RED MOUNTAIN MINING LIMITED — Interim / Quarterly Report 2015

Apr 13, 2015

RED MOUNTAIN MINING LTD (ASX:RMX)

14 April 2015

ASX ANNOUNCEMENT

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Quarterly Activities and Cashflow Report for quarter ending 31 March 2015

MARCH QUARTER HIGHLIGHTS:

• Very high-grade gold trenching results highlight early mining potential and exploration upside:

• Very high grade surface trenching results including Trench 37: 9m @ 28.9 g/t Au (released 17 March 2015) and Trench 36: 4.5m @ 14.8 g/t Au (released 2 March 2015) from South West Breccia (SWB) lode, highlighted potential for an early surface mining Measured Resource.

• Discussions in progress with processing plant operators regarding potential toll processing.

• In addition, very high grade gold results from Limestone Target including Trench 34: 3.5m @ 25.9 g/t Au including 1.5m @ 56.8 g/t Au and Trench 33C: 2m @ 14.2 g/t Au (released 2 February 2015), immediately before the lode continues under limestone cover - a future drilling target.

• Interim Definitive Feasibility Study (DFS) results indicate 50% increase in cashflow to A$45 million:

• Operating cash flow of A$67 million (m) for Batangas Gold Project, based on interim DFS financial modelling released 23 January 2015 (gold price, A$1,600/oz, lower fuel costs) for the initial 5.2 years and 100,000oz gold production.

• Free cash flow up 50% to A$45m compared to initial interim DFS financial modelling released on 20 November 2014 after low pre-production Capex of A$18.4m and Sustaining Capex of A$4.3m.

• Low pre-tax operating costs of US$703 per oz/A$873 per oz .

• Debt funded Internal Rate of Return (IRR) 65% and Net Present Value (NPV, 8%) A$28.5m .

• The final testing and engineering phase of the DFS has commenced, targeting completion by Q3 2015.

• Permitting advanced with local government endorsements and environmental permitting feedback:

• Permitting advanced through endorsement of the Declaration of Mining Project Feasibility (DMPF) by all of the 10 potentially affected Barungay (Township) Councils. Next step is endorsement by the Lobo Municipal Council prior to the DMPF proceeding to the central Mines and Geosciences Bureau (MGB) for final approval.

• The Philippines Environmental Management Bureau (EMB) has provided feedback on the submissions for the Environmental Compliance Certificate (ECC). Next step, community consultation, prior to the final draft of the ECC being prepared for final approval.

• Company receives initial Strategic Partnership funding for the DFS and final permitting:

• Funding received to date under the Agreement with Bluebird Merchant Ventures Ltd (Bluebird) totals US$280,000 (~A$370,000) , of a total Stage 1 commitment of US$ 1 million (~A$1.3 million).

• Bluebird Stage 1 funding to be used to fund the final stages of the DFS and final permitting.

• Bluebird Agreement is providing equity at project level valuation, limiting share register dilution.

• Red Mountain is well funded, raising over $1.1 million (pre costs) via heavily oversubscribed Rights Issue and Placement, retaining A$1.23 million cash and no debt at the end of the March Quarter.

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ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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Figure 1: Batangas Gold Project Mineral Resources (JORC 2012) and planned project infrastructure

BATANGAS GOLD PROJECT

Exploration and the Early Mining Target Results, Lobo Prospect:

The Company has previously identified four zones of very high grade, outcropping, gold mineralisation along the 500 metre exposed strike length of the South West Breccia (SWB) Lode structure, Lobo prospect. The four from northeast to southwest are: SWB Extended, Japanese Tunnel , Trench 7 Area and the Limestone Target (see Figure 2 for location).

These four discreet high-grade, outcropping, gold zones are being assessed for selective early mining and potential toll processing or ore sales. Additional trenching was completed at SWB Extended and the Limestone Target during the Quarter, as summarised below, and further trenching and selective drilling is expected to be undertaken to define and potentially extend an early mining Measured Resource.

The assessment of the high-grade early mining target zones will be carried out in parallel with the Company’s current DFS on the mining and processing of the majority of the open pit Mining Inventory based on the Indicated Resource (30 June 2014), that includes 174,000 tonnes grading 6.8 g/t Au from the planned SWB open pit (ASX release 23 January 2015 and 20 November 2014), see Figure 2 below.

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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Figure 2: Plan of South West Breccia Lode structure with high-grade early mining targets

New, very high grade trenching intersections were produced from projected extensions to the SWB lode, (SWB Extended) and related colluvial gold deposits. These new intersections have the potential to extend and increase the size of the high-grade early mining target. All new trenching intersections are shown on a surface projection of the SWB Extended zone (Figure 3 below).

