TASMAN RESOURCES LTD — Interim / Quarterly Report 2005

Jul 28, 2005

TASMAN RESOURCES NL

ACN 009 253 187

Level 40, Exchange Plaza 2 The Esplanade, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866

Website: www.tasmanresources.com.au

ASX QUARTERLY EXPLORATION REPORT FOR PERIOD ENDED 30TH JUNE 2005

HIGHLIGHTS

Minerals

• Drilling at Marathon South is expected to commence on about $31^st$ July 2005. Marathon South is a complex gravity anomaly 24km northeast of Olympic Dam.
• Tasman has reported the identification of outcropping epithermal gold-silver mineralisation at its 100% owned Wartaka Project, located 60km west of Port Augusta in South Australia. Assay results up to 0.1ppm Au, 45ppm Ag and 19ppm Sb have been obtained from vein material at surface.

Hydrogen/Hythane

The demonstration project to confirm the emission reductions and performance of Hythane® is advancing well. This project comprises the building, testing and demonstration of two Hythane®-powered Chinese buses. The Chinese bus motors are currently in Denver, Colorado, USA, undergoing bench testing and analysis to allow calibration for the Hythane control units. It is anticipated that the motors will be undergoing field tests in China by mid- to late-October 2005.

Coal Bed Methane & Abandoned Mine Methane

Digital capture of historical data is complete. Preparation of isopach maps and 3D models to $\bullet$ target three exploration wells is underway. Selection of suitable areas with adequate room for developing a CBM well field has been completed. Drill testing will begin following permitting and location of a suitable drill rig.

Geothermal Energy

Eden Energy plan to attempt a re-entry of an existing 762m mineral drill hole, WWD1, to $\bullet$ measure the geothermal gradient around the West Well radiogenic iron oxide geothermal target. The re-entry will be attempted following the drilling programme at Marathon South. The SA Government will be supporting the programme with PACE 2 funding.

Capital Raising

Eden Energy Ltd received an additional \$2.28 million from Top Energy, a company controlled $\bullet$ . by Mr Lui, a director of Eden.

MINERAL EXPLORATION ACTIVITIES

Tasman Resources NL holds a 100% interest in the following exploration projects:

• The "Lake Torrens Project" comprising Exploration Licences 2989, 2733, 2772, 2832, 3109, 3123, 3140, 3174, 3175, 3176, 3177, 3209, 3254, 3260, 3261 and ELA 777/04 (see Figure 1).
• The "Wartaka Gold-Silver Project" (ELs 3102 and 3307 and ELA 339/05)
• The "Central Gawler Gold-Nickel Project" (ELs 3306, 3339, 3340, 3341, 3342, 3343, 3344, and ELAs 111/05 and 258/05).

Lake Torrens Project - Marathon South Prospect

The resumption of drilling at Marathon South was delayed due to an extension in a drilling programme for another client, rain delays and mechanical problems with the drill rig contracted to conduct the drilling at Marathon South. Drilling is expected to commence on $31^st$ July 2005.

Tasman has been successful in obtaining support funding for two of the proposed four holes at Marathon South through the SA Government's PACE 2 exploration initiative.

Background:

Tasman's 100% owned Marathon South Prospect is located 24 km northeast of Olympic Dam in South Australia. Tasman completed the first drill hole into the prospect MS 1 in November 2004. The hole was completed at 830m after intersecting 270m of variably hematite-silica-albite-sericite-carbonate altered breccias, containing significant igneous components (mainly dykes, igneous clasts and probable tuffs).

The breccias show strong similarities with rocks comprising the nearby Olympic Dam deposit, however although weakly mineralised, no significant base metal or gold values were obtained in MS 1. Tasman believes it may have discovered a large volcanic breccia system that could host a substantial coppergold deposit. As at Olympic Dam, the size and complexity of such systems require the drilling of a number of relatively deep holes to adequately assess the potential.

Lake Torrens Project - New Prospects

Geochemical sampling over the Torrens Hinge prospect, a sediment-hosted zinc-silver-lead target was conducted during the quarter. A geochemical technique known as soil desorption pyrolysis (or SDP) is being used to target buried mineralisation and the structures that could be controlling it. Results are awaited.

Wartaka Gold-Silver Project

As reported on 18 July, Tasman has discovered outcropping highly anomalous gold-silver mineralisation on its 100% owned Wartaka Project, located approximately 60km west of Port Augusta. The discovery resulted from follow up of calcrete sampling data collected by a previous explorer in an area Tasman had earlier identified as prospective for gold mineralisation.

