NEOMETALS LTD — Interim / Quarterly Report 2018

Oct 30, 2018

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Neometals Ltd

==> picture [458 x 4] intentionally omitted <==

ABN Quarter ended (“current quarter”) 89 099 116 631 September 2018

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	91	91
1.2	Payments for
	(a) exploration & evaluation (R&D)	(906)	(906)
	(b) development	-	-
	(c) production (gas reservation)	(172)	(172)
	(d) staff costs	(1,041)	(1,041)
	(e) administration and corporate costs	(1,275)	(1,275)
1.3	Dividends received (see note 3)
1.4	Interest received	293	293
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Research and development refunds	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(3,010)	(3,010)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(240)	(240)
	(b) tenements (see item 10)	-	-
	(c) investments	10	10
	(d) other non-current assets	(25)	(25)

• See chapter 19 for defined terms 1 September 2016

Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3
		$A’000	months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	-	-
	(d) other non-current assets	-	-
2.3	Cash flows from loans to other entities	4,104	4,104
2.4	Dividends received (see note 3)	-	-
2.5	Other (exploration & development)	(1,364)	(1,364)
2.6	Net cash from / (used in) investing	2,485	2,485
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	-
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of	-	-
	shares, convertible notes or options
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (share buy-back)	-	-
3.10	Net cash from / (used in) financing	-	-
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period	30,385	30,385
4.2	Net cash from / (used in) operating	(3,010)	(3,010)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	2,485	2,485
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	-	-
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	4	4
	cash held
4.6	Cash and cash equivalents at end of	29,864	29,864
	period

• See chapter 19 for defined terms 1 September 2016

Page 2

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

==> picture [458 x 459] intentionally omitted <==

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

5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 3,734 3,765
5.2 Call deposits 22,086 22,577
5.3 Bank overdrafts - -
5.4 Other (restricted term deposits) 4,044 4,043
5.5 Cash and cash equivalents at end of 29,864 30,385
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 270,200
6.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
During the quarter $270,200 was paid to directors of the entity.
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2 -
7.2 Aggregate amount of cash flow from loans to these parties included 4,104
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
----- End of picture text -----

During the quarter, the company received $4,104,458 from Reed Industrial Minerals Pty Ltd (RIM), the operating company for the Mt Marion Lithium Project. This is the final loan repayment of 50% of the original amount loaned to RIM as working capital.

• See chapter 19 for defined terms 1 September 2016

Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	-		-
8.2	Credit standby arrangements	-		-
8.3	Other (please specify)	-		-
8.4	Include below a description of each facility above, including the lender,		interest rate and
	whether it is secured or unsecured. If any additional facilities have been entered into or are
	proposed to be entered into after quarter	end, include details of those facilities as well.

==> picture [458 x 52] intentionally omitted <==

9.	Estimated cash outflows for next	Estimated cash outflows for next	quarter	$A’000
9.1	Exploration and evaluation				(1,181)
9.2	Development (R&D)				(2,261)
9.3	Production (reservation charges)				(181)
9.4	Staff costs				(946)
9.5	Administration and corporate costs				(1,030)
9.6	Other (provide details if material)				-
9.7	Total estimated cash	outflows			(5,599)
10.	Changes in	Tenement	Nature of interest	Interest at	Interest
	tenements	reference		beginning	at end of
	(items 2.1(b) and	and		of quarter	quarter
	2.2(b) above)	location
10.1	Interests in mining	n/a	n/a	n/a	n/a
	tenements and
	petroleum tenements
	lapsed, relinquished
	or reduced
10.2	Interests in mining	E15/1665	Application	0%	100%
	tenements and
	petroleum tenements
	acquired or increased

• See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: ....... Jason Carone..................... Date: ....31/10/2018...................................... (Company secretary)

Print name: ........Jason Carone.....................

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

Page 5