The new SWB Extended intersections include Trench 36 that intersected 4.5m @ 14.8 g/t Au including 1.0m @ 44.9 g/t Au across southwest extensions of the main SWB lode, and to the northwest, a zone of colluvial gravel/cobble material produced an intersection of 6.0m @ 13.03 g/t Au (released 2 March 2015). To the northeast of Trench 36, Trench 37 intersected 9m @ 28.9 g/t Au from the SWB Main Lode and 11m @ 19.1 g/t Au from the overlying colluvium zone (released 17 March 2015). In addition, a series of lode/breccia boulders have been located along strike to the southwest of Trench 36. Sampling of these boulders included results of MGI 33295: 27.7 g/t Au; MGI 33294: 11.5 g/t Au and MGI 33297: 33.5 g/t Au (released 2 March 2015) . These high grade boulders lie above projected extensions to the SWB main lode, southwest of the trenches above. Further excavation and potentially drilling will be required to confirm the extent of surface colluvium mineralisation and the potential underlying lode.

Additional trenching was also completed at the Limestone Target , another early mining target, located 500 metres southwest of the SWB resource. New trenching intersections included Trench 34: 3.5m @ 25.9 g/t Au including 1.5m @ 56.8 g/t Au; Trench 33C:2m @ 14.2 g/t Au including 0.5m @ 41.0 g/t Au and

ASX code: RMX COMPANY DIRECTORS CONTACT DETAILS ABN 40 119568106 Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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Trench 33D: 1.2m @ 23.4 g/t Au (see ASX release 2 February 2015). These high grade, at surface, gold intersections are located along a 20 metre exposure of outcropping lode, surrounded by overlying, younger, limestone under which the lode is likely to extend. Drilling has been planned to test these potential highgrade lode extensions under the limestone.

The new surface gold intersections have the potential to increase the high grade, at surface, gold Mineral Resource at Lobo. Discussions are in progress with a Shandong, China, based operator interested in purchasing high grade gold ore concentrate. A series of 1,000 kilogram bulk samples have been collected from the outcropping SWB lode zones for a metallurgical testing program to investigate the potential to upgrade the high grade surface material via screening. Discussions have also commenced with a local small processing plant operator for potential processing trials / toll treatment.

The Company plans to complete definition of the high grade, at surface, early mining target on the SWB lode at Lobo, with the objective of calculating a Measured Resource for potential toll treatment and/or ore sales, pending an agreement with a processing plant operator. This may provide early cashflow for the Company whilst the greater Mining Inventory based onsite processing project at Lobo is developed, the subject of the current DFS.

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Figure 3: Plan of South West Breccia with new trenching results and early mining targets

COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director

CONTACT DETAILS Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Director Head Office Shannon Coates Unit 1, 2 Richardson Street Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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ASX code: RMX ABN 40 119568106

Definitive Feasibility Study (DFS) Progress:

The Company produced an interim DFS financial model update on the 23 January 2015 that indicated operating cash flow of A$67 million , based on an Australian dollar gold price of A$1,600/oz and reduced diesel fuel costs in the Philippines compared to initial interim DFS financial modelling released on 20 November 2014. This includes low pre-production capital of A$18.4 million and Sustaining Capital of A$4.3 million, and a 50% increase in free cash flow to A$45 million for the initial 5.2 years of production.

Updated highlights from the interim DFS cash flow model included:

• Mining Inventory¹ for 5.2 years totalling 1.03 million tonnes @ 3.3 g/t Au, 10.3 g/t Ag .

• Production target of 100,000oz Au and 250,000oz Ag from processing of 1.03 million ore tonnes.

• Operating costs (excluding taxes, royalties and sustaining capital) US$703/oz Au ( A$873/oz Au ).

• Pre-production capital of A$18.4 million , including A$15.4 million installed (inc. 10% contingency).

• ²

• • Operating cash flows of A$67 million ², free cash flow after capital of A$45 million (exc. Financing). • Assuming approximately 50% debt financing and repayment in 3 years (5% interest) the Internal Rate of Return (IRR) is 65%² and NPV (8% discount rate) is A$28.5 million² .

¹Mining Inventory based on Indicated Resources, expected to be converted to Probable Ore Reserves on completion of the DFS. ²Assuming gold price of US$1,290/oz Au /A$1,600/oz Au (A$:US$ exchange rate:0.805)

The interim financial model confirms the low Capex, low operating costs, high IRR and economically robust cash flows over the initial 5.2 years of mining and processing of existing gold resources at the Batangas Gold Project.

