MATSA RESOURCES LIMITED — Interim / Quarterly Report 2013

Oct 30, 2012

Matsa Resources Limited – October 2012

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LIMITED

ABN 48 106 732 487

ASX Announcement

30 October 2012

Quarterly Activities Report – 30 September 2012

HIGHLIGHTS OF SEPTEMBER QUARTER

CORPORATE SUMMARY

Executive Chairman

• Mt Henry Gold Joint Venture formed and settlement completed.

• Mt Henry Gold Joint Venture Bankable Feasibility Study commenced.

• 665 soil samples collected covering 80% of Symons Hill project area.

• Interpreted mafic intrusion 3.5km x 2km in extent defined in Symons Hill Fault zone.

• Helicopter – Borne VTEM survey of entire Symons Hill project to commence.

• Diamond drilling identifies gold mineralised veins at Big Red, Dunnsville.

Paul Poli

Director

Frank Sibbel

Director & Company Secretary Andrew Chapman

Shares on Issue 132.42 million Unlisted Options

9.75 million @ $0.273 - $0.45 Top 20 shareholders Hold 53.55%

Share Price on 30 October 2012

32 cents Market Capitalisation

$42.37 million

Head Office: Suite 11, 139 Newcastle Street, Perth Western Australia 6000 Tel : +61 8 9230 3555 Fax: +61 8 9227 0370 Bangkok Office: Unit 1808, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 Tel : +66 0 2653 0258 Fax : +66 0 2653 0258 reception@matsa.com.au www.matsa.com.au

Matsa Resources Limited – October 2012

INTRODUCTION

Matsa Resources Limited (“Matsa” or “the Company” ASX:MAT) is pleased to report on its exploration and corporate activities for the Quarter ended 30[th] September 2012.

COMPANY ACTIVITIES

Mt Henry Gold Project – Panoramic/Matsa JV

On 26 June 2012, Matsa announced that it had entered into a Sale and Purchase Agreement with Panoramic Resources Ltd (“Panoramic” ASX:PAN) for Panoramic to acquire a 70% interest in the Mt Henry Gold Project (formerly Norseman Gold Project).

Ministerial Consent was obtained for the transfer of Matsa’s Mining Leases to the joint venture after Matsa shareholders approved the transaction at a general meeting held on August 14[th] 2012. .

This agreement was completed and settled on 16[th] August 2012, on the following terms:

• Consideration of $5 million in cash and 14 million fully paid Panoramic shares;

• Matsa to be free carried for a fully funded Bankable Feasibility Study (BFS) to commence immediately; and

• Provision for buyout of Matsa’s interest in the project for a further $6.5 million in consideration with a $5 million royalty as a safety net should Matsa not be able to participate further or is unable to finance its share of the project within 180 days from delivery of BFS.

In addition Matsa formed a Joint Venture with Panoramic to:

• Immediately commence new exploration programmes within The Mt Henry Gold Project area; and

• Establish and manage all ongoing JV activities.

to its 30% share of the costs of regional exploration outside of the BFS tenements.

A Bankable Feasibility Study has commenced which will include a substantial drill programme to enhance the knowledge base of the Mt Henry Project. A programme of works (POW) was approved by the DMP for a 10,000 metre mixed RC and diamond drilling programme. This programme, to be managed by Panoramic is planned to commence during the 4[th] quarter 2012.

The objective of this programme is to enable the completion of the BFS by:

• 1) Increasing knowledge and confidence in the resource base,

• 2) Potentially increase the gold resource,

• 3) Infill drilling will permit the upgrade of inferred to indicated resources category,

• 4) Provide additional geotechnical information to assist in the engineering designs,

• 5) To provide material for metallurgical studies and determine the optimum process route to maximize gold recoveries.

The BFS process will not only provide the business model, but could also provide the economic information required to upgrade some mineral resources to ore reserves.

Mt Henry Regional Exploration – Abbotshall Soils

Previous soil samples collected to infill the Abbotshall South soil gold anomaly were submitted for assay during the quarter. This soil anomaly was defined by previous wide spaced soil sampling programme. The purpose of the infill sampling was to better define the target prior to drilling.

Results of the soil samples collected are awaited.

Under the terms of the JV, Matsa is free carried to successful completion of the BFS but will contribute

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Matsa Resources Limited – October 2012

Dundas Iron Ore –Corporate

As a result of the successful Joint Venture with Panoramic for The Mt Henry Gold Project and the commencement of the BFS, Matsa has formally terminated the agreement and any further discussions with Haina International Trading HK Limited for the Dundas Iron Ore Project.

