MINBOS RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

QUARTERLY ACTIVITIES REPORT – 30 JUNE 2012

Minbos Resources Limited (“Minbos” or the “Company”) is pleased to present its quarterly report for the period ended 30 June 2012.

Highlights during the quarter

• The Cacata scoping study (“Scoping Study”) has produced positive results, demonstrating the potential of Cacata as a viable project with forecast pre tax cash flows of US$746m over a 10 year mine life.

• The Scoping Study has confirmed the technical and economic viability of establishing a high grade DSO operation at Cacata and Chivovo to produce 0.8Mtpa of phosphate rock concentrate.

• The joint venture partners are planning to commence the bankable feasibility study (“BFS”) for the Cacata project during the next quarter.

• Cabinda diamond drilling results confirmed the high grade and DSO potential at its Cacata and Chivovo deposits.

• Drilling highlights included:

• CCR 01 from 0.9 to 11.9 metres, 11 metres of mineralisation grading at 31.40% P2O5;

• CCR N1 from 7.61 to 24.7 metres, 17.11 metres of mineralisation grading at 28.95% P2O5; and

ASX Code: MNB PERTH OFFICE 108 Outram St West Perth WA 6005 Australia T: +61 8 9476 4500 E: info@minbos.com W: www.minbos.com SOUTH AFRICA OFFICE 42 Kyalami Boulevard Kyalami Business Park, Kyalami Johannesburg South Africa T: +27 11 466 8516/7 Company Snapshpot Directors and Management Mr P. Richards (Exec. Chair) Mr D. Reeves (Non-Exec) Mr J. Ciganek (Non-Exec) Mr D. Catulichi (Non-Exec) Mr Robbie McCrae (CEO) Exploration Areas Angola (Cabinda Province) Phosphates – Cabinda Project Potash – Dinge Project Democratic Republic of Congo Phosphates – Kanzi Securities on Issue 66.2M Ord. Shares (quoted) 44.5M Ord. Shares (restricted) 10M Performance Shares (restricted) 17.6M Options (unlisted) Cash on hand A$1.83M (31 July 2012)

• CCR 007D from 8.15 to 24.78 metres, 16.63 metres of mineralisation grading at 28.24% P2O5.

• The Company reached a performance milestone upon reaching a JORC compliant resource of 254.1mt at 12.6% P2O5, which resulted in the conversion of 25 million Class A Performance Shares (“Performance Shares”) into fully paid ordinary shares issued to the original vendors of the project licences.

• Minbos has received several expressions of interest from potential strategic partners with respect to its phosphate projects. Minbos has appointed Everspring Partners, a Sydney based resources focussed advisory firm, to assist in a tender process to identify partners that fit Minbos' strategic objectives and who are capable of participating in the development and offtake of its projects.

==> picture [596 x 90] intentionally omitted <==

• In engaging Everspring Partners Minbos' intention is to develop a framework for the orderly submission of offers by interested parties so as to facilitate the identification of the most suitable parties. This process will begin with the preparation and distribution of an Information Memorandum to interested parties.

CABINDA PHOSPHATE PROJEC T

Diamond Drilling Results

Cacata Deposit

The drilling campaign at Cacata was designed to upgrade a portion of the current Indicated Resource estimate of 30.4mt @ 17.2% P2O5 at a 5% P2O5 cut-off grade (including 22.5mt @ 21.4% at an 8% P2O5 cut-off grade) to a Measured Resource estimate category, this being a key input into the upcoming BFS for the project.

In total 16 boreholes were drilled for 518 meters. The results of this drilling and comparison to twinned aircore hole (where applicable) are detailed below in Table 1 .