The initial two years of production are expected to be from the high grade SWB open pit at Lobo, mining and processing 174,000 tonnes @ 6.8 g/t Au (diluted). The second, 3.2 year production phase is planned to mine and process 854,000 tonnes @ 2.6 g/t Au, 12 g/t Ag (diluted) from the Kay Tanda West (KTW) orebody, at Archangel, 12 kilometres by road to the east of the proposed Lobo processing plant (Figure 1).

Updated capital cost inputs are preliminary at this stage, and will be the main focus of the second, detailed engineering phase of the DFS.

Based on these encouraging interim DFS results, the Red Mountain Board approved proceeding to the final, engineering/design phase of the DFS, which was back in full swing by the end of the March quarter. The processing flow sheet has been finalised, final metallurgical testing, including variability work, is underway and tailings testing and geotechnical programs will be completed to allow the key capital and operating costs inputs to be finalised (released 9 April 2015).

Final Batangas Gold Project Permitting Update:

The Company continues to progress the key permitting applications in the Philippines, namely the Declaration of Mining Project Feasibility report (DMPF) and the Environmental Impact Statement (EIS) that, with other environmental permit applications, forms the submission for the grant of an Environmental Compliance Certificate (ECC).

On 23 January 2015 the Company announced it had achieved endorsement from all of the 10 potentially affected Barungay (township) Councils for the Batangas Gold Project development and production plan, as summarised in the DMPF. The Lobo Municipal Council is in the final stages of deliberation to complete local government endorsement of the project prior to the DMPF proceeding to the central Mines and Geosciences Bureau (MGB) for final approval.

COMPANY DIRECTORS CONTACT DETAILS Neil Warburton Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Chairman Non-Executive Director Head Office Jon Dugdale Shannon Coates Unit 1, 2 Richardson Street Managing Director Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

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ASX code: RMX ABN 40 119568106

Meanwhile the Philippines Environmental Management Bureau (EMB) has provided feedback on the submissions for the Environmental Compliance Certificate (ECC), the other key permitting requirement to allow the Project to proceed. Community consultation will follow, prior to the final draft of the ECC being prepared for final approval.

COMPANY STATUS AND OUTLOOK

Project Funding under the Strategic Financing Partnership Agreement with Bluebird:

The Batangas Gold Project pre development activities are being funded via a Strategic Financing Partnership Agreement between the Company and London backed, BVI registered, Bluebird Merchant Ventures Ltd (Bluebird Agreement), signed 23 December 2014.

The Bluebird Agreement includes a two stage funding commitment totalling US$5.5 million (~A$7million), earning Bluebird up to 50% of the currently wholly owned subsidiary, Red Mountain Mining Singapore Ltd (RMMS), which is the holder of the Philippines based Batangas Gold Project assets.

RMMS has to date received a total of US$280,000 (~A$370,000) from Bluebird. The balance of the US$1 million Stage 1 funding commitment will be paid as monthly US$100,000 instalments and/or upon Admission of Bluebird to London’s AIM market.

The Stage 2, initial development funding commitment of US$4.5 million is subject to completion of the DFS (delivering >25% IRR) and final permitting.

The material terms of the Agreement are described in the ASX release of 16 December 2014.

Expenditure and Outlook:

During the March Quarter 2015 the Company completed a very successful Rights Issue, and an additional placement, raising a total of just over A$1.1 million pre costs.

Expenditure during the March Quarter totalled $655,000, including exploration and DFS expenditure to be funded under the Bluebird Agreement of $420,000.

The Company continues to focus on safe and efficient exploration and development activities in harmony with local communities and the environment. No lost time safety or environmental incidents occurred during the Quarter.

Cash on hand at 31 March 2015 was A$1.23 million , with no debt.

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ASX code: RMX ABN 40 119568106

COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director

CONTACT DETAILS Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Director Head Office Shannon Coates Unit 1, 2 Richardson Street Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

For further information about Red Mountain please visit www.redmm.com.au or contact:

Company Investors: Media Jon Dugdale Matt Birney Managing Director Birney Corporate (+61) 402 298 026 (+61) 419 217 090 (+61) 8 9226 5668 (+61)8 9226 5668 E : jon.dugdale@redmm.com.au E : matt@birneycorporate.com.au

ABOUT RED MOUNTAIN MINING LTD AND THE BATANGAS GOLD PROJECT

Red Mountain Mining (ASX: RMX) is a gold exploration and development company which listed on the ASX in September 2011. The Company’s strategy is to unlock the potential of ‘under-developed’ gold and polymetallic projects in the greater Asian region by introducing Australian exploration and mining methods and improving efficiencies to gain significant exploration and production upside.

