TITANIUM SANDS LIMITED — Interim / Quarterly Report 2017

Jul 27, 2017

Ltd

28 July 2017

Company Announcements Office Australian Securities Exchange 10[th] Floor, 20 Bond Street SYDNEY NSW 2000

QUARTERLY OPERATIONS REPORT TO 30 JUNE 2017

HIGHLIGHTS

• The vendor of the Mannar Island Project has drilled a further 502 auger holes to close down the drill holes spacing in some focus areas from 800 by 50m to 400 by 50m.

• Samples from this drilling are being prepared prior to laboratory submission along with samples from previous drilling in 2016.

• The Company anticipates being able to lodge a notice of meeting seeking shareholder approval for the acquisition of the Sri Lankan Heavy Minerals Sands Project in August.

CORPORATE

Preparations for a General Meeting of shareholders to consider the acquisition of the Mannar Island Project and other matters are nearing completion. A notice of meeting will be lodged shortly.

Subsequent to the end of the quarter and as announced on 17 July 2017, the Company raised $300,000 by way of a sophisticated investor placement of 42,857,142 Shares at $0.007 per share. One free attaching Option (exercisable at $0.007; expiring 3 years from issue) will be issued for every one Share subscribed for, subject to shareholder approval. Funds raised will be used for general working capital.

OPERATIONS

SRI LANKAN MINERAL SANDS PROJECT

The vendor of the Mannar Island Heavy Mineral Sands Project Srinel Holdings Ltd has advised Titanium Sands Ltd that it has carried out further drilling during the June Quarter (Figure 1). A further 502 hand auger holes have been drilling in focus areas to decrease hole intervals from 800 by 50m to 400 x 50m. Hole ranged in depth up to 5m, but averaged about 1.75m. Drill hole collar

Titanium Sands Ltd Level 24 44 St Georges Terrace, PERTH, WESTERN AUSTRALIA 6000 Telephone +61 8 6211 5099, Facsimile +61 8 9218 8875

locations are tabulated in Appendix 1. Further information on the drilling will be announced when it is received.

Preparation of these samples is being undertaken before they are submitted for laboratory analysis along with the samples from previously reported drilling in 2016.

==> picture [452 x 321] intentionally omitted <==

Figure 1 Mannar Island Project, showing resource infill and extension drilling.

*An initial JORC inferred mineral resource of 10.3 Mt with total heavy mineral (THM) of 11.7% compiled by independent consultants was reported in full to the Australian Securities Exchange on the 22 April 2015. This resource was based on a historical drill hole data base of 785 auger drill holes and from the 115 holes drilled in early 2015. The drilling and the defined resource envelope was largely confined to within 150m of the Mannar Island shoreline. The Company confirms that this resource statement remains current in regards to the areas covered by the drilling used in the resource model.

Except where indicated, exploration results above have been compiled by James Searle BSc (hons), PhD, a Member of the Australian Institute of Mining and Metallurgy, with over 34 years of experience in metallic and energy minerals exploration and development, and as such has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Searle is the Managing Director of Titanium Sands Limited and consents to the inclusion of this technical information in the format and context in which it appears.

Appendix 1 Drill hole collar positions Mannar Island drilled during June Quarter 2017.

Locations reference Latitude and Longitude in WGS84. All holes are vertical, elevations have not yet been determined, and total depths have not yet been provided from the vendor but holes are up to 5m deep and average 1.75m in depth.

