ROX RESOURCES LIMITED — Interim / Quarterly Report 2007

Apr 26, 2007

Quarterly Report

For the period ended 31 March 2007

HIGHLIGHTS

Pha Luang Zinc-Lead Project, Laos

• Exploration program underway at Pha Luang involving RC and diamond core drilling, IP surveying and soil geochemical sampling.
• Further strong drill results from Phase 1 RC drilling at the Nam Yen prospect included:
  • PLR077: 19 metres grading $7.0%$ combined $Zn+Pb$ , from 35 metres
  • PLR073: 15 metres grading 7.4% combined Zn+Pb, from 36 metres
  • PLR072: 13 metres grading 7.9% combined Zn+Pb, from 25 metres

The intercepts included several high-grade zones:

• PLR077: 5 metres grading 13.8% Zn+Pb from 46 metres
• PLR073: 6 metres grading 8.9% Zn+Pb from 36 metres
• PLR072: 4 metres grading 13.3% Zn+Pb from 34 metres
• The drilling results from Nam Yen have defined a second, new zone of high-grade $\blacksquare$ mineralisation and extended the known mineralisation to the south.
• Phase 2 of the RC drilling program commenced on 31 March with drilling planned at the Pha Sod, Nam Yen and Pha Daeng prospects.
• Induced Polarisation surveys were completed at Nam Yen, Bon Noi and Pha Sod with strong IP chargeability anomalies delineated at Nam Yen and Bon Noi.
• Diamond core drilling planned to test the IP anomalies at Nam Yen and Bon Noi.
• Soil sampling continues to outline new significant geochemical anomalies.

PHA LUANG ZINC-LEAD PROJECT, LAOS

Rox has concentrated its activities during the March 2007 quarter on the Pha Luang zinc and lead project in Laos where it is undertaking a A$2.2 million exploration campaign.

The first phase of RC drilling commenced in December 2006, and a total of 38 holes (PLR042) to 079) were drilled for 2,766 metres at the Nam Yen, Switchback and Pha Sod prospects. Results have been received and reported previously for all of these drill holes. A further 3,000 - 4,000 metres of drilling (phase 2) commenced on 31 March.

During the quarter Induced Polarisation ("IP") geophysical surveys were undertaken at the Nam Yen, Bon Noi and Pha Sod prospects (Figure 1). These areas were chosen as each has significant soil geochemical anomalism, some drilling and known mineralisation.

IP measures the decay of an electrical charge applied to a rock mass over time (similar to capacitance). It has been found to be the most effective geophysical tool in exploring for Mississippi Valley Type (MVT) zinc deposits. Most strong IP responses are due to either pyrite mineralisation or graphite. In the MVT mineralisation model, zinc and lead sulphides are often associated with pyrite mineralisation, and lenses of graphite and other organic material are also common.

Results from the IP surveys at Nam Yen and Bon Noi show a number of strong, discrete IP chargeability anomalies which are described below. Results from Pha Sod show weaker anomalies that require further development.

The IP anomalies are significant as they may indicate the presence of mineralisation in large bodies below the limits of existing drilling. The location and depths of the anomalies are consistent with the geologic and mineralisation model that Rox has developed over the last 18 months. The extent of the anomalies is also consistent with the large high-grade soil geochemical anomalies defined on the surface.

Given the strength and extent of these IP anomalies, Rox is attempting to secure two diamond core drill rigs to test them as soon as possible. It is likely this drill testing will take up to 3 months to complete involving around 3,000 metres of drilling initially to depths of up to 550 metres.

Figure 1: Prospect Location Plan

Nam Yen

Drilling

The first phase of this field season's drilling returned further high-grade drill results at the Nam Yen prospect (Figure 1) with a second, new area of high-grade mineralisation identified (Figure 2).

