STELLAR RESOURCES LIMITED — Interim / Quarterly Report 2016

Jul 26, 2016

Stellar Resources (SRZ) is an exploration and development company with assets in Tasmania and South Australia. The company is rapidly advancing its high-grade Heemskirk Tin Project, located near Zeehan in Tasmania, and

As at 30 June 2016

plans to become Australia's second largest producer of tin.

Market cap: A$10.5m (3.5c) Cash (30 June): $1.6 million Shares: 300,227,775

Main Shareholders

European Investors 24.8% Capetown SA 20.8% Resource Capital Fund 12.0%

Board & Management Phillip G Harman Non-Executive Chairman Peter G Blight Managing Director Miguel Lopez de Letona Non-Executive Director Thomas H Whiting Non-Executive Director Christina R Kemp Company Secretary

ASX Code: SRZ

ABN 96 108 758 961 Level 17, 530 Collins Street Melbourne Victoria 3000 Australia

Telephone +61 3 9618 2540 Facsimile +61 3 9649 7200

www.stellarresources.com.au

27 July 2016

Report for the quarter ended 30 June 2016

Highlights

• Fast Start Study shows opportunity for:
  • 16% increase in head grade to 1.23% tin
  • First ore in 6 months of mining commencement 50% faster than OPFS
  • 57% reduction in preproduction capital cost to $47.5m
  • Competitive unit cash operating cost of A$14,677/t representing a 38% profit margin at today's LME spot tin price of A$23,564/t
• Mining Lease application over Heemskirk tin deposits accepted by Mineral Resources Tasmania – once granted an ML will increase security and duration of tenure
• Tin price up 38% on January 2016 low reduced supply and low stock levels support tin price gains - decline in concentrate exports from Myanmar in June also a positive factor

Corporate

• Cash balance of A$1.6m as at 30 June 2016
• June quarter expenditure of A$162,787

Targets for September Quarter 2016

• Continuing work on FSS options
• Progress DPEMP environmental studies

Managing Director Peter Blight said: "I am pleased with the results to date from the Heemskirk Tin Fast Start Study. In particular, reduction of the development time to first ore production to 6 months and at higher grade than previously estimated are significant positives. Scaling down mine development and the size of the processing plant also reduces the initial capital commitment to A$47.5m and reduces execution risk for the project. The Board's confidence in the project is reflected in the recent application for a Mining Lease over the Heemskirk tin deposits. "

Overview

Stellar Resources Limited (ASX:SRZ "Stellar" or the "Company") is the 100% owner of the Heemskirk project which has a JORC Resource of 6.28mt at 1.14% tin (see Mineral Resource Statement for detail). The Heemskirk Tin Project is the highest grade undeveloped tin project listed on the ASX.

Heemskirk is a world class tin project located near Zeehan in the prolific mining district of northwest Tasmania. It is located within 18 kilometres of Australia's oldest and largest tin mine Rension Bell and has access to excellent infrastructure (see Figure 1).

Figure 1: Location of Heemskirk tin project relative to other mines, northwest Tasmania

During the quarter, work continued on a Fast Start Study (FSS) with the aim of determining the lowest cost and quickest approach to first production from the Heemskirk Tin Project.

The Lower Queen Hill (LQH) Indicated Mineral Resource of 1.02mt grading 1.29% tin (see Mineral Resource Statement) was selected as the first stage of a sequential development of the Heemskirk deposits. LQH's close proximity to the planned portal was a key reason for its selection (see Figure 2). In addition, the FSS has shown that there are several other benefits from developing LQH first:

• higher initial ore grade,
• quicker access to ore,
• access for Severn drill-out
• reduced capital cost and
• reduced project risk.

Adopting a sequential approach to development has limited the rate of underground ore development. Accordingly, the 600,000 tpa treatment rate assumed for the processing plant in the optimised prefeasibility study (OPFS) was reduced to 200,000 tpa for the FSS.

Figure 2: Interpretative geological surface plan showing location of Heemskirk tin deposits

Fast Start Study Scope1

Several consultants prepared reports on various aspects of the study with the aim of minimising capital and operating costs.

• Mining One completed a mining study focused on a 5 year production life for LQH.
• Worley Parsons assessed expected metallurgical performance of LQH using test results provided by ALS Burnie on diamond drill hole ZQ125.
• Worley Parsons also provided estimated operating costs for the process plant.
• Mincore provided capital cost estimates for the downsized process plant.

The results to date represent an assessment of what a fast start development would look like. As such they can be compared to results from the PFS and OPFS in terms of pre-production capital and operating costs.

