TALGA GROUP LTD — Interim / Quarterly Report 2018

Oct 30, 2018

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

Talga	Resources Ltd
ABN			Quarter ended (“current quarter”)
32 138 405 419			30 Sept 2018
Consolidated statement of cash flows			Current quarter			Year to date
			$A’000			(3 months)
						$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers			(6)					(6)
1.2	Payments for
	(a) exploration & evaluation(i)			(141)			(141)
	(b) development(ii)		(1,203)			(1,203)
	(c) production				-				-
	(d) staff costs			(557)			(557)
	(e) administration & corporate costs	(iii)		(651)			(651)
1.3	Dividends received (see note 3)				-				-
1.4	Interest received			100				100
1.5	Interest and other costs of finance paid				-				-
1.6	Income taxes paid				-				-
1.7	Research and development refunds				-				-
1.8	Other - grants				-				-
1.9	Net cash from / (used in) operating		(2,458)			(2,458)
	activities

• 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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(3 months)
			$A’000
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(234)	(234)
	(b) tenements (see item 10)	-	-
	(c) investments	-	-
	(d) other non-current assets	-	-
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)(iv)	250	250
	(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 – Bond refund	50	50
	Other – Grants	-	-
2.6	Net cash from / (used in) investing	66	66
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares(v)	7,349	7,349
3.2	Proceeds from issue of convertible	-	-
	notes
3.3	Proceeds from exercise of share options	76	76
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 – security issue costs	(414)	(414)
3.10	Net cash from / (used in) financing	7,011	7,011
	activities

• 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

Consolidated statement of cash flows	Consolidated statement of cash flows		Current quarter		Year to date
			$A’000		(3 months)
					$A’000
4.	Net (decrease) in cash and	cash
	equivalents for the period
4.1	Cash and cash equivalents at beginning		11,937		11,937
	of period
4.2	Net cash from / (used in) operating		(2,458)		(2,458)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing		66		66
	activities (item 2.6 above)
4.4	Net cash from / (used in) financing		7,011		7,011
	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	16,556		16,556
	period(v)
5.	Reconciliation of cash and cash		Current quarter		Previous quarter
	equivalents		$A’000		$A’000
	at the end of the quarter (as shown in
	the consolidated statement of cash
	flows) to the related items in the
	accounts
5.1	Bank balances		137		459
5.2	Call deposits		16,419		11,478
5.3	Bank overdrafts
5.4	Other security deposit
5.5	Cash & cash equivalents at quarter		16,556		11,937
	end (should equal item 4.6 above)(v)

Notes:

(i) Exploration and evaluation includes Sweden drilling & mining permitting costs

• (ii) Development includes UK product development, Germany test facility operations and Sweden Vittangi feasibilty studies.

• (iii) Administration includes Sweden

• 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

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	262
	item 1.2
6.2	Aggregate amount of cash flow from loans to these parties	0
	included in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

Amounts under 6.1 include director’s remuneration.

7.	Payments to related entities of the entity and their associates	Current quarter
		$A'000
7.1	Aggregate amount of payments to these parties included in	0
	item 1.2
7.2	Aggregate amount of cash flow from loans to these parties	0
	included in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 - - - - - -

• 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.

• 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

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation(i)		850
9.2	Development(ii)		1,900
9.3	Production		-
9.4	Staff costs		450
9.5	Administration and corporate costs(iii)		740
9.6	Other		40
9.7	Total estimated cash outflows		3,980

Note:

(i) Exploration and evaluation includes Swedish drilling & mining permitting costs

(ii) Development includes UK product development, German test facility operations and Swedish Vittangi feasibility studies.

(iii) Administration includes Sweden.

10.	Changes in	Tenement	Nature of	Interest at	Interest
	tenements	reference and	interest	beginning	at end of
	(items 2.1(b) and	location		of quarter	quarter
	2.2(b) above)
10.1	Interests in	Sweden -
	mining tenements and petroleum tenements	Norrbotten County Jalkunen nr 2 Lautakoski nr 3	Tenement holder Tenement holder	100% 100%	0% 0%
	lapsed,	Western Australia-
	relinquished or	E77/2139	Tenement holder	100%	0%
	reduced	E77/2221	Tenement holder	100%	0%
		E77/2222	Tenement holder	100%	0%
		E77/2251	Tenement holder	100%	0%
		E77/2350	Tenement holder	100%	0%
		P77/4106	Tenement holder	100%	0%
10.2	Interests in	Nil
	mining
	tenements and
	petroleum
	tenements
	acquired or
	increased

• 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.

Sign here: ............................................................ Date: 31 October 2018 (Company secretary)

Print name: Dean Scarparolo

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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