RUMBLE RESOURCES LIMITED — Interim / Quarterly Report 2017

Jul 26, 2017

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27 July 2017

June 2017 Quarterly Activities Report

Rumble Resources Ltd (ASX: RTR) (“Rumble” or “the Company”) is pleased to provide an update in respect of the Company’s activities during the June 2017 quarter.

Highlights

Braeside Zn-Pb-Ag (Au, Cu) Project, Western Australia

Rumble Resources Ltd

Suite 9, 36 Ord Street, West Perth, WA 6005

T +61 8 6555 3980 F +61 8 6555 3981

Stage 1 - Soil Sampling Program

rumbleresources.com.au

• 100% completed with samples at laboratory

ASX RTR

Stage 2 – VTEM Survey

• Geotech Airborne Pty Ltd has been commissioned to conduct a helicopter-borne VTEM geophysical survey over granted tenement E45/2032 within the Company’s Braeside Project

Executives & Management

Mr Shane Sikora Managing Director

• VTEM survey is on 400m line spacing with an estimated 450 line km’s planned

• VTEM survey is now scheduled to commence in early August

• The VTEM survey is designed to identify conductors that may represent first order VMS Targets

Mr Brett Keillor Technical Director

Mr Matthew Banks Non-executive Director

Additional Braeside Exploration Permits Secured – 100% RTR

• Large strategic license applications adjoining existing Braeside Project licences

Mr Michael Smith Non-executive Director

• Rumbles tenement footprint at the Braeside Project area increases by 74%

• Prospective strike length is now over 80 km

Mr Steven Wood Company Secretary

• Braeside Project area expands to 957km² in the underexplored and highly prospective base metal region

Ongoing Review of Resource Opportunities

• Rumble continued with its strategy to proactively identify and review potential acquisitions

• A number of these opportunities that met the Company’s stringent criteria are at advanced stages with due diligence and discussions ongoing

Corporate

• Capital raising of $1,067,814 during quarter

• $1.61m cash on hand as at 30 June 2017

• Rumble fully funded for all 5 stages of planned Braeside Project exploration

Rumble’s activities during the June 2017 quarter were focussed on the first modern systematic exploration program being undertaken at the Braeside High Grade Zinc – Lead Project (“the Project”), located some 140km east of Marble Bar (East Pilbara region of Western Australia).

High Grade Zinc Lead Braeside Project

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The Braeside Project consists of multiple high grade zinc, lead, copper and silver deposits and occurrences associated within a major NNW fault zone within mafic volcanics and volcaniclastics over a strike of at least 80 km. The poly-metallic mineralisation has not been tested by detailed geophysics, geochemistry and very limited drilling with only 10 known historic drill holes in 1928 and1951.

Recent litho-geochemistry completed by Rumble suggests the mineralisation is associated with sub volcanic rhyolitic porphyry (Koongaling Felsic Volcanics) indicating potential for a VMS system capable of hosting large base metal deposit.

New Strategic License Applications – 100% Rumble

During the quarter Rumble acquired the exploration license applications outlined in Image 1, increasing the Braeside Project area to 957 km², and expands Rumble’s footprint at the Project area by 74%. Rumble secured these licenses for nil consideration, enabling Rumble to utilise its cash for high impact exploration.

The new applications have had minimal base metal exploration, with an initial technical review identifying the Koongaling Felsic and Kyleena Andesite Basalts to be highly prospective for base metal deposits.

The new applications extend the strike to over 80 km within the Braeside Fault Fracture system, which contains identified high grade poly-metallic mineralisation.

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Image 1: Braeside Regional Project Location, Regional Geology and Tenements

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Systematic Exploration Process of High Grade Zinc Lead Braeside Project

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Rumble’s technical team lead by Technical Director Mr Brett Keillor is systematically exploring the Braeside Project with the intention to generate first order VMS feeder pipe targets using proven, modern exploration techniques.

Rumbles exploration program is the first modern systematic exploration program being undertaken at the Braeside High Grade Zinc – Lead Project.

Rumble is fast tracking exploration as per the stages outlined below. The first 4 stages are anticipated to be completed over the coming months, and the Company expects to complete the stage 5 drill testing of any first order VMS targets identified prior to the end of 2017.

Rumble is fully funded to complete all 5 stages of exploration.

The Company expects to complete the stage 5 drill testing of any first order VMS targets generated as a result of the exploration work prior to the end of 2017.