Results favour a steeply west dipping magnetic stratigraphy. Prior to this, the best available structural information indicated a steep easterly dip and consequently all previous drill holes on the prospect are oriented towards the west. Samples were submitted at 0.3-2m intervals and gold determinations were carried out by Fire Assay (Figure 2).

Dunnsville Gold Project – Diamond Drilling Big Red

During the quarter Matsa completed a four diamond hole drilling program designed to test for primary gold in basement at the Big Red prospect.

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Figure 1: Big Red Prospect Diamond Drill Hole Locations

This programme was granted Exploration Incentive Scheme (EIS) funding by the DMP under which 50% of the direct drilling costs are reimbursed. The 4 HQ diamond holes were completed along two sections for a total of 514.5 metres of drilling (Figure 1).

Drill holes were oriented at -60 degrees towards 060 degrees. The drill hole orientation was selected after a reinterpretation of magnetic data over Big Red by geophysical consultants.

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Figure 2: Big Red Diamond Drillholes DDH1 and DDH2

Drill holes were designed to test a conceptual model whereby mineralisation at Big Red is associated with a vein stockwork produced by shearing of the host gabbro/dolerite by a NNW trending shear couple parallel with the Bullabulling and Reptile Faults.

Matsa believes that this location is favourable for the formation of brittle fractures in country rocks which provided space for subsequent emplacement of gold bearing quartz veins.

Drilling showed fresh basement lithologies to be made up of variably sheared and altered coarse to medium grained gabbro/dolerite. In addition, assays confirmed the presence of gold mineralised quartz veins. Significant gold bearing intersections include:

• 0.7m @ 2.44g/t from 80.4m (12BRDDH002);

• 2m @ 1.06g/t from 98m (12BRDDH002); and

• 1.1m @ 2.56g/t from 56.9m (12BRDDH004).

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Matsa Resources Limited – October 2012

These intersections are narrow and isolated, and while Matsa believes that they support the exploration model, discovery of zones of more intense veining or thicker individual veins is required for economic viability.

The gold mineralised quartz veins were seen to contain significant coarse disseminated pyrite and are enclosed by pyrrhotite rich altered margins in the gabbro/dolerite country rocks. It is likely that pyrrhotite (a magnetic mineral) within the country rocks gives rise to the discrete magnetic feature which partly underlies the Big Red target.

Pyritic quartz veins in a variably pyrrhotite bearing host may be expected to produce a distinctive electrical signature identifiable by the Induced Polarisation (IP) ground geophysical technique.

In addition, it is likely that gold mineralisation may be associated with a distinctive geochemical suite of one or more “pathfinder” elements.

over the Yarmany, Great Kangaroo and Heines Dam prospects (Figure 3). These holes will test regionally extensive soil gold anomalies which have received minimal previous exploration. RAB drill traverses comprising holes at 25m intervals to a nominal depth of 50m will test the regolith profile and a short (<0.5m) section of relatively fresh bedrock.

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Figure 3: Proposed RAB Drilling Great Kangaroo – Big Red – Heines Dam

The immediate focus at Big Red is to carry out:

• Orientation IP lines to test for distinctive electrical signal associated with mineralised quartz veins; and

• Re - assaying of gold bearing intervals in the four diamond holes and selected past RAB holes for an extended suite of pathfinder elements.

These both are potential tools which can be used, prior to further drilling, to define economic quartz vein hosted gold mineralisation in basement.

Furthermore, diamond drilling has effectively only tested small parts of two of the seven gold mineralised zones at the Big Red prospect. The majority of the gold mineralisation remains untested, and the intersections provide encouragement for further exploration.

During the quarter Matsa acquired recently released aeromagnetic and radiometric data over the entire Dunnsville Tenements. This data was part of a proprietory multiclient survey and was made publically available by the DMP at nominal charge.

An interpretation of the data at Dunnsville was carried out for Matsa by geophysical consultants, who selected a number of potential nickel and gold exploration targets (Figure 4).

This data also provides Matsa with a detailed picture of the magnetic stratigraphy and structure of this poorly exposed region.

A review of past exploration and first pass follow up of these targets is proposed to be carried out over the next quarter.

