NEOMETALS LTD — Interim / Quarterly Report 2019

Jan 29, 2019

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 December 2018

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (6
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	81	172
1.2	Payments for
	(a) exploration & evaluation (R&D)	(2,450)	(3,356)
	(b) development	-	-
	(c) production (gas reservation)	(173)	(345)
	(d) staff costs	(906)	(1,947)
	(e) administration and corporate costs	(1,330)	(2,605)
1.3	Dividends received (see note 3)
1.4	Interest received	209	502
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 activities	(4,569)	(7,579)
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(195)	(435)
	(b) tenements (see item 10)	-	-
	(c) investments	(171)	(171)
	(d) other non-current assets	(74)	(99)

• 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 (6
		$A’000	months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	377	387
	(d) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	4,104
2.4	Dividends received (see note 3)	6,210	6,210
2.5	Other (exploration & development)	(1,149)	(2,513)
2.6	Net cash from / (used in) investing activities	4,998	7,483
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	29,864	30,385
4.2	Net cash from / (used in) operating	(4,569)	(7,579)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	4,998	7,483
	(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	7	11
	cash held
4.6	Cash and cash equivalents at end of period	30,300	30,300

• See chapter 19 for defined terms 1 September 2016

Page 2

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

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	22,757	3,734
5.2	Call deposits	3,499	22,086
5.3	Bank overdrafts	-	-
5.4	Other (restricted term deposits)	4,044	4,044
5.5	Cash and cash equivalents at end of	30,300	29,864
	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	249
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 $249,000 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 - in item 2.3

==> picture [110 x 4] intentionally omitted <==

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

==> picture [457 x 39] intentionally omitted <==

==> picture [451 x 100] intentionally omitted <==

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

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) - -
----- End of picture text -----

• 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 51] intentionally omitted <==

• See chapter 19 for defined terms 1 September 2016

Page 3

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

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation		(895)
9.2	Development (R&D)		(1,292)
9.3	Production (reservation charges)		(175)
9.4	Staff costs		(883)
9.5	Administration and corporate costs		(1,080)
9.6	Other (provide details if material)		-
9.7	Total estimated cash outflows		(4,325)

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		Refer to Annexure A
	tenements and
	petroleum tenements
	lapsed, relinquished
	or reduced
10.2	Interests in mining		Refer to Annexure A
	tenements and
	petroleum tenements
	acquired or increased

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: ....30/01/2019...................................... (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 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

ANNEXURE A: CHANGES IN TENEMENT INTERESTS

As at 31 December 2018 the Company’s interests in mining tenements lapsed, relinquished or reduced is as follows:

reduced is as follows:
PROJECT NAME	LICENCE NAME	NATURE OF INTEREST	LAPSED, RELINQUISHED OR REDUCED
Mount Marion	E15/1496	13.8%	Relinquished
Mount Marion	E15/1504	13.8%	Relinquished
Mount Marion	P15/6041	13.8%	Relinquished
Mount Marion	P15/6042	13.8%	Relinquished
Mount Marion	P15/6043	13.8%	Relinquished
Mount Marion	P15/6044	13.8%	Relinquished
Mount Marion	P15/6045	13.8%	Relinquished
Mount Marion	P15/6050	13.8%	Relinquished
Mount Marion	P15/6046	13.8%	Relinquished
Mount Marion	P15/6047	13.8%	Relinquished
Mount Marion	P15/6049	13.8%	Relinquished
Mount Marion	P15/6048	13.8%	Relinquished
Mount Marion	P15/6052	13.8%	Relinquished
Mount Marion	P15/6053	13.8%	Relinquished
Mount Marion	P15/6054	13.8%	Relinquished
Mount Marion	P15/6055	13.8%	Relinquished
Mount Marion	P15/6056	13.8%	Relinquished
Mount Marion	P15/6057	13.8%	Relinquished
Mount Marion	P15/6058	13.8%	Relinquished

As at 31 December 2018 the Company’s interests in mining tenements acquired or increased is as follows:

follows:
PROJECT NAME	LICENCE NAME	NATURE OF INTEREST	ACQUIRED OR INCREASED
Mt Edwards	E15/1679	100%	Application
Mt Edwards	P15/6362	100%	Application
Barrambie	G57/0011	100%	Application
Barrambie	L20/0080	100%	Application

• See chapter 19 for defined terms 1 September 2016

Page 5