The drilling also extended the known mineralisation to the south and returned wide thicknesses of ore grade mineralisation:

PLR077:	19 metres grading 7.0% combined Zn+Pb, from 35 metres
PLR073:	15 metres grading 7.4% combined Zn+Pb, from 36 metres
PLR072:	13 metres grading 7.9% combined Zn+Pb, from 25 metres
PLR067:	10 metres grading 5.2% combined Zn+Pb, from 52 metres

The intercepts included several high-grade zones:

PLR077:	5 metres grading 13.8% Zn+Pb from 46 metres
PI.R073:	6 metres grading $8.9%$ Zn+Pb from 36 metres
PLR072:	4 metres grading $13.3%$ Zn+Pb from 34 metres

Significantly the mineralised zone is still open in all directions.

The drilling intercepted the highest one metre intercept of zinc sulphide mineralisation recorded so far at Pha Luang of 9.1% Zn, together with other peak values of 16.0% Pb and 73 ppm Ag.

The structural setting at Nam Yen is becoming increasingly clear, with a number of faults and structures now interpreted to control the location of breccia-hosted mineralisation. What has become apparent is the potential for the breccia systems to extend in a number of previously unexplored directions.

The ratio of Zn to Pb at Nam Yen is increasing as the drilling progresses to define mineralisation to the south with zinc becoming more dominant. In hole PLR015 (Figure 2) the Zn/Pb ratio is 0.3 whereas in holes PLR077 and PLR025 the Zn/Pb ratio is 0.8, and further to the south in hole PLR069 the Zn/Pb ratio is 1.25. Based on these data, if mineralisation can be traced further to the south it is anticipated that this ratio and the zinc grade will increase.

For complete results of the first phase of drilling see the attached table.

Given the strong results from the IP survey at Nam Yen, the drilling program will be amended to test the IP anomalies as a matter of priority.

Figure 2: Nam Yen Drill Plan showing Hole Locations and Metre-Percent (M%) Values

IP Survey

The IP survey clearly defines the known mineralisation at Nam Yen, together with a number of separate discrete IP chargeability anomalies. Each IP chargeability anomaly has an associated resistivity low.

Of particular interest are two major IP chargeability anomalies, termed NY3 and NY4, which exist below the known mineralisation.

Anomaly NY3 occurs from about 150 metres below ground level (BGL) and below the existing zone of known mineralisation, to a depth exceeding 350-400 metres, the depth limit of the survey (Figure 3). This anomaly is defined over a north-south and east-west distance of 200 metres in each direction.

A number of IP chargeability anomalies also exist from the surface to about 100 metres BGL. One, NY1, is on the same trend as NY3 and the known mineralisation, and is coincident with a surface geochemical anomaly. There appears to be a connection between the deep anomaly NY3, the known mineralisation, and anomaly NY1 (Figure 3).

The other large, strong anomaly, NY4, appears to lie at about 300 metres BGL and below a number of mineralised structures and surface soil geochemical anomalies to the north west of existing drilling. It is open at depth below the extent of the IP survey (Figure 4).

None of these anomalies have been tested by the drilling conducted by Rox to date. Access for drill testing of anomalies NY3 and NY4 is available from existing tracks. The shallow IP

anomaly shown on the centre of Figure 4 will be able to be tested with the RC drilling rig currently on site.

Figure 3: Nam Yen IP Chargeability Section 229065E, looking east, showing IP chargeability anomaly NY3 lower right with connection to an anomaly defining drilled mineralisation and anomaly NY1 upper right. Existing drill holes shown. Vertical extent of the section is about 400 metres and lateral extent is about 800 metres.

Figure 4: Nam Yen IP Chargeability Section 228765E, looking east, showing IP chargeability anomaly NY4 lower left. Vertical extent of the section is about 400 metres and lateral extent is about 800 metres.

5

Switchback

Drilling

Drilling at the Switchback prospect (holes PLR053-062) failed to intersect any significant sulphide mineralisation. However, these results are now seen in a context that the very strong geochemical indicators in the area represent the regional mineralising fluid pathway and that economic sulphide mineralisation will be contained in cross-cutting structures not yet properly drill tested.