The mineralisation is interpreted to be epithermal in character due to:

• the presence of "classic" banded quartz veins showing crustiform, colloform, cockade and comb textures, together with complex overprinting relationships (see Tasman ASX announcement on $18^{th}$ July 2005);
• a distinctive gold-silver-lead-antimony metal association, typical of epithermal deposits $\bullet$ (analyses in Table 1); and,

	• evidence of hydrothermal clay alteration in wallrocks at surface.
--	---------------------------------------------------------------------

Sample No	Au (ppb)	Αg (ppm)	Ph (ppm)	Sb (ppm)	Sample Type (see Notes below)
67398	105	6.	285	10	Rock float composite
67400	80	25	135	18	Composite rock chip
67455	105	45	630	19.	Composite rock chip
Detection Limits.	I	0.1	$\overline{c}$	0.05
67470	17	38	190	19	Outcrop Grab sample
67471	48	6	360	13	Float Grab sample
67472	83	7	330	18	Outcrop Grab sample
Detection Limits	5	0.02	0.5	0.05

	Table 1: Analytical Data for initial surface rock samples collected on EL 3307

Notes:

• Sample 67398 is a composite surface float sample (i.e. not outcropping) collected over an area of about 100m², 230m down slope to the southeast from samples 67455 and 67400. The float consists of multiple crustiform banded quartz veins, but is clearly strongly weathered.
• Sample 67400 is a composite chip sample from a separate outcrop, approximately 25m from Sample 67455, consisting of a colloform-crustiform-textured quartz vein striking approximately northwest-southeast, and about one metre in apparent outcrop width. The true width and dip of the vein is not known.
• Sample 67455 is a composite surface rock chip sample collected across a partly outcropping zone containing banded, crustiform-colloform-textured quartz veins estimated to be approximately 3metres in outcrop width. The strike of the vein is approximately northeast-southwest, but dip and true width are not known.
• Samples 67398, 67400 & 67455 analysed using an aqua regia digest with AAS finish for Au and ICP-MS for Ag, Sh Ph
• Samples 67470-72 analysed using fire assay/AAS for Au and mixed acid/ICP-MS for Ag, Sb, Pb.

Epithermal deposits are quartz vein and stockwork style mineralisation that generally form at shallow depths $(\leq 1 \text{ km})$ when hot hydrothermal fluids associated with volcanic activity boil or encounter different chemical conditions. Epithermal deposits can vary considerably in size, grade and metal association. Examples include Pajingo and Wirralie (North Queensland, Australia), Ladolam-Lihir (PNG), Hishikari (Japan) and Chatree (Thailand). Epithermal deposits have not previously been identified in South Australia.

At this stage, the main area of interest at Wartaka is defined by anomalous gold-in-calcrete assays (up) to 69ppb Au) over an area of about 700m by 500m, although other calcrete anomalies occur outside this area and require follow-up. Follow-up prospecting work, currently underway at Wartaka, has located more areas with outcropping banded quartz as well as locations with banded quartz float.

It is stressed that only very limited sampling has been conducted so far and considerably more work is required to fully assess the size and significance of the mineralisation and quartz veining. The samples listed in Table 1 are reconnaissance surface rock chip and float samples only, and may bear little or no relationship to the typical or average grade of potential mineralisation in the area.

To secure its ground position, Tasman has applied for an additional exploration licence to the north and purchased the adjoining exploration licence EL3102 to the east (see Figure 1). The total area of these tenements is $492 \text{km}^2$ .

Tasman intends to advance exploration by conducting further geochemical sampling, mapping, prospecting and geophysical surveys with the objective of defining drill targets at the earliest opportunity.

ENERGY ACTIVITIES

Eden Energy Ltd (Tasman 48.72%)

South Wales - Coalbed Methane/Coalmine Methane/Natural Gas

During the quarter, Eden Energy Ltd, in association with its joint venture partner in Wales, largely completed a detailed data capture of coal seam data from hardcopy maps and plans from historic coalmines in the $400 \text{km}^2$ tenement area (see Figure 2). The purpose of this exercise is to determine the potential for tapping significant quantities of abandoned mine gas, and for identifying primary targets for testing unworked coal seams for possible development of coal seam gas.

Conversion of the compiled data to isopach maps and simplified 3D models will commence shortly.

Identification of areas within the licence area that are sufficiently large to allow development of a commercial CBM well field is underway and is expected to be completed by the end of July 2005. Once these areas are identified, structure and isopach maps together with 3D seam information will be used to site test wells. Permitting for the test wells takes between 6-8 weeks.

A suitable laboratory for performing the coal and gas testing programme has been identified in Germany. Negotiations to undertake the South Wales work are underway.

