MINBOS RESOURCES LIMITED — Interim / Quarterly Report 2013

Jan 30, 2013

31 January 2013

QUARTERLY ACTIVITIES REPORT – 31 DECEMBER 2012

Minbos Resources Limited (“Minbos” or the “Company”) is pleased to present its quarterly report for the period ended 31 December 2012.

Highlights during the quarter

• Board and CFO appointments - Minbos appointed a new Managing Director, Mr Scott Sullivan, and Chief Financial Officer, Mr James Carter

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

• Capital Raising - Minbos raised $1.7M at 14 cents per share to progress Bankable Feasibility Studies for projects in Angola and DRC

Company Snapshpot

Directors and Management

• Cacata Operations - Excellent results received from a metallurgical testwork campaign for the Cacata ore on a diamond drill core, confirming results from earlier campaign carried out on aircore.

• Kanzi Scoping Study – Positive results were received from the scoping study completed on the Kanzi Phosphate Project ( Kanzi ). The study demonstrated positive economics, confirming the potential of Kanzi as a viable project with forecast pre-tax cash flows in excess of US$1.5 billion over a 17-year mine life.

• Kanzi Drilling Results – A total of 171 aircore holes were drilled, the results of which confirm Minbos’ understanding of Kanzi deposit and the high project potential. 89 infill holes were drilled to enable the upgrade of the resource from Inferred to Indicated JORC category. 71 holes were drilled in the targeted area of first mining to enable more detailed modelling and planning for the pit. 11 holes were drilled to twin holes previously drilled in 2011.

Mr P. Richards (Non-Exec. Chair) Mr Scott Sullivan (MD) Mr D. Reeves (Non-Exec) Mr J. Ciganek (Non-Exec) Mr D. Catulichi (Non-Exec) Exploration Areas Angola (Cabinda Province) Phosphates – Cabinda Project Potash – Dinge Project Democratic Republic of Congo Phosphates – Kanzi

Securities on Issue 125,501,676 Ord. Shares (quoted) 10,000,000 Performance Shares (restricted)

17,600,000 Options (unlisted)

Cash on hand

• A$1,03M (31 Dec 2012)

• Strategic Partner Tender Process – Initial phase of tender process has resulted in a high level of interest from potential strategic partners. Targeting completion of the process by end March 2013.

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31 January 2013

CABINDA PHOSPHATE PROJECT

Cacata Deposit

During the quarter Minbos received positive results from metallurgical testwork campaign on diamond drill core. The objective of the metallurgical testwork program was to determine the cut-off grade for Cacata ore which distinguished between ore which can be upgraded by scrubbing only and ore which requires milling and floatation to upgrade.

During the Scoping Study that was published in 2012, an assumption was made that the cutoff grade would be 26% P2O5 for “scrubable” ore at a recovery of 77%.

Following the completion of the testwork, in summary, the conclusions are that:

• The ore grading +23% P2O5 can be upgraded by wet screening and scrubbing thus potentially increasing the quantity of ‘scrubable’ ore at Cacata and thereby affording the options to either increase the life of the mine with a basic low cost, non-flotation processing circuit, or allow the throughput and production to be increased.

• The ore grading 16% to 23% P2O5 is upgradable by milling and floatation to +33% P2O5.

KANZI PHOSPHATE PROJECT

Kanzi Scoping Study Results

As part of the ongoing evaluation of Kanzi, the Company commissioned a preliminary economic assessment (“Scoping Study”) on the viability of establishing a 1Mtpa phosphate rock export operation for a minimum life of mine (“LOM”) of 17 years.

The Scoping Study has delivered the following positive results:

• Operating costs of US$56.03 per ton of phosphate rock (FOB);

• Capital cost estimate of US$106m (excluding contingency), based on owner operated mining;

• Strong opportunity to reduce both operating expenditure and capital expenditure during Bankable Feasibility Study (“BFS”);

• Internal rate of return (IRR) of 58% (pre-tax); and

• NPV of US$626m (pre-tax) at a 10% discount rate.

