NEURIZER LTD — Interim / Quarterly Report 2012

Oct 30, 2012

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31st October 2012

COMPANY ANNOUNCEMENTS OFFICE AUSTRALIAN SECURITIES EXCHANGE

ASX CODE MTN

QUARTERLY ACTIVITY REPORT

1st July 2012 – 30th September 2012

Marathon Resources Limited (ASX: “MTN”) presents its Activity Report for the Quarter ending 30th September 2012. Highlights of the past Quarter included:

• Formal advice from the SA Department of Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) that all rehabilitation requirements as specified in the Minister’s letter of 8th September 2011 relating to EL4355 (Arkaroola) had been completed to the satisfaction of DMITRE.

• Confirmation from the Environment Protection Authority that Registration of Premises (Certificate Number 20135) relating to the storage of radioactive substances at the Painter Camp Storage Area on the Arkaroola Pastoral Lease will be transferred from Marathon to DMITRE effective from 31st October 2012.

• Refining Marathon’s broad business direction and review of potential future opportunities.

Refining the Company’s broad business direction and review of potential future opportunities

Refining Marathon’s broad business direction has been a key focus of the Board and management in recent months, and has included identifying opportunities that match the Company’s intended business plans for the future.

As a minerals explorer, Marathon’s historical core business was centred on the identification and potential development of uranium in South Australia for export and as an important source of energy for electricity production. The uranium market is still recovering from the impact of Fukushima, and despite prospects appearing bright in the longer term, Marathon does not consider the political and social factors sufficiently strong to warrant further investigation and investment in the uranium industry at this time. This is for two reasons:

• The timeline for investment in uranium is too long for Marathon to recommence activities from the beginning and would lead inevitably to substantial dilution of existing shareholders in order to fund renewed uranium exploration; and

• Marathon persisted with the Mt Gee opportunity because of its JORC resource and potential for the increased size of the deposit. The capital costs involved in constructing an economic uranium operation are so high that profitability could not be assured with production less than 1500 – 2000 tonnes per annum of U3O8 over a 20 year mine life. The claim that South Australia may contain 40% of the world’s undeveloped uranium resources may not be fallacious but is misleading; unless resources are concentrated in large volumes and of reasonable grade, they may never be capable of development. Such development also requires greater political strength and vision, and regulators will need to be more decisive and supportive and social licences decided on consistent and less emotional terms.

The Company is enthusiastic about the Board’s decision to reconceptualise the Company’s broad business direction.

In line with this strategy, three emerging growth areas within the broad energy domain have been identified, namely:-

• The first emerging growth area broadly falls within the category of the development of lower carbon emitting fuels through fossil fuel refinement methodologies. Marathon has undertaken detailed due diligence and rejected one potential project that falls within this category, and is assessing other possible projects.

• The second emerging area relates to the production of fuels from sustainable biomass for use in fossil-fuel power generation stations. Marathon is undertaking detailed due diligence, business case development, risk assessment, and scenario modelling on a potential project with assured long-term resource supply and off-take agreements.

• The third area relates to potential investment in and/or participation in the oil and gas industry in Australia and overseas. Marathon is now undertaking further investigation of these initiatives

Mineral exploration continues to be an important focus for Marathon, and in response to numerous requests from exploration companies in a number of industries, your Company is investigating some exciting prospects in a number of Australian states and overseas.

MEDIA CONTACT :

Peter Williams John Field Chairman Managing Director 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, 01/06/10.17/12/10

Name of entity

	Marathon Resources Limited	Marathon Resources Limited	Marathon Resources Limited	Marathon Resources Limited
	ABN 31 107 531 822 Consolidated statement of cash flows
			30 September 2012
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) (1)Exploration & evaluation (b) (1) Administration (2) Rent/insurance (3) New business development (4) Office relocation 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 (a)Other (Mt Gee Discontinuation costs) Net Operating Cash Flows		Current quarter $A’000		Year to date (3months) $A’000
		(297) (83) (84) (24) 6		(297) (83) (84) (24)
		(482)		(482)
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)
		-		-
		(482)		(482)

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(482)	(482)
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
	-	-
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	(482) (6,712 -	(482) (6,712) -
	6,230	6,230

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
		83
		-
1.25	Explanation necessaryforanunderstanding ofthe transactions

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets andliabilities but didnotinvolve cash flows
	Nil
	Details of outlays made by other entities to establish or increase their share in projects in whichthereporting entityhas an interest
	Nil

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

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	$A’000
	150
	-
	-
	250
Total	400

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash	$A’000	$A’000
flows) to the related items in the accounts is as
follows.
5.1 Cash on hand and at bank	39	14
5.2 Deposits at call	6,131	6,698
5.3 Bank overdraft
5.4 Other – deposit release on surrender of government guarantee	60	-
Total: cash at end of quarter(item 1.22)	6,230	6,712

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
		At 30th Sept 2012 Company no longer holds any interest in any exploration tenements
		As above

• See chapter 19 for defined terms.

Appendix 5B Page 3

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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	1,000,000 490,000 50,000 500,000 750,000 750,000	- - - - - -	Exercise Price On Issue 1.10 0.34 0.75 0.876 1.25 1.75 After Rights Issue 1.077 0.317 0.727 0.853 1.227 1.727	Expiry date 28.12.2014 15.10.2013 15.10.2013 01.11.2013 01.11.2014 01.11.2015
	-	-	-	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.9 Exercised during quarter 7.10 Expired during quarter	-	-	-	-
	-	-
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 5).

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

Sign here:…………………………………………. Date: 30 October 2012

(Company secretary)

Print name: Stuart 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 Financial Reporting 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.

Appendix 5B Page 5

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