QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2008

Nov 8, 2007

October 2007 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LTD and controlled entities

	Month EndedACN or ARBN
	31 October 2007081 688 164
	Consolidated statement of cash flows	Company		Consolidated
		Current MonthOct 2007$' 000	Year to Date4 month$' 000	Current MonthOct 2007$' 000	Year to Date4 month$' 000
Cash flows related to operating activities
1.1	Receipts from customers	-	-	284	284
1.2	Payments for
	(a) staff costs	(41)	(168)	(90)	(353)
	(b) advertising and marketing	-	-	-	-
	(c) research and development	-	-	-	-
	(d) leased assets	-	-	-	-
	(e) other working capital	(16)	(28)	(186)	(1,125)
1.3	Dividends received	-	171	-	25
1.4	Interest and other items of a similar nature received	32	70	37	93
1.5	Interest and other costs of finance paid	-	-	-	-
1.6	Income taxes paid	-	-	(6)	(82)
1.7	Other (provide details if material)
	- Professional fees	-	-	-	-
	Net operating cash floNetoperatingcashflowss	(25)	45	39	(1 158)(1,158)

Note:

The Company currently has a 48% interest in ASX listed investment company, Orion Equities Limited ("OEQ").

OEQ is a controlled entity of the Company under the Accounting Standards.

Therefore, the Consolidated columns in this Monthly Cash Flow Report takes into account the cash flows of the Company and its controlled entities, including OEQ

		Company		Consolidated
		Current MonthCurrent	Year to DateYear to	Current MonthCurrent	Year to DateYear to
		Oct 2007	4 month	Oct 2007	4 month
		$' 000	$' 000	$' 000	$' 000
1.8	Net operating cash flows (carried forward)	(25)	45	39	(1,158)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments	(93)	(93)	(360)	(911)
	(c)intellectual property	-	-	-	-
	(d)physical non-current assets	-	-	-	(3)
	(e)other non-current assets	-	-	-	-
1 10 .	Proceeds from disposal of:Proceeds from disposal
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments	-	-	262	1,884
	(c)intellectual property	-	-	-	-
	(d)physical non-current assets	-	-	-	-
	(e)other non-current assets	-	-	-	-
1.11	Loans to other entities	-	-	-	-
1.12	Loans repaid by other entities	-	-	-	-
1.13	Other (provide details if material)	-	-	-	-
	(a)Net income from options	-	-	(28)	(93)
	Net investing cash flows	(93)	(93)	(126)	877
1.14	Total operating and investing cash flows	(118)	(48)	(87)	(281)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.	-	-	-	-
1.16	Proceeds from sale of forfeited shares	-	-	-	-
1.17	Proceeds from borrowings	-	-	-	-
1.18	Repayment of borrowings	-	-	-	-
1 19 .	Dividends paidDividends	-	(74)	-	(259)
1.20	Other (provide details if material)	-	-	-	-
	Payments in relation to share buy back	-	-	-	-
	Net financing cash flows	-	(74)	-	(259)
	Net increase (decrease) in cash held	(118)	(122)	(87)	(540)
1 21 .	Cash at beginning of month/year to dateCash at beginning of month/year to date	3 154,	3 158,	4 358,	4 811,
1.22	Exchange rate adjustments to item 1.20	-	-		-
1.23	Cash at end of month	3,036	3,036	4,271	4,271

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 Month
		Oct 2007
		$' 000
1.24	Aggregate amount of payments to the parties included in item 1.2	(61)
1.25	Aggregate amount of loans to the parties included in item 1.11	-

1.26 Explanation necessary for an understanding of the transactions

(1) $14,162 - Salaries and fees paid by the Company to Directors; (2) $46,531 - Salaries and fees paid by controlled entity, Orion Equities Limited, to its Directors.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and

None

2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting

None.

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

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

Reconciliation of cashReconciliation of cash at the end of the month (as shown inthe consolidated statement of cash flows) to the related items		Company		Consolidated
		Current	Previous	Current	Previous
		Month	Month	Month	Month
		$' 000	$' 000	$' 000	$' 000
4.1	Cash on hand and at bank	80	229	1,315	1,433
4.2	Deposits at callp	2,956,	2,925,	2,956,	2,925,
4.3	Bank overdraft	-	-	-	-
4.4	Other (Bank Bills)	-	-	-	-
	Total: cash at end of month (item 1.22)	3,036	3,154	4,271	4,358
		-	-	-	-

Acquisitions and disposals of business entities

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• 2 This statement does give a true and fair view of the matters disclosed.

Date: 8 November 2007

Victor Ho Company Secretary

Notes:

The Company currently holds the following listed share investments:	8-Nov-07
	No Shares	% Interest	Last Closing Price	Market Value
Shares in Orion Equities Limited (OEQ)	8,558,127	48.04%	$1.365	$11,681,843
Shares in Sofcom Limited (SOF)	6,255,349	14.01%	suspended
Shares in Telstra Corporation Limited (TLS)Shares in Telstra Corporation Limited (TLS)	792792	0 00%0.00%	$4 720$4.720	$3 738$3,738
Shares in Telstra Corporation Limited (TLSCA)	24,500	0.00%	$3.200	$78,400
Shares in Metcash Limited (MTS)	20,000	0.00%	$4.540	$90,800
				$11,854,782

The above investments are regarded as liquid assets to supplement the Company's cash reserves.

Queste Communications Ltd (ABN 58 081 688 164) Level 14, The Forrest Centre, 221 St Georges Terrace, Perth, Western Australia 6000 Tel: (08) 9214 9777 Email: info@queste.com.au Fax: (08) 9322 1515 Page 4

		Acquisitions(Item 1.9(a))	Disposals(Item 1.10(a))
5.1	Name of entity	-	-
5.2	Place of incorporation or registration	-	-
5.3	Consideration for acquisition or disposal	-	-
5.4	Total net assets	-	-
5.5	Nature of business	-	-