PEPPERMINT INNOVATION LIMITED — Interim / Quarterly Report 2012

Apr 29, 2012

Appendix 5B

Rule 5.3

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.

Name of entity

Chrysalis Resources Ltd

56 125 931 964 31 March 2012

ABN Quarter ended ("current quarter")

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter$A'000	Year to date(9 months) $A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for(a) exploration and evaluation(b) development(c) production	(172)	(384)
	(d) administration	(110)	(444)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	9	20
1.5	Interest and other costs of finance paid
1.61.7	Income taxes paidOther
	Net Operating Cash Flows	(273)	(808)
1.8	Cash flows related to investing activitiesPayment 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
	Net investing cash flows	-	-
1.13	Total operating and investing cash flows (carried forward)	(273)	(808)

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(273)	(808)
1.141.151.161.17	Cash flows related to financing activitiesProceeds from issues of shares, options, etc.Proceeds from sale of forfeited sharesProceeds from borrowingsRepayment of borrowings	-	1,122
1.181.19	Dividends paidOther – capital raising costs	(5)	(29)
	Net financing cash flows	(5)	1,093
	Net increase (decrease) in cash held	(278)	285
1.201.21	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	950-	387-
1.22	Cash at end of quarter	672	672

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	61
1.24	Aggregate amount of loans to the parties included in item 1.10	-

1.25 Explanation necessary for an understanding of 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 reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

+ See chapter 19 for defined terms.

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

Estimated cash outflows for next quarter

		$A'000
4.1	Exploration and evaluation	150
4.2	Development	-
4.3	Production	-
4.4	Administration	120
	Total	270

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in theconsolidated statement of cash flows) to the related items in theaccounts is as follows.		Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	633	911
5.2	Deposits at call	39	39
5.3	Bank overdraft	-	-
5.4	Other (provide details)	-	-
	Total: cash at end of quarter (item 1.22)	672	950

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginning ofquarter	Interest at endof quarter
6.1	Interests in mining tenementsrelinquished, reduced or lapsed
6.2	Interests in mining tenementsacquired or increased

+ See chapter 19 for defined terms.

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	Issuepricepersecurity (see note 3)	Amountpaiduppersecurity(seenote3)
				(cents)	(cents)
7.1	Preference
	+securities(description)
7.2	Changes during
	quarter(a) Increases through
	issues
	(b) Decreases throughreturns of capital, buy
	backs, redemptions
7.3	+Ordinary securities	67,343,702	67,343,702	N/A	Fully Paid
7.4	Changes during
	quarter(a) Increases through
	issues
	(b) Decreases through
	returns of capital, buybacks
7.5	+Convertible debt
	securities
7.6	(description)Changes during
	quarter
	(a) Increases throughissues
	(b) Decreases through
	securities matured,
7.7	convertedOptions (description			Exercise price	Expiry date
	and conversion factor)	35,036,327	35,036,327	$0.20	30/06/2013
7.8	Issued during quarter
7.9	Exercised duringquarter
7.10	Expired during quarter
7.11	Debentures
	(totals only)
7.12	Unsecured notes(totals only)

+ See chapter 19 for defined terms.

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 give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 30 April 2012

Print name: Melanie Cotterell Company Secretary

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 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flow 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.