appendix 5B Page 5