Nova Minerals Ltd — Interim / Quarterly Report 2011

Jul 28, 2011

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Quantum Resources Limited ABN 84 006 690 348

29 July 2011

Manager Companies Australian Securities Exchange Level 6, 20 Bridge Street Sydney NSW 2000

By E-Lodgement

REPORT FOR THE QUARTER ENDED 30[th] JUNE 2011

Quantum Resources Limited ABN 84 006 690 348

Level 8 580 St Kilda Road Melbourne, VIC, 3004

PO Box 6315 St Kilda Road Central Melbourne, VIC, 8008

Telephone: +61 3 8532 2840

OVERVIEW

Gardner Range Project

• Work Program Meeting and Heritage Clearance completed

• Field work to commence first week of August 2011

Ware Range Project

www.qur.com.au

Directors

Mr Joseph Gutnick Chairman / Managing Director

Dr David S Tyrwhitt Non-Executive Director

Mr Craig Michael Director / Executive General Manager

Senior Management

Mr Peter Lee CFO & Company Secretary

Mr Mike Kammerman Exploration Manager

• AAPA Certificate received

• All approvals now received for drilling

• Field work has been delayed due to a late and intense wet season restricting site access

• Drilling of calcrete deposit planned pending ground access and suitable drill rig

Telfer Project

• Application being assessed by Western Desert Lands Aboriginal Corporation (WDLAC) to negotiate and prepare Heritage Agreement

• Presentation to WDLAC scheduled for August 2011

Quantum Resources Limited, June 2011 Quarterly Report

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Quantum Resources Limited ABN 84 006 690 348

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REGIONAL EXPLORATION

Gardner Range (Quantum 100%)

During September to November 2010, Quantum Resources undertook three periods of exploration activity at the Gardner Range Project south east of Halls Creek, Western Australia (Figure 1). This work comprised RadonX surveys, Mobile Metal Ion (MMI) sample lines, rock chip sampling, stream gravel sampling and mapping. The purpose of these sampling programs is to identify areas for more focussed exploration.

The December 2010 ASX Quarterly Report reported results from the reconnaissance surveys. Sample results plus a review of geophysical data and aerial photo-geological mapping work has highlighted a number of areas warranting follow-up exploration for uranium and rare earth mineralisation. These areas also hold some potential for gold and base metals.

The 2011 field program is planned to commence in the first week of August 2011, and will build on the 2010 results to identify targets for a subsequent drilling program. It includes additional MMI plus conventional soil geochemical, rock chip sampling and a greater emphasis on geological mapping in order to define host stratigraphy. A regional program of stream gravel sampling has been proposed to produce heavy mineral concentrates which will be assayed for rare earth elements and uranium indicator minerals. A summary of planned sampling is shown on Figure 2.

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Figure 1 Gardner and Ware Range Project Location

Quantum Resources Limited, June 2011 Quarterly Report

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Quantum Resources Limited

ABN 84 006 690 348

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Figure 2 Planned Sample Locations

Work Program Meeting

The licences are subject to a Heritage Agreement which includes the requirement of Work Program Meetings and approval by the Kimberley Land Council (KLC) prior to undertaking any field activities.

During May 2011, a Work Program Meeting was held where it was indicated by the KLC that a Heritage Clearance Survey was required. This was subsequently undertaken on 8 and 9 July 2011 with all proposed areas of work cleared by the Traditional Owners and the KLC.

The Company will commence field work in the first week of August 2011.

Ware Range (Quantum 100%)

The Ware Range project is located approximately 200km northeast of Gardner Range (Figure 1). The Company intends to drill test a mapped calcrete deposit (Figure 3) as it represents an attractive uranium target with well known examples in WA (eg Yeelirrie, Lake Maitland) and Namibia (Langer-Heindrich) highlighting the potential for this style of mineralisation. A RadonX[TM] survey completed within the drainage in September 2009 defined several anomalous responses that the Company also intends to drill test. In addition to the drilling program, the Company intends to undertake reconnaissance geological mapping, spectrometer surveying and MMI soil sampling over several previously identified airborne radiometric features.

Quantum Resources Limited, June 2011 Quarterly Report

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Quantum Resources Limited ABN 84 006 690 348

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Figure 3 Ware Range Calcrete Deposit

AAPA Certificate

In November 2010 the Company applied for an Aboriginal Areas Protection Authority (AAPA) Certificate under the Native Title Act. The Certificate was received during June 2011 with no restricted work areas identified. A Mining Management Plan for the drilling has already been approved by the Northern Territory Department of Resources.

A field visit during the quarter confirmed that access was not yet possible as a result of the late and intense wet season. The site will be assessed again during the Gardner Range visit in early August 2011 to determine potential drill rig access. The Company intends to utilise a Toyota Landcruiser style drill rig for this program.