The Scoping Study clearly demonstrates the robust nature of the Kanzi Project.

The development of the Kanzi project in parallel with the development of the Company’s high grade Cacata project will put Minbos in the unique situation of having two projects with low capital and operating costs in the development stage that can be brought online in the foreseeable future.

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31 January 2013

This will allow the Company to take advantage of strong phosphate rock prices and generate early cash flows to pursue the development of the world scale Western Limb projects in Cabinda and fully explore its unrivalled land package in the highly prospective Congo Basin.

Please refer to the ASX announcement of 5 November 2012 for more information (ASX Code: MNB)

==> picture [337 x 374] intentionally omitted <==

Figure 1: DRC Licence areas

Positive Field Results from Kanzi Drilling

Drilling recommenced on Kanzi on 3 October 2012. 154 positive holes intersected phosphate mineralization with the thickness of between 3m and 24m with an average of 7.2m. Only 17 holes returned negative results.

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31 January 2013

==> picture [397 x 589] intentionally omitted <==

Figure 2 – 2011 & 2012 completed aircore drilling, 4 December 2012

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31 January 2013

Bankable Feasibility Study (BFS)

Based on the similarities of the Kanzi and Cacata projects (grade, size, location and access to infrastructure) and the very robust financial results recently published from the Cacata scoping study, Minbos is confident that the next step for Kanzi will be the commencement of a DFS.

Offers from consultants to complete the study have been requested and Minbos expects to have the selection process completed to coincide with announcing the results of the Kanzi scoping study.

CORPORATE

Senior Executive Appointments

During the quarter Minbos appointed Mr Scott Sullivan as Managing Director (“MD”) and Mr James Carter as Chief Financial Officer (“CFO”).

Scott brings over 25 years of diversified mining experience to Minbos, across multiple commodities and projects domestically and internationally. His experience spans strategic planning in mines and smelters; feasibilities; commissioning; mine expansion and restructuring; mine, port and rail infrastructure; project management; sustainability and government. Prior to joining Minbos Scott held the position of President NSW Energy Coal with BHP Billiton.

James is a CPA and Chartered Secretary with 17 years’ experience in the mining industry. He was previously CFO of Straits Resources, a diversified metals group listed on the ASX. Prior to this, James was CFO and Company Secretary of SGX listed Sakari Resources and was integral to its listing and development as a 10 million tonne per annum coal producer in Indonesia. His experience spans numerous equity and debt capital market raisings, mergers/ acquisitions work and corporate governance experience.

Mr Peter Richards transitioned from Executive Chairman to Non-Executive Chairman to continue to guide the Company in its development.

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31 January 2013

Strategic Partner Process

The initial phase of the process has resulted in a high level of interest from potential strategic partners, particularly from major downstream fertiliser producers and trading companies across Asia and Europe. Expressions of interest have been received from potential strategic partners to provide funding to complete delineation drilling and bankable feasibility studies.

A strategic partner support will enable Minbos to advance its Angolan and DRC phosphate rock projects towards development and to provide long term phosphate offtake agreements for its projects. Due diligence and site inspections have commenced under confidentiality agreements.

Capital Raising Completed

In November 2012, Minbos completed a Share Placement to professional and sophisticated investors to raise $1.71 million at $0.14 per share to finalise its strategic partner negotiations. The Placement, which was managed by Paterson Securities and included clients of CPS Securities, was undertaken in two tranches and was completed using the Company’s 15% placement capacity pursuant to Listing Rule 7.1. Tranche 1 comprised of the issue of 6,275,717 fully paid ordinary shares at $0.14 which raised $878,600 and tranche 2 comprised of the issue of 5,949,709 fully paid ordinary shares at $0.14 which raised $832,959 to the same participants as tranche 1.

Cash

At the end of December 2012, the Company had consolidated cash reserves of A$1,031,039.

ACTIVITIES EXPECTED FOR 1st QUARTER OF 2013

Kanzi Project – DRC

• Sampling and Assay programme to upgrade known high-grade inferred resources to indicated and measured and to conduct resource evaluation.