DHID	Northing	Easting		MA1215	9.0609	79.8129		MA1254	9.0922	79.7430
	WGS84	WGS84		MA1216	9.0614	79.8126		MA1255	9.0926	79.7431
				MA1217	9.0615	79.8134		MA1256	9.0930	79.7432
MA1178	9.0716	79.8009
				MA1218	9.0620	79.8138		MA1257	9.0934	79.7435
MA1179	9.0713	79.8006
				MA1219	9.0574	79.8185		MA1258	9.0938	79.7436
MA1180	9.0709	79.8003
				MA1220	9.0569	79.8184		MA1259	9.0942	79.7438
MA1181	9.0706	79.8000
				MA1221	9.0565	79.8181		MA1260	9.0947	79.7440
MA1182	9.0703	79.7997
				MA1222	9.0561	79.8177		MA1261	9.0951	79.7442
MA1183	9.0699	79.7994
				MA1223	9.0557	79.8174		MA1262	9.0955	79.7443
MA1184	9.0695	79.7991
				MA1224	9.0554	79.8171		MA1263	9.0959	79.7446
MA1185	9.0692	79.7989
				MA1225	9.0550	79.8168		MA1264	9.0963	79.7447
MA1186	9.0688	79.7986
				MA1226	9.0547	79.8167		MA1265	9.0963	79.7462
MA1187	9.0685	79.7983
				MA1227	9.0543	79.8163		MA1266	9.0967	79.7463
MA1188	9.0682	79.7979
				MA1228	9.0684	79.8280		MA1267	9.0971	79.7465
MA1189	9.0677	79.7977
				MA1229	9.0687	79.8284		MA1268	9.0975	79.7467
MA1190	9.0674	79.7974
				MA1230	9.0689	79.8287		MA1269	9.0979	79.7468
MA1191	9.0670	79.7971
				MA1231	9.0699	79.8284		MA1270	9.0984	79.7470
MA1192	9.0677	79.8085
				MA1232	9.0702	79.8287		MA1271	9.0988	79.7472
MA1193	9.0675	79.8081
				MA1233	9.0706	79.8290		MA1272	9.0846	79.7480
MA1194	9.0670	79.8079
				MA1234	9.0708	79.8294		MA1273	9.0850	79.7481
MA1195	9.0667	79.8076
				MA1235	9.0712	79.8296		MA1274	9.0854	79.7483
MA1196	9.0663	79.8074
				MA1236	9.0716	79.8298		MA1275	9.0858	79.7485
MA1197	9.0659	79.8072
				MA1237	9.0720	79.8301		MA1276	9.0862	79.7488
MA1198	9.0655	79.8069
				MA1238	9.0723	79.8304		MA1277	9.0867	79.7489
MA1199	9.0651	79.8067
				MA1239	9.0726	79.8307		MA1278	9.0871	79.7490
MA1200	9.0649	79.8062
				MA1240	9.0728	79.8312		MA1279	9.0875	79.7492
MA1201	9.0646	79.8055
				MA1241	9.0732	79.8316		MA1280	9.0879	79.7494
MA1202	9.0640	79.8055
				MA1242	9.0737	79.8316		MA1281	9.0883	79.7496
MA1203	9.0637	79.8052
				MA1243	9.0739	79.8320		MA1282	9.0887	79.7498
MA1204	9.0634	79.8049
				MA1244	9.0745	79.8321		MA1283	9.0891	79.7500
MA1205	9.0631	79.8046
				MA1245	9.0748	79.8324		MA1284	9.0895	79.7502
MA1206	9.0627	79.8043
				MA1246	9.0889	79.7415		MA1285	9.0900	79.7503
MA1207	9.0623	79.8041
				MA1247	9.0893	79.7417		MA1286	9.0904	79.7505
MA1208	9.0585	79.8102
				MA1248	9.0898	79.7419		MA1287	9.0908	79.7507
MA1209	9.0588	79.8105
				MA1249	9.0901	79.7420		MA1288	9.0912	79.7509
MA1210	9.0592	79.8109
				MA1250	9.0905	79.7422		MA1289	9.0916	79.7511
MA1211	9.0593	79.8116
				MA1251	9.0910	79.7423		MA1290	9.0920	79.7512
MA1212	9.0595	79.8119
				MA1252	9.0913	79.7426		MA1291	9.0924	79.7514
MA1213	9.0604	79.8117
				MA1253	9.0918	79.7427		MA1292	9.0928	79.7516
MA1214	9.0608	79.8118