In conjuction to any IP work, Matsa also plans to test a number of regional gold geochemical targets in close proximity to Big Red. To this end, Matsa has lodged a POW and received approval to carry out a RAB drilling programme comprising 200 holes

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Matsa Resources Limited – October 2012

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Figure 4: Dunnsville Exploration Target Summary

Killaloe Project Exploration – Matsa Earning up to 70%

A POW was approved during the quarter for a programme of three diamond drillholes targeted on gold mineralisation at the Duke prospect at Killaloe.

This programme was awarded co-funding under the DMP Exploration Incentive Scheme (EIS). Three diamond drill holes will target depth continuity of known gold mineralisation at Duke and test the structural model interpreted for the prospect.

highly significant intercepts e.g. 24m@2.15g/t in drill hole BUX86, it could not establish continuity of mineralised intersections along strike. A revised interpretation of the drilling intercepts shows a NW trending array of “en–echelon” veins extending over a strike extent of 350m (Figure 5).

The proposed 3 diamond drill hole programme will test the target vein system on 3 sections to a maximum depth of 170m.

Matsa believes that the programme could unlock a number of gold targets at Killaloe which appear to have similar structural controls.

During the quarter, Matsa received results for infill soil sampling around the Buldania and Shinboner prospects which had been carried out to improve geochemical coverage and enhance definition of identified gold anomalies between the two prospects (Figure 6). At the Shinboner prospect, a total of 241 additional soil samples were collected in order to better define this target for RAB drilling. Assays were for gold only using aqua regia digest / ICP-MS. Summary statistics are presented in Table 1.

1.
Gold Values	Count	Min	Max	Perc 75	Perc 90	Perc 95
Au ppb	241	1	75	12	22	29
Table 1: Summary Geochemistry Statistics

This infill sampling programme has refined the southern boundary of the soil anomaly and confirmed a 1km x 0.3km, WNW-trending zone of gold anomalism at Shinboner with a peak value of 75 ppb Au.

This represents the largest coherent soil gold anomaly which has been identified to date at Killaloe. The results of this programme are currently being assessed in conjunction with past drilling on the prospect.

Figure 5: Duke 3D Interpreted and planned Drilling

The drilling programme follows a detailed compilation and review of past drilling at Duke which included 84 shallow Aircore, RAB and RC holes. While past drilling achieved a number of

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Matsa Resources Limited – October 2012

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Figure 6: Infill Sampling Location at Shinboner-Buldania Areas

Symons Hill Project

Matsa’s Symons Hill tenement application (ELA69/3070) is located within the Fraser Range Tectonic zone and within six kilometres SSW of the Nova nickel copper discovery announced in July 2012 by Sirius Resources Ltd (Figure 7).

Matsa has identified a number of geological elements at Symons Hill which are believed favourable for similar mineralisation to Nova and moved to fast track the exploration programme in the ELA. Matsa has already provided details of work completed to date in releases to the ASX during the August to October 2012 period.

The 96km[2] Symons Hill application is located in an area of extensive soil cover. Research by Matsa on publically available information indicates that the area has not undergone any significant past exploration.

Matsa believes that many geological aspects of the Symons Hill project are favourable for location of magmatic Ni Cu mineralisation similar to Nova which includes:

• Location of the project area in Mafic Granulites of the Fraser Range Igneous Complex on the margin of the continental scale Fraser Range gravity anomaly.

• The SSW trending fault (termed by Matsa the Symons Hill Fault) which can be seen on aeromagnetic images to intersect the Nova discovery and continues to the SW where it bisects ELA69/3070.

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Figure 7: Symons Hill Project and Nova Ni Cu Discovery (Sirius Resources)

Matsa believes that the Symons Hill fault could be an important structural control at Nova.

During August 2012, widely spaced, reconnaissance scale soil samples, at intervals of 400 metres were collected over approximately 40% of the tenement area. The element suite and the range of assay values are summarised in Appendix 1.

These results include a number of elevated coincident values for Cu (43ppm), Ni (65ppm), Cr (167ppm) and Co (18ppm) which define a topographic depression 3km x 2km in extent, which is located within the interpreted Symons Hill Fault corridor approximately 10 km south of Sirius Resource’s Nova discovery.

Matsa believes that these results and their topographic expression are indicative of a concealed mafic intrusive body at shallow depth. This interpretation supports Matsa’s view that the Symons Hill Fault corridor is important in controlling the emplacement of mafic intrusions which have the potential for associated nickel sulphide mineralisation.