• Commencement of BFS Activities – Beneficiation testwork and environmental work

Cabinda Project – Angola (Cacata and Chivovo)

• Cacata resource estimate update

• Commencement of the bankable study on Cacata

– ENDS –

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31 January 2013

COMPETENT PERSON 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.

For further information please contact:

Scott Sullivan

Managing Director scott@minbos.com (+61) 8 9476 4500

For media enquiries contact:

David Ikin – Professional Public Relations email: david.ikin@ppr.com.au (+61) 8 9388 0944

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31 January 2013

APPENDIX

Table 1 – Summary of 2012 Kanzi aircore drilling

												Final depth
ID	East	North	old e	old n	Distance	Date	Concession	OB	MIN	IW	FW
	252,353	9,354,410	252,355	9,354,410	2	2012/10/08	12910	44	11	2	2	59
KPP038
	252,552	9,354,471	252,585	9,354,486	36	2012/10/08	12910	36	8	0	6	50
KPP037
	252,704	9,354,810	252,702	9,354,808	3	2012/10/09	12908	63	3	0	1	67
KPP064
	252,591	9,355,013	252,588	9,355,022	9	2012/10/10	12908	24	3	0	5	32
KPP034
	251,972	9,354,509	251,863	9,354,510	109	2012/10/10	12910	32	7	0	17	56
KPP018
	252,108	9,354,870	252,106	9,354,871	2	2012/10/10	12908	40	16	0	0	56
KPP036
	252,133	9,355,415	252,131	9,355,412	4	2012/10/11	12908	27	14	0	6	47
KPP033
	252,366	9,355,510	252,369	9,355,512	4	2012/10/11	12908	50	3	0	6	59
KPP050
	252,277	9,355,750	252,278	9,355,753	3	2012/10/11	12908	50	3	0	6	59
KPP065
	251,720	9,355,779	251,726	9,355,776	7	2012/10/12	12908	45	5	8	2	60
KPP027
	251,487	9,355,676	251,492	9,355,674	5	2012/10/12	12908	43	4	4	2	53
KPP026
	251,291	9,355,588	251,292	9,355,586	2	2012/10/13	12908	36	6	0	5	47
KPP025
	251,350	9,355,375	251,358	9,355,371	9	2012/10/13	12908	40	4	0	3	47
KPP010
	251,603	9,355,271	251,605	9,355,268	4	2012/10/13	12908	53	13	4	3	73
KPP031
	251,849	9,355,329	251,845	9,355,332	5	2012/10/14	12908	44	18	1	9	72
KPP049
	251,555	9,356,250	251,557	9,356,252	3	2012/10/15	12908	42	7	1	4	54
KPP022
	251,767	9,356,336	251,771	9,356,336	4	2012/10/15	12908	40	5	0	11	56
KPP023
	251,331	9,356,147	251,331	9,356,155	8	2012/10/16	12908	30	8	3	9	50
KPP021
	251,083	9,356,054	251,090	9,356,057	8	2012/10/16	12908	34	4	0	10	48
KPP020
	251,943	9,355,832	251,943	9,355,832	0	2012/10/16	12908	39	4	0	3	46
KPP028
	251,526	9,357,051	251,528	9,357,051	2	2012/10/17	12908	17	9	3	2	31
KPP042
	251,292	9,357,016	251,290	9,357,009	7	2012/10/17	12908	23	5	0	4	32
KPP041
	250,666	9,357,737	250,663	9,357,741	5	2012/10/17	12908	49	8	0	2	59
KPP054
	250,789	9,358,087	250,788	9,358,088	1	2012/10/18	12908	32	3	0	3	38
KPP056
	251,015	9,358,187	251,016	9,358,184	3	2012/10/18	12908	27	6	0	5	38
KPP057
	250,921	9,357,645	250,928	9,357,642	8	2012/10/18	12908	44	5	0	6	55
KPP053
	251,716	9,357,674	251,723	9,357,675	7	2012/10/18	12908	49	6	0	4	59
KPP063
	251,698	9,357,397	251,699	9,357,390	7	2012/10/19	12908	24	11	0	3	38
KPP048
	250,914	9,357,217	250,929	9,357,229	19	2012/10/19	12908	16	0	0	49	65
KPP062
	251,943	9,355,118	251,947	9,355,111	8	2012/10/20	12908	20	24	1	4	49
KPP016
	251,803	9,354,758	251,801	9,354,756	3	2012/10/20	12908	26	2	0	24	52
KPP032
	251,621	9,354,636	251,620	9,354,634	2	2012/10/20	12910	18	6	0	8	32
KPP035
	251,730	9,354,414	251,733	9,354,408	7	2012/10/22	12910	36	7	1	11	55
KPP017
	252,122	9,354,311	252,131	9,354,314	9	2012/10/22	12910	28	5	0	5	38
KPP039
KPP036 .R	252,101	9,354,881	252,106	9,354,871	11	2012/10/25	12908	42	15	1	2	60
	251,662	9,355,015	251,658	9,355,015	4	2012/10/25	12908	15	9	0	4	28
KPP015

