METGASCO LTD — Interim / Quarterly Report 2012

Apr 29, 2012

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, 01/6/10.

Name of entity

METGASCO LIMITED

ABN 24 088 196 383

Quarter ended (“current quarter”) 31 March 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 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 (R&D rebate) Net Operating Cash Flows	Current quarter $A’000	Year to date (9 months) $A’000
	- (1,438) - - (1,219) 221 (4) -	- (5,181) - - (4,181) 784 (18) 346
	(2,440)	(8,250)
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 Security deposits (paid)/returned 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (385) - - 15 - - -	- - (574) - - 52 - - -
	(370)	(522)
	(2,810)	(8,772)

• 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 (broughtforward)	(2,810)	(8,772)
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 (cost of share placement) Net financing cash flows	- - - (25) - -	15,358 - - (85) - (348)
	(25)	14,925
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 ofquarter	(2,835) 17,867 -	6,153 8,879 -
	15,032	15,032

Payments to directors of the entity & associates of the directors. Payments to related entities of the entity & 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 partiesincludedin item 1.10	Current quarter $A'000
		266
		-
1.25	Explanation necessaryforanunderstanding ofthe transactions
	N/A

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

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N/A
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• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

• 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

N/A

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 4.2 Development 4.3 Production 4.4 Administration	$A’000
	5,148
	-
	-
	1,200
Total	6,348

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter	Current quarter	Previous quarter
(as shown in the consolidated statement of cash	$A’000	$A’000
flows) to the related items in the accounts is as
follows.
5.1 Cash on hand and at bank	57	378
5.2 Term deposits	14,975	17,489
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: cash at end of quarter(item 1.22)	15,032	17,867

• See chapter 19 for defined terms.

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Changes in interests in mining tenements

Tenement reference Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter _Description includes rate of interest & any redemption or conversion rights together with prices and dates. _	Tenement reference Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter _Description includes rate of interest & any redemption or conversion rights together with prices and dates. _	Tenement reference Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter _Description includes rate of interest & any redemption or conversion rights together with prices and dates. _	Tenement reference Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter _Description includes rate of interest & any redemption or conversion rights together with prices and dates. _	Tenement reference Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter _Description includes rate of interest & any redemption or conversion rights together with prices and dates. _	Tenement reference Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter _Description includes rate of interest & 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 7.2	Preference +securities Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	NIL
		NIL
7.3 7.4	+Ordinary securities Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	337,414,140	337,414,140
7.5 7.6	+Convertible debt securities Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	NIL
		NIL NIL

• See chapter 19 for defined terms.

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7.7 Options (description and conversion factor) Total 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter		Number 250,304 164,759 499,526 1,000,000 100,000 375,000 200,000 65,000 50,000 375,000 599,861 341,283 390,777 375,000 375,000 1,433,703 6,595,213		Exercise price $1.10 $1.00 $0.90 $0.82 $0.90 $1.00 $0.90 $1.00 $1.00 $1.00 $1.20 $1.40 $1.60 $1.00 $1.00 $0.50	Expiry date 30/06/2012 30/06/2012 30/06/2012 21/11/2012 31/12/2012 21/02/2013 04/02/2013 04/02/2013 14/02/2013 21/05/2013 01/07/2013 01/07/2013 01/07/2013 21/08/2013 21/11/2013 01/09/2014
		NIL
		NIL
		1,306,741
7.11 Debentures (totals only)		NIL
7.12 Unsecured notes		NIL

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 /does n ~~o~~ t* give a true and fair view of the matters disclosed.

Sign here: [original signed] Date: 30/04/2012 (Company secretary)

Print name: Sean Hooper

Notes

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

• 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.

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