A further 418 soil samples which includes 186 infill samples over the interpreted intrusive have been subsequently collected during September, with assays not available at time of writing this report.

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Matsa Resources Limited – October 2012

During the quarter, Matsa also commissioned a VTEM (max) airborne electromagnetic (EM) survey to be carried out in November 2012 by Geotech Airborne Pty Limited. It is expected that the ground conditions at Symons Hill are suited to EM and that this time domain system which is equipped with a very large 36 metre diameter loop, will detect significant base metal sulphide conductors up to 200 metres below surface.

Fraser Range North JV – Matsa 90% Triton 10%

Matsa completed the requirements of the Farm-In agreement during the quarter and earned a 90% interest in the project.

The Fraser Range North Joint Venture contains a number of discrete gold in soil anomalies including Nimpkish, Similkameen and Kicking Horse where most previous work was carried out (Figure 8). Calcrete sampling at Nimpkish has achieved highly anomalous gold values up to 234ppb Au, however follow up RAB drillholes did not identify a basement source for the anomaly. Drilling confirmed GSWA mapping which shows that much of the project is underlain by transported sedimentary cover associated with development of the Eucla Basin in Tertiary to recent times. Such transported cover, up to 40m thick in places has restricted geochemical dispersion from prospective basement rocks into surface materials leading to highly variable results in calcrete and soil samples.

To address the sampling problem associated with transported cover, Matsa proposes to carry out an orientation geochemical survey to establish the most effective sampling / analytical procedure.

Geochemical consultants have been commissioned to oversee the survey and to recommend the most effective sampling and analytical method. It is proposed to carry out the survey in November/December 2012.

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Figure 8: Fraser Range North JV, Exploration Targets

A compilation and review of available aeromagnetic and radiometric data was carried out by geophysical consultants. This review identified a number of structural / stratigraphic targets for gold and base metal mineralisation. The review also recognised a number of discrete magnetic features of which the most prominent is a discrete bullseye magnetic anomaly. This anomaly termed the FNB target is approximately 1km x 0.5km in extent. It is interpreted as a magnetic intrusive into magnetically quiet basement rocks with potential for associated gold or base metal mineralisation. It is proposed to test this target with a two diamond hole drilling programme.

Albany Fraser Projects Regional

The Symons Hill and Fraser Range North projects are part of a deliberate strategy by Matsa to target gold and base metal mineralisation in the NE trending Albany Fraser Tectonic Province. The province is a belt of high grade metamorphic rocks and intrusive extending in excess of 500km along the south eastern margin of the Yilgarn Craton. Discoveries in the belt include the 5Moz Tropicana gold deposit by AngloGold - Ashanti/Independence Group and more recently the Nova Ni Cu discovery by Sirius Resources NL.

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Matsa Resources Limited – October 2012

Matsa’s tenements which include Fraser Range North and Symons Hill extend over a distance of 430 km from Salmon Gums in the southwest to Bunningonia in the northeast (Figure 9).

Surface exploration over much of the belt is hampered by the presence of variable thicknesses of transported sedimentary cover associated with development of the Tertiary aged Eucla Basin.

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Paisali Iron Ore – 14 Magnetite Targets Defined

Exploration to date has been targeted on magnetic anomalies concealed by shallow alluvium and deeply weathered bedrock which are thought to reflect skarn magnetite deposits. A total of 14 targets have now been identified as having potential to be sources of iron ore. (Figure 10; Table 2)

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Figure 10: Paisali Project on Aeromagnetic Image

Figure 9: Albany Fraser / Tropicana - Nova Belt Projects

Thailand – SPLA Approval Process

To date, applications for a total of 124 special prospecting lease applications (SPLA’s) have been applied for. Of these, 18 SPLA’s have been submitted to the Screening Committee of the Department of Primary Industries and Mining (DPIM).

Matsa remains confident that the SPLA’s will be granted in due course.

Matsa will advise as soon as further information becomes available.

The target concept is supported by the presence in the district of a number of small known magnetite skarn deposits, some of which have been mined for iron ore.

A key advantage of skarn magnetite deposits over Australian magnetite Banded Iron Formation (BIF) is that liberation of magnetite from gangue can be expected to be achieved at a significantly coarser grain size. This would allow for greatly reduced capital and operating costs, mainly power, to produce a marketable product.