A broader comparison with the PFS and OPFS is limited as the FSS does not include the larger Severn and higher grade Montana deposits. The intention of a fast start is to get into production quickly so that the Severn and Montana deposits can be more extensively sampled from underground as opposed to a slower and more expensive drill-out from surface. Another advantage of the fast start approach is that cash flow generated from LQH could finance access to the Severn deposit. --------------------------------------------------------------------------------------------------------------------------------------

1 The Fast Start Study referred to in this report is based on low-level technical and economic assessments and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage or to provide certainty that the conclusions of the Study will be realised.

Increased Head Grade

The FSS mining study demonstrated an increase in head grade to 1.23% tin compared with 1.06% tin estimated for the PFS. The FSS Mining Inventory of 0.88mt at 1.23% tin developed by Mining One assumes 10% dilution at zero grade and 10% mining loss.

Deducting the FSS Mining Inventory from that of the PFS leaves a residual Mining Inventory of 3.07mt grading 1.01% tin (see ASX release dated 24 July 2013 "Pre-feasibility Study Advances Heemskirk Tin" for a description of the parameters defining the PFS Mining Inventory).

Access to Ore in 6 Months

The mining study has achieved one of the main goals of the FSS by reducing access to development ore from 12 months under the OPFS to 6 months. This was achieved by re-designing the decline and associated sumps, stockpiles, vertical development and ore access to focus only on LQH. It also assumes that single heading development can progress at 180m/month as assumed in the OPFS.

There were also changes to the mining and fill method to optimise ore recovery to a vertical depth of 260m and minimise development costs. The LQH mining plan uses a combination of transverse, long hole and Avoca stoping (see Figure 3) with cemented rock fill and rock fill. This approach should significantly reduce fill costs.

Figure 3: LQH mining methods

Reduced Capital Cost

Under the FSS assumptions, overall pre-production capital cost is expected to decline by 57% from the OPFS level to A$47.5m (see Table 1).

Capital Item		PFS	OPFS	FSS	FSS Capital Saving%
Treatment Rate	ktpa	600	600	200	-67
Mine development	$m	29.0	28.8	10.4	-64
Process plant	$m	75.5	64.4	25.3	-61
Tailings facility	$m	7.2	4.8	2.8	-42
Working capital	$m	10.4	8.6	6.5	-24
Contingency	$m	4.5	3.7	2.5	-32
Total	$m	126.6	110.3	47.5	-57

Table 1: Pre-production Capital Cost Comparison

The driver of savings is the 67% reduction in treatment rate. Mine development cost declined by 64% by eliminating any development related to the more distal deposits and reconfiguring the decline to access LQH in the most efficient manner. Scaling down of the processing plant provided the opportunity to consider a more modular design with a smaller foot print, reduced civil works and savings in engineering. Reductions in tailings storage cost, working capital and contingency were less significant.

Marginal Reduction in Unit Operating Cost

Total unit cash operating costs are 2% lower under the FSS scenario at A$14,677/t relative to the OPFS outcome of US$14,927/t (see Table 2).

Comparative 4 year Average	Unit	PFS	OPFS	FSS	Cost Change
Operating Unit Cost					%
Mining	A$/t ore	80	75	70	-7
Processing	A$/t ore	35	40	44	10
TC/RC, transport, royalty	A$/t ore	23	24	25	3
Administration	A$/t ore	2	2	3	55
Total cash costs	A$/t ore	140	141	142	1
Total cash costs	A$/t tin	15,705	14,927	14,677	-2
Total cash costs @ 0.76 AUDUSD	US$/t tin	11,936	11,345	11,154	-2

Table 2: Operating Cost Comparison

Mining has generated all of the savings with the adoption of more efficient mining methods for LQH, reduced fill costs and lower haulage costs. Unit processing cost is 10% higher in the FSS case when compared to the OPFS, largely because labour cost does not decline as much as the cost of consumables following the reduction in scale.

The FSS unit cash cost of A$14,677/t of tin in concentrate is 2% lower than the OPFS estimate due to the higher grade (1.23% tin) of ore processed. At the current LME spot price of A$23,564/t, and cash operating costs of A$14,677/t the project has a cash margin of 38% or A$8,887/t.

Fast Start Conclusions and Recommendations

The study so far has met the key goals of:

• quicker access to ore development time to first ore reduced by 6 months to 6 months,
• lower capital cost 57% reduction to $47.5m due to downsizing and modularisation and
• reduced risk smaller capital requirement and less pressure on mine development.

