VERITY RESOURCES LIMITED — Interim / Quarterly Report 2011

Jan 26, 2012

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

Market Cap

DATE: 27 JANUARY2012

Cash

QUARTERLY REPORT TO 31 DECEMBER 2011

Cash at the end of the December 2011 Quarter was $1.349M (see attached Appendix 5B).

Issued Capital

Project Summary – Copper-Silver Mineralisation

Substantial shareholders

Currently Botswana Metals Limited (“BML”) has three known Cu-Ag deposits (C6, C12 & Dibete) within its tenement portfolio. BML’s aim in 2012 is to test the following targets in order to add to our resource inventory and to seek additional new targets with the potential for mineralisation:

• Airstrip Copper conductors – target the numerous conductors with potential to host near surface high grade mineralisation.

Directors

• NW-W Airstrip Copper soil anomaly – evaluate the recently discovered 1.3km anomalous Cu-Ag soil zone.

• Dibete Cu-Ag mineralisation – more drilling is required to close off this mineralisation. Two step out RC holes to the north of the current known mineralised zone on line 6100E were completed in December 2011 and results are awaited. Both holes showed visible secondary copper mineralisation. Four metallurgical diamond holes, twinning RC holes DBRD 6, 13, 14 and 111, were completed in December 2011 for preliminary mineralogical and metallurgical testwork and results are pending.

Registered Office

• Some 27 VTEM anomalies have been identified from the recent airborne survey and have potential for base metal mineralisation. These targets are shown in the Figure 6 and have now been ranked for soil surveys along with an IP program to prioritise drilling. Two of these VTEM anomalies at Jumbo and Mmatsiane had some initial drilling carried out in late December 2011 with assay results pending.

Contact

• At Jumbo, six RC drill holes were targeted over coincident soil and IP anomalies and intercepted sulphide but no significant visual mineralisation was noted. Drill assay results are pending and a soil geochemical program over the Jumbo VTEM and IP anomalies is scheduled to commence in late January 2012.

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• At Mmatsiane two RC drill holes were completed in December 2011 but no significant visual mineralisation was observed. Drill assays are pending and a soil geochemical program over the Mmastiane VTEM and IP anomalies is scheduled to commence in late January 2012.

The above plan is subject to the cash reserves at any point of time.

Exploration Activities performed in the December 2011 quarter:

Soil Programs

Several soil geochemical programs were started in the December 2011 quarter and have recommenced in January 2012. These cover:

• Airstrip

• Dibete

• Jumbo

• Mmatsiane.

Induced Polarisation (“IP”)

In the December 2011 quarter, thirty-seven (37) kilometres of IP was completed over:

• Jumbo 21.6 km

• Mmatsiane 15.4 km.

Drilling

During the quarter a total of 6600.15 metres of Reverse Circulation (“RC”) drilling and Diamond Drilling (“DD”) were completed on:

• Airstrip 4466.15 metres

• Dibete 344 metres

• Maibele 250 metres  Jumbo 960 metres

• Mmatsiane 280 metres

• Mmamanaka 300 metres.

Outstanding Laboratory drill results for Dibete, Maibele North, Jumbo and Mmatsiane are expected in the first quarter of 2012.

Resource Calculation

A resource calculation on two conductors at Airstrip Copper (C6 and C12) was conducted by Hilmac Pty Ltd and Anpet Exploration Pty Ltd respectively and received in January 2012. These reports are summarised herein.

Details of exploration carried out for the December 2011 quarter on each Prospecting Licence (“PL”) follows.

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PL110/94: Magogaphate (Airstrip and Maibele North discoveries)

PL 110/94: Licence extension

An application for an extension for Prospecting Licence (“PL”) 110/94 was lodged with the Department of Geological Survey (“DGS”) before the 31 December 2011 deadline and receipted by the DGS. BML is not expecting any decision to be received from the DGS until after 31 March 2012, which is the expiry date of this PL.