MA1293	9.0932	79.7518		MA1338	9.0913	79.7594		MA1383	9.0869	79.7813
MA1294	9.0937	79.7520		MA1339	9.0917	79.7595		MA1384	9.0873	79.7814
MA1295	9.0941	79.7521		MA1340	9.0921	79.7597		MA1385	9.0877	79.7816
MA1296	9.0945	79.7523		MA1341	9.0926	79.7598		MA1386	9.0881	79.7818
MA1297	9.0949	79.7525		MA1342	9.0930	79.7600		MA1387	9.0885	79.7821
MA1298	9.0954	79.7526		MA1343	9.0934	79.7602		MA1388	9.0890	79.7821
MA1299	9.0957	79.7529		MA1344	9.0938	79.7603		MA1389	9.0894	79.7820
MA1300	9.0961	79.7530		MA1345	9.0943	79.7605		MA1390	9.0899	79.7822
MA1301	9.0966	79.7532		MA1346	9.0947	79.7606		MA1391	9.0903	79.7823
MA1302	9.0970	79.7534		MA1347	9.0951	79.7608		MA1392	9.0908	79.7824
MA1303	9.0974	79.7536		MA1348	9.0955	79.7610		MA1393	9.0912	79.7826
MA1304	9.0978	79.7538		MA1349	9.0959	79.7611		MA1394	9.0916	79.7828
MA1305	9.0982	79.7540		MA1350	9.0963	79.7613		MA1395	9.0920	79.7828
MA1306	9.0986	79.7541		MA1351	9.0968	79.7614		MA1396	9.0924	79.7831
MA1307	9.0990	79.7544		MA1352	9.0972	79.7616		MA1397	9.0928	79.7835
MA1308	9.0994	79.7545		MA1353	9.0976	79.7618		MA1398	9.0933	79.7834
MA1309	9.0999	79.7547		MA1354	9.0980	79.7619		MA1399	9.0937	79.7834
MA1310	9.1003	79.7549		MA1355	9.0985	79.7613		MA1400	9.0942	79.7835
MA1311	9.1007	79.7550		MA1356	9.0990	79.7615		MA1401	9.0946	79.7836
MA1312	9.0996	79.7690		MA1357	9.0997	79.7615		MA1402	9.0950	79.7837
MA1313	9.0999	79.7692		MA1358	9.1001	79.7617		MA1403	9.0797	79.7869
MA1314	9.1002	79.7697		MA1359	9.1004	79.7621		MA1404	9.0801	79.7870
MA1315	9.1007	79.7697		MA1360	9.1007	79.7625		MA1405	9.0805	79.7872
MA1316	9.1011	79.7700		MA1361	9.1010	79.7629		MA1406	9.0809	79.7873
MA1317	9.1015	79.7701		MA1362	9.1016	79.7628		MA1407	9.0814	79.7874
MA1318	9.0830	79.7557		MA1363	9.1020	79.7632		MA1408	9.0818	79.7876
MA1319	9.0834	79.7559		MA1364	9.1023	79.7634		MA1409	9.0822	79.7877
MA1320	9.0838	79.7561		MA1365	9.1026	79.7637		MA1410	9.0827	79.7878
MA1321	9.0842	79.7563		MA1366	9.0795	79.7790		MA1411	9.0830	79.7878
MA1322	9.0846	79.7567		MA1367	9.0801	79.7784		MA1412	9.0836	79.7879
MA1323	9.0850	79.7569		MA1368	9.0805	79.7791		MA1413	9.0840	79.7883
MA1324	9.0854	79.7571		MA1369	9.0808	79.7794		MA1414	9.0844	79.7882
MA1325	9.0858	79.7573		MA1370	9.0813	79.7795		MA1415	9.0848	79.7883
MA1326	9.0862	79.7574		MA1371	9.0817	79.7795		MA1416	9.0853	79.7884
MA1327	9.0867	79.7576		MA1372	9.0821	79.7799		MA1417	9.0857	79.7886
MA1328	9.0871	79.7577		MA1373	9.0826	79.7800		MA1418	9.0862	79.7887
MA1329	9.0875	79.7579		MA1374	9.0830	79.7801		MA1419	9.0867	79.7888
MA1330	9.0879	79.7580		MA1375	9.0834	79.7802		MA1420	9.0872	79.7889
MA1331	9.0884	79.7582		MA1376	9.0839	79.7803		MA1421	9.0875	79.7891
MA1332	9.0884	79.7582		MA1377	9.0843	79.7805		MA1422	9.0879	79.7892
MA1333	9.0892	79.7585		MA1378	9.0847	79.7806		MA1423	9.0884	79.7893
MA1334	9.0896	79.7587		MA1379	9.0852	79.7808		MA1424	9.0888	79.7894
MA1335	9.0900	79.7589		MA1380	9.0856	79.7808		MA1425	9.0893	79.7895
MA1336	9.0905	79.7590		MA1381	9.0860	79.7810		MA1426	9.0897	79.7896
MA1337	9.0909	79.7592		MA1382	9.0864	79.7811		MA1427	9.0902	79.7897

