TURNSTONE RESOURCES LTD — Capital/Financing Update 2017

Jan 18, 2017

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UPDATED USE OF FUNDS

Funds raised by the Equity Offer ($5,111,737) together with other funds shown below are intended to be applied as follows:

SOURCES OF FUNDS

	$ 000’s
Adjusted Cash at 31	932
July 2016*
Equity Offer (before	5,111
costs)
Previous year working	-
capital balance
TOTAL	6,043

* Cash at 31 July 2016 adjusted for expenses incurred (but not yet paid) up to 31 July 2016, other than expenses incurred in respect of the acquisition (which are part of the costs of the Offers & acquisition in the expenditure table below), and includes consideration of $500,000 for the sale of the Company’s former interest in the Hatches Creek project.

EXPENDITURE

	Year 1	Year 2	Total
	$ 000’s	$ 000’s	$ 000’s
SOUTH HARZ PROJECT
(GERMANY)
Küllstedt
Site preparation & logistics	400	200	600
Drill rig mobilisation,	1,240	800	2,040
drilling & consumables
Technical services -	250	100	350
geology, logging, wireline
logging, assays
Site rehabilitation	210	110	320
Sub-total Küllstedt	2,100	1,210	3,310
Gräfentonna
Geological review and	100	-	100
Target generation
SUB-TOTAL SOUTH HARZ	2,200	1,210	3,410

Davenport Resources Limited (ABN 64 153 414 852) L14, 31 Queen Street, Melbourne, VIC 3000

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	Year 1	Year 2	Total
	$ 000’s	$ 000’s	$ 000’s
SOUTHERN CROSS BORE
(AUSTRALIA)
Tenement Rent & fees	14	19	33
Exploration &	90	125	215
Rehabilitation
SUB-TOTAL SOUTHERN	104	144	248
CROSS BORE
SUB-TOTAL EXPLORATION	2,304	1,354	3,658
PROJECTS
ADMINISTRATION	507	490	997
WORKING CAPITAL	2,379	535	535
COSTS OF THE OFFERS &	853	-	853
ACQUISITION OF EAST
EXPLORATION^
TOTAL	6,043	2,379	6,043

^ Costs of the acquisition of East Exploration are transaction costs, not the consideration payable for the acquisition.

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Davenport Resources Limited (ABN 64 153 414 852) L14, 31 Queen Street, Melbourne, VIC 3000