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31 January 2013

ID	East	North	old e	old n	Distance	Date	Concession	OB	MIN	IW	FW	Final depth
	251,497	9,354,898	251,488	9,354,894	10	2012/10/25	12908	5	2	0	34	41
KPP014
	251,441	9,355,124	251,428	9,355,111	18	2012/10/25	12908	38	7	0	3	48
KPP030
	251,180	9,355,044	251,177	9,355,040	5	2012/10/25	12908	15	3	20	9	47
KPP029
	251,106	9,355,294	251,117	9,355,284	15	2012/10/26	12908	54	0	0	2	56
KPP011
	251,685	9,356,563	251,689	9,356,572	10	2012/10/26	12908	28	9	3	4	44
KPP004
	251,473	9,356,497	251,478	9,356,491	8	2012/10/26	12908	19	4	0	6	29
KPP003
	251,393	9,356,667	251,390	9,356,681	14	2012/10/26	12908	27	11	0	15	53
KPP044
	251,241	9,356,386	251,245	9,356,388	4	2012/10/26	12908	33	0	0	8	41
KPP002
	251,931	9,356,670	251,930	9,356,670	1	2012/10/27	12908	24	2	0	12	38
KPP005
	251,588	9,356,800	251,604	9,356,797	16	2012/10/27	12908	15	12	0	5	32
KPP045
	251,824	9,356,914	251,817	9,356,905	11	2012/10/27	12908	29	11	0	3	43
KPP046
	251,731	9,357,137	251,736	9,357,127	11	2012/10/27	12908	28	15	0	4	47
KPP047
	251,125	9,356,844	251,131	9,356,849	8	2012/10/28	12908	30	0	0	15	45
KPP040
	250,570	9,357,971	250,569	9,357,968	3	2012/10/28	12908	35	0	0	5	40
KPP055
	250,931	9,358,384	250,930	9,358,384	1	2012/10/28	12908	41	0	0	4	45
KPP061
	250,707	9,358,281	250,706	9,358,281	1	2012/10/28	12908	38	0	0	33	71
KPP060
	251,250	9,358,263	251,245	9,358,262	5	2012/10/28	12908	42	0	0	8	50
KPP058
	250,736	9,357,510	250,738	9,357,517	7	2012/10/29	12908	50	2	0	4	56
KPP052
	252,005	9,356,415	252,007	9,356,428	13	2012/10/29	12908	61	0	0	1	62
KPP066
	252,051	9,357,021	252,037	9,357,021	14	2012/10/29	12908	36	0	0	18	54
KPP067
	252,170	9,355,936	252,176	9,355,944	10	2012/10/29	12908	52	0	0	10	62
KPP068
	250,950	9,355,747	250,931	9,355,731	25	2012/10/29	12908	40	15	1	5	61
KPP007
	250,861	9,355,958	250,852	9,355,964	11	2012/10/31	12908	34	20	5	3	62
KPP019
	250,725	9,355,640	250,724	9,355,642	2	2012/10/31	12908	36	9	0	8	53
KPP008
	250,993	9,355,488	250,991	9,355,490	3	2012/10/31	12908	49	11	0	5	65
KPP024
	250,755	9,355,396	250,755	9,355,396	0	2012/10/31	12908	30	16	1	2	49
KPP081
	251,258	9,354,801	251,254	9,354,798	5	2012/11/01	12908	27	5	0	9	41
KPP013
	252,793	9,354,567	252,778	9,354,580	20	2012/11/01	12910	62	3	0	2	67
KPP073
	251,897	9,354,219	251,893	9,354,215	6	2012/11/01	12910	31	15	1	3	50
KPP069
	250,879	9,355,192	250,875	9,355,192	4	2012/11/01	12908	26	9	2	4	41
KPP012
	251,573	9,354,312	251,511	9,354,320	63	2012/11/02	12910	14	12	10	5	41
KPP070
	251,665	9,354,172	251,665	9,354,172	0	2012/11/02	12910	14	17	0	16	47
KPP074
	252,600	9,355,618	252,591	9,355,615	9	2012/11/02	12908	18	18	2	12	50
KPP076
	252,447	9,355,857	252,509	9,355,827	69	2012/11/02	12908	20	12	6	14	52
KPP077
	252,157	9,356,780	252,155	9,356,779	2	2012/11/02	12908	29	20	8	5	62
KPP078