MA1428	9.0905	79.7902		MA1473	9.0858	79.7360		MA1518	9.0681	79.7641
MA1429	9.0909	79.7904		MA1474	9.0862	79.7362		MA1519	9.0685	79.7644
MA1430	9.0913	79.7906		MA1475	9.0805	79.7594		MA1520	9.0689	79.7646
MA1431	9.0808	79.7950		MA1476	9.0801	79.7593		MA1521	9.0697	79.7637
MA1432	9.0812	79.7952		MA1477	9.0797	79.7591		MA1522	9.0700	79.7640
MA1433	9.0817	79.7952		MA1478	9.0792	79.7590		MA1523	9.0705	79.7641
MA1434	9.0821	79.7953		MA1479	9.0788	79.7589		MA1524	9.0709	79.7643
MA1435	9.0826	79.7955		MA1480	9.0784	79.7587		MA1525	9.0713	79.7644
MA1436	9.0832	79.7956		MA1481	9.0779	79.7586		MA1526	9.0718	79.7646
MA1437	9.0836	79.7958		MA1482	9.0775	79.7588		MA1527	9.0722	79.7647
MA1438	9.0841	79.7959		MA1483	9.0771	79.7583		MA1528	9.0726	79.7649
MA1439	9.0845	79.7960		MA1484	9.0767	79.7582		MA1529	9.0730	79.7651
MA1440	9.0849	79.7961		MA1485	9.0762	79.7581		MA1530	9.0735	79.7652
MA1441	9.0854	79.7962		MA1486	9.0758	79.7579		MA1531	9.0739	79.7654
MA1442	9.0858	79.7963		MA1487	9.0754	79.7577		MA1532	9.0743	79.7656
MA1443	9.0862	79.7965		MA1488	9.0750	79.7576		MA1533	9.0747	79.7657
MA1444	9.0867	79.7965		MA1489	9.0745	79.7574		MA1534	9.0751	79.7659
MA1445	9.0871	79.7967		MA1490	9.0741	79.7573		MA1535	9.0755	79.7660
MA1446	9.0876	79.7968		MA1491	9.0737	79.7571		MA1536	9.0759	79.7661
MA1447	9.0880	79.7970		MA1492	9.0734	79.7566		MA1537	9.0762	79.7663
MA1448	9.0875	79.8040		MA1493	9.0729	79.7567		MA1538	9.0736	79.7733
MA1449	9.0871	79.8038		MA1494	9.0725	79.7564		MA1539	9.0731	79.7732
MA1450	9.0867	79.8037		MA1495	9.0721	79.7563		MA1540	9.0727	79.7730
MA1451	9.0861	79.8036		MA1496	9.0717	79.7561		MA1541	9.0723	79.7729
MA1452	9.0858	79.8035		MA1497	9.0713	79.7558		MA1542	9.0719	79.7727
MA1453	9.0854	79.8034		MA1498	9.0710	79.7556		MA1543	9.0715	79.7726
MA1454	9.0849	79.8033		MA1499	9.0704	79.7556		MA1544	9.0710	79.7725
MA1455	9.0845	79.8032		MA1500	9.0699	79.7554		MA1545	9.0706	79.7723
MA1456	9.0841	79.8031		MA1501	9.0694	79.7556		MA1546	9.0703	79.7719
MA1457	9.0836	79.8030		MA1502	9.0691	79.7552		MA1547	9.0697	79.7720
MA1458	9.0832	79.8028		MA1503	9.0686	79.7553		MA1548	9.0693	79.7718
MA1459	9.0827	79.8027		MA1504	9.0682	79.7550		MA1549	9.0689	79.7717
MA1460	9.0823	79.8026		MA1505	9.0677	79.7548		MA1550	9.0685	79.7715
MA1461	9.0819	79.8025		MA1506	9.0673	79.7547		MA1551	9.0680	79.7714
MA1462	9.0814	79.8024		MA1507	9.0637	79.7618		MA1552	9.0676	79.7713
MA1463	9.0810	79.8023		MA1508	9.0639	79.7623		MA1553	9.0672	79.7711
MA1464	9.0806	79.8022		MA1509	9.0643	79.7628		MA1554	9.0667	79.7711
MA1465	9.0803	79.8021		MA1510	9.0647	79.7629		MA1555	9.0663	79.7710
MA1466	9.0830	79.7348		MA1511	9.0651	79.7631		MA1556	9.0658	79.7709
MA1467	9.0834	79.7350		MA1512	9.0655	79.7633		MA1557	9.0655	79.7708
MA1468	9.0838	79.7351		MA1513	9.0659	79.7636		MA1558	9.0650	79.7707
MA1469	9.0842	79.7353		MA1514	9.0663	79.7637		MA1559	9.0646	79.7705
MA1470	9.0846	79.7355		MA1515	9.0668	79.7637		MA1560	9.0641	79.7703
MA1471	9.0850	79.7357		MA1516	9.0673	79.7639		MA1561	9.0637	79.7701
MA1472	9.0854	79.7359		MA1517	9.0677	79.7641		MA1562	9.0633	79.7700

