SPRINTEX LIMITED — Interim / Quarterly Report 2012

Jul 29, 2012

Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005.

Name of entity

Sprintex Limited

ABN 38 106 337 599 Quarter ended ("current quarter")

30 June 2012

Consolidated statement of cash flows

			Year to date
	Cash flows related to operating activities	Current quarter	$(iz$ months)
		$A'ooo	$A'ooo
1.1	Receipts from customers	235	492
1.2	$(a)$ staff costs (note 1)Payments for(b) advertising and marketing(c) research and development(d) leased assetsother working capital(e)(note 1 )	(741)(39)(67)(3)(654)	(2, 495)(232)(713)(3)(2,018)
1.31.4	Dividends receivedInterest and other items of a similar nature
	received	1	22
1.5	Interest and other costs of finance paid	(19)	(39)
1.6	Income tax received		715
1.7	Other (provide details if material) - exportmarket development grant received	96	96
	Net operating cash flows	(1,191)	(4,175)

$\Gamma$

Note 1: The Company has developed a supercharger system for a 1.6L Proton and purchased associated inventory and tooling, which have been sold to the Company's jointly owned production facility in Malaysia (JV). These funds are treated as capital contribution to the JV in accordance with the shareholders agreement, which will be matched with a cash injection from the joint venture partner.

+ See chapter 19 for defined terms.

		Current quarter$A'ooo	Year to date$(12$ months)$A'ooo
1.8	Net operating cash flows (carried forward)	(1,191)	(4,175)
1.9	Cash flows related to investing activitiesPayment for acquisition of:(a) businesses (item 5)(b) equity investments		(321)
1.10	(c) intellectual property(d) physical non-current assets (Note 2)(e) other non-current assetsProceeds from disposal of:	(756)	(1,000)
	(a) businesses (item $5$ )(b) equity investments(c) intellectual property(d) physical non-current assets (Note 3)	1,468	1,483
1.111.121.13	(e) other non-current assetsLoans to other entitiesLoans repaid by other entitiesOther (provide details if material)
	Net investing cash flows	712	162
1.14	Total operating and investing cash flows	(479)	(4,013)
1.151.16	Cash flows related to financing activitiesProceeds from issues of shares, options, etc.Proceeds from rights issue received inadvance	$1,052^4$	3,4621,052
1.171.181.191.20	Proceeds from borrowingsRepayment of borrowingsDividends paidOther (provide details if material)	88(18)	162(139)
	Proceeds from borrowings - relatedpartiesRepayment of borrowings - relatedpartiesOther	4	206(356)
	Net financing cash flows	1,126	4,387
	Net increase (decrease) in cash held	647	374
1.211.22	Cash at beginning of quarter/year to dateExchange rate adjustments	405	678
1.23	Cash at end of quarter	1,052	1,052

Note 2: During the quarter the Company paid for a production machine installed in Perth, a Mori Seiki NT4200DCG.

The main item is the sale of the property at 73 Resource Way, Malaga, WA 6090. Note 3:

On 14 June 2012 the Company announced that the Directors had resolved to make an offer to eligible Note 4: shareholders to participate in a 1 for 6 pro rata entitlement issue to raise approximately A$2.2 million at 2 cents per share with 3 free attaching options with an expiry date of 30 June 2013 and an exercise price of 2 cents. The directors are taking up their full entitlements and advanced their funds to the Company in advance of the opening of the entitlement issue.

+ See chapter 19 for defined terms.

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'ooo
1.24	Aggregate amount of payments to the parties included in item 1.2	7 2
1.25	Aggregate amount of loans to the parties included in item 1.11

Explanation necessary for an understanding of the transactions $1.26$

Directors' fees and remuneration

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on $2.1$ consolidated assets and liabilities but did not involve cash flows

Details of outlays made by other entities to establish or increase their share in businesses in $2,2$ which the reporting entity has an interest

$N/A$

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amount available$A'ooo	Amount used$A'$ 000
3.1	Loan facilities	-
3.2	Credit standby arrangements (Note 5)	$\qquad \qquad \blacksquare$

Note 5: The Company has an equity draw down facility of $5 million that is available to the Company at the Company's discretion by way of the issue of the Company's shares for a period of three years. Please refer to the Company's announcement dated 15 December 2009 for further details. Due to the terms of the agreement regarding the drawdown mechanism, the Company considers it is impracticable to utilise the facility.

+ See chapter 19 for defined terms.

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown 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
4.1	Cash on hand and at bank	1,052	405
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (provide details) - credit card	÷
	Total: cash at end of quarter (item 1.23)	1,052	405

Acquisitions and disposals of business entities

			Acquisitions(Item 1.9(a))	Disposals(Item 1.10(a))
5.1	Name of entity		N/A	N/A
5.2	Placeincorporationregistration	ofor
5.3	Consideration foracquisitiondisposal	or
5.4	Total net assets
5.5	Nature of business

Compliance statement

• This statement has been prepared under accounting policies which comply with $\mathbf{I}$ accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• This statement does give a true and fair view of the matters disclosed. $\mathbf{2}$

Sign here:

Managing Director

Steven Apedaile Print name:

+ See chapter 19 for defined terms.

Notes

• The quarterly report provides a basis for informing the market how the entity's 1. 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.
• The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this $2.$ report except for the paragraphs of the Standard set out below.
  • $6.2$ - reconciliation of cash flows arising from operating activities to operating profit or loss
  • itemised disclosure relating to acquisitions $Q.2$
  • itemised disclosure relating to disposals $9.4$
  • 12.1(a) policy for classification of cash items
  • disclosure of restrictions on use of cash $12.3$
  • comparative information 13.1
• Accounting Standards. ASX will accept, for example, the use of International $3.$ Accounting 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.