In addition, unit operating costs are similar to those of the OPFS on a $/t of ore basis and 2% lower on a $/t tin in concentrate. The average cash margin over the 5 year life of LQH is 38% which makes the FSS highly profitable even at today's historically low A$/t tin price.

Several other options to enhance value were briefly considered during the FSS but require more work before they can be adopted into a definitive feasibility study. These include:

• Simplification of the processing plant to only produce a gravity concentrate with tin fines stored for recovery at a later date. This option could reduce capital and operating cost by a further 10% but would require additional drill core and metallurgical testing to maximise expected gravity recovery for LQH.
• Adding production from a high grade tin zone in the Severn deposit. This scenario could add significant value to the FSS outcome with a modest amount of additional underground mine development. Drilling to date has demonstrated the presence of higher grade tin near the upper edge of the Severn deposit. Infill drilling is required to upgrade this resource to support a definitive feasibility study.
• Processing in existing plants that lie within economic trucking distance of the Heemskirk deposits. These options may provide lower capital cost outcomes but would increase estimated operating costs.

Stellar plans to develop a work program to test the options outlined above and to move from the FSS into a definitive feasibility study.

Mining Lease Application

The positive outcomes of the OPFS in 2015 and more recently the FSS, have provided the impetus to convert the current title over the Heemskirk tin deposits into a Mining Lease (ML). On 21 July 2016, Stellar announced to the ASX that an application for a ML over RL5/1997 (Heemskirk tin deposits) from its wholly owned subsidiary Columbus Metals Limited had been accepted by Mineral Resources Tasmania (MRT), the mining department of State Growth Tasmania.

An ML is a more secure form of title as it upgrades the status of ownership from a right to explore under an RL to an exclusive right to minerals. Importantly, the duration of the title can be extended well beyond the current 2 years of an RL and will likely be determined by the potential mine life of the project, including the pre-development and post-production rehabilitation periods.

Conditions for the granting of an ML will be determined following a period of consultation with other state government departments and stakeholders in the project.

EXPLORATION

During the quarter, all tenements held by Stellar Resources where reviewed for lithium and cobalt exploration potential. In all cases, historical assays and a review of previous work showed that the potential was limited. Tailings from test work at Heemskirk tin showed levels of lithium that are too low for economic extraction using current technology.

Tin

EL6/2014 Stonehenge (TAS) (Stellar 100%)

The Stonehenge EL lies immediately to the south of the Heemskirk deposits and contains similar geology and structure. A review of historical diamond drilling records show that low grade tin mineralisation along with lead and zinc was intersected in narrow veins associated with faults near the Spray mine on the northeast edge of the licence. Further geological investigation is required to identify drilling targets.

EL1/2004 Ramsay (TAS) (Stellar 100%)

Soil sampling has closed off a 600m by 300m zone containing tin in soil assays in excess of 300ppm. The tin in soil target occurs over a quartz-tourmaline altered granite porphyry which occurs on the northern edge of the Meredith Granite. Stellar continues to review potential funding options to finance a drilling program over the geochemical target.

Copper/Gold

EL 5125 Cleanskin Swamp and EL 5126 long Creek (SA) (Stellar 100%)

Stellar is seeking a joint venture partner to explore the iron sulphide copper gold potential of these central Gawler Range tenements. Four targets have been identified with only one partly drilled to date.

Uranium

EL 5426 Midgee (SA) (Stellar 100%)

Samphire Uranium Limited has the right to earn a 73% interest in 40% of the tenement by identifying a JORC compliant uranium resource. No exploration was undertaken during the quarter.

EL 5307 Cowell (SA) (Stellar 100%)

This tenement is prospective for sedimentary uranium, copper-gold and graphite. No exploration was conducted on the tenement during the period. However, exploration joint venture options continue to be investigated.

CORPORATE

Cash Position

As at 30 June 2016, Stellar Resources Limited held cash and term deposits of A$1.6 million. Expenditure during the quarter was $162,787.

TIN MARKET

The LME tin price has risen by 38% to US$18,200/t on July 15th from its January 18th low of US$13,235/t. During this period LME stocks have declined by 3% to 5,992t reflecting an already historically low level of stocks (see chart following).

Drivers of the tin price recovery appear to be:

• Recovery from an over-sold position at the tin price low of US$13,235/t, 65% of tin producers where unprofitable according to the most recent ITRI tin producer cost curve.
• Improved investor sentiment towards all metals gold has lead the way in the price recovery with base metals following.
• Reduced exports from Indonesia exports are down 25% in the first 6 months of 2016 compared with the same period in 2015.
• Seasonal decline in Chinese imports of tin concentrates from Myanmar in June 2016
• ITRI predict an overall 5% decline in global refined tin production in 2016 compared with 2015 due to reduced concentrate availability – average smelter utilisation rate is 47%.

