ORA BANDA MINING LTD — Interim / Quarterly Report 2019

Jul 30, 2019

ASX Announcement (ASX : OBM)

31 July 2019

JUNE 2019 – QUARTERLY ACTIVITIES REPORT

Recapitalisation Process Completed & Securities Requoted on ASX

Highlights for the 3 Months to 30 June 2019:

• $30 million fund raising completed

• Deed of Company Arrangement (DOCA) effectuated

• Well funded to undertake nominated exploration and resource drill out work programs

• New board appointed

• Securities reinstated to official quotation on ASX

• Exploration and resource drill programs have commenced

• Samples collected from previous work programs dispatched for analysis

Ora Banda Mining Limited (ASX:OBM) (“Ora Banda”, “Company”) is pleased to report on its activities for the June quarter, a quarter in which the Company’s securities were reinstated to official quotation on ASX (28 June 2019) after a successful $30 million recapitalisation process.

Following completion of the recapitalisation Ora Banda is now debt free with $14.1 million cash at bank and a compelling resource drilling and exploration program to be undertaken over the coming 12 month period.

Resource & Reserve Drilling

Detailed planning in preparation for the recommencement of resource and reserve drilling operations continued during the quarter with a focus on resource infill, resource conversion and extensional programs at five key prospects.

Riverina

Riverina is the first of the Company’s five key prospects on which a resource drill out program has been planned. A drill rig mobilised to site at the end of the June Quarter and commenced drilling at Riverina shortly thereafter.

Regional Exploration

Regional exploration activity during the quarter was limited to ensuring minimum required expenditure commitments were met.

Five RC holes (580 metres) were completed at the Juniper prospect (Mt Ida) during the quarter to follow up several coincident (auger and RAB) anomalies and to test the area adjacent to old mine workings previously mapped in the area. The Juniper Prospect mineralisation is hosted in a fine to medium grain amphibolite with the gold associated with a shear hosted quartz vein, similar in nature to that of the high-grade Mt Ida deposit.

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Samples from the Juniper Prospect have been submitted into the assay laboratory for analysis.

Two RC holes (220 metres) were completed at the Tyred Cow Prospect (Lady Ida) during the quarter to follow up several coincident (auger and RAB) anomalies. Tyred Cow is a prospect located between Salmon Gums and Two Gums Dam in sand-covered area void of outcrop.

Samples from the Tyred Cow Prospect have been submitted into the assay laboratory for analysis.

Corporate

Capital Structure

At the date of this report the issued capital of the Company is:

Fully Paid Ordinary Shares	486,419,962
Unlisted Options	43,733,913

Strong Cash Position

The Company has a strong, well capitalised balance sheet that is free of all debt and creditor claims. Cash at 30 June 2019 was $14,142,472.

Marketing

As part of the recapitalisation process Ora Banda undertook an extensive marketing campaign in Australia, Hong Kong, Switzerland, United Kingdom, United States of America and Canada. The Company maintains a proactive approach to promoting the Company and its activities.

Events Post 30 June 2019

Please refer to the Company’s ASX Announcement dated 29 July 2019 for the latest update on resource drilling and regional exploration activities post 30 June 2019 which detailed the assay results from samples collected from previous work programs that were dispatched for analysis during the quarter.

For more information about Ora Banda and its projects please visit our website at www.orabandamining.com.au

For further information please contact

David Quinlivan Managing Director +61 418 948 944

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Tenement Holdings at 30 June 2019

Tenement Reference	Status	Ownership at Quarter End	Interest Acquired During the Quarter	Interest Disposed During the Quarter
E16/0337 E16/0344 E16/0456 E16/0473 E16/0474 E16/0475 E16/0480 E16/0482 E16/0483 E16/0484 E16/0486 E16/0487 E24/0203 E29/0640 E29/0889 E29/0895 E29/0955 E29/0964 E30/0333 E30/0335 E30/0338 E30/0454 E30/0468 E30/0490 E30/0491 E30/0504 G30/0006 G30/0007 L15/0224 L16/0058 L16/0062 L16/0072 L16/0073 L16/0103 L24/0085 L24/0115 L24/0170	Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Pending Pending Pending Granted Granted Granted Granted Granted Granted Granted Granted Granted	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