Table 1: Cacata Diamond Drilling Assay Results

ID	From	To	Width	Fe2O3	CaO	P2O5	SiO2	Al2O3	MgO
				(%)	(%)	(%)	(%)	(%)	(%)
CCR-007A H1	35.19	53.28	18.09	1.55	36.94	24.97	22.62	2.55	0.93
CCR-007D H5	8.15	24.78	16.63	1.68	39.45	27.91	18.16	3.07	0.28
CCR-999 H5	8	27	19	1.65	38.51	25.8	16.98	2.28	1.88
CCR-AA2 H1	6.52	21.57	15.05	1.96	30.38	13.63	22.92	3.30	6.42
CCR-N1 H1	7.61	23.73	16.12	1.33	41.43	29.11	17.35	2.33	0.19
CCR-O1 H5	0.9	11.9	11	1.23	42.14	31.40	13.82	2.25	0.14
CCR-NBH-01 H1	7	24.39	17.39	1.63	34.34	19.49	21.52	2.67	3.76
CCR-NBH-03 H1	4	24.7	20.70	1.65	36.92	24.10	20.48	2.67	1.74
CCR-NBH-04 H1	1.35	18.1	16.75	0.89	39.20	27.67	20.96	2.56	0.18
CCR-NBH-05 H1	17.38	46	28.62	1.15	34.05	15.67	17.54	1.95	7.14
CCR-NBH-06 H1	19.37	41.00	21.63	1.43	33.46	23.24	29.60	2.83	0.64
CCR-NBH-07 H3	4.00	17.60	13.60	2.25	29.58	23.83	27.73	3.85	0.06
CCR-NBH-08 H1	19.70	38.00	18.3	1.55	38.11	27.29	21.06	2.68	0.21
CCR-NBH-09 H1	27.33	51.00	23.67	1.31	34.81	17.75	18.26	2.14	5.76
CCR-NBH-10 H1	28.18	55	26.82	1.43	34.67	23.60	26.27	2.59	0.91
CCR-NBH-11	2	18.72	16.72	1.63	35.34	21.77	21.77	2.85	2.44

==> picture [596 x 90] intentionally omitted <==

==> picture [596 x 126] intentionally omitted <==

----- Start of picture text -----

31 July 2012
----- End of picture text -----

==> picture [423 x 553] intentionally omitted <==

Figure 1: Map of diamond drilling Cacata

==> picture [596 x 90] intentionally omitted <==

Chivovo Deposit

The drilling campaign at Chivovo was designed to upgrade a portion of the current Inferred Resource estimate of 6.7Mt @ 20.3% P2O5 (at a cut-off Grade of 10% P2O5) to an Indicated Resource estimate category.

In total 4 boreholes were drilled for 97.6 meters, the results of this drilling are detailed below in Table 2 .

Table 2: Chivovo Diamond Drilling Assay Results

ID	From	To	Width	Fe2O3	CaO	P2O5	SiO2	Al2O3	MgO
				(%)	(%)	(%)	(%)	(%)	(%)
CVC-2 H1	0	26.59	26.59	1.83	29.11	19.32	34.45	3.74	1.70
CV-5A H3	11.12	22.23	11.11	1.41	27.61	21.50	39.27	3.53	0.26
CVC- 5B	1.45	22.72	21.27	2.24	30.68	20.44	28.63	4.54	2.29
CVC- 18C	9.15	21.67	12.52	1.93	22.46	19.66	45.19	4.82	0.06

The Cacata Scoping Study

The objective of the Scoping Study was to evaluate the technical and economic viability of establishing a high grade operation at Cacata to produce 0.8Mtpa of phosphate rock concentrate over a 10 year life of mine (“LOM”). The Scoping Study demonstrated the robust and high grade nature of the Cacata Project and as a result the joint venture partners are planning to commence the BFS during the next quarter.

The Scoping Study has delivered the following positive results[1] :

• operating costs of US$57.23 per tonne of phosphate rock (FOB), this will place the project in the lower half of the international cost curve for phosphate rock concentrate producers;

• capital cost estimate of US$157m, based on owner operated mining, road haulage and ship loading;

• strong opportunity to further reduce capital and operating costs during the bankable feasibility study (BFS);

• IRR of 40.2 % (pre tax); and

• NPV of US$311m (pre-tax) at a 10% discount rate.

1 Amounts quoted are for 100% of the Project. Minbos currently owns 50% of the project, with the remaining 50% held by Petril Projects Ltd.