Stage	Exploration Activity	Progress
Stage 1	Regional soil geochemistry (multi-element) to cover Braeside Project Area	100% completed - samples at laboratory for assay
Stage 2	Fly Airborne VTEM	Agreement signed, VTEM scheduled to commence in August
Stage 3	Infill geochemistry over any gold metal trends. Infill geochemistry over conductors (generated by VTEM in Stage 2) to rank key drill targets	Subsequent to Stage 1 Subsequent to VTEM
Stage 4	Ground TEM surveys over the highest ranked conductors (drill targets) to further delineate drill targets	Subsequent to infill geochemistry
Stage 5	Drill test conductive plates in order or ranking	Subsequent to Stage 4

Stage 1 - Regional soil geochemistry (multi-element) - E45/2032

The regional soil geochemistry program covering the entire E45/2032 license is a staggered 400m by 400m regional surface soil programme primarily designed to delineate base metal and gold geochemical trends. The regional geochemistry is anticipated to coincide with the scheduled Stage 2 – Airborne VTEM Survey.

In addition, significant historic rock chip gold anomalism (up to 13 g/t Au) will also be tested by the soil geochemistry to identify any gold geochemical trends that may not be picked up by the Stage 2 VTEM. This stage of exploration is the first step to identifying the potential for any high-grade gold vein systems at the Project.

100% of the Stage 1 program has been successfully completed with samples collected in the field currently at the laboratory being assayed.

Stage 2 – Airborne Vtem - E45/2032

Geotech Airborne Pty Ltd has been engaged to carry out a helicopter-borne Versatile Time Domain Electromagnetic (“VTEM”) geophysical survey at the Company’s Braeside Project – E45/2032. VTEM is one of the world’s highest resolution and signal-to-noise ratio airborne electromagnetic systems. Using VTEM is consistent with Rumbles exploration strategy of unlocking the Braeside Project’s large scale base metal deposit potential by the use of advanced exploration techniques and cutting-edge, modern technology.

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Image 2 – Proposed 400m line spacing VTEM Survey at E45/2032 (over image of previous Tempest AEM survey – 2 km line spacing).

The VTEM electromagnetic geophysical survey will cover an area of approximately 450 line kilometres at flight line spacings (perpendicular to stratigraphy) of 400 metres. The anticipated minimum depth of penetration of the VTEM Survey is expected to be approximately 400 vertical metres below the surface of the ground.

The VTEM survey is designed to locate conductors that are associated with mineralisation that may represent first order VMS targets. Historic airborne Tempest AEM (image 2.) has given confidence that there are no, or very minor, lithological conductors such as graphitic shales along the known base metal mineralised system at the Braeside Project.

The program has been slightly delayed and is now scheduled for early August and is expected to take one week to complete.

Stage 3 – Infill Geochemistry

Upon the receipt and analysis of assays and VTEM results from Stage 1 and Stage 2, the field crew will be redeployed to complete an infill soil geochemistry sampling program across any metal trends identified in Stage 1, and over conductors identified by the VTEM in Stage 2. The infill geochemistry will help to rank any key drill targets identified.

Ongoing Review of Resource Opportunities

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The addition to the board of Brett Keillor has enhanced the Company’s strategy to proactively identify and review potential acquisition opportunities to complement the Company's existing projects and activities.

Brett Keillor as Technical Director was instrumental in identifying the Braeside project opportunity. Brett has over 30 years’ experience in the mining industry working across a diverse range of commodities with expertise in targeting large deposits and identifying company making projects. Brett worked and reviewed exploration and development projects across the globe for Independence Group and Resolute and has been instrumental in discovering seven significant deposits.

During the quarter the Company reviewed opportunities in the resource sector in line with the set of objective criteria’s set out by the board, including targeting more advanced and near term production assets.

A number of these opportunities that met the company’s stringent criteria are at advanced stages with due diligence and discussions ongoing.

The Company will keep the market updated should any of these discussions result in an agreement being reached.

Rumble Project Portfolio

The Company continues to review its project portfolio which encompassed project prioritisation and consideration of expenditure commitments with a view to rationalise costs. There was no further on-ground exploration activity on Rumbles other projects during the quarter.

Capital Raise - Rumble fully funded for all 5 stages of Braeside exploration.

During the quarter Rumble completed a capital raise for A$1,057,814. As part of the Placement, nonexecutive director Michael Smith advised the Company that he (through an entity he is associated with) wanted to subscribe for A$45,000 worth of shares on the same terms as the Placement (that is 1.5m shares at $0.03 per share). The issue of these shares to Mr Smith due to him being a director of the Company is subject to the receipt of shareholder approval in accordance with the ASX Listing Rules. The Company has called a general meeting on Thursday 24 August 2017 to seek the necessary approval for this allotment, amongst other resolutions.

The capital raising further strengthens Rumble’s balance sheet and the Company is fully funded to complete all 5 stages of exploration at the Braeside Project.

Shane Sikora Managing Director

• ENDS -

For further information visit rumbleresources.com.au or contact enquiries@rumbleresources.com.au.

About Rumble Resources Ltd

Rumble Resources Ltd is an Australian based exploration company, officially admitted to the ASX on the 1st July 2011. Rumble was established with the aim of adding significant value to its current gold and base metal assets and will continue to look at mineral acquisition opportunities both in Australia and abroad.