Any further exploration on PL110/94 will be subject to an extension approval being granted by the DGS to BML.

Airstrip Copper Resource Calculation and Exploration Update

Drilling up to 23 December 2011, tested nine of the seventeen identified IP conductors at the Airstrip Copper discovery grid (1.5km x 1km).

Eight of the nine IP conductors that were drilled, encountered copper-silver mineralisation as confirmed by drill assays. (Mineralised conductors: C1, C2, C6, C7, C8, C10, C11, C12, C14 and C17). A summary of these results was released to the ASX on 23 December 2011.

Two of the nine conductors C6 and C12, had sufficient drilling to carry out a preliminary JORC compliant resource estimate. These estimations were prepared in January 2012 by Hilmac Pty Ltd (C6) and Anpet Exploration Pty Ltd (C12) and indicate both resources are small high grade shoots of copper-silver (+/- Ni) mineralisation. Both these estimations are summarised below.

Conductor C6: Indicated and Inferred JORC resource

The Cu-Ag-Ni mineralisation at C6 is associated with a vein dipping at 70 degrees to the south east and the shoot plunges steeply to the south west (Figure 1). The high grade part of the shoot contains a zone up to 0.5m thick of massive bornite – chalcocite with copper grades in excess of 50% Cu.

Using a 1% Cu equivalent cut-off grade, the resource at C6 totals 25,200 tonnes @ 4.6% Cu equivalent. Details of this resource are shown in Table 1.

Table 1: Resource estimation at C6 using a 1% Cu equivalent cut-off grade

Resource	Mineralisationto	Cu equiv grade	Cu	Ag	Ni
Category	nnes
		%	%	ppm)	ppm
indicated	20,500	3.6	2.4	82	570
inferred	4,700	8.8	5.4	230	1,500
Total	25,200	4.6	3.0	110	743

The estimation is down to a depth of 120m below surface.

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Figure 1. Long section on C6 showing SW plunging mineralisation which is open at depth.

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Conductor C12: Inferred JORC resource from 0-70m below surface

The copper-silver mineralisation at C12 is similar to that at C6 and dominated by disseminated and veinlets of bornite-chalcocite. The C12 vein also dips steeply south east and the shoot plunges to the south west similar to C6 and is open at depth (Figure 2).

An inferred resource of 9,700 tonnes @ 3.96% Cu equivalent using a 1% Cu equivalent cut-off grade was estimated from 0—70m below surface, and an exploration target of 10,000 – 15,000 tonnes @ 2.4-3.1% Cu equivalent was identified from 70-100m below surface. Details are given in Tables 2-3.

The potential quantity and grade at the C12 exploration target is conceptual in nature as there has been insufficient drilling in this zone to define a Mineral Resource according to the JORC Code (2004).

Table 2: Resource estimation at C12 using a 1% Cu equivalent cutoff grade.

Resource Category	Mineralisation (tonnes)	Cu equiv %	Cu %	Ag ppm
Inferred	9,700	3.96	3.16	62

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Table 3: Exploration target identified at C12 from 70m to 100m below surface

Potential	Range (tonnes)	Cu equiv%	Cu %	Ag ppm
Exploration Target	10,000-15,000	2.4-3.1	2.0-2.5	30-50

Figure 2: Long section on C12 showing SW plunging mineralisation which is open at depth and to the west.

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Mineralogical examination of both the C6 & C12 intersections indicates that the mineralisation is mainly bornite, chalcocite with minor chalcopyrite. Silver is associated with minor galena and stomeyerite (CuAgS). Liberation of the sulphides by a relatively coarse grind is probably achievable.

Although the shoots at C6 & C12 have a small tonnage, the grade is relatively high and additional resources are evident from limited drilling over many of the other IP conductors at Airstrip Copper. These conductors will be targeted by more drilling during 2012.

In addition the copper mineralisation discovered at Dibete appears more extensive and is still open and requires more drilling before a resource estimation can be carried out. This will add significantly to BML’s resource inventory.