A significant IP anomaly (BN2) has been located at Switchback, which will be drill tested ASAP.

Bon Noi

IP Survey

The Switchback and Bon Noi areas are located adjacent to each other. The original soil anomaly drilled at Bon Noi, plus the Switchback area recently drilled were covered by the recent IP survey.

There are three strong discrete IP chargeability anomalies present, termed BN1, BN2 and BN3. Each IP chargeability anomaly has an associated resistivity low.

Anomaly BN1 lies between about 50 metres and 200 metres BGL (Figures 5 & 6), and is located close to where previous drilling (hole PLD004) intersected significant high-grade oxide mineralisation (17.5 metres at 18.5% Zn, 5.3% Pb, 28 $g/t$ Ag). The anomaly has a diffuse top which could be following a fracture to surface.

Anomaly BN2 is about 120 metres in vertical extent (Figure 7) and lies 150 metres beneath the large surface geochemical anomaly at Switchback, where lead sulphide outcrops.

Anomaly BN3 lies at about 200 metres BGL and extends to at least 500 metres depth (Figure 8) where it is still open beyond the depth extent of the survey. BN3 has an extension which appears to be following a fracture upwards to about 50 metres from surface.

None of the IP anomalies has been effectively tested by previous drilling which was based on soil geochemistry. Access for drilling each of the anomalies is possible using existing access tracks.

Three deep diamond drill holes, each of 550 metres depth (with RC pre-collar) are planned to test each of these three strong IP anomalies.

Figure 5: Bon Noi IP Chargeability Section 2117890N, showing anomaly BN1. Looking South. Vertical extent of the section is about 450 metres and lateral extent is about 500 metres.

Figure 6: Bon Noi IP Chargeability Results -165 BGL. Perspective view showing anomaly BN1 (front centre), BN3 (right back) and BN2 (left back). Looking South. Existing drilling shown. East to west extent 1,200 metres, and north to south extent 700 metres.

Figure 7: Bon Noi IP Chargeability Section 2117330N, showing anomaly BN2 (centre) and BN3 (right). Looking South. Vertical extent is about 500 metres and lateral extent is about 1,000 metres. Existing drilling shown.

Figure 8: Bon Noi IP Chargeability Section 2117490N, showing anomaly BN3. Looking South. Vertical extent of the section is about 500 metres and lateral extent is about 850 metres.

Pha Sod

Drilling

Significantly in this first phase of the drilling program, and as previously reported, drilling at the new Pha Sod prospect intersected wide intercepts of very fine-grained zinc sulphide (Figure 9). It is believed these intercepts represent the low grade halo adjacent to a more massive zone of mineralisation, which is represented by strong surface geochemistry and outcropping massive sulphides. The drilling planned for April will test this potential further.

IP Survey

An IP survey has been completed over the prospect area, but was limited in its coverage to the north under the area of strongest surface geochemistry because of steep terrain. Analysis of processed data shows that IP chargeabilities were increasing at the northern ends of the lines, and the survey will need to be extended north in order to better define the anomaly.

Figure 9: Pha Sod Drill, Soil Sample Contour and Rock Chip sampling plan

Regional

Regional soil sampling on an approximate $80 \times 160$ metre spacing has continued. Results are shown on Figure 10. A new soil anomaly at Pha Noi is being delineated as sampling proceeds.

Work Plans

The Phase 2 RC drilling program is underway with a number of holes planned at the Pha Sod, Nam Yen and Pha Daeng prospects.

Diamond core drilling with RC pre-collars is planned to test the IP anomalies at Nam Yen and Bon Noi. Initially five holes, each of 550 metres depth, will be drilled to test each of the five strongest IP anomalies, NY3, NY4, BN1, BN2 and BN3. This drilling is expected to take approximately 3 months to complete, once a suitable drilling rig is secured.