The search for a suitable drilling rig for the initial testing of the coal continues. A number of candidates have been identified and more detailed discussions are underway regarding capabilities, costs and availability.

• Hydrogen/Hythane Projects

Eden Energy Ltd is acquiring a 20% interest in Brehon Energy plc ("Brehon") and a 49% interest in Brehon Far East. Brehon holds patents, trademarks and know-how for Hythane (a mixture of natural gas and hydrogen which dramatically reduces emissions) and to NASA-developed cryogenic storage for hydrogen. Brehon Far East holds the total marketing rights for the Asia/Pacific region for the Brehon technology.

During the quarter, continuing significant progress has been made in the Hythane Demonstration Project in China. This project comprises the building, testing and demonstration of two Hythane®powered Chinese buses.

Two Chinese CNG bus motors have been sent from China to Hythane Company LLC in Denver, Colorado, USA. The motors are undergoing a benchtop programme of analysis and testing using dynamometer and emissions testing equipment. The testwork will enable the appropriate recalibration and setup of the Hythane control equipment for the motors.

Following the successful calibration and setup of the Chinese bus motors they will sent back to China and installed in buses for the Demonstration Project. It is anticipated that the motors will be undergoing field tests in China by mid- to late-October 2005, with the trials expected to be completed by the end of 2005.

The objective is to progressively have Hythane adopted as the fuel of choice throughout China for urban transit buses in lieu of Natural Gas following completion of a successful Demonstration Project. Upon this occurring, a very significant market in China for Hythane technology is anticipated to emerge over the next two to three years in the Chinese urban transit bus market, estimated to be well over 500,000 buses in aggregate.

Agreements relating to entities to market Hythane, and source and sell hydrogen, in China are currently under negotiation.

During the Quarter, Top Energy subscribed a further AUD \$2,280,000 (bringing its total investment in Eden to A\$4,280,000) for 22, 800,000 Shares at 10 cents each together with 11,400,000 options (exercisable at 20 cents on or before 30 September 2009) in Eden, to increase its shareholding in Eden to 47,000,000 shares representing 50% of Eden's issued capital. Top Energy and Mr Liu now hold 31.92% of the issued options in Eden. Tasman holds 45,800,000 Shares and 46,500,000 Options.

Mr Liu was appointed as Chairman of Eden and Mr Greg Solomon became the Managing Director.

The proceeds will be used to fund the subscription by Eden of a further US\$1,000,000 into Brehon to acquire a further 1,250,000 shares in Brehon, bringing Eden's holding to 3,750,000 shares representing 27.27% of Brehon's issued capital.

The remainder of the funds raised will be used to fund Eden's ongoing exploration expenses for its 50% interest in the South Wales coal bed methane joint venture and Eden's 100% owned eight South Australian geothermal licences and conventional hydrocarbon licence.

It is proposed that a new company, Hydrogen China (BVI) Ltd ("HC"), a wholly owned subsidiary of Brehon Far East Pte Ltd ("BFE") (Eden 49%, and Brehon Energy plc 51%) will be created.

HC will market Brehon's low emission Hythane fuel technology in China and participate in the bus demonstration project in China scheduled for the second half of 2005. HC will also establish a network of local Chinese companies that will market and distribute the Hythane technology in China.

HC will initially target 16 cities and regions in China that are included in the Chinese Government's Clean Air Programme. Brehon is confident that, upon completion of the Demonstration Project, Hythane will be approved as a suitable technology for the Clean Air Programme, and then have immediate access to this large section of the Chinese urban transit bus market.

Mr Liu is Chairman and President of the Beiya Group, a major Chinese stock exchange listed railway and technology group which has a wide network covering much of China. It is proposed that the Hythane Project will use this network to assist in the marketing and establishment of the provincial and regional local companies throughout China in conjunction with significant local joint venture partners.

Mr Liu and BFE will establish a joint venture company in China in which BFE will hold a 15% noncontributing, non-dilutable interest, to provide all hydrogen required by the Hythane project in China. Mr Liu will hold 85% of the shares in this company and alone will provide all operating and capital costs required by this joint venture company.

A diagram of the current overall corporate structure is set out in Figure 5.

Geothermal Exploration

Eden holds eight geothermal exploration licences in South Australia: GELs 166, 167, 168, 169, 175, 176, 177 and 185 (see Figure 3).

