STANMORE RESOURCES LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001

Name of entity

Stanmore Coal Limited

ACN or ARBN 27 131 920 968

Quarter ended (“current quarter”)

30 June 2012

Consolidated statement of cash flows

Consolidated statement of cash flows
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors including refunds of Goods and Services Tax 1.2 Payments for (a) exploration and 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 (grants received) Net Operating Cash Flows	Current quarter $A’000	Year to date (12 months) $A’000
	382 (5,407) (2,511) - (1,335) - 219 (1,475) - 44	545 (16,556) (6,152) - (4,967) - 986 (1,475) - 359
	(10,083)	(27,260)
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 entities1 1.11 Loans repaid by other entities 1.12 Other (a) security deposits (b) establishment of debt service reserve account2 Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (2) - - - (4,961) - - (1,069)	- - (113) - - - (4,961) - (674) (1,069)
	(6,032)	(6,817)
	(16,115)	(34,077)
1 Investment in port infrastructure in the form of a shareholder loan 2 Debt service reserve account a condition to establishment of the Credit Suiss	e debt facility announced on 28 June 201	2

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(16,115)	(34,077)
Cash flows related to financing activities 1.14 Proceeds from issues of shares and call payments. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings (leases) 1.17 Repayment of borrowings (leases) 1.18 Dividends paid 1.19 Other – costs of share issues Net financing cash flows	12,979 - 4,040 - - (61)	37,082 - 4,040 - - (1,283)
	16,958	39,839
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	843 23,102 -	5,762 18,182 -
	23,945	23,944

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.2 Aggregate amount of payments to the parties included in item 1.2 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	172
	-

• 1.2 Explanation necessary for an understanding of the transactions

Directors fees, salary paid to the Managing Director and consulting fees payable to director related entities.

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

No material non-cash transactions occurred during the quarter.

For the year to date 30 June 2012, 435,815 ordinary shares have been issued as a part of the terms of employment arrangements and 1,495,664 ordinary shares were issued as final consideration to the vendors of Comet Coal and Coke Pty Ltd.

• 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.

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities (a) 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		25,000	4,040
		-	-

(a) Guarantee and loan note facility which matures on 27 June 2014 with an additional year at Stanmore Coal’s option. The facility is used to finance part of the company’s port and rail infrastructure obligations.

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	3,315
	2,685
	-
	1,132
Total	7,132

Reconciliation of cash

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 (security for bank guarantees)	23,945	8,102
	-	15,000
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	23,945	23,102

• These deposits act as security for bank guarantees issued by the company to secure its future infrastructure obligations

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference (Holder)	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
		Exploration Permit for Coal (“EPC”)

• See chapter 19 for defined terms.

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6.2 Interests in mining tenements acquired or increased		Exploration Permit for Coal (“EPC”)

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.

	Number issued	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (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 - Placement (b) Decreases through returns of capital, buy- backs, consolidation (c) Increases through acquisition of projects (d) Increases through acquisition of companies (e) Release of ASX restriction (f) Increase through exercise of options	179,409,108	179,409,108	-	-
	19,228,887 - - - -	19,228,887 - - - -	$0.675 - - - -	$0.675 - - - -
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (c) Increases through issues (d) Decreases through returns of capital, buy- backs, redemptions	Nil	Nil	-	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.7 Options (description and conversion factor) - to purchase one ordinary share 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Cancelled during quarter	6,350,000 3,500,000 525,000 100,000 100,000 100,000 75,000 75,000 75,000 500,000 500,000 500,000 500,000 400,000 400,000 400,000 450,000 450,000 450,000 450,000	- - - - - - - - - - - - - - - - - - - - - - -	Exercise price $0.193 $0.193 $0.153 $0.733 $0.873 $1.093 $1.44 $1.68 $1.80 $1.75 $2.00 $2.25 $2.50 $1.75 $2.00 $2.25 $1.75 $2.00 $2.25 $2.50	Expiry date 09/12/12 31/12/13 16/01/14 31/12/13 31/12/13 31/12/13 30/3/15 30/3/15 30/3/15 31/12/15 31/12/15 31/12/15 31/12/15 31/12/15 31/12/15 31/12/15 31/3/16 31/3/16 31/3/16 31/3/16
	-	-	-	-
	-	-	-	-
	-	-	-	-
	100,000 100,000 100,000	- - -	$1.053 $1.203 $1.303	31/12/13 31/12/13 31/12/13
7.12 Debentures (totals only)	Nil
7.13 Unsecured notes(totals only)	Nil

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 4).

2 This statement does give a true and fair view of the matters disclosed.

31 July 2012

On Behalf of the Board Doug McAlpine Joint Company Secretary

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 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 interest in a mining 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 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International 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.

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