The Company holds a 100% direct and indirect contractual right interest in tenements in the Philippines that contain significant gold resources. Total Mineral Resources at Batangas include Indicated Resources of 2.97 million tonnes @ 2.4 g/t Au, 227,000 oz Au and Inferred Resources of 3.22 million tonnes @ 2.1 g/t Au, 218,000oz Au for a total of 6.19 million tonnes at 2.2 g/t Au, 444,000oz Au (ASX announcement 30 June 2014, JORC 2012). The Company is continuing exploration with the objectives of upgrading mineral resources at Batangas.

The Company announced Agreement with London backed, BVI registered, BMVL on 23 December 2014 which includes a two stage funding arrangement totalling US$5.5 million (~A$6.7 million), earning BMVL up to 50% of the currently wholly owned subsidiary, Red Mountain Mining Singapore Ltd, which is the holder of the Philippines based Batangas Gold Project assets.

Funding under the Agreement with BMVL will allow the Company to complete a DFS on the project, with initial results confirming low capital and operating costs and recovery of over 100,000 ounces of gold during the initial 5 years of production (ASX announcement 20 November 2014 and updated 23 January 2015).

Final mine development permitting submissions have been lodged with the Philippines Government (ASX announcement 3 April 2014) and are proceeding towards approval.

Other gold opportunities will be reviewed on a continuous basis.

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ASX code: RMX ABN 40 119568106

COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director

CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

Michael Wolley Non-Executive Director Shannon Coates Company Secretary

Cautionary Statement

The production targets referred to in this announcement were first released to ASX on 20 November 2014 and updated on 23 January 2015. They are preliminary and there is no certainty that the production targets or the forecast financial information derived from the production targets will be realised. Other than as noted in this announcement, all material assumptions underpinning production targets or forecast financial information derived from production targets continue to apply and have not materially changed.

Competent Person Statement

The information in this report relating to Mineral Resources and post 1 December 2013 Exploration Results is based on information compiled by Mr Jon Dugdale who is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Dugdale is a full time employee and Managing Director of Red Mountain Mining Ltd. The Company confirms that the form and context in which the information is presented has not been materially modified and it is not aware of any new information or data that materially affects the information included in the relevant market announcements, as detailed in the body of this announcement. All material assumptions and technical parameters underpinning the Mineral Resource estimates continue to apply and have not materially changed. The information in this report relating to pre December 2013 Exploration Results is also based on information compiled by Mr Jon Dugdale who has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Dugdale takes responsibility for and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This announcement contains certain forward looking statements. These forward-looking statements are not historical facts but rather are based on Red Mountain Mining’s current expectations, estimates and projections about the industry in which Red Mountain Mining operates, and beliefs and assumptions regarding Red Mountain Mining’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” “potential” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Red Mountain Mining, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forwardlooking statements. Red Mountain Mining cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Red Mountain Mining only as of the date of this presentation. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Red Mountain Mining will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.

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ASX code: RMX ABN 40 119568106

COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director

CONTACT DETAILS Michael Wolley RED MOUNTAIN MINING LTD Non-Executive Director Head Office Shannon Coates Unit 1, 2 Richardson Street Company Secretary West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

