TALIUS GROUP LIMITED — Interim / Quarterly Report 2013

Apr 29, 2013

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ADVANCE ENERGY LIMITED ACN 111 823 762

QUARTERLY REPORT

31 MARCH 2013

ADVANCE ENERGY LIMITED - QUARTERLY REPORT FOR THE PERIOD ENDING 31 MARCH 2013

CORPORATE OVERVIEW

Ortynytska Project, Ukraine

The Company continued its evaluation of the development options for the Ortynytska Project in Ukraine attending the quarterly Joint Activity Agreement Committee meeting. The Company notes the recent announcements by Aleator Energy Ltd and PTO Consolidated Ltd regarding their respective Povorotnoye and Limnytska projects and is encouraged that the market’s recent loss of confidence in Ukrainian hydrocarbon projects appears to have diminished.

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Ortynytska
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The license holder, ZakhidUkrGeologiya, has been supportive of Advance’s cautious development approach and has agreed to defer the work program until capital markets improve. In the mean time, Advance continues to review geophysical data for its Ukrainian projects and to evaluate additional opportunities.

ADVANCE ENERGY LIMITED Quarterly Report 31 March 2013 ASX CODE: AVD www.advanceenergyltd.com.au

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ADVANCE ENERGY LIMITED - QUARTERLY REPORT FOR THE PERIOD ENDING 31 MARCH 2013

Entitlement Offer of Options

During the quarter, the Company undertook a 1 for 1 renounceable rights issue of options exercisable on or before 31 December 2014 at $0.001 (0.1 cents) per option. The Company did not receive applications from a sufficient number of shareholders to obtain quotation of the options and will therefore not be proceeding with their issue.

Anticipated Events

The Company will continue to seek funding to continue the evaluation of its Ukrainian interests and is also seeking joint venture partners. The Company continues to review additional opportunities in Ukraine and the surrounding region that may be complementary to the existing project.

For further information contact:

Mr Anthony Short (Managing Director)

Telephone: 08 9429 2900 Facsimile: 08 9486 1011

ADVANCE ENERGY LIMITED Quarterly Report 31 March 2013 ASX CODE: AVD www.advanceenergyltd.com.au

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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, 01/06/10.

Name of entity

Advance Energy Limited

ABN 62 111 823 762

Quarter ended (“current quarter”) 31 March 2013

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & 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 Net Operating Cash Flows	Current quarter $A’000	Year to date (3months) $A’000
	- - (22) - (43) - - - - -	- - (22) - (43) - 4 - - -
	(65)	(65)
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)	- - - - - - -	- - - - - - -
	-	-
	(65)	(65)

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(65)	(65)
Cash flows related to financing activities 1.14 Proceeds from issues of shares and notes 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 (option issue to be refunded) Net financing cash flows	- - - - - 19	- - - - - 19
	19	19
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 ofquarter	(46) 101 (3)	(46) 101 (3)
	52	52

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'000 - -

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

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

During the quarter 144,668,004 shares were issued as payment of convertible note interest in the amount of approximately $158,000 due as at 31 December 2012. This has occurred in respect of quarterly interest due on convertible notes since the quarter ended 31 March 2012.

• 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.

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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 3.2 Credit standby arrangements- line of credit	Amount available $A’000	Amount used $A’000
		-	-
		-	-

Estimated cash outflows for next quarter

$A’000 4.1 Exploration and evaluation 25 4.2 Development - 4.3 Production - 4.4 Administration (including interest) 50 Total 75

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as Current quarter Previous quarter shown in the consolidated statement of cash flows) $A’000 $A’000 to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 52 101 5.2 Deposits at call - - 5.3 Bank overdraft - - 5.4 Other (provide details): - - Total: cash at end of quarter (item 1.22) 52 101

Changes in interests in mining tenements

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

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

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 per security (see note 3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases- capital returns, buy- backs or redemptions	9	Unquoted
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases- through issues (b) Decreases- capital returns or buy-backs	1,186,399,438	1,186,399,438		Fully paid
	163,483,595	163,483,595
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases- maturing or conversion of securities	6,630,500	6,630,500	9.5% coupon, expires Dec 2014.
	45,000	45,000
7.7 Options (description and conversion factor) 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)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 /does not* (delete one) give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: ..30 April 2013....... ( ~~Director~~ /Company secretary)

Print name: A Jobling

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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