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Additional soil sampling in the western part of Airstrip Copper has located an extensive Cu-Ag soil anomaly as detailed below.

New 1.3km long Cu-Ag anomalous soil zone located in northwest-west Airstrip Copper

Analysis of 1200 soils samples has identified a new 1.3km copper and silver anomalous zone outside the current IP grid. This new anomalous zone is located to the northwest and west of the current IP grid (Figure 3).

Additional soil sampling and IP is required to firm up drill targets.

Figure 3: New Copper and Silver soil anomaly at NW-W Airstrip Copper Prospect

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Drill Results received during December quarter 2011

New intersections of significant primary mineralisation associated with IP conductors at Airstrip Copper are shown in the following table.

Table 3: Significant Intersections at Airstrip Copper - Q4 2011

Conductor No	Hole No	From	To	Interval m	Cu %	Ag g/t
Conductor 6	ACRD033	62	69	7	0.8	11.9
Conductor 6	ACRD033	62	62.5	inc 0.5 @	3.8	55.6
Conductor 6	ACRD046	103.5	104	0.5	1.2	21.2
Conductor 12	ACDC067	68	74	6	2.7	172
Conductor 12	ACDC067	70	71	Inc 1 @	8.8	214
Conductor 6	ACDD 072	136.5	138.5	2	0.5	22.2
Conductor 12	ACDD 076	0	13	13		9.0
Conductor 12	ACDD 076	3	6	inc 3 @		28.5
Conductor 12	ACDD 076	5	6	inc 1 @		54.0
Conductor 12	ACDD 076	70.5	72	1.5	5.9	152
Conductor 12	ACDD 076	70.5	71.5	Inc 1 @	8.6	224
Conductor 17	ACDD 082	0	4	4		10.8
Conductor 17	ACDD 082	0	2	Inc 2 @		14.4
Conductor 12	ACRD096	48.00	49.50	1.50	2.64	16.93
Conductor 12	ACRD097	54.50	55.00	0.50	3.14	106.00
Conductor 12	ACRD 098	88.50	89.00	0.50	1.21	18.80
Conductor 12	ACRD101	39.50	42.50	3.00	4.80	151.20
Conductor 12	ACRD101	41.00	42.00	Inc 1.00 @	11.02	329.00
Conductor 12	ACRD102	66.00	67.00	1.00	5.54	8.15
Conductor 12	ACRD102	72.50	74.00	1.50	2.42	50.97
Conductor 12	ACRD102	73.00	73.50	0.50	6.15	124.00
Conductor 12	ACRD 103	21.00	24.00	3.00	2.23	19.50
Conductor 12	ACRD 104	37.00	38.00	1.00	1.92	16.80

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Maibele North Ni Target Resource

An Exploration Target estimate of up to 5 million tonnes at a grade of 0.6%Ni at a cut-off grade of 0.3% Ni was reported by Independent Consultant, Hilmac Pty Ltd in October 2010.

BML will review this project in more detail this year with the objective of achieving a JORC compliant resource if additional exploration and drilling is successful in improving the continuity of the known mineralisation.

BML has established that if the grade at Maibele North is around 0.6% Ni with additional copper and Precious Group Element (PGE) credits, then this deposit has the potential to be economically mined and processed. BML is currently in discussions with a local smelter in Botswana, with regard to a possible off-take arrangement for the Maibele North mineralisation or concentrate. Whilst discussions are at an early stage, any material outcome will be advised to the ASX.

Drilling during December 2011 Quarter

One RC drill hole to a depth of 250 metres to test a VTEM target close to the present known nickel mineralisation was drilled last month. Assay results are pending but no significant mineralisation was observed.

Figure 4. New drill holes at Maibele North.

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PL 111/94 Mokoswane

Dibete

Following completion of the initial modeling, a review was undertaken which clearly shows that significant further potential is present, both associated with the known mineralised zones which are open in strike length and are not fully defined in width, but also with additional inferred structural zones, some of which have associated old workings and soil geochemistry.