Soil and rock chip sampling will continue.

FINANCIAL

At the end of the quarter Rox had 56,775,333 shares and 14,100,000 unlisted options on issue, with cash of $3.9 million included in total working capital of $4.4 million.

Figure 10: Regional Soil Sampling Results

Dated this 27th day of April 2007.

Signed on behalf of the Board of Rox Resources Limited.

Jan Mulholland

IAN MULHOLLAND Managing Director

FOR FURTHER INFORMATION CONTACT:

Ian Mulholland, Managing Director Tel: (08) 6380 2966

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Ian Mulholland BSc (Hons), MSc, FAusIMM, FAIG, FSEG, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Mulholland has sufficient experience which is relevant to the style of mineralisation and type of deposit 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 of Exploration Results, Mineral Resources and Ore Reserves". Mr Mulholland is a full time employee of the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

	NSR = No Sample Results above cut-off, Intercepts > 50 metre x Pb+Zn % highlighted in bold, All assays by ALS Chemex Brisbane, using methods ME-ICP61s and OG62
Hole	East	North	$R_{\rm L}$	Dip	Azimuth	Depth	From	1 0	Interval	$Zn%$	$Pb%$	$Pb+Zn$ %×.	Ag ppm
PLR042	229031	2115958	1143	$-60$	90	100		NSR
PLR043	229031	2115958	1143	$-60$	135	100		NSR
PLR044	228953	2116008	1148	$-75$	135	100	85	86	1	3.3	0.1	3.4	3
							90	91	$\mathbf 1$	4.1	0.3	$4.4,$	$\overline{\mathbf{4}}$
PLR045	229083	2116085	1038	$-55$	135	100	$\theta$	$\overline{2}$	$\boldsymbol{2}$	1.4	$1.7,$	3.1	$\bf{11}$
							8	19	$\bf 11$	$1.8,$	6	$7.8,$	16
							$2\mathbf{1}$	32	${\bf 11}$	2.3	4.3	6.6	13
						incl.	21	27	6	$2.4,$	7.6	10	21
						incl.	31	32	1	$3.8,$	0.7	$4.5,$	7
PLR046	229027	2116122	1041	$-60$	180	80	54	58	4	4	$0.4,$	$4.4,$	9
PLR063	229189	2116036	1048	$-60$	240	$70,$		NSR
PLR064	229166	2116071	1030	$-60$	240	$80,$		NSR
PLR065	229015	2116074	1068	$-80$	135	$80,$		$_{\rm NSR}$
PLR066	229025	2116027	1094	$-60$	135	90	42	51	9	$2.4,$	1.8	4.2	9
PLR067	229000	2116031	1100	$-80$	90	80	52	62	$10+$	3.7	$1.5,$	$5.2,$	15
							66	68	$\mathbf 2$	$\overline{2}$	1.5	3.5	$\mathbf{11}$
PLR068	229048	2115987	1120	$-70$	45	$80,$	40	44	$4*$	3.3	$1.9,$	$5.2,$	$10,$
PLR069	229048	2115984	1120	$-90$	90	80	44	50	6	4	3.2	$7.2,$	13
							54	63	9	2.6	0.9	3.5	7
PLR070	229195	2116050	1042	$-60$	275	$80,$		NSR
PLR071	229058	2116080	1055	$-70$	240	$80,$		$_{\rm NSR}$
PLR072	229056	2116028	1085	$-60$	0	90	25	$38,$	13	3.9	4	7.9	26
						incl.	34	38	4	6.1	7.2	13.3	46
							45	48	3	$3.7,$	5.1	8.8	29
						incl.	45	46	1	$7.1,$	13.7	20.8	73
PLR073	229025	2116027	1094	$-60$	90	$90,$	36	51	15	$3.2,$	4.2	$7.4,$	29
						incl.	36	42	6	3	5.9	8.9	33
PLR074	229000	2116031	1100	$-60$	135	100	65	70	5	2.7	2.7	5.4	$\overline{7}$
PLR075	229000	2116031	1100	$-60$	180	100	66	67	1	2.2	$0.8,$	3	8
PLR076	229000	2116031	1100	$-60$	60	100	47	51	4	2.9	$\boldsymbol{2}$	4.9	14
							58	66	8+	$2.7,$	1.1	3.8	8
							94	98	$4*$	3.4	0.2	3.6	6
PLR077	229025	2116027	1094	$-80$	45	$80,$	35	54	19	$3.1,$	3.9	7	15
						incl.	46	51	5	5.4	$8.4,$	13.8	32
PLR078	228953	2116008	1148	$-60$	90	100		$_{\rm NSR}$
PLR079	229031	2115958	1143	$-90$	90	90		NSR