Forward Looking and Cautionary Statement

The information in this report that relates to historic exploration results was collected from DMP reports submitted by government agencies and previous explorers. Rumble has not completed the historical data or the verification process. As sufficient work has not yet been done to verify the historical exploration results, investors are cautioned against placing undue reliance on them.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Brett Keillor, who is a Member of the Australasian Institute of Mining & Metallurgy and the Australian Institute of Geoscientists. Mr Keillor is an employee of Rumble Resources Limited. Mr Keillor has sufficient experience 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 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Keillor consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Appendix

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In accordance with Listing Rule 5.3.3. Rumble provides the following information in relation to its mining tenements.

1. The mining tenements held at the end of the quarter and their location.

Project	Tenement Number	Status	Location	Beneficial Percentage Interest
Beadell	E45/2405	Granted	Western Australia	100%
Beadell	E45/4891	Application	Western Australia	100%
Big Red	E28/2268	Granted	Western Australia	100%
Thunderstorm	E28/2528	Granted	Western Australia	100%
Thunderstorm	E28/2529	Granted	Western Australia	100%
Thunderstorm	E28/2595	Granted	Western Australia	100%
Thunderdome	E28/2366	Granted	Western Australia	100%
Mt Gibson	E59/2215	Granted	Western Australia	100%
Mt Gibson	E59/2216	Granted	Western Australia	100%
Braeside	E45/2032	Granted	Western Australia	Earning 70%Note 2
Braeside	E45/4872	Application	Western Australia	100%
Braeside	E45/4873	Application	Western Australia	100%
Braeside	E45/4874	Application	Western Australia	100%
Braeside	E45/4937	Application	Western Australia	100%
Braeside	E45/4938	Application	Western Australia	100%
Braeside	P45/3037	Application	Western Australia	100%
Derosa	Bompela	Granted	Burkina Faso	85%Note 1
Burkina Faso	Pogoro	Granted	Burkina Faso	100%
Burkina Faso	Yalore	Granted	Burkina Faso	100%

2. Mining tenements acquired during the quarter and their location:

Project	Tenement Number	Status	Location	Beneficial Percentage Interest
Braeside	E45/4937	Application	Western Australia	100%
Braeside	E45/4938	Application	Western Australia	100%
Braeside	P45/3037	Application	Western Australia	100%

3. Mining tenements disposed of during the quarter and their location:

Nil.

Note 1: Derosa Project, Burkina Faso

Bompela is subject to a Joint Venture agreement with Canyon Resources limited whereby Rumble owns 85% interest and Canyon a 15% interest.

Note 2: Braeside Project, Western Australia

E45/2032 is subject to an earn in agreement whereby Rumble can earn a 70% interest by spending A$1.5mil on exploration over 3 years.

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, 01/05/13, 01/09/16

Name of entity

Rumble Resources Limited

ABN

Quarter ended (“current quarter”)

74 148 214 260 30 June 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) 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 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (145) - - (51) (80) - 1 - - - 15	- (355) - - (194) (345) - 4 - - 126 34
	(275)	(784)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	- - - -	- - - -

• See chapter 19 for defined terms 1 September 2016

Page 1

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) 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	- 20 - - - - -	- 20 - - - - -
	20	20
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 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) 3.10 Net cash from / (used in) financing activities	1,017(1) - - - - - - - -	1,017(1) - - (32) - - - - -
	1,017(1)	985(1)
(1) Includes $1,017,000 of funds received in advance and held in trust. Shares for funds received were issued in July, subsequent to the end of the Quarter.
4. Net increase / (decrease) in cash and cash equivalents for the period 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 4.6 Cash and cash equivalents at end of period	871 (275) - 1,017 -	1,391 (784) 20 985 -
	1,613(1)	1,613(1)

• See chapter 19 for defined terms

1 September 2016

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

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Funds held in trust for issuance of shares. 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	541 55 - 1,017	816 55 - -
	1,613(1)	871

1. Includes $1,017,000 of funds received in advance and held in trust. Shares for funds received were issued in July.

6. Payments to directors of the entity and their associates Current quarter $A'000

6.1 Aggregate amount of payments to these parties included in item 1.2 51 6.2 Aggregate amount of cash flow from loans to these parties included - in item 2.3

• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Executive and non-executive director fees and technical consulting services.

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000
	-
	-

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

n/a

• See chapter 19 for defined terms 1 September 2016

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

	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities - - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
n/a

n/a

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	(200) - - (60) (90)
	(350)

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	-	-	-	-
10.2 Interests in mining tenements and petroleum tenements acquired or increased	E45/4937 E45/4938 P45/3037	Application Application Application	- - -	100% 100% 100%

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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.

[ lodged electronically without signature ]

Sign here: ............................................................ (Director/Company secretary) xxxxx Steven Wood

27 July 2017 Date: .............................................

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

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply 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. See chapter 19 for defined terms 1 September 2016

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