Figure 4: London Metal Exchange tin spot price and stocks - daily

Figure 5: Indonesian refined tin exports – monthly

Figure 6: Chinese imports of tin ore and concentrates – monthly

TENEMENT REGISTER

Project	Licence Number	Tenement	Location	Interest held (%)
Heemskirk Tin	RL5/1997	Zeehan	Tasmania	100%
	ML 2/2014	Tailings Dam	Tasmania	100%
	EL46/2003	Heemskirk	Tasmania	100%
Exploration
Tin	EL1/2004	Ramsay River	Tasmania	100%
	EL6/2014	Stonehenge	Tasmania	100%
Uranium	EL5307	Cowell	South Australia	100%
	EL5426	Midgee	South Australia	100%1
Copper/Gold	EL5125	Cleanskin Swamp	South Australia	100%
	EL5126	Long Creek	South Australia	100%

1 JV with Samphire Uranium Limited earning 73% in uranium interest

MINERAL RESOURCE STATEMENTS

Heemskirk Mineral Resource

Classification	Deposit	Tonnes	Grade	Contained Tin
		millions	% tin	tonnes
Indicated	All	1.41	1.26	17,790
Inferred	All	4.87	1.10	53,710
Total		6.28	1.14	71,500
Indicated	Queen Hill	1.41	1.26	17,790
Inferred	Queen Hill	0.19	1.63	3,090
	Severn	4.17	0.98	40,900
	Montana	0.51	1.91	9,710
Total		6.28	1.14	71,500

1. block cut-off grade of 0.6% tin

2. tonnes rounded to reflect uncertainty of estimate

3. estimates prepared by Resource and Exploration Geology

Queen Hill Mineral Resource (included in Heemskirk Mineral Resource)

Classification	Deposit	Tonnes	Grade	Contained Tin
		millions	% tin	tonnes
Indicated	Queen Hill	1.41	1.26	17,790
Inferred	Queen Hill	0.19	1.63	3,090
Total		1.60	1.31	20,880
Indicated	Upper Queen Hill	0.39	1.19	4,640
	Lower Queen Hill	1.02	1.29	13,150
Inferred	Upper Queen Hill	0.01	1.59	160
	Lower Queen Hill	0.18	1.63	2,930
Total		1.60	1.31	20,880

0.6% tin block cut-off grade

Tonnes rounded to reflect uncertainty of estimate

Estimates prepared by Resource and Exploration Geology

St Dizier Mineral Resource (located 20km NW of Heemskirk Mineral Resource)

Classification	Deposit	Tonnes	Grade		Contained Tin
		millions	% tin	% iron	tonnes
Indicated	St Dizier	1.20	0.69	23.70	8,280
Inferred	St Dizier	1.06	0.52	22.22	5,512
Total Resource		2.26	0.61	23.00	13,792

1. block cut-off grade of 0.3% Sn

2. tonnes rounded to reflect uncertainty of estimate

3. estimate prepared by Resource and Exploration Geology

Competent Person Statement

The information in this report that relates to Exploration Results is compiled by Mr R K Hazeldene who is a Member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists and a Consultant of the Company. Mr Hazeldene has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Mr Hazeldene consents to the inclusion in the report of the matters based on his information in the form and context in which it appears in this report.

The information in this report that relates to Heemskirk Tin Mineral Resources was last reported on 24th July 2013 in an ASX release titled "Pre-feasibility Study Advances Heemskirk Tin". The information was prepared in accordance with the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' by Tim Callaghan of Resource and Exploration Geology. The information in this report that relates to the St Dizier Mineral Resource was announced on 12 March 2014 in an ASX release titled "Heemskirk Tin Project: New Open Pittable Resource at St Dizier". The information was prepared in accordance with the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code) by Tim Callaghan of Resource and Exploration Geology. Tim Callaghan is a Member of The Australasian Institute of Mining and Metallurgy ("AusIMM"), has a minimum of five years' experience in the estimation and assessment and evaluation of Mineral Resources of this style and is the Competent Person as defined in the JORC Code. This report accurately summarises and fairly reports his estimations and he has consented to the resource report in the form and context in which it appears.

