NEURIZER LTD — Interim / Quarterly Report 2011

Jul 28, 2011

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29[th] July 2011

COMPANY ANNOUNCEMENTS OFFICE AUSTRALIAN SECURITIES EXCHANGE

ASX CODE MTN

QUARTERLY ACTIVITY REPORT 1[st] April 30[th] June 2011

Marathon Resources Limited (ASX: MTN ) presents its Activity Report for the Quarter ending 30th June 2011. Highlights of the past Quarter included:

• Submission of Declaration of Environmental Factors (DEF) for a drilling program within Exploration Licence 4355.

• Design of innovative drilling techniques to satisfy the DEF.

• Successful completion of Aboriginal Heritage Survey.

Figure 1: Marathon Resources - Tenement Map

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EL 4355 Mt Gee South Australia

Submission of a DEF for a drilling program

Marathon submitted a DEF to Primary Industries and Resources South Australia (PIRSA) for approval to conduct a drilling exploration program designed to demonstrate the North, Northeast, East, Southeast and Southwest extensions of the Mt Gee deposit. The DEF addressed the unique Schedule C conditions attached to Exploration Licence 4355. Specific environmental related Conditions prevented use of conventional drilling methodologies and so Marathon proposed combining several innovative techniques to satisfy the requirements of PIRSA.

Aboriginal Heritage Survey

An Aboriginal Heritage Survey to examine proposed drill collar positions for Phase 1 drilling within EL 4355 was completed on 21st June. The survey was conducted under a Part 9B Agreement with the Adnyamathana Traditional Lands Association (ATLA) The survey party members were selected by ATLA. All but two of the proposed drilling locations were approved, and following discussions in the field, a compromise location was approved for the final two holes.

Environmental Management System

The implementation of the company s Environmental Management System is currently underway, and is modeled on the ISO 14001 standard.

An Environmental Management Plan was developed specifically targeting risks associated with the proposed drilling program, for inclusion in the education and awareness training for all employees and contractors.

Post Quarter Events

On 22[nd] July 2011 the Premier of South Australia Mike Rann, together with the state s Ministers for the Environment and Conservation, and Mineral Resources Development, made a statement giving unprecedented protection under the Mining Act for Arkaroola.

Marathon entered a Trading Halt 22[nd] July 2011.

Marathon released a further statement to the market 26[th] July 2011 updating its position and announced it is taking appropriate advice with a view to seeking to redress the impact of this unprecedented action announced by the South Australian Government.

Marathon will advise shareholders of further developments as soon as it is able to.

MEDIA CONTACT:

Mr Peter Williams Mr Sean Whittington Chairman Partner Marathon Resources Limited Field Public Relations (08) 8348 3500 (08) 8234 9555 (0418) 819 527

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, 01/06/10, 17/11/10

Name of entity

Marathon Resources Limited

ABN 31 107 531 822	Quarter ended (“current quarter”)
31 107 531 822	30 June 2011

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) (1)exploration & evaluation (2)camp infrastructure (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (R & D Concession) Net Operating Cash Flows	Current quarter $A’000	Year to date (12months) $A’000
	(194) (274) - - (673) 61 145	(703) (589) - - (2,228) 151 366
	(935)	(3,003)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carriedforward)	- - (24) - - 27	- - (32) - - 27
	3	(5)
	(932)	3,008

• 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 (brought forward)	(932)	(3,008)
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 –Capital Raising Costs Net financing cash flows	8 - - - - (65)	7,547 - - - - (97)
	(57)	7,450
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 of quarter	(989) 7,237 -	4,442 1,826 -
	6,268	6,268

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and 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 parties included in item 1.10	Current quarter $A'000
		95
		-
1.25	Explanation necessaryforanunderstanding ofthe transactions

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 Nil

• 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 Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Nil	-
	Nil	-

Estimated cash outflows for next quarter

• 4.1 Exploration and evaluation

• 4.2 Development 4.3 Production 4.4 Administration

Total

$A’000 - - -

• 600 600

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.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	50	70
	6,218	7,187
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	6,268	7,257

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
		No Changes
		None acquired

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

dates.
	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	92,207,789	92,207,789
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	N/A
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,000,000 1,000,000 490,000 50,000 500,000 750,000 750,000	- - - - - - -	Exercise Price On Issue 0.80 1.10 0.34 0.75 0.876 1.25 1.75 After Rights Issue 0.777 1.077 0.317 0.727 0.853 1.227 1.727	Expiry date 02.09.2012 28.12.2014 15.10.2013 15.10.2013 01.11.2013 01.11.2014 01.11.2015
	-	-	-	-
	-	-	-	-
	3,000,000	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.11 Debentures (totals only)	-
7.12 Unsecured notes(totals only)	-

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 / ~~does not~~ * (delete one) give a true and fair view of the matters disclosed.

Sign here:

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Date: 29 July 2011

(Company secretary)

Print name: S. M. Appleyard

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.

• 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: 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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