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Matsa Resources Limited – October 2012

Target	Target	Interpreted Magnetic Source Dimensions	Interpreted Magnetic Source Dimensions
	Amplitude (nT)	Combined Length
Target			Width
PS1	4000	1900	75
NS9	2000	600	40
NS7891011	1700	1200	50
NS23	3000	400	50
NS1413	1000	500	30
NB3	1000	200	10
NB17/18	800	400	10
NS1	2000	400	40
NS7	1500	650	50
PS47	2500	1600	50
PS3-4	1500	1000	40
KL26	3500	600	40
KL7	4000	700	40
SM1	1500	400	30

Table 2: Paisali Magnetite Target Summary

During the quarter, no significant exploration occurred at Siam Copper Project or the KT Gold Project

BACKGROUND

About Matsa:

Matsa is an ASX listed exploration and development company based in Western Australia. The Corporate office is located in Perth with offices in Norseman and Bangkok, Thailand.

Matsa aims to increase shareholder wealth through the discovery and development of mineral properties within Australia and South East Asia.

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Matsa Resources Limited – October 2012

For further Information please contact:

Paul Poli Frank Sibbel Executive Chairman Director

Phone +61 8 9230 3555 Fax +61 8 9227 0370 Email reception@matsa.com.au Web www.matsa.com.au

Exploration results

The information in this report that relates to Exploration results, is based on information compiled by David Fielding, who is a Fellow of the Australasian Institute of Mining and Metallurgy. David Fielding is a full time employee of Matsa Resources Limited. David Fielding has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and 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, Mineral Resources and Ore Reserves. David Fielding consents to the inclusion in the report of the matters based on his information in the form and context in which it appears .

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Matsa Resources Limited – October 2012

Appendix 1: Symons Hill Assay Ranges for Reconnaissance Soil Samples

Elements	No Samples	Units	Detection Limit	Minimum Value	Maximum Value		Elements	No Samples	Units	Detection Limit	Minimum Value	Maximum Value
Ag	247	ppm	0.01	<0.01	0.07		Na	247	%	0.01	0.01	0.43
Al	247	%	0.01	0.51	4.08		Nb	247	ppm	0.05	0.05	0.59
As	247	ppm	0.01	<0.2	24.6		Ni	247	ppm	0.2	6.9	64.6
Au	247	ppb	1	<1	20		P	247	ppm	10	20	300
B	247	ppm	10	<10	200		Pb	247	ppm	0.2	2.8	16.5
Ba	247	ppm	10	10	220		Pd	247	ppb	1	<1	2
Be	247	ppm	0.05	0.11	0.96		Pt	247	ppb	5	<5	<5
Bi	247	ppm	0.01	0.04	0.19		Rb	247	ppm	0.1	3.4	44.6
Ca	247	%	0.01	0.07	13.05		Re	247	ppm	0.001	<0.001	0.002
Cd	247	ppm	0.01	0.01	0.07		S	247	%	0.01	<0.01	0.11
Ce	247	ppm	0.02	8.5	38.7		Sb	247	ppm	0.05	0.07	0.4
Co	247	ppm	0.1	3.1	17.8		Sc	247	ppm	0.1	2.3	17.6
Cr	247	ppm	1	26	167		Se	247	ppm	0.2	<0.2	1.7
Cs	247	ppm	0.05	0.16	2.34		Sn	247	ppm	0.2	0.3	1.3
Cu	247	ppm	0.2	5.9	43.4		Sr	247	ppm	0.2	6.2	1080
Fe	247	%	0.01	1.38	8.43		Ta	247	ppm	0.01	<0.01	0.005
Ga	247	ppm	0.05	1.49	13.15		Te	247	ppm	0.01	0.01	0.15
Ge	247	ppm	0.05	<0.05	0.15		Th	247	ppm	0.2	2	10.6
Hf	247	ppm	0.02	0.04	0.44		Ti	247	%	0.005	0.02	0.255
Hg	247	ppm	0.01	<0.01	0.05		Tl	247	ppm	0.02	<0.02	0.21
In	247	ppm	0.005	0.009	0.055		U	247	ppm	0.05	0.09	3.53
K	247	%	0.01	0.06	0.76		V	247	ppm	1	31	171
La	247	ppm	0.2	4.4	18.1		W	247	ppm	0.05	<0.05	0.15
Li	247	ppm	0.1	2.6	20.5		Y	247	ppm	0.05	1.94	13.6
Mg	247	%	0.01	0.06	5.44		Zn	247	ppm	2	8	46
Mn	247	ppm	5	107	1550		Zr	247	ppm	0.5	1.4	18.7
Mo	247	ppm	0.05	0.17	1.2