A program of drilling to better define the known mineralisation has been proposed for 2012. Initial drilling of six combined RC precollars with diamond tails commenced on the project. A total of 176 metres of RC and 99.6 metres of diamond drilling were carried out. No results of the drilling have been received from the laboratory. Figure 5 shows the location of the new drill holes.

Figure 5. Location of Six (6() new drill holes at Dibete prospect.

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PL 54/98 Takane

A series of VTEM anomalies were defined on the Takane tenement and work has commenced to test these targets. Some older existing data was used to commence exploration with work carried out on the Jumbo and Mmatsiane prospects. Locations of the VTEM targets in the Takane PL are shown on Figure 6.

Figure 6. Location of VTEM anomalies and previous prospects on PL54/98 Takane.

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Mmatsiane

Drilling commenced at Mmatsiane following IP surveys and interpretation of the IP in conjunction with the VTEM results.

A large sulphide system was intersected and further drilling will be carried out once more IP and soil geochemistry is completed. The soil geochemistry is currently in progress.

The location of the drill holes in relation to the VTEM targets are shown on Figure 7.

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Figure 7. Location of the five (5) RC holes drilled at the Matsiane prospect. Also soil sample grid and VTEM targets shown.

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Jumbo

Drilling commenced at Jumbo but has not satisfactorily explained the IP anomalies based on visual logging of the drill cuttings. Further soil sampling is in progress over a broader area than the previous Falconbridge geochemical sampling grid. No results of the drilling have been received so far.

The location of the drill holes in relation to the VTEM target and IP are shown on Figure 8.

Figure 8. Plan of the Jumbo Prospect showing drill hole locations, contours of chargeability at 50m depth and image of copper in soil anomalies.

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Figure 9.Plan of Jumbo soil sampling grid showing VTEM anomalies.

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PL 14/2003 Majante

Mmamanaka

The VTEM survey covered part of this tenement and the anomalies related to the Mmamanaka prospect were reinterpreted and then reconciled against previous drilling. It was found that of the previous 11 RC holes, only one is likely to have adequately tested its target. The previous IP data when used in conjunction with the VTEM gives a superior interpretation to the previous ground EM interpretations carried out at Mmamanaka.

Two additional RC holes of 114 and 150 metres were drilled at Mmamanaka to test targets recommended by our geophysicist following a review of previous drilling and the recent VTEM survey results. Results received from the laboratory showed no significant mineralisation.

A further review of this PL along with others will be ranked and prioritised in the March 2012 quarter.

PL 59/2008 Shashe South

A desk-top review continued during the quarter. Review of the VTEM anomalies that lie midway between Maibele North and Mashambe prospects suggests that soil sampling of the two VTEM anomalies should be undertaken. Previous stream sediment sampling showed that anomalous nickel was present in the catchment which contains the VTEM anomalies.

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PL 46/2004 Sampowane

A renewal application was made over the tenement which is still subject to determination by the DGS in Botswana. A desk-top review continued during the quarter.

PL 47/2004 Gobe Shear

A renewal application was made over the tenement which is still subject to determination by the DGS. Soil sample lines were proposed to infill between the Dibete prospect in PL111/94, Dibete Extended in PL54/98 and Dibete East in PL47/2004. The aim of the sampling program is to fully define the copper-silver and nickel anomalies found from previous work (see Figure 10). These samples are schedule for collection in the March 2012 quarter.

PL 70/2008 Sampowane

A desk-top review continued during the quarter.

Figure 10. Dibete East and Dibete Extended soil anomalies, (blue=lead, orange=copper, green=nickel) with interpreted structures shown as black lines.

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PL360/2008 Mmadinare

A desk-top review continued during the quarter.

PL158/2009 Lepokole

As a result of a desk-top study and field reconnaissance, work on a soil geochem program will commence in the first quarter of 2012.

PL111/2011 Sampo Central

A desk-top review continued during the quarter.

