ROX RESOURCES LIMITED — Interim / Quarterly Report 2006

Jan 30, 2007

Quarterly Report

For the period ended 31 December 2006

HIGHLIGHTS

Pha Luang Lead-Zinc Project, Laos

• Sulphide mineralisation now drilled at two prospects at Pha Luang.
• Drilling at the Nam Yen prospect continued to intersect lead zinc sulphide mineralisation with new intersections including;
  • $\circ$ 11 metres grading 7.8% combined Pb+Zn (1.8% Zn, 6.0% Pb, 16 g/t Ag) from 8 metres depth, and
  • $\circ$ 6 metres grading 10.0% combined Pb+Zn (2.4% Zn, 7.6% Pb, 21 g/t Ag) from 21 metres depth, both in hole PLR045.
• Soil and rock chip sampling identified two highly anomalous areas at the Pha Sod $\blacksquare$ prospect, with one area grading in excess of 5% combined Pb+Zn, over an area of 400 $x$ 200 metres, and the other area covering 300 $x$ 100 metres and grading above 4% combined Pb+Zn.
• Drilling at the new Pha Sod anomaly discovered widespread low grade zinc sulphide $\blacksquare$ mineralisation including;
  • 24 metres grading 1.3% Zn and 5 g/t Ag from 4 metres depth, $\circ$
  • $\circ$ 20 metres grading 1.6% Zn and 7 g/t Ag from 4 metres depth, and
  • $\circ$ 28 metres grading 1.2% Zn and 5 g/t Ag, from 4 metres depth.
• Delay in processing of Foreign Investment Licence application advised, but this will not affect Rox's operations in Laos.

PHA LUANG LEAD-ZINC PROJECT, LAOS

Rox has spent the last 18 months transforming itself into an emerging base metals explorer in Laos, following high grade drill intercepts of lead and zinc, a favourable mining environment and rising zinc metal prices.

In 2005, Rox entered a joint venture with Lao company, First Pacific Mining Lao Co Ltd, to acquire a 60% interest in the sulphide portion of Pha Luang, a lead-zinc oxide mine approximately 160km north of the Lao capital, Vientiane. There are several large soil anomalies of interest to Rox at Pha Luang, including the Bon Noi, Switchback, Pha Luang, Nam Yen, Pha Sod and Pha Daeng prospects (Figure 1).

Last December, the Company commenced a drilling campaign to test these identified anomalies and budgeted around A$2.2 million for this exploration campaign.

RC drilling was commenced in December, and in the current programme a total of 38 holes (PLR042 to 079) have been drilled for a total of 2,766 metres. Results have been received for 10 holes (out of 38) to date, with the remaining assays expected within 3-4 weeks.

Nam Yen

Drilling at Nam Yen has continued to intersect lead-zinc sulphide mineralisation, with assays only received from the first 5 holes of 22 drilled (Figure 2). Results include:

• 11 metres grading 7.8% combined Pb+Zn $(1.8%$ Zn, 6.0% Pb, 16 g/t Ag) from 8 metres depth, and
• 6 metres grading 10.0% combined Pb+Zn $(2.4%$ Zn, 7.6% Pb, 21 g/t Ag) from 21 metres depth, both in hole PLR045.

Two other holes, PLR044 and 046 intersected lower grades, but significantly, they extend the known limits of mineralisation along the western side. Of the other 17 holes drilled at Nam Yen, 11 have reported visible lead and zinc sulphides, with assays pending (anticipated in 3-4 weeks).

Pha Sod

Completion of a road to the Pha Sod prospect allowed soil and rock chip sampling to be undertaken, generating new drill targets.

Two large high-grade soil anomalies at the Pha Sod 1 prospect were outlined (Figure 3). Anomaly 1 grades in excess of 5% combined Pb+Zn, over an area of 400 x 200 metres, while Anomaly 2 covers an area of 300 x 100 metres and grades above 4% combined Pb+Zn. A peak value of 21% combined Pb+Zn occurred in the soils.

