MACRO METALS LIMITED — Interim / Quarterly Report 2012

Apr 22, 2012

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Quarterly Report

For the three months ending 31 March 2012

Key Achievements

• Successful completion of the reinstatement to official quotation of Energio Limited as an iron ore explorer and potential producer.

• Drilling results obtained over the quarter indicate continued grade (42-53% Fe) and thickness (20-30 metres) consistency over the current drill program area.

• Engaged metallurgical laboratory, ALS Ammtec, to commence Davis Tube Recovery (DTR) and Mineral Liberation Analyses (MLA) testwork.

Overview

Energio Limited is an ASX listed company focused on the exploration and development of the Agbaja Plateau iron ore project (the Project) in Nigeria.

On 29 February 2012, Energio Limited announced the completion of the purchase of 100% of the fully paid ordinary shares in KCM Nigeria, thereby providing Energio 100% ownership and control of the Project.

The granted license areas for exploration are situated in Kogi State which is part of the central region of Nigeria.

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Close proximity of the licences to existing infrastructure provides potential advantages in reduced capital expenditure and project development schedule.

March Quarter Report 2012

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In October 2011, the Company commenced an 800 hole reverse circulation (“RC”) drill program at the Agbaja Project with the objective of defining a maiden JORC indicated resource by Q3 2012.

Exploration

Exploration activity continues to focus on the area defined by the current RC drill program contained within EL8583 and EL12124 only. A total of approximately 4,953 metres of reverse circulation drilling were completed during the quarter. This brings the total drilling to 8,635 metres or 321 holes since drilling commenced on the Project.

In recent weeks, Energio has experienced some delays in sample transport from West Africa to Australia (ASX release “Update on Drilling Results” – 30 March 2012) as well as what appears to be an early commencement to the wet season. The Board of Energio remains confident that the release of the maiden resource at the Agbaja Project will still occur in Q3 2012.

In the meantime, laboratory results will be released to the market on a continuous disclosure basis.

Development

The development plan, in general, envisages the following activities to take place during quarters 2 and 3, 2012:

• Complete mineralogical and preliminary metallurgical test work;

• Complete independent high level reviews of infrastructure requirements (rail, road, port, water and power options);

• Commence preliminary environmental review with primary activities focusing on any existing data collection and review; and

• Undertake analyses of iron ore markets (specifications, quantities and locations).

March Quarter Report 2012

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Corporate

During the quarter, Directors of Energio announced several changes to Office Holders:

• Tom Revy appointed as Chief Executive Officer of KCM Mining Holdings Pty Ltd;

• Brian King appointed as a Non-Executive Director of Energio Limited;

• Sean Henbury resigned as Company Secretary; and

• Peter Hunt and George Yatzis appointed joint Company Secretaries of Energio Limited.

As of 31 March 2012, Energio has cash and investments of $6.1 million.

Energio has on issue 239,726,983 fully-paid ordinary shares and 8,870,002 unlisted options.

For further information, please contact:

Tom Revy Chief Executive Officer Energio Limited 13 Colin Street West Perth WA 6005 GPO Box 1934 West Perth WA 6872 Australia

Email: tom.revy@energio.net.au

Peter Hunt Company Secretary Energio Limited Level 2, 139 Frome Street Adelaide SA 5000 GPO Box 2505 Adelaide SA 5001 Australia

Email: peter.hunt@energio.net.au

ABN 28 001 894 033 ASX Code: EIO

Tel: +61 8 7421 1460 Fax: +61 8 7421 1499

March Quarter Report 2012

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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining 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

Name of entity

	Name of entity
	Energio Limited
	ABN 28 001 894 033 Consolidated statement of cash flows
			31 March 2012
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & 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 (provide details if material) NetOperating Cash Flows		Current quarter $A’000		Year to date ( 9 months) $A’000
		- (413) (470) 8		- (413) (882) 10
		(875)		(1,285)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (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 (provide details if material) - Cash on hand of KCM Mining Holdings Pty Ltd upon acquisition by Energio Limited - Evaluation of proposed projects Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		1,422		(2,000) 1,422 (279)
		1,422		(857)
		547		(2,142)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	547	(2,142)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 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 (provide details if material) Net financing cash flows	2,673	3,512
	2,673	3,512
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	3,220 2,878	1,370 4,728
	6,098	6,098

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
		69
1.25	Explanation necessaryfor an understandingof the transactions
	Fees and wages paid to directors of the entity.

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

Issue of 101,349,734 fully paid ordinary shares for the acquisition of KCM Mining Holdings Pty Ltd.

• 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

Financing facilities available

Add notes as necessary for an understanding of the position.

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

	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
	1,500
	470
Total	1,970

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)	6,098	2,878
Total: cash at end of quarter(item 1.22)	6,098	2,878

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.

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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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	239,726,983	239,726,937
	115,899,734	115,899,734
7.5 +Convertible debt securities– (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options Listed & unrestricted Unlisted & unrestricted Unlisted & unrestricted Unlisted & unrestricted 7.8 Issued during quarter 7.9 Exercised during quarter	1,497,327 1,500 20,000 15,120,002		Exercise price $10.00 $10.00 $12.50 $0.20	Expiry date 31/03/2013 14/09/2012 31/12/2012 30/11/2013
	6,250,000
	50,000

• See chapter 19 for defined terms.

Appendix 5B Page 4

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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 5).

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

Sign here:

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Date: 23/04/2012

Print name: Peter Hunt Company Secretary

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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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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