RIEDEL RESOURCES LIMITED — Interim / Quarterly Report 2014

Jan 28, 2014

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

Riedel Resources Limited

ABN 91 143 042 022	Quarter ended (“current quarter”)
91 143 042 022	31 December 2013

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) GST to be recouped Net Operating Cash Flows	Current quarter $A’000	Year to date (6 months) $A’000
	- (51) - - (75) - 1 - - 1	- (129) - - (259) - 4 - - 1
	(124)	(383)
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)	- - - - - - - - -	- - - - - - - - -
	-	-
	(124)	(383)

• See chapter 19 for defined terms.

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

1.13 Total operating and investing cash flows (brought forward)	(124)	(383)
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) Capital raising costs Convertible Note (see note 1) Net financing cash flows	- - - - - (2) 75	- - - - - (4) 240
	73	236
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 of quarter	(51) 261 2	(147) 350 9
	212	212

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
		38
		Nil
1.25	Explanation necessaryfor an understandingof the transactions
	Directors wages, Directors fees.

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

NA

• See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

• 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

NA

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
	400	213
	Nil	Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	8
	Nil
	Nil
	90
Total	98

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) – term deposits	162	211
	-	-
	-	-
	50	50
Total: cash at end of quarter(item 1.22)	212	261

• See chapter 19 for defined terms.

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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 ofquarter	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	Nil
	Nil
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	108,364,246	108,364,246
	275,000 600,137	275,000 600,137	3.6c 6.7c	3.6c 6.7c

• See chapter 19 for defined terms.

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Mining exploration entity and oil and gas exploration entity quarterly report

Appendix 5B

7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	See Note 1 (below)
	75,000	75,000	100c	100c
7.7 Options (description and conversion factor) 7.8 Issued during quarter	10,000,000 9,333,329 1,250,000 1,712,333 10,000,000 2,666,667 vesting when the Company’s share price is equal to or greater than Au27 cents for 20 consecutive trading days 2,666,667 vesting when the Company’s share price is equal to or greater than Au36 cents for 20 consecutive trading days 2,666,666 vesting when the Company’s share price is equal to or greater than Au45 cents for 20 consecutive trading days	Nil Nil Nil Nil Nil Nil Nil Nil	Exercise price 30c 15c 15c 10c 5.2c Nil Nil Nil	Expiry date 30 June 2014 31 January 2016 31 January 2018 30 April 2015 31 December 2016 25 July 2014 25 July 2014 25 July 2014
	1,875,000		5.2c	31 December 2016

• See chapter 19 for defined terms.

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

7.9 Exercised during quarter 7.10 Expired during quarter	Nil
	Nil
7.11 Debentures (totals only)	Nil
7.12 Unsecured notes(totals only)	Nil

Note 1 –

Under the terms of the Secured Convertible Note, issued to Oracle Securities Pty Ltd (or its nominees), the Convertible Note (and any accrued interest) can be converted in full or any part thereof into Shares in the Company at the lender’s sole discretion at any time after 30 June 2013.

The Shares will be issued at the lower of 90% of the 10 day volume weighted average share price (VWAP) of the ASX prior to execution of the Secured Convertible Debenture agreement or 90% of the 10 day VWAP prior to the relevant quarterly interest payment notice.

During the quarter ended 31 December 2013, $75,000 was received under Tranche 2. The maximum number of shares to be issued upon conversion is 2,083,333 at 3.6c per share, with 8% interest payable quarterly. The redemption date is 30 June 2014.

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.

Sign here: SUE SYMMONS (Company secretary)

Date: 29 January 2014

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

• See chapter 19 for defined terms.

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Mining exploration entity and oil and gas exploration entity quarterly report

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.

== == == == ==

• See chapter 19 for defined terms.

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