3

Tenement Holdings at 30 June 2019

Tenement Reference	Status	Ownership at Quarter End	Interest Acquired During the Quarter	Interest Disposed During the Quarter
L24/0174 L24/0188 L24/0224 L24/0233 L24/0240 L29/0074 L30/0035 L30/0037 L30/0066 L30/0069 M16/0262 M16/0263 M16/0264 M16/0268 M16/0470 M24/0039 M24/0115 M24/0159 M24/0208 M24/0376 M24/0634 M24/0660 M24/0663 M24/0664 M24/0665 M24/0683-I M24/0686 M24/0757 M24/0772-I M24/0797 M24/0845 M24/0846 M24/0847 M24/0848 M24/0915-I M24/0916 M24/0960	Granted Granted Granted Granted Pending Granted Granted Granted Granted Pending Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 90% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

4

Tenement Holdings at 30 June 2019

Tenement Reference	Status	Ownership at Quarter End	Interest Acquired During the Quarter	Interest Disposed During the Quarter
M24/0973 M29/0002 M29/0165 M29/0422 M30/0102 M30/0103 M30/0111 M30/0123 M30/0126 M30/0157 M30/0187 M30/0253 M30/0255 M30/0256 P16/2888 P16/2889 P16/2921 P16/2922 P24/4395 P24/4396 P24/4400 P24/4401 P24/4402 P24/4403 P24/4750 P24/4751 P24/4754 P24/5073 P24/5074 P24/5075 P29/2328 P29/2397 P29/2398 P29/2399 P29/2400 P29/2401 P29/2402	Pending Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted	100% 100% 95% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Tenement Holdings at 30 June 2019

Tenement Reference	Status	Ownership at Quarter End	Interest Acquired During the Quarter	Interest Disposed During the Quarter
P29/2403 P29/2404 P29/2405 P29/2406 P29/2407 P30/1122	Granted Granted Granted Granted Granted Granted	100% 100% 100% 100% 100% 100%	- - - - - -	- - - - - -

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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

Ora Banda Mining Ltd

ABN

Quarter ended (“current quarter”)

69 100 038 266

30 June 2019

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 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	118 (327) - (247) (3,170) (12,137) - - (3) - - -	6,429 (2,402) - (5,874) (9,084) (14,133) - - (190) - - -
	(15,766)	(25,254)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments	- - -	(1,565) - -

• 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	Current quarter $A’000	Year to date (12 months) $A’000
(d) other non-current assets 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 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - 3,215 - - - -
	-	1,650
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 (provide details if material) 3.10 Net cash from / (used in) financing activities	7,946 22,244 - (1,349) 650 (650) - - -	7,946 31,144 - (1,349) 650 (650) - - -
	28,841	37,741
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	1,067 (15,766) - 28,841	5 (25,254) 1,650 37,741

• See chapter 19 for defined terms 1 September 2016

Page 2

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	14,142	14,142
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	14,142 - - -	1,067 - - -
	14,142	1,067

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		-
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

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	57
7.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

Payments made to directors for consulting fees

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-

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.

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	3,068 308 - 903 615 -
	4,894

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	E16/480 E16/482 E16/483 E16/484 E16/486	Reduction Reduction Reduction Reduction Reduction	100% 100% 100% 100% 100%	100% 100% 100% 100% 100%
10.2 Interests in mining tenements and petroleum tenements acquired or increased	Nil

• See chapter 19 for defined terms 1 September 2016

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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.

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31 July 2019 Sign here: ............................................................ Date: ............................................. ( ~~Director/~~ Company Secretary)

Tony Brazier

Print name: .........................................................

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

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