Nam Yen Sulphide Intercepts*above a 3% Pb+Zn lower cut-off, maximum 2 metres internal dilution, + includes one or more 4 metre composites

	* above 1% Zn lower cut-off, 4 metre composite samples -
Hole	.East	.North	the company.RL	Dip	ServiceAzimuth	Depth	From	The state ofТо	.Interval	$\mathbf{Zn}%^*$	.Pb%	$Pb+Zn%$	ProvidentAg ppm
$\vert$ PLR048	223970	2118963	1406	-60		60		28	24		0.1		5
PLRO49	223957	2118974	1409	-80		60		24	20	1.6	0.2	1.8
PLR050	223859	2119007	1393	-60		34		12		1.3	$0.2,$	L5.
PLR052	223975	2118959	1406	-60	90	52		32	28		0.1		ы

Pha Sod Sulphide Intercepts

Pha Sod Oxide Intercepts * above a 3% Pb+Zn lower cut-off, 2-4 metre composite samples

Hole	East	North	RL	Dip.	Azimuth	Depth	From	$\overline{a}$Profession.To	Interval	$\mathbf{Zn}^{0}/_{0}$	$Pb%$	$Pb+Zn%$ *	Ag ppm
PLR047	223920	2118984	1407	-60		-70				6.4	4.8	11.2	96
PLR048	223970	2118963	1406.	-60		60			4	3.7	2.2	5.9	36
PLR049	223957	2118974	1409	-80		60			4	6.8	4.7	11.5	54
PLR050	223859	2119007	1393	-60		34			4	10.7	1.3	12.0	38
PLR051	223854	2118951	1394	-60		70		4	4	2.0	1.2	3.2	-21
PLR052	223975	2118959	1406	-60	90	-52		NSR

Hole	East	North	RL	Dip	Azimuth	Depth	From	Particularly 1979To	Interval	Zn%	РЬ%	$Pb+Zn%$ *	Ag ppm
PLR053	227260	2117240	1540	-60	260	60		NSR
PLR054	227316	2117338	1487	-60	220	40		NSR
PLR055	227199	2117347	1559	-60	135	40	28	32	4	1.2	1.8	3.0	14
PLR056	227199	2117347	1559	-60	90	40		NSR
PLR057	227128	2117358	1585	-60	220	40		NSR
PLR058	227199	2117438	1513	-60	220	60		NSR
PLR059	227325	2117265	1510	-60	220	40		NSR.
PLR060	227300	2117212	1525	-60	220	40		NSR
PLR061	227234	2117182	1586	-60	260	60		NSR
PLR062	227236	2117442	1485	-60	220	70		NSR

$\textcolor{red}{\textbf{*} \textbf{above a 3% Pb+2} \textbf{.} \textbf{Double } \textbf{Drill } \textbf{Results} \textbf{.}}$