An integrated work programme assessing the geothermal targets in the GELs is continuing. There are five targets covered by Eden's GELs, comprising a range of different target types:

• 1. GELs 166 and 167 cover the West Well geophysical anomaly, an interpreted radiogenic iron oxide system buried beneath an estimated 3km of Adelaide geosyncline sediment. The area is approximately 60km west of Leigh Creek.
• 1. GEL 168 covers an interpreted thermally enhanced Hiltaba age granite, adjacent to the West Well target at Mulgaria, again buried beneath several kilometres of Adelaidean sediments.
• 1. GEL 169 is located approximately 80km south of Moomba, near Bollards Lagoon, and targets a proposed analogue of the Geodynamics target at Habanero.
• 1. GEL 177 covers an area with known high thermal temperature gradients over a gravity low interpreted to be a buried granite and/or a thicker sub-basin of the Eromanga Basin near Mungeranie on the Birdsville Track.
• 1. To the north of Renmark, a geothermal anomaly identified in early oil exploration wells is associated with the Nadda/Berri/Murray Basin.

The West Well anomaly was drilled tested by WMC in 1979. The 762m hole WWD1 only encountered Adelaidian shales and the hole was terminated when it was concluded that any economic mineralisation

would be too deep. Discussions with the driller who drilled the hole and the geologist who supervised WWD1 have revealed that the collar was pressure cemented to an approximate depth of 20m immediately upon completion of the hole. This raises the strong possibility that the hole can be successfully re-entered, the geothermal gradient measured and heatflow for the West Well anomaly estimated. A recent visit to WWD1 by Eden staff confirmed the intact status of the collar.

Eden has been successful in obtaining SA Government PACE2 funding for part of the costs involved in re-entering WWD1 and measuring the downhole temperatures. The rig contracted for the Marathon South drilling programme will be used to ream out the cement in the hole and run a BQ string to the bottom of the old hole. A small amount of fresh core will be drilled to provide data about the thermal conductivity of the Adelaidian sediments. It is anticipated that this work will occur in October 2005, once heritage and access issues are successfully concluded.

CORPORATE

Finance

At 30th June 2005 Tasman had cash reserves of \$1.47 million.

At 30th June 2005 Eden had cash reserves of \$2.29 million.

Doug Solomon Director

The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for complete certainty. Any economic decisions that might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risk.

The information in this announcement, insofar as it relates to Mineral Exploration activities, is based on information compiled by Graham M. Jeffress and Robert N. Smith, who are members of the Australian Institute of Geoscientists, and who have more than five years experience in the field of activity being reported on. Mr Jeffress and Mr Smith are full-time employees of the company. Mr Jeffress and Mr Smith have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jeffress and Mr Smith consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource.

Tasman Resources - South Australian Mineral Exploration

Figure 1: South Australia - Lake Torrens Project Location and tenement map, showing Tasman exploration tenements.

South Wales - Energy Projects Farm-in Area

Figure 2: South Wales Project Location and tenement map; PEDLs cover Coal Bed/Coal Mine Methane and conventional hydrocarbon plays

South Australian Geothermal Exploration

Figure 3: Eden Energy's South Australian Geothermal Exploration Licences overlain on AusTherm03 estimated temperature at 5km depth

Marathon South Prospect

Figure 4: Marathon South Residual Gravity Image (residual of 128 pass hanning filtered variable density bouguer gravity, using December 2004 infill gravity data) showing existing drilling and proposed collars for follow-up

Figure 5: Corporate Structure Diagram

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

TASMAN RESOURCES NL

ABN

85 009 253 187

Quarter ended ("current quarter") 30 June 2005

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter \$A'000	Year to date $(12 \text{ months})$ \$A'000
1.1	Receipts from product sales and related debtors	$\Omega$	$\Omega$
1.2	Payments for (a) exploration and evaluation (b) development (c) production	(66)	(788)
	(d) administration	(302)	(882)
1.3 1.4	Dividends received Interest and other items of a similar nature received	0 26	0 77
1.5	Interest and other costs of finance paid	0	$\Omega$
1.6	Income taxes paid - GST Paid	(22)	(133)
	Income Taxes - GST Refunds Received	30	117
1.7	Other (provide details if material) PACE1 Grant Funding - first 50%	40	80
	Net Operating Cash Flows	(294)	(1,529)
1.8 1.9 1.10 1.11 1.12	Cash flows related to investing activities Payment for purchases of: (a)prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material)	0 (773) (6) 0 0 $\Omega$ 0 0 0	0 (1, 927) (9) 0 0 0 $\overline{0}$ $\Omega$ $\overline{0}$
	Net investing cash flows	(779)	(1,936)
1.13	Total operating and investing cash flows (carried forward)	(1,073)	(3, 465)