==> picture [596 x 90] intentionally omitted <==

The Scoping Study was based on the JORC high grade indicated resource of the Central and Southern sections of the Cacata ore body. Minbos anticipate the release of an upgraded resource for Cacata by the end of H2 2012, including a JORC measured resource over a portion of the ore body, which will provide the basis for the BFS.

Key contributors to the Scoping Study included:

• Coffey Mining (“Coffey”) – completed an evaluation of the viability of mining the high grade portion of the Cacata ore body. The Coffey report concluded that using a truck and shovel approach, the high grade portion of the Cacata ore body could be mined at a 1.2Mtpa run of mine (“ROM”). Coffey derived mining costs from first principals and their experience in West African mining projects.

• DRA Minerals Projects (“DRA”) – completed a technical and financial evaluation of the viability of processing the high grade portion of the Cacata ore body. The basis for the evaluation was a metallurgical test work campaign carried out by Minteck Laboratories on a sample supplied by the joint venture from the recent diamond drilling campaign. DRA concluded that the preferred processing route was a basic washing and selective screening operation. DRA derived costs based on their internal data base and experience in West African mining projects.

• SRK Consulting (“SRK”) – completed a technical and financial evaluation of establishing a tailings storage facility (“TSF”) at Cacata and derived costs based on their internal data base and experience in West African mining projects.

• Ports of Africa (“POA”) – completed a technical and financial evaluation of the viability of the logistics of transport by road and ship loading of 1.0Mtpa of phosphate rock from the Cacata processing plant to a new ship loading site located 7km from the town of Cacongo, and derived costs based on their internal data base and experience in Africa.

KANZI PHOSPHATE PROJECT

The company has continued to negotiate the joint venture within the DRC to acquire additional licenses in the vicinity of 12040 ( Figure 2 ). In the March quarter it was announced that these discussions were delayed due to presidential elections and the subsequent appointment of a new government.

These discussions are now concluded and the contracts are expected to be signed during the 3[rd] quarter.

==> picture [596 x 90] intentionally omitted <==

==> picture [310 x 424] intentionally omitted <==

==> picture [54 x 23] intentionally omitted <==

----- Start of picture text -----

Concession
12040
----- End of picture text -----

Figure 2: Location of the Kanzi Phosphate Project, DRC (12040 Permit)

1 DINGE POTASH LICENCE

The company has entered into an agreement to acquire 75% of the Dinge potash license from Alum Industrial Lda (“Alum”), a private Angolan mineral exploration company. The relevant documentation is expected to be signed during the 3[rd] quarter.

The Dinge potash license complements the Company’s phosphate projects in the Cabinda Province and positions Minbos to capitalise on the increasing demand for fertilisers. A large proportion of the Dinge license area overlaps Minbos’ Cabinda phosphate projects and in

==> picture [596 x 90] intentionally omitted <==

many areas such as Chivovo, the potash mineralisation underlies the phosphate mineralisation, as shown in Figure 3 .

==> picture [400 x 399] intentionally omitted <==

Figure 3: Location of the Dinge Potash Licence

==> picture [596 x 90] intentionally omitted <==

==> picture [493 x 532] intentionally omitted <==

Figure 4: Location in Congo Basin showing top of the salt contours below sea level

==> picture [596 x 90] intentionally omitted <==

CORORATE

Conversion of Class A Performance Shares

Under the Binding Heads of Agreement dated 15 April 2010, Minbos agreed to purchase 100% of the share capital of Tunan Mining Limited (the holder of the Project licences) (“Tunan”) of which part of the consideration paid to the original Vendors was the issue of 25m Class A Performance Shares (“Performance Shares”). These were to convert into fully paid ordinary shares upon the successful delineation of a JORC compliant resource of at least 250mt at an average insitu grade of greater than 12.5% P2O5 within the area covered by the Cabinda project within 18 months of the issue of these shares (“Milestone”).