MA1563	9.0630	79.7698		MA1608	9.0640	79.8306		MA1653	9.0947	79.7132
MA1564	9.0626	79.7695		MA1609	9.0637	79.8302		MA1654	9.0944	79.7129
MA1565	9.0623	79.7689		MA1610	9.0918	79.7212		MA1655	9.0939	79.7129
MA1566	9.0619	79.7686		MA1611	9.0922	79.7214		MA1656	9.0935	79.7126
MA1567	9.0615	79.7683		MA1612	9.0926	79.7216		MA1657	9.0931	79.7124
MA1568	9.0611	79.7682		MA1613	9.0930	79.7219		MA1658	9.0923	79.7124
MA1569	9.0606	79.7680		MA1614	9.0934	79.7221		MA1659	9.0923	79.7121
MA1570	9.0602	79.7679		MA1615	9.0942	79.7225		MA1660	9.0607	79.8394
MA1571	9.0693	79.7881		MA1616	9.0946	79.7227		MA1661	9.0603	79.8390
MA1572	9.0697	79.7882		MA1617	9.0950	79.7229		MA1662	9.0599	79.8388
MA1573	9.0701	79.7883		MA1618	9.0954	79.7231		MA1663	9.0587	79.8392
MA1574	9.0706	79.7884		MA1619	9.0958	79.7233		MA1664	9.0584	79.8387
MA1575	9.0710	79.7885		MA1620	9.0962	79.7236		MA1665	9.0583	79.8382
MA1576	9.0714	79.7886		MA1621	9.0967	79.7238		MA1666	9.0580	79.8379
MA1577	9.0719	79.7887		MA1622	9.0970	79.7241		MA1667	9.0578	79.8374
MA1578	9.0723	79.7889		MA1623	9.0974	79.7242		MA1668	9.0574	79.8371
MA1579	9.0728	79.7890		MA1624	9.0978	79.7244		MA1669	9.0570	79.8370
MA1580	9.0732	79.7891		MA1625	9.0983	79.7246
MA1581	9.0736	79.7892		MA1626	9.0986	79.7250
MA1582	9.0704	79.7956		MA1627	9.0991	79.7251
MA1583	9.0708	79.7956		MA1628	9.0994	79.7257
MA1584	9.0713	79.7958		MA1629	9.1000	79.7255
MA1585	9.0717	79.7959		MA1630	9.1005	79.7259
MA1586	9.0721	79.7960		MA1631	9.1009	79.7261
MA1587	9.0726	79.7962		MA1632	9.1014	79.7263
MA1588	9.0701	79.7962		MA1633	9.1044	79.7159
MA1589	9.0697	79.8378		MA1634	9.1040	79.7158
MA1590	9.0693	79.8376		MA1635	9.1035	79.7159
MA1591	9.0692	79.8369		MA1636	9.1030	79.1030
MA1592	9.0687	79.8369		MA1637	9.1025	79.7157
MA1593	9.0684	79.8366		MA1638	9.1021	79.7165
MA1594	9.0678	79.8361		MA1639	9.1017	79.7167
MA1595	9.0675	79.8357		MA1640	9.1010	79.7160
MA1596	9.0671	79.8355		MA1641	9.1007	79.7158
MA1597	9.0667	79.8353		MA1642	9.1002	79.7156
MA1598	9.0664	79.8350		MA1643	9.0998	79.7155
MA1599	9.0663	79.8343		MA1644	9.0993	79.7152
MA1600	9.0658	79.8342		MA1645	9.0989	79.7150
MA1601	9.0654	79.8339		MA1646	9.0985	79.7148
MA1602	9.0658	79.8327		MA1647	9.0982	79.7144
MA1603	9.0655	79.8322		MA1648	9.0980	79.7147
MA1604	9.0652	79.8319		MA1649	9.0973	79.7143
MA1605	9.0649	79.8316		MA1650	9.0968	79.7141
MA1606	9.0646	79.8312		MA1651	9.0956	79.7139
