TALGA GROUP LTD — Interim / Quarterly Report 2018

Apr 29, 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			31 March 2018
Consolidated statement of cash flows			Current quarter				Year to date
			$A’000				(9 months)
							$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers					-				4
1.2	Payments for
	(a) exploration & evaluation(i)			(333)			(1,202)
	(b) development(ii)		(1,195)				(3,210)
	(c) production					-				-
	(d) staff costs			(557)			(1,389)
	(e) administration & corporate costs	(iii)		(295)				(986)
1.3	Dividends received (see note 3)					-				-
1.4	Interest received				56				180
1.5	Interest and other costs of finance paid					-				-
1.6	Income taxes paid					-				-
1.7	Research and development refunds					-				-
1.8	Other - grants				22				198
	Other – trial mining				8				(27)
1.9	Net cash from / (used in) operating		(2,294)				(6,432)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment			(491)				(799)
	(b) tenements (see item 10)					-				-
	(c) investments					-				-
	(d) other non-current assets					-				-

• 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	(9 months)
				$A’000
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment		-	-
	(b) tenements (see item 10)(iv)		25	130
	(c) investments		501	2,488
	(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)		-	-
	Other – Grants		-	-
2.6	Net cash from / (used in) investing		35	1,819
	activities
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		412	419
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		-	-
3.10	Net cash from / (used in) financing		412	419
	activities
4.	Net (decrease) in cash and	cash
	equivalents for the period
4.1	Cash and cash equivalents at beginning		13,993	16,340
	of period
4.2	Net cash from / (used in) operating		(2,294)	(6,432)
	activities (item 1.9 above)

• 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	(9 months)
			$A’000
4.3	Net cash from / (used in) investing	35	1,819
	activities (item 2.6 above)
4.4	Net cash from / (used in) financing	412	419
	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	12,146	12,146
	period

Note: (i) Exploration and evaluation includes both Sweden tenement renewal and exploitation permitting costs.

(ii) Development includes UK product development and Germany test facility operations and feasibility studies.

(iii) Administration includes Sweden.

(iv) Funds received pursuant to the option and sale agreement over the West Australian Bullfinch gold project.

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	1,063	363
5.2	Call deposits	11,083	13,630
5.3	Bank overdrafts	-	-
5.4	Other security deposit	-	-
5.5	Cash and cash equivalents at end of	12,146	13,993
	quarter (should equal item 4.6 above)

• 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	165
	item 1.2
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

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		-
	item 1.2
7.2	Aggregate amount of cash flow from loans to these parties		-
	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	Total facility	Amount drawn at
	Add notes as necessary for an	amount at quarter	quarter end
	understanding of the position	end	$A’000
		$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.

• 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)		350
9.2	Development(ii)		1,500
9.3	Production		-
9.4	Staff costs		500
9.5	Administration and corporate costs(iii)		300
9.6	Other –Trial mining		-
9.7	Total estimated cash outflows		2,650

Note:

• (i) Exploration and evaluation includes both Sweden tenement renewal and exploitation licence costs.

(ii) Development includes UK product development and Germany test facility operations and feasibility studies.

(iii) Administration includes Sweden.

10.	Changes in		Tenement reference	Nature of	Interest at	Interest
	tenements		and location	interest	beginning	at end of
	(items 2.1(b) and				of quarter	quarter
	2.2(b) above)
10.1	Interests in mining		Sweden:	Tenement
	tenements and		Norrbotten County	holder
	petroleum tenements lapsed, relinquished or		Liviövaara nr 2 Tiankijoki nr 1		100% 100%	Nil Nil
	reduced		Lehtosölkä nr 3		100%	Nil
			Nybrännan nr 1		100%	Nil
10.2	Interests in mining		Nil
	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: ...30 April 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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