Accompanying the soil values were a number of high grade rock chip samples, grading up to 19.5% Pb, 33.8% Zn, and 166 g/t Ag. The results were significant because for the first time significant quantities of classic Mississippi Valley Type textured zinc sulphide (sphalerite) had been located in outcrop.

Recent RC drilling at Pha Sod intersected wide intercepts of very fine-grained, low grade zinc sulphide (Figure 4). These wide intercepts at Pha Sod are particularly encouraging and confirm the emerging zinc potential of the area. Further drilling will be required to fully test the potential of the sulphide zone. Significant oxide mineralisation in the top portions of the holes also confirms the strong soil anomaly.

Sulphide results from Pha Sod include:

• 24 metres grading $1.3%$ Zn, 0.1% Pb, and 5 g/t Ag, from 4 metres depth in hole PLR048,
• 20 metres grading 1.6% $Zn$ , 0.2% Pb, and 7 g/t Ag, from 4 metres depth in hole PLR049,
• 8 metres grading 1.3% Zn, 0.2% Pb, and 7 g/t Ag, from 4 metres depth in hole PLR050, and

28 metres grading $1.2%$ Zn, 0.1% Pb, and 5 g/t Ag, from 4 metres depth in hole $\bullet$ PLR052.

For complete results see the attached table.

Work Plans

A pause in drilling while results are received and interpreted will now occur until early March, when a second drilling campaign is planned.

Meanwhile, Induced Polarisation (IP) geophysical surveys are scheduled during February to aid the drill targeting process.

Extensive soil and rock chip sampling, and geological mapping, continues to identify new prospective areas, which will be scheduled for drill testing as site logistics allow.

Foreign Investment Licence

Rox's interests in Laos are held under a legally binding and detailed joint venture agreement with its partners First Pacific Mining Co. Lao Pty. Ltd. ("FPM") and Triple Nine Mining Co. Pty Ltd. FPM holds a granted Mining Concession in trust for the JV partners that allows lead, zinc and barite mining and exploration over the Pha Luang project area, that is valid to 3 February 2021, and this protects Rox's investment in Laos.

Rox has received advice from the Lao Department of Domestic and Foreign Investment ("DDFI") of a delay in the processing of all foreign investment licence applications by all companies in Laos. The delay is due to "an assessment and evaluation by the Lao Government of all mining projects previously approved in Laos". The DDFI has advised that Rox's application will be "reconsidered as soon as the assessment and evaluation is completed".

The delay in the processing of the application does not affect Rox's day to day operations in Laos in any way, since these are undertaken under the provisions of the JV agreement, and poses no threat to Rox's entitlements under the joint venture.

FINANCIAL

At the end of the quarter Rox had 56,425,333 shares and 14,100,000 unlisted options on issue together with working capital of $5.2 million.

Dated this 31st day of January 2007.

Signed on behalf of the Board of Rox Resources Limited.

Fon Monthsland

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.

Figure 1: Prospect Location Plan

Figure 2: Nam Yen Drill Plan

For Quarter Ended 31 December 2006

Figure 3: Pha Sod Geochemistry

Figure 4: Pha Sod Drill Plan

Nam Yen Sulphide Intercepts* above a 3% Pb+Zn lower cut-off, maximum 2 metres internal dilution.

$NSR = No$ Sample Results above cut-off
-----------------------------------------	--	--	--	--

Hole	East	North	RL Dip		Azimuth Depth		From	To	Interval	Zn%	Pb%	$Pb+Zn%*$	⊶.Agppm
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		3.3	0.1	3.4
							90	91		4.1	0.3	4.4
PLR045	229083	2116085	1038	-55	135	100	0	2	2	1.4	1.7	3.1
							8	19	11	1.8	6.0	7.8	16
							21	32	11	2.3	4.3	6.6	13
						incl.	21	27	6	2.4	7.6	10.0	21
						incl.	31	32		3.8	0.7	4.5
PLR046	229027	2116122	1041	-60	180	80	54	58	4	4.0	0.4	4.4	9.