The Company received an interim technical report from Coffey that confirmed the Milestone had been met. However, Coffey is in the process of completing an updated, final technical report on the resource and the Company has negotiated an arrangement with the Vendors of Tunan to vary the number of ordinary shares they receive should there be a downgrade to the JORC compliant resource at the Company’s Cabinda Project.

Pending receipt of the final technical report, the Vendors have agreed to a voluntary holding lock on the ordinary shares that have been issued on conversion of the Performance Shares. If the final technical report re-confirms that the Milestone has been achieved, then the holding lock shall lift. If the mineral resource is downgraded, then the Vendors and the Company have agreed to cancel some of the ordinary shares issued to the Vendors based on a defined formula, subject to receipt of shareholder approval.

While the Company is confident that the final technical report will confirm that the Milestone has been satisfied, the arrangement above is considered a prudent measure. On this basis, the relevant Performance Shares were issued on 20 April 2012 and will remain subject to a voluntary escrow (pending the outcome of the final technical report by Coffey) and are also subject to an ASX escrow until 18 October 2012.

Cash

• At the end of June 2012, the Company had consolidated cash reserves of A$2.07M.

==> picture [596 x 90] intentionally omitted <==

2 ACTIVITIES EXPECTED FOR 3rd QUARTER OF 2012

5.1 DRC Phosphate Project

Kanzi Prospect

• Completion of CRU Strategies desktop review on high grade operation from Kanzi

• Signature of Joint venture contract

• Recommencement of exploration activities – Kanzi drilling, regional evaluation

• Commencement of BFS Activities – Metallurgical testwork and environmental work

5.2 Cabinda Project – High Grade Development Project (Cacata and Chivovo)

• Cacata resource estimate update

• Commencement of the bankable study on Cacata

5.3 Dinge Project

• Signature of the Joint Venture contract

ENDS –

For more information:

Peter Richards Robert McCrae Executive Chairman Chief Executive Officer peter@minbos.com robbie@minbos.com (+61) 8 9476 4500 (+27) 11 466 8516/7

For media enquiries contact:

David Ikin – Professional Public Relations

email: david.ikin@ppr.com.au (+61) 8 9388 0944

==> picture [596 x 90] intentionally omitted <==

About Minbos

Minbos Resources Limited is an exploration company focused on the development of phosphate and potash bearing ore within the Cabinda Province of Angola and the adjoining areas of the far western DRC. Through its subsidiaries and joint ventures, the Company is exploring over 400,000ha of highly prospective ground hosting phosphate and potash bearing ore. Minbos is growing its current Resource base in incremental stages as it drills out the known deposits during 2011.

The Company’s strategy is to specifically target the exploration and development of low cost fertiliser-based commodities in order to tap into the growing global demand for fertilisers. Phosphate and potash are an essential component in certain agricultural fertilisers, with the market supported by the increasing global demand for food and bio-fuel products. For more information, visit www.minbos.com

Overview of licenses

==> picture [281 x 352] intentionally omitted <==

==> picture [596 x 90] intentionally omitted <==

Resources

Since listing in August 2010, Minbos has successfully delineated a substantial resource across its tenements, as shown below.

	Tonnes (Mt) Grade (%P2O5) Cutoff (% P2O5) Comments
Cabinda, Angola Cacata Chivovo Mongo Tando Chibuete Total Western DRC Kanzi Grand Total	30.4 17.2 5 Incl. 22.5mt at 21.4% P2O5 6.7 20.3 10 117.7 13.6 5 99.3 9.4 7 254.1 12.6 46 17.2 12 Incl. 31mt at 21.4% P2O5 300.1 13.3

Competent Persons Statement

The information in this report has been reviewed and approved for release by Ms Kathleen Body, Pr.Sci.Nat, who has over 17 years’ experience in mineral exploration and mineral resource estimation. Ms Body is a Principal Consultant and full-time employee of Coffey Mining (South Africa) (Pty) Ltd and contracted to MINBOS. She has sufficient experience in relation to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (The JORC Code 2004 Edition). Ms Body has consented to inclusion of this information in the form and context in which it appears.

==> picture [596 x 90] intentionally omitted <==