All assays by ALS Chemex Brisbane, using methods ME-ICP61s and OG62

$\ddot{\phantom{a}}$

$\lambda$

$\mathbf{r}$

APPENDIX 5B

Mining Exploration Entity Quarterly Report

	Name of entityROX RESOURCES LIMITED
	ACN or ARBN			Quarter ended ("current quarter")
	107 202 602	March 2007
	Consolidated statement of cash flows
	Cash flows related to operating activities		CurrentQuarterA$'000	Year to Date$(9$ months)$A'000
1.1		Receipts from product sales and related debtors
1.2	Payments for: (a) exploration and evaluation		(471)	(1,399)
	(b)	development
	(c) production
		(d) administration	(248)	(794)
1.3	Dividends received
$1.4,$	received	Interest and other items of a similar nature	61	207
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
$1.7,$	Other - Security bonds
	Net Operating Cash Flows		(658)	(1,986)
1.8	Cash flows related to investing activitiesPayment for purchases of:
		(a) prospects
		(b) equity investments		$\left( 7\right)$
		(c) other fixed assets	(9)	(72)
1.9	Proceeds from sale of:	(a) prospects		350
		equity investments(b)
		other fixed assets(c)
	1.10 Loans to other entities
	1.11 Loans repaid by other entities
	1.12 Other			(32)
	Net investing cash flows		(9)	239
	forward)	1.13 Total operating and investing cash flows (carried	(667)	(1,747)

1.13 Total operating and investing cash flows
(brought forward)	(667)	(1,747)
Cash flows related to financing activities
1.14 Proceeds from issues of shares (net of costs)		1,315
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
Net financing cash flows		1,315
Net increase (decrease) in cash held	(667)	(432)
1.20 Cash at beginning of quarter/year to date	4,529	4,294
1.21 Exchange rate adjustments to 1.20
1.22 Cash at end of quarter	3.862	3,862

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
	quarter
	$A'000
	72

• 1.23 Aggregate amount of payments to the parties included in item 1.2
• 1.24 Aggregate amount of loans to the parties included in item 1.10
• 1.25 Explanation necessary for an understanding of the transactions

$N/A$

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

$N/A$

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

$Nil$

Financing facilities available

Add notes as necessary for an understanding of the position.

	Amount available$A'000	Amount used$A'000
3.1 Loan facilities
3.2 Credit standby arrangements	$\overline{ }$

Estimated cash outflows for next quarter

	Total	600
4.2	Development	Service
4.1	Exploration and evaluation	600
		$A'000

Reconciliation Of Cash

	Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.	Currentquarter$A'000	Previousquarter$A'000
5.1	Cash on hand and at bank	176	502
5.2	Deposits at call	3,686	4,027
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	3,862	4,529

Changes in interests in mining tenements

See attached Schedule A for list of tenements.

Issued and quoted securities at end of current quarter

	Total number	Numberquoted	Issue price persecurity (cents)	Amount paid upper security(cents)
7.1 Preferencesecurities(description)
7.2 Changes duringquarter
7.3 Ordinarysecurities	56,775,333	56,775,333
7.4 Changes duringquarter- Issued
Convertible debt7.5securities(description andconversion factor)
7.6 Changes duringquarter
7.7 1Options			Exercise Price	Expires
(description andconversion factor)	5,250,000	Nil	$0.20	31 January 2009
	750,000	Nil	$0.20	30 April 2007
	4,000,000	Nil	$0.20	30 June 2007
	2,500,000	Nil	$0.675	12 July 2009
	1,600,000	Nil	$0.35	30 Nov 2009
7.8 Issued duringquarter
7.9 Exercised duringquarter
7.10 Expired duringquarter
7.11 Debentures(totals only)
7.12 Unsecured notes(totals only)		$\overline{17}$

Compliance statement

• This statement has been prepared under accounting policies which comply with $\mathbf{1}$ . accounting standards as defined in the Corporations Law or other standards acceptable to ASX.
• This statement does give a true and fair view of the matters disclosed. $2.$

Sign here:

Date: 27 April 2007

Company Secretary

Brett Dickson Print Name: