MACRO METALS LIMITED — Interim / Quarterly Report 2015

Apr 29, 2015

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Nigerian Subsidiary
Nigerian SubsidiaryNigerian Subsidiary
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QUARTERLY REPORT MARCH 2015

30 April 2015

QUARTERLY REPORT – MARCH 2015

Australian based iron ore development company, Kogi Iron Limited (ASX: KFE) (“Kogi”, “Kogi Iron”, or the “Company”) and its 100% owned Nigerian operating company, KCM Mining Limited (“KCM”) presents the quarterly activity report for the three months ended 31 March 2015 .

Key activities by the Company during the quarter were:

Agbaja Project

The Company’s value realisation efforts for the Agbaja Project were limited during the quarter, predominantly due to activities associated with the 2015 Nigerian Presidential and National Assembly election, and the Governorship and State House of Assembly elections. All elections have now concluded and there is a peaceful transition of power to President-elect, the honourable Muhammadu Buhari. The inauguration of the new President is scheduled for 29 May 2015, following which it will take some time for a new government to be formed as the various ministers are appointed by the President, subject to approval by the Nigerian Senate. The Company anticipates that unfettered value realisation activities are unlikely until the new government is fully constituted.

During the quarter, KCM was granted an additional exploration licence (EL16998). The new licence is contiguous with exploration licence EL12124 (refer Figure 1, below). The grant of EL16998 increases by 11% the area of the Agbaja Plateau covered by granted Exploration Licences held by KCM; from ~85.25 sqr kms to ~100.53 sqr kms.

Figure 1: Location of EL16998, Agbaja Plateau, Nigeria

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Area of Indicated and
Inferred Mineral
Resources
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Unit 23, 4 Ventnor Avenue PO Box 1934 Telephone: +61 8 9200 3456 West Perth Western Australia 6005 West Perth Western Australia 6872 Facsimile: +61 8 9200 3455 Australia Australia Website: www.kogiiron.com

Kogi Iron Limited ABN 28 001 894 033 KCM Mining Limited (Nigerian Subsidiary)

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Corporate

During the quarter, the Company received a $0.24 million tax offset for research and development expenditure incurred during the 2013-14 financial year. At the end of the quarter, the Company had cash at bank of approximately $0.7 million.

On 16 March 2015, shareholders in a General Meeting approved the selective buy-back and cancellation by the Company of 46,900,000 fully paid ordinary shares of Kogi Iron, from the Kogi Iron Limited Employee Incentive Trust. As a result the number of fully paid ordinary shares of the Company was reduced by 11.05%, and at the date of this report the Company has 377,669,836 fully paid ordinary shares on issue and 102,704,606 ASX quoted options (exercise price $0.08, expiry date 31 May 2017).

The Company’s half year accounts were lodged with the ASX on 13 March 2015.

Mineral Tenements

As at 31 March 2015, the following mineral tenements were held by KCM. All of the mineral tenements are located in the Federal Republic of Nigeria and KCM has a 100% interest in each tenement:

Exploration Licence 8583 Exploration Licence 12124 Exploration Licence 8886 Exploration Licence 9791 Exploration Licence 6350 Exploration Licence 9792 Exploration Licence 6351 Exploration Licence 9793 Exploration Licence 6352 Exploration Licence 9794 Exploration Licence 7060 Exploration Licence 9796 Exploration Licence 7061 Exploration Licence 9797 Exploration Licence 10586 Exploration Licence 13258 Exploration Licence 14847 Exploration Licence 16998

For more information, please contact:

Kogi Iron Limited Tel (office): +61 8 9200 3456 Email: info@kogiiron.com

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About Kogi Iron (ASX: KFE)

Kogi Iron Limited is a Perth-based company with the objective of becoming an African iron ore producer through the development of its 100% owned Agbaja iron ore project located in Kogi State, Republic of Nigeria, West Africa (“Agbaja” or “Agbaja Project”). The Company has completed a Preliminary Feasibility Study which determined that the development and operation of a mine and processing plant at Agbaja to produce 5 Mtpa of iron ore concentrate is technically feasible, economically viable and socially and environmentally acceptable. Concentrate from Agbaja will initially be transported via river barge along the Niger River to the Gulf of Guinea and world export markets. The Company will continue to advance access and usage agreements for an existing under-utilised heavy haulage railway that runs from near the Agbaja Project to Port Warri. This existing railway remains an important part of a longer term transport solution for an expanded production profile.

