PHOSCO LTD — Interim / Quarterly Report 2011

Oct 30, 2011

31 October 2011

SEPTEMBER 2011 QUARTERLY REPORT

Board of Directors

Kevin Nichol (Chairman)

David Regan (Executive Director)

• Peter Avery (Non-executive Director)
• Michael Trifunovic (Non-executive Director)

Company Secretary

Melanie Leydin

Quarterly Share Price Activity

Low	$0.31
High	$0.48
Close	$0.32

Securities on Issue:

• CNL: 47,289,508 ordinary shares
• CNLO: 25,367,001 options expiring 31 March 2014
• CNLCA: 17,471,296 partly paid shares

Market Capitalisation as at 30 Sept 2011:

$15,132,643

Bir El Afou Phosphate PFS – Tunisia Highlights

• Celamin Ltd (Celamin) as Project Manager was finalising the Pre-Feasibility Study (PFS) on the Bir El Afou Phosphate Project (BEA) in Northern Tunisia.
• The Study was presented to Celamin holdings NL, as well as Celamin's partner in the Project, Tunisian Mining Services (TMS) for review and comment on completion as announced.
• The purpose of the PFS is as follows:
  • a) Delineate the targeted mineralisation at the project, and report it in line with the Joint Ore Reserve Committee (JORC) Code guidelines;
  • b) Establish the basis of a development concept using current best practice approaches to deposits of this type;
  • c) Identify any environmental or technical obstacles to development, 'fatal flaws' of the project;
  • d) Estimate the costs of developing and operating the project;
  • e) Determine the financial feasibility of the project, and the main drivers of the financial performance of the project;
  • f) Identify the project risks; and,
  • g) Identify opportunities for value enhancement to the project that warrant further study.

Chaketma Phosphate Project

• Mapping and rock channel chip sampling has been completed at Chaketma as part of the planning for first-phase drilling and trenching work;
• Drilling Started at Chaketma on the Gassâa El Kebira prospect.
• Trenching work started on Gassâa El Kebira prospect in three locations.

Northern Tunisian Base Metals Permits

• Celamin Ltd and it's JV partner Tunisian Mining Services (TMS) have acquired three additional gazetted exploration permits for base metals which are located in the Northern Tunisian Governerates of Bizerte, Beja and Jendouba.
• Each of these three permits are prospective as they are known to contain lead and zinc from exploration work and previous mining on the permits.

Further advance to Celamin Limited

CNL announced that it has advanced a further $1 million to Celamin Ltd (CL) pursuant to the terms of its Acquisition Agreement with CL.

This further tranche of funding will be used to fast-track drilling at the Chaketma Phosphate project as well as assisting CL in completing its Pre Feasibility Study (PFS) and delineating a maiden JORC compliant resource on the Bir El Afou project.

CNL has recently contracted a senior geologist to assist CL in completion of the PFS.

CNL have also contracted independent consultants to complete an independent valuation of the CL projects in order to provide CNL shareholders with the required information to assist them when voting on resolutions to approve the full merger of CNL and CL. This shareholder meeting is currently expected to be held later this year.

Victorian Assets:

No work was undertaken on the Victorian gold assets. The company will now dispose of these leases and all enquiries are to be directed to the Company Secretary, Melanie Leydin.

About Celamin Holdings NL

Celamin Holdings NL (ASX Code CNL) is an ASX listed company focused on the exploration and development of resource projects in North Africa initially in Tunisia and Algeria.

Through Celamin Ltd (Celamin), the Company's immediate focus is the Bir El Afou Phosphate project held in partnership with local company Tunisian Mining Services SA (TMS). A pre feasibility study targeted on a high grade, low cost Stage 1 mine development has now been completed.

Celamin also holds another Phosphate exploration permit in Tunisia with TMS (Chaketma). This project has larger target potential than Bir El Afou. The Company¹s development plan is for a sequential staged development depending on market conditions once Bir El Afou Stage 1 is in production.

Celamin continues to step up work that will further delineate the potential of its Oued El Kabir precious and base metal project in Algeria.

Celamin has also acquired rights to several base metal tailings Projects in Tunisia with TMS and is farming in to an Exploration Permit with base metal (Pb/Zn) targets.

Kevin Nichol Chairman, Celamin Holdings NL

Compliance Statement:

The Information in this report that relates to exploration results, mineral resources and ore reserves is based on information compiled by Mr Ralph Stagg, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and the Institute of Materials, Minerals and Mining (IMMM). Mr Stagg has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves'. Mr Stagg consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.