1.13	Total operating and investing cash flows (brought forward)	(1,073)	(3, 465)
1.14 1.15 1.16 1.17 1.18	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid	2,280	7,052
1.19	Other (provide details if material) Share Issue Costs	(9)	(280)
	Net financing cash flows	2,271	6,763
	Net increase (decrease) in cash held	1,198	3,298
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	2,557	457
1.22	Cash at end of quarter	3.755	3,755

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
1.23	Aggregate amount of payments to the parties included in item 1.2	183
1.24	Aggregate amount of loans to the parties included in item 1.10

$1.25$ Explanation necessary for an understanding of the transactions Management Fees, as per agreement, were paid during the quarter to a company of which Mr GH Solomon and Mr DH Solomon are directors. Legal Fees paid during the quarter to a firm of which Mr GH Solomon and Mr DH Solomon are partners. Bona-fide reimbursement of expenses for the period to 30 June 2005 Directors Fees and Superannuation paid during the period.

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
• Nil
• $2.2^{\circ}$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Not applicable

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	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation	600
-4.2	Development
	Total	600

Subsequent to end of quarter additional capital has been raised to fund part of this expenditure.

Reconciliation of cash

follows.	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	Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	2,355	1,057
5.2	Deposits at call	1,400	1,500
53	Bank overdraft	0
5.4	Other (provide details)	0
	Total: cash at end of quarter (item 1.22)	3,755	2,557

Changes in interests in mining tenements

è

		Tenement reference	Nature of interest (note (2))	Interest at beginning	Interest at end of
				of quarter	quarter
6.1	Interests in mining tenements relinquished,
	reduced or lapsed
6.2	Interests in mining tenements acquired or		(formerly)
	increased	EL 2989	Licence granted (EL 2340)	100%	100%
		EL 3123	Licence granted (EL 2507)	100%	100%
		EL 3140	Licence granted (EL 2543)	100%	100%
		EL 2772	Licence granted	100%	100%
		EL 2832	Licence granted	100%	100%
		EL 3109	Licence granted	100%	100%
		EL 3174	Licence granted	100%	100%
		EL 3175	Licence granted	100%	100%
		EL 3176	Licence granted	100%	100%
		EL 3177	Licence granted	100%	100%
		EL 3209	Licence granted (EL 2594)	100%	100%
		EL 3254	Licence granted	100%	100%
		EL 3260	Licence granted	100%	100%
		EL 3261 EL 3306	Licence granted Licence granted	100% 100%	100% 100%
		EL 3307	Licence granted	100%	100%
		EL 3339	Licence granted	100%	100%
		EL 3340	Licence granted	100%	100%
		EL 3341	Licence granted	100%	100%
		EL 3342	Licence granted	100%	100%
		EL 3343	Licence granted	100%	100%
		EL 3344	Licence granted	100%	100%
		EL 3345	Licence granted	100%	100%
		Outstanding Applications:
		ELA 777/04, ELA 111/05,
			New Applications this quarter and subsequent to the quarter:
			ELA 258/05, ELA 272/05, ELA 339/05, ELA 295/03 (Formerly EL 2733)
			Geothermal Licences held in the name of Eden Energy Ltd
	GEL 166	Licence granted	100%	100%
	GEL 167	Licence granted	100%	100%
	GEL 168	Licence granted	100%	100%
	GEL 169	Licence granted	100%	100%
	GEL 175 GEL 176	Licence granted	100% 100%	100% 100%
	GEL 177	Licence granted Licence granted	100%	100%
	GEL 185	Licence granted	100%	100%
			Outstanding Petroleum Exploration Licence Application in the Name of
		Eden Energy Ltd
		PELA 183

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 note 3) (cents)
7.1	Preference +securities (description)	NOT APPLICABLE
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3	*Ordinary	86,160,788
7.4	securities Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs		86,160,788
7.5	*Convertible debt securities (description)	NOT APPLICABLE
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options	43,795,417	43,795,417	Exercise price 20 cents	Expiry date 28 Feb 2006
7.8	Issued during quarter	NIL.	NIL.
7.9	Exercised during quarter	NIL	NIL
7.10	Expired during quarter	NIL	NIL
7.11	Debentures (totals only)	NOT APPLICABLE
7.12	Unsecured notes (totals only)	NOT APPLICABLE

Compliance statement

• This statement has been prepared under accounting policies which comply 1 with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\mathcal{P}$ This statement does give a true and fair view of the matters disclosed.

RAYMOND FRANCIS BUSCALL - COMPANY SECRETARY Date: 29 July 2005

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.
• $\overline{2}$ 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.

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