Officer Hill Joint Venture

Newmont Australia have joint ventured into Exploration Licence EL23150, which is located 34km southwest of The Callie gold mine, also owned by Newmont. Previous explorers located sporadic gold mineralization from drilling such as 4m @ 4.64g/t gold, and numerous short intervals of 1-4g/t gold, with several wide intercepts of 0.1-1g/t gold. The prospect is considered to have excellent potential to host steeply plunging shoots such as those at the Tanami Gold Mine. An apparent fold closure to the east offers potential to host Callie-style mineralization at depth. This licence is located on Aboriginal Land and is currently under application; hence no work has been undertaken.

Quantum Resources Limited, June 2011 Quarterly Report

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Quantum Resources Limited ABN 84 006 690 348

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Telfer Project

The Company holds a single Exploration Licence Application E45/2401 located 6km to the northeast of the Newcrest Mining Ltd Telfer gold mine (Figure 4). The Telfer gold mine is host to one of Australia's largest gold deposits with a reported ore reserve of 18.0 million ounces of gold and 0.685 million tonnes of copper within a mineral resource of approximately 27 million ounces gold. The O’Callaghan’s ore body, 9km south west of Telfer mine, is also owned by Newcrest and hosts significant resources of tungsten, copper, lead and zinc.

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Figure 4 Telfer Project Location

Previous drilling within the tenement identified gold mineralisation at the Chicken Ranch Prospect, which include results of 6m @ 15.8g/t gold. Evaluation of the historical drilling data has highlighted the fact that the spacing and depth extent of the holes sampled only the shallow, possibly supergene enriched, saprolite.

Subject to the Exploration Licence being granted, the Company will re-evaluate the historical data with a view to defining an appropriate exploration program.

Heritage Agreement

A Heritage Agreement is required prior to the licence being granted and the Company has been advised by the Western Desert Lands Aboriginal Corporation (WDLAC) that the application is currently being assessed. The Company was asked to present to WDLAC during the quarter as part of their assessment process however, this has been delayed by WDLAC to early August 2011. Once the agreement is finalised the licence application can proceed to grant under the Mining Act.

The technical information in this report has been reviewed and approved by Dr D S Tyrwhitt who is a Fellow of the Australasian Institute of Mining and Metallurgy and has 50 years experience in the industry and has more than 5 years experience which is relevant to the style of mineralisation being reported upon to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Tyrwhitt consents to the inclusion in the report of the matters based on the information in the form and context to which it appears. Attached is a copy of the Company’s Mining Exploration Entity Quarterly Report in accordance with Listing Rule 5.3.

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J I GUTNICK Chairman & Managing Director 29 July 2011.

Quantum Resources Limited, June 2011 Quarterly Report

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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining 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

Name of entity

QUANTUM RESOURCES LIMITED

ABN 84 006 690 348

Quarter ended (“current quarter”) 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) exploration & evaluation (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 (GST credits) Net Operating Cash Flows	Current quarter $A’000	Year to date (12 months) $A’000
	‐ (18) ‐ ‐ (16) ‐ ‐ ‐ ‐ 5	10 (526) ‐ ‐ (141) ‐ 2 ‐ ‐ 16
	(29)	(639)
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 (Security deposits) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (6)	‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
	(6)	‐
	(35)	(639)

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

Appendix 5B Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward)	(35)	(639)
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 (provide details if material) 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	(35) 408 ‐	(639) 1,012 ‐
	373	373

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	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
			5
			‐
1.25 Explanation necessaryfor an understandingof the 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 ‐ 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest ‐		Explanation necessaryfor an understandingof the transactions
		-
	‐
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	‐

• 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
		‐	‐
		‐	‐

Estimated cash outflows for next quarter

• $A’000

• 4.1 Exploration and evaluation 120 4.2 Development ‐ 4.3 Production ‐ 4.4 Administration 50 Total 170

Reconciliation of cash

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)	373	408
	‐	‐
	‐	‐
	‐	‐
Total: cash at end of quarter(item 1.22)	373	408

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
	P26/3095 P26/3096 P26/3363 P26/3364 P26/3365 P26/3366 P26/3367 P26/3368	Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered Surrendered	85 Bl 193 Bl 189 Bl 166 Bl 200 Bl 200 Bl 169 Bl 56 Bl	‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
	‐	‐	‐	‐

• 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.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs, redemptions	NIL
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs	814,703,218	814,703,218
	‐ ‐	‐ ‐
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	NIL
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	32,875,597 68,378,151 7,250,000	32,875,597 68,378,151 ‐	Exercise price $0.09275 $0.04275 $0.06275	Expiry date 30/04/2012 30/11/2012 19/10/2011
	‐
	‐
	‐
7.11 Debentures (totals only)	NIL

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.12 Unsecured notes(totals only)	NIL

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 give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 29 JULY 2011 (Director/Company secretary)

Print name: PETER LEE

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.

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• See chapter 19 for defined terms.

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