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Appendix 5B Mining exploration entity quarterly report

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 MATSA RESOURCES LIMITED ABN Quarter ended (“current quarter”) 48 106 732 487 30 September 2012

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 & 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) – R&D Refund Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	- (463) - - (928) - 16 - - -	- (463) - - (928) - 16 - - -
	(1,375)	(1,375)
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 - Security deposits paid Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (65) 3,500 - - - - (423)	- - (65) 3,500 - - - - (423)
	3,012	3,012
	1,637	1,637

• 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)	1,637	1,637
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 - costs of capital raising Net financing cash flows	124 - - (16) - -	124 - - (16) - -
	108	108
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	1,745 2,121 -	1,745 2,121 -
	3,866	3,866

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
		469
		-
1.25	Explanation necessaryfor an understandingof the transactions

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

2.2	On 16 August 2012 Matsa completed the sale of a 70% interest in the Mt Henry Project to Panoramic Resources Limited for a consideration of $5 million in cash (of which $1.5 million was received as a deposit in June 2012) and 14 million Panoramic shares. The Panoramic shares had a value of $7.98 million on the date of settlement and constitute a non cash flow item.
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entityhas an interest
	N/A

• 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.

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

• $A'000

• 4.1 Exploration and evaluation 718 4.2 Development - 4.3 Production - 4.4 Administration 508 Total 1,226

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. 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
	2,866	173
	1,000	1,948
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	3,866	2,121

Changes in interests in mining tenements

Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
P63/1636 P63/1637 P63/1638 P63/1639 L63/58 L63/64 L63/65 M63/165 M63/236	Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture	100% 100% 100% 100% 100% 100% 100% 100% 100%	30% 30% 30% 30% 30% 30% 30% 30% 30%

• See chapter 19 for defined terms.

Appendix 5B Page 3

30/9/2001

Appendix 5B Mining exploration entity quarterly report

• 6.1 Interests in mining tenements relinquished, reduced or lapsed

Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
M63/366 M63/515 M63/516 P63/1389 P63/1391 P63/1392 P63/1393 P63/1394 P63/1395 P63/1396 P63/1397 P63/1398 P63/1399 P63/1400 P63/1401 P63/1402 P63/1403 P63/1404 P63/1405 P63/1406 P63/1407 P63/1408 P63/1409 P63/1410 P63/1411 P63/1412 P63/1413 P63/1415 P63/1416 P63/1417 P63/1418 P63/1419 P63/1420 P63/1421 P63/1422 P63/1423 P63/1424 P63/1425 P63/1426 P63/1427 P63/1428 P63/1454 P63/1455 P63/1456 P63/1457 P63/1458 P63/1459 P63/1460	Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30%

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B Mining exploration entity quarterly report

• 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
P63/1461 P63/1462 P63/1463 P63/1464 P63/1465 P63/1466 P63/1467 P63/1562 P63/1563 P63/1564 P63/1565 P63/1566 P63/1567 P63/1568 P63/1569 P63/1570 P63/1572 P63/1573 P63/1574 P63/1581 P63/1640 P63/1661 P63/1673 P63/1674 P63/1675 P63/1751 P63/1752 P63/1753 P63/1754 P63/1755 P63/1805 P63/1806 P63/1807 P63/1852 P63/1853	Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture Joint Venture	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30%

P63/1830 Direct 0% 100%

• See chapter 19 for defined terms.

Appendix 5B Page 5

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.

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 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) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes(totals only)	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
	Nil
	131,640,531	131,640,531
	468,750	468,750	26.6	26.6
	Nil
	1,000,000 1,200,000 2,050,000 4,250,000 781,250 350,000 900,000	Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted	Exercise price $0.273 $0.273 $0.40 $0.45 $0.266 $0.31 $0.40	Expiry date 26 November 2012 31 December 2012 31 August 2013 30 November 2013 13 January 2014 12 August 2014 12 September 2015
	900,000	Unlisted	$0.40	12 September 2015
	468,750	Unlisted	$0.266	13 January 2014
	9,000,000	Unlisted
	Nil
	Nil

• See chapter 19 for defined terms.

Appendix 5B Page 6

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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: (Company secretary) Print name: Andrew Chapman

Date: 30 October 2012

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 7

30/9/2001