METGASCO LTD — Interim / Quarterly Report 2015

Jan 29, 2015

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.

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Name of entity
METGASCO LIMITED
ABN Quarter ended (“current quarter”)
24 088 196 383 31 December 2014
Consolidated statement of cash flows
Curent quarter Year to date
Cash flows related to operating activities $A’000 (6 months)
$A’000
1.1 Receipts from product sales and related debtors - -
1.2 Payments for:
(a) exploration and evaluation (204) (614)
(b) development
(c) production
(d) administration (922) (1,894)
1.3 Dividends received
1.4 Interest and other items of a similar nature received 83 181
1.5 Interest and other costs of finance paid (4) (7)
1.6 Income taxes paid
1.7 Other income 20 52
Note $250K of payments were reclassified from
exploration to administration during the current
quarter.
Net Operating Cash Flows (1,027) (2,282)
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects - -
(b) equity investments - -
(c) other fixed assets - (6)
1.9 Proceeds from sale of: (a) prospects - -
(b) equity investments - -
(c) other fixed assets - 31
1.10 Loans to other entities (200) (200)
1.11 Security deposits (paid)/returned 10 13
1.12 Other (provide details if material) - -
(190) (162)
Net investing cash flows
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• 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 (carried forward)	(1,217)	(2,444)
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	- - - (3) - -	- - - (5) - -
	(3)	(5)
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	(1,220) 10,251	(2,449) 11,480
	9,031	9,031

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
		161
		-
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

N/A

• 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

	4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration		$A’000
			177
			-
			-
			895
	Total		1,072
	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.	Curent quarter $A’000	Previous quarter $A’000
	5.1 Cash on hand and at bank 5.2 Term deposits 5.3 Bank overdraft 5.4 Other (provide details)	1,925	38
		7,106	10,213
		-	-
		-	-
	Total: cash at end of quarter(item 1.22)	9,031	10,251

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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

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 (c) Cancelled atAGM	444,004,548	444,004,548
		(4,697,982)	(4,697,982)
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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Appendix 5B Mining exploration entity quarterly report

7.7 Options (description and conversion factor) Total 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	Number Nil		Exercise price	Expiry date
	NIL
	NIL
	NIL
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 give a true and fair view of the matters disclosed.

Sign here: [original signed] Date: 30/01/2015 Sean Hooper 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.

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

• 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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