In recent years Nigeria has sought to diversify its economy, which is dominated by hydrocarbons, into minerals and related industries. Nigeria is the largest country by population in Africa with a GDP growth rate of 7.2% in 2014. The country has very transparent and consistent mining regulations and very favourable fiscal terms for foreign investment in mining.

The Company holds a land position of approximately 400km[2 ] covering 16 tenements, with the main focus being EL12124 which covers a large part of the Agbaja Plateau. The Agbaja Plateau hosts an extensive, shallow, flat-lying channel iron deposit with an Indicated and Inferred Mineral Resource of 586 million tonnes with an in-situ iron grade of 41.3% reported in accordance with the JORC Code (2012). This mineral resource covers approximately 20% of the prospective plateau area within EL12124.

Forward-looking Statements

This announcement contains forward-looking statements which are identified by words such as ‘anticipates’, ‘forecasts’, ‘may’, ‘will’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, ‘plan’ or ‘intends’ and other similar words that involve risks and uncertainties. Indications of, and guidelines or outlook on, future earnings, distributions or financial position or performance and targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources are also forward looking statements. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions and estimates regarding future events and actions that, while considered reasonable as at the date of this announcement and are expected to take place, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies. 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 our Company, the Directors and management. We cannot and do 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 readers are cautioned not to place undue reliance on these forward-looking statements. These forward looking statements are subject to various risk factors that could cause actual events or results to differ materially from the events or results estimated, expressed or anticipated in these statements.

Competent Persons’ Statements

The information in this announcement that relates to Mineral Resources at Agbaja is extracted from the ASX announcement entitled “Mineral Resources at Agbaja Increase 20% to 586MT includes an Indicated Resource of 466MT” and is available to view on www.kogiiron.com. The Company confirms that it is not aware of any information or data that materially affects the information included in the original market announcement and, in the case of estimated Mineral Resources or Ore Reserves, which all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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

Rule 5.5

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8 Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10, 01/05/2013

Name of entity

KOGI IRON LIMITED

	ABN 28 001 894 033		Quarter ended (“currentquarter”) 31 March, 2015	Quarter ended (“currentquarter”) 31 March, 2015
	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 Research and Development Tax Rebate Net Operating Cash Flows		Current quarter $A'000		Year to date (9 months) $A'000
		(83) - 6 - - 236 - (228) - - (70)		- (666) - - (839) 12 - - 236 (1,258)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity swaps (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity swaps settled (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) Disposal of fixed assets		- - - 89 - - - - - - 89		- (850) - - - 241 - - - 12 (597)
		19		(1,855)

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• See chapter 19 for defined terms.

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

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1.13 Total operating and investing cash flows (brought forward)	19	(1,855)
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 - payment of finance lease 1.19 Other - share issue costs Net financing cash flows
	- - - - - - -	2,570 - - - - - (176)
	-	2,394
1.20 Net increase (decrease) in cash held 1.21 1.22 Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 Cash at end ofquarter	19 637	539 117 -
	656	656

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of payments to the parties included in item 1.10	Current quarter $A'000
		74
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Directors remuneration

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest

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• See chapter 19 for defined terms.

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

__________ Financing facilities available

Add notes as necessary for an understanding of the position.

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

Estimated cash outflows for next quarter
4.1 Exploration and Evaluation 4.4 Administration 4.2 Development 4.3 Production	$A'000
	150
	-
	-
	40
Total	190

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 as follows. 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	Current quarter $A'000	Previous quarter $A'000
	656	637
	-	-
Total: cash at end of quarter(item 1.22)	656	637

Changes in interest in mining tenements and petroleum tenements

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

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• See chapter 19 for defined terms.

01/05/2010 Appendix 5B Page 3

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

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Issues 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	Amount paid up per security
7.1 Partly paid~~+~~securities 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 ofcapital, buy-backs	377,669,836	376,669,836		Fully paid
	46,900,000
7.5 ~~+~~Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted
7.7 Options 7.8 Issued during quarter
	102,704,606	102,704,606	Exercise Price $0.08	Expiry 31 May 2017

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• See chapter 19 for defined terms.

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

_______ 7.9 Exercised during quarter 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 the ASX (see note 5).

• 2 This statement does / ~~does not~~ give a true and fair view of the matters disclosed.

Sign here: Dated: 30 April, 2015

Print Name: Shane Volk ( ~~Director~~ /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 and petroleum 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 or petroleum 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 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.

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• See chapter 19 for defined terms.

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