QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2021

Jan 7, 2021

Queste Communications Ltd and Controlled Entity

December 2020

Monthly Cash Flow Report

Rule 4.7B

December 2020 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LTD and controlled entity

ABN 58 081 688 164			Month Ended (current month)	Month Ended (current month)
			31 December 2020
Consolidated statement of cash flows	Company		Consolidated
	Current Month Dec 20 $A' 000	Year to Date 6 months $A' 000	Current Month Dec 20 $A' 000	Year to Date 6 months $A' 000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) 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 Government grants and tax incentives 1.8 Other (provide details if material) - Recovery of staff costs under shared office arrangements	- - - - - (26) (2) - - - - 9 23	- - - - - (184) (52) - - (3) - 136 122	15 - - - - (35) 2 - - - - 9 23	18 - - - - (342) (90) - - - - 215 122
1.9 Net cash from / (used in) operating activities	4	19	14	(77)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets	- - - - - -	- - - - - -	- - - - - -	- - - - - -

Notes:

The Company currently has a 59.86% (30 November 2020: 59.86%) 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 entity, including OEQ.

Queste Communications Ltd (A.B.N. 58 081 688 164) Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005

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Tel: (08) 9214 9777 Email: info@queste.com.au

Queste Communications Ltd and Controlled Entity

December 2020

Monthly Cash Flow Report

Consolidated statement of cash flows	Company	Company	Consolidated	Consolidated
	Current Month Dec 20 $A' 000	Year to Date 6 months $A' 000	Current Month Dec 20 $A' 000	Year to Date 6 months $A' 000
2. Cash flows from investing activities (continued) 2.2 Proceeds from the disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) 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. Cash flows from financing activities 3.1 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 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) Proceeds from issues of equity securities (excluding convertible debt securities)	- - - - - (2) - - -	- - - - - (45) - - -	- - - - - - - - -	- - - - - - - - -
3.10 Net cash from / (used in) financing activities	(2)	(45)	-	-
4. 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) 4.5 Effect of movement in exchange rates on cash held Net increase / (decrease) in cash and cash equivalents for the period	29 4 - (2) -	57 19 - (45) -	261 14 - - -	352 (77) - - -
4.6 Cash and cash equivalents at end of period	31	31	275	275

Queste Communications Ltd (A.B.N. 58 081 688 164) Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 Tel: (08) 9214 9777 Email: info@queste.com.au

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Queste Communications Ltd and Controlled Entity

December 2020

Monthly Cash Flow Report

5. Reconciliation of cash and cash equivalents at the end of the month (as shown in the consolidated statement of cash flows) to the related items in the accounts	Company	Company	Consolidated	Consolidated
	Current Month $A' 000	Previous Month $A' 000	Current Month $A' 000	Previous Month $A' 000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details)	31 - - -	29 - - -	275 - - -	261 - - -
5.5 Cash and cash equivalents at end of month (should equal item 4.6 above)	31	29	275	261

6. Payments to related parties of the entity and their associates	Current Month $A' 000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 6.2 Aggregate amount of payments to related parties and their associates included in item 2	(15)
	-

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

7. Financing facilities available Add notes as necessary for an understanding of the position	Total facility amount at month end $A' 000	Amount drawn at month end $A' 000
7.1 Loan facilities 7.2 Credit standby arrangements 7.3 Other(please specify)	200 - -	45 - -
7.4 Total financing facilities	200	45
7.5 Unused financing facilities available at month end
		155

• 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after month end, include a note providing details of those facilities as well.

Note: OEQ and QUE have entered into a Loan Agreement for OEQ to advance up to $200,000 to QUE. The loan is unsecured and matures on 31 December 2021 and accrues interest at 10% pa in respect of the first $150,000 advanced, and 7.5% pa in respect of $50,000 advanced thereafter.

Queste Communications Ltd (A.B.N. 58 081 688 164) Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 Tel: (08) 9214 9777 Email: info@queste.com.au

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Queste Communications Ltd and Controlled Entity

December 2020

Monthly Cash Flow Report

8. Estimated cash available for future operating activities	Company	Consolidated
	$A' 000	$A' 000
8.1 Net cash from / (used in) operating activities (item 1.9) 8.2 Cash and cash equivalents at month end (item 4.6) 8.3 Unused finance facilities available at month end(item 7.5)	4 31 155	14 275 -
8.4 Total available funding (item 8.2 + item 8.3)	186	275
8.5 Estimated months of funding available(item 8.4 divided by item 8.1)	Not applicable as Item 8.1 is a positive cashflow

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

• 8.6 If item 8.5 is less than 6 months, please provide answers to the following questions:

• 8.6.1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Not applicable

• 8.6.2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Not applicable

• 8.6.3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Not applicable

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered

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.

Authorised by

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8 January 2021

Victor Ho

Executive Director & Company Secretary

The Company currently holds the following listed share investments:

Companycurrently holds the following listed	share investments:		31-Dec-20
	No Shares	% Interest	Last Bid Price	Market Value
Shares in Orion Equities Limited (OEQ)	9,367,653	59.9 %	$0.130	$1,217,795
Shares in Bentley Capital Limited (BEL)	1,225,752	1.6 %	$0.067	$82,125
				$1,299,920

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

Queste Communications Ltd (A.B.N. 58 081 688 164) Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 Tel: (08) 9214 9777 Email: info@queste.com.au

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Queste Communications Ltd and Controlled Entity

December 2020

Monthly Cash Flow Report

See Chapter 19 of ASX Listing Rules for defined terms

Notes

1. This monthly cash flow report provide a basis for informing the market about the entity’s activities for the past month , how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this monthly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this monthly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. If this monthly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this monthly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies 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. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. 5 If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

AUTHORISED FOR RELEASE - FOR FURTHER INFORMATION:

Victor Ho

Executive Director & Company Secretary

T| 0413 735 165 E| cosec@queste.com.au

Queste Communications Ltd (A.B.N. 58 081 688 164) Level 2, 31 Ventnor Avenue, West Perth, Western Australia 6005 Tel: (08) 9214 9777 Email: info@queste.com.au

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