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31 January 2013

ID	East	North	old e	old n	Distance	Date	Concession	OB	MIN	IW	FW	Final depth
	251,978	9,357,704	251,978 9,357,704		0	2012/11/03	12908	48	3	0	17	68
KPP075
	251,184	9,357,830	251,184	9,357,830	0	2012/11/03	12908	23	7	0	11	41
KPP071
	250,415	9,357,721	250,414	9,357,719	2	2012/11/03	12908	62	4	0	2	68
KPP072
	251,404	9,357,880	251,404	9,357,880	0	2012/11/03	12908	16	4	0	9	29
KPP082
	250,560	9,356,133	250,555	9,356,130	6	2012/11/03	12908	41	12	4	9	66
KPP009
	250,804	9,356,213	250,789	9,356,209	16	2012/11/05	12908	34	11	5	9	59
KPP006
	251,175	9,356,626	251,172	9,356,625	3	2012/11/05	12908	43	0	0	12	55
KPP043
	251,175	9,356,626	251,175	9,356,626	0	2012/11/05	12908	52	6	0	4	62
KPP079
	250,480	9,357,468	250,480	9,357,468	0	2012/11/05	12908	58	3	0	4	65
KPP059
	251,948	9,354,846	251,952	9,354,845	4	2012/11/26	12908	26	9	0	2	37
KPP080
	252,225	9,355,032	252,224	9,355,032	1	2012/11/26	12908	35	14	2	4	55
KPP083
	252,716	9,354,529	252,717	9,354,529	1	2012/11/26	12910	31	1	0	8	40
KPP084
	252,592	9,354,882	252,587	9,354,888	8	2012/11/26	12908	39	1	0	3	43
KPP085
	251,812	9,355,974	251,812	9,355,972	2	2012/11/26	12908	37	14	0	5	56
KPP086
	251,827	9,355,049	251,827	9,355,050	1	2012/11/27	12908	14	6	0	9	29
KPP087
	252,670	9,354,703	252,673	9,354,706	4	2012/11/27	12910	25	11	8	24	68
KPP088

About Minbos

Minbos Resources Limited (ASX:MNB) is an ASX-listed exploration and development company focused on phosphate 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 ore.

Minbos is focussing on the development of the high grade Cacata project in Cabinda and the high grade Kanzi project in the far western DRC whilst growing its current resource base in incremental stages on the remaining deposits in both areas.

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 is 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

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