Tenement Table: ASX Listing Rule 5.3.3

Tenement Table: ASX Listing Rule 5.3.3	Tenement Table: ASX Listing Rule 5.3.3	Tenement Table: ASX Listing Rule 5.3.3	Tenement Table: ASX Listing Rule 5.3.3	Tenement Table: ASX Listing Rule 5.3.3
Mining tenement interests held at the end of the quarter and their location
PERMIT NAME	PERMIT NUMBER	REGISTERED HOLDER/APPLICANT	AREA IN HECTARES	DATE OF RENEWAL PERIOD EXPIRATION	PERMIT TERM EXPIRY	INTEREST / CONTRACTUAL RIGHT
Lobo	MPSA-176-2002-IV	Egerton Gold Philippines Inc.	1,164	26-Sep-14	20-Nov-27	100%
Archangel	MPSA-177-2002-IV	Egerton Gold Philippines Inc.	1,012	29-Mar-14	20-Nov-27	100%
Calo	EP-IVA-006	Egerton Gold Philippines Inc.	2,493	5-Sep-14	*5-Sep-14	100%
Pica	EP-IVA-007	Egerton Gold Philippines Inc.	4,488	5-Sep-14	*5-Sep-14	100%
Biga	EP-IVA-008	Egerton Gold Philippines Inc.	977	23-Oct-14	*23-Oct-14	100%
El Paso	EP-IVA-009	MRL Nickel Phils. Inc.	5,000	12-Apr-14	*12-Apr-14	100%
Philex	EP-IVA-010	Egerton Gold Philippines Inc.	1,579	23-Oct-14	*23-Oct-14	100%
Talahib	EP-IVA-011	Egerton Gold Philippines Inc.	873	5-Oct-13	*5-Oct-13	100%
Rosario	EP-IVA-014	MRL Nickel Phils. Inc.	2,991	20-Feb-15	20-Feb-15	100%
East Lobo	EP-IVA-015	Egerton Gold Philippines Inc.	2,461	20-Feb-15	20-Feb-15	100%
SW Lobo	EPA-IVA-093	MRL Nickel Phils. Inc.	166	Application	Application	100%
Calo Extension	EPA-IVA-102	MRL Nickel Phils. Inc.	850	Application	Application	100%
Batangas Extension	EPA-IVA-103	MRL Nickel Phils. Inc.	3,033	Application	Application	100%

*Note: Exploration Permits that have reached permit expiry have been submitted for renewal.

The mining tenement interests relinquished during the quarter and their location

No mining tenements were relinquished during the quarter.

The mining tenement interests acquired during the quarter and their location

No mining tenements were acquired during the quarter.

Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter

Not applicable

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter

Not applicable

9

ASX code: RMX ABN 40 119568106

COMPANY DIRECTORS Neil Warburton Non-Executive Chairman Jon Dugdale Managing Director

CONTACT DETAILS RED MOUNTAIN MINING LTD Head Office Unit 1, 2 Richardson Street West Perth Western Australia 6005 www.redmm.com.au info@redmm.com.au

Michael Wolley Non-Executive Director Shannon Coates Company Secretary

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, 01/05/2013

Name of entity

RED MOUNTAIN MINING LIMITED

ABN 40 119 568 106	Quarter ended (“current quarter”)
40 119 568 106	31 March 2015

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (9 months) $A’000
	(30) (420) - - (208) - 3 - - -	(8) (2,032) - - (901) - 12 - - -
	(655)	(2,929)
Cash flows related to investing activities 1.8 Payment 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 (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (4) - - - - - -	- - (13) - - - - - -
	(4)	(13)
	(659)	(2,942)

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

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

1.13 Total operating and investing cash flows (brought forward)	(659)	(2,942)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	907 - 256 - - -	2,066 - 257 - - -
	1,163	2,323
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter*	504 678 46	(619) 1,719 128
	1,228	1,228

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		64
1.25	Explanation necessaryfor an understandingof the transactions
	Director fees, executive salaries and superannuation.

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

• See chapter 19 for defined terms.

Appendix 5B Page 2

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	40	-

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	479
	-
	-
	258
Total*	737

*Exploration and Evaluation expenditure to be funded by remaining ~A$900,000 in net proceeds due from Stage 1 of the Strategic Funding Partnership Agreement with Bluebird Merchant Ventures Ltd, the terms of which were announced to the ASX 16 December and signed 23 December 2014.

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	692	642
	536	36
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,228	678

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

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

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased	Tenement reference and location	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

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	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	1,185,768,679	1,185,768,679	-	-
	365,847,835	365,847,835
7.5 +Convertible debt securities (description)	28,000,000 Performance Rights

• See chapter 19 for defined terms.

Appendix 5B Page 4

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	128,501,960 15,000,000 270,987,597 287,882,728	128,501,960 - 270,987,597 287,882,728	Exercise price $0.03 $0.20 $0.012 $0.006	Expiry date 30 June 2016 15 Sept 2016 31 March 2016 30 June 2016
	30,662,500 175,402,785 287,902,785	30,662,500 175,402,785 287,902,785	$0.03 $0.012 $0.006	30 June 2016 31 March 2016 30 June 2016
	(20,057) (20,057)	(20,057) (20,057)	$0.012 $0.006	31 March 2016 30 June 2016
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

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 5).

• 2 This statement does ~~/does not*~~ (delete one) give a true and fair view of the matters disclosed.

==> picture [101 x 27] intentionally omitted <==

Sign here: ............................................................ Date: 14 April 2015 ( ~~Director~~ /Company secretary)

SHANNON COATES

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

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 5

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

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 and petroleum 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 or petroleum 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

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• See chapter 19 for defined terms.

Appendix 5B Page 6

01/05/2013