Pha Sod Sulphide Intercepts

* above 1% Zn lower cut-off, 4 metre composite samples

Hole	East	North	RL.	Dip	Azimuth	Depth	From	ÏΟ	Interval	$Zn%*$	Pb%	Pb+Zn%	Ag ppm
PLR048	223970	2118963	1406	-60		60		28	24
$\blacksquare$ PLR049	223957	2118974	1409	-80		60.		24	20
$\mathsf{PLR}$ 050	223859	2119007	1393	-60		34				ن.
PLR052	223975	2118959	1406	-60	90	52.		32	28		U.

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	ः∵ा ि ।	Interval	Zn%	Pb%	Pb+Zn%*	Ag ppm
PLR047	223920	2118984	1407	-60		70.	0		o	6.4	4.8	11.2	96
PLR048	223970	2118963	1406	-60		60.	0			3.7	2.2	5.9	36
PLR049	223957	2118974	1409	-80		60.	0			6.8	4.7	11.5	54
PLR050	223859	2119007	1393	-60		34	0			10.7	1.3	12.0	38
PLR051	223854	2118951	1394	-60		70.				2.0	1.2	3.2	21
PLR052	223975	2118959	1406	-60	90	52	NSR

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

APPENDIX 5B

Mining Exploration Entity Quarterly Report

Name of entity

ROX RESOURCES LIMITED

ACN or ARBN

107 202 602

Quarter ended ("current quarter") December 2006

T

Consolidated statement of cash flows

Cash flows related to operating activities		CurrentQuarterA$'000	Year to Date$(3$ months)$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for: (a) exploration and evaluation	(410)	(928)
	(b) development
(c) production
	(d) administration	(258)	(546)
1.3Dividends received
1.4received	Interest and other items of a similar nature	88	146
1.5Interest and other costs of finance paid
1.6Income taxes paid
Other - Security bonds1.7
Net Operating Cash Flows		(580)	(1,328)
Cash flows related to investing activities
Payment for purchases of:1.8
	(a) prospects
	(b) equity investments	(7)	(7)
	other fixed assets(c)	(37)	(63)
Proceeds from sale of:1.9	(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		(5)	(32)
Net investing cash flows		(49)	248
1.13 Total operating and investing cash flows (carried
forward)		(629)	(1,080)

1.13 Total operating and investing cash flows (brought
forward)	(629)	(1,080)
Cash flows related to financing activities
1.14 Proceeds from issues of shares (net of costs)	10	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	10	1,315
Net increase (decrease) in cash held	(619)	235
1.20 Cash at beginning of quarter/year to date	5,148	4,294
1.21 Exchange rate adjustments to 1.20
1.22 Cash at end of quarter	4,529	4,529

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

$N\hspace{-0.12cm}\mathcal{U}$

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

Estimated cash outflows for next quarter

		$A'000
4.1	Exploration and evaluation	715
4.2	Development	۰
	Total	715

Reconciliation Of Cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) to	Currentquarter	Previousquarter
the related items in the accounts is as follows.	$A'000	$A'000
Cash on hand and at bank5.1	502	191
5.2Deposits at call	4,027	4,957
Bank overdraft5.3
5.4Other (provide details)
Total: cash at end of quarter (item 1.22)	4,529	5,148

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	56,425,333	56,425,333
	7.4 Changes duringquarter- Issued	50,000	50,000	$0.20	$0.20
7.5	Convertible debtsecurities(description andconversion factor)
	7.6 Changes duringquarter
7.7	Options			Exercise Price	Expires
	(description and	5,250,000	Nil	$0.20	31 January 2009
	conversion factor)	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	Ni l	$0.35	30 Nov 2009
	7.8 Issued duringquarter	1,600,000	Ni l	$0.35	30 Nov 2009
	7.9 Exercised duringquarter	50,000	Ni 1	$0.20	30 April 2007
	7.10 Expired duringquarter
	7.11 Debentures(totals only)
	7.12 Unsecured notes(totals only)		11

Compliance statement

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

Sign here:

Date: 31 January 2007

Company Secretary

Print Name: Brett Dickson