Stellar Resources confirms that it is not aware of any new information or data that materially affects the information included in the Mineral Resource estimates reported on 24th July 2013 and 12 March 2014, Stellar confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. In addition, Stellar Resources confirms that the form and context in which the Competent Person's findings are presented have not been materially modified.

Forward Looking Statements

This report may include forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Stellar Resources Limited's planned activities and other statements that are not historical facts. When used in this report, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. In addition, summaries of Exploration Results and estimates of Mineral Resources and Ore Reserves could also be forward-looking statements. Although Stellar Resources Limited believes that its expectations reflected in these forwardlooking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

The entity confirms that it is not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning this announcement continue to apply and have not materially changed.

Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell Stellar Resources Limited securities.

For further details please contact:

Peter Blight Managing Director Tel: 03 9618 2540 Email: peter.blight@stellarresources.com.au

or visit our Website at: http://www.stellarresources.com.au

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, 01/05/2013

Name of entity

STELLAR RESOURCES LIMITED

Current quarter

96 108 758 961 30 June 2016

Year to date

Consolidated statement of cash flows

	Cash flows related to operating activities		(12 months)
		$A'000	$A'000
1.1	Receipts from product sales and related debtors	–	–
1.2	Payments for(a) exploration & evaluation	(74)	(608)
	(b) development	–	–
	(c) production	–	–
	(d) administration	(107)	(496)
	(e) goods & services tax	7	55
1.3	Dividends received	–	–
1.4	Interest and other items of a similar nature	11	56
	received
1.5	Interest and other costs of finance paid	–	–
1.6	Income taxes paid	–	–
1.7	Other – R & D concessional tax refund	–	353
	Net Operating Cash Flows	(163)	(640)
	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 entities	–	–
1.11	Loans repaid by other entities	–	–
1.12	Other (provide details if material)	–	–
	Net investing cash flows	–	–
1.13	Total operating and investing cash flows (carried
	forward)	(163)	(640)

Rule 5.5

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows
	(brought forward)	(163)	(640)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	–	–
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 (provide details if material)	–	–
	Net financing cash flows	–	–
	Net increase (decrease) in cash held	(163)	(640)
1.20	Cash at beginning of quarter/year to date	1,740	2,217
1.21	Exchange rate adjustments to item 1.20	–	–
1.22	Cash at end of quarter	1,577	1,577

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

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	39
1.24	Aggregate amount of loans to the parties included in item 1.10	–
1.25	Explanation necessary for an understanding of the transactions

Directors fees and remuneration $34k; rent & outgoings, Melbourne, paid to Mineral Deposits Limited $5k

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
  • –

–

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

+ See chapter 19 for defined terms.

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
	Exploration and evaluation	155
4.14.2	Development	–
4.3	Production	–
4.4	Administration	106
	Total	261

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shownin the consolidated statement of cash flows) to the relateditems in the accounts is as follows.		Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	57	60
5.2	Deposits at call	1,520	1,680
5.3	Bank overdraft	–	–
5.4	Other (provide details)	–	–
	Total: cash at end of quarter (item 1.22)	1,577	1,740

+ See chapter 19 for defined terms.

Changes in interests in mining tenements and petroleum tenements

		Tenement	Nature of interest	Interest at	Interest
		reference	(note (2))	beginning	at end of
		and location		of quarter	quarter
6.1	Interests in mining
	tenements and	–	–	–	–
	petroleum tenements
	relinquished, reduced
	or lapsed
6.2	Interests in mining
	tenements and	–	–	–	–
	petroleum tenements
	acquired or increased

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.

		Total number	Number quoted	Issue price persecurity (see note3) (cents)	Amount paid up persecurity (see note 3)(cents)
7.1	Preference+securities(description)
7.2	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buybacks,redemptions
7.3	+Ordinarysecurities	300,227,775	300,227,775
7.4	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buybacks
7.5	+Convertibledebt securities(description)
7.6	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted

+ See chapter 19 for defined terms.

7.7	Options			Exercise Price	Expiry Date
		25,000,000	Nil	8 cents	SRZAI 26/02/2017
		15,000,000	Nil	Various Prices	SRZAA 20/11/2019
7.8	Issued during
	quarter
7.9	Exercised during
	quarter
7.10	Expired during
	quarter
7.11	Debentures
	(totals only)
7.12	Unsecured
	notes (totals
	only)

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 5).

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

Sign here: ............................................................ Date: 26 July 2016 (Company Secretary)

Print name: Christina R Kemp

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 and petroleum 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 or petroleum 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*.*

+ See chapter 19 for defined terms.

• 4 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.
• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.