MA1607	9.0641	79.8310		MA1652	9.0951	79.7136

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

Titanium Sands Limited

ABN 65 009 131 533

Quarter ended (“current quarter”)

30 June 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- - - - - 3 - - - - - -	- (24) - - - (72) - - - - - -
	-	(96)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	- - - -	- - - -

• See chapter 19 for defined terms

1 September 2016

Page 1

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans from other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing 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 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 (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - 92 - - - -
	-	92
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing 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 period	1 3 - - -	8 (96) - 92 -
	4	4

• See chapter 19 for defined terms 1 September 2016

Page 2

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	4 - - -	1 - - -
	4	1

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 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

7. Payments to related entities of the entity and their Current quarter associates $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 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

Page 3

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

9. Estimated cash outflows for next quarter	9. Estimated cash outflows for next quarter	9. Estimated cash outflows for next quarter	$A’000	$A’000	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other - ASX re-compliance, notice of meeting and related costs 9.7 Total estimated cash outflows			- - - - (5) (42)
			(47)
10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest		Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	-	-		-	-
10.2 Interests in mining tenements and petroleum tenements acquired or increased	-	-		-	-

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: 28 July 2017 (Director) Print name: Jason Ferris

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

• See chapter 19 for defined terms

1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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.

1. 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.

2. See chapter 19 for defined terms 1 September 2016

Page 5