PL126/2011 Xia2

A desk-top review continued during the quarter with stream sediment sampling proposed before second quarter 2012.

Tenement Update

Figure 11. Current tenements held by Botswana Metals Limited.

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PL110/94

A formal application for extension of tenure over Airstrip Copper and Maibele North was made to the DGS during the quarter. The tenement expires on 31 March 2012 and no response from the DGS is expected until after this date. A Preliminary Environmental Impact Assessment has been prepared and submitted to the DGS in support of the application.

PL111/94, PL54/98 and PL14/2003

These licences, along with PL110/94, are the major focus of the Company’s current exploration. As mentioned above, an extension application has been lodged for PL110/94.

PL111/94, PL54/98 and PL14/2003 have been granted extensions to 31 December 2012. Depending on exploration results up to this date, the Company will seek to either apply for a further extension or make any other necessary applications in accordance with the Mines and Minerals Act 1999 of Botswana.

PL46/2004 and PL47/2004

The Company is still awaiting confirmation from the DGS regarding extension application for PL46/2004 and PL47/2004 previously lodged.

PL360/2008 and PL158/2009

First renewal applications are still pending with the DGS for PL360/2008 and PL158/2009.

PL59/2008 and PL70/2008

Approval was received from the DGS on 3[rd] November 2011 for first renewal applications for PL59/2008 and PL70/2008

PL126/2011

This new PL was granted by the DGS on 1[st] October 2011.

Pat Volpe

Chairman

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Peter Temby, a consultant employed by Anpet Exploration Pty Ltd and a member of The Australian Institute of Geoscientists.

Mr Temby has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Temby consents to the inclusion in this report of matters based on his information in the form and context in which it appears.

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About Botswana Metals Limited

• Botswana Metals Limited is listed on the Australian Securities Exchange (ASX) and its stock code (ticker) is BML. BML is a mineral exploration company fully focused on its portfolio of exploration tenements covering approximately 2,300 sq. km all located in Botswana.

• BML also has listed options (ASX stock code: BMLO) that are exercisable at $0.10 (10 cents) per share at any time up to 5pm AEST on 30 June 2013.

• BML’s objective is to discover an economic base and precious metals resource in eastern Botswana on the well-known Limpopo Belt which extends into Botswana from its neighbouring country Zimbabwe.

• Recent exploration has resulted in the discovery of three Cu, Ag deposits at C6 & C12 at Airstrip Copper and Dibete. A NiCu deposit is also present at Maibele North just east of Airstrip Copper. To the east of these discoveries, a recent VTEM program has identified at least 27 new anomalies that are planned to be part of the company’s exploration focus in 2012.

• BML has solid logistical support and the projects benefit from excellent infrastructure.

• The Company is managed by experienced personnel who have many years’ experience in Botswana as well as other African countries. Botswana is considered to be one of the most advanced African countries in respect to its mining and exploration laws, and for safety and education where English is spoken freely.

• BML has offices in Australia (Melbourne) and in Botswana (at Francistown and Tshokwe).

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

	BOTSWANA METALS LIMITED	BOTSWANA METALS LIMITED
	ABN 96 122 995 073 Consolidated statement of cash flows
			31 DECEMBER 2011
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 - prepayment Net Operating Cash Flows		Current quarter $A’000		Year to date (...6...months) $A’000
		- -946 - - -164 - 32 - - -		- -1,543 - - -389 - 54 - - -2
		-1,078		-1,881
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)		- - -9 - - - - - -		- - -36 - - - - - -
		-9		-36
		-1,087		-1,917

• 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)	-1,087	-1,917
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 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 (provide details if material) Net financing cash flows	- - - - - -	- - - - - -
	-	-
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	-1,087 2,447 -11	-1,917 3,266 -
	1,349	1,349

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		112
		-
1.25	Explanation necessaryfor an understandingof the transactions
	During the quarter the following payments were made to directors: Salaries Mr P Volpe $75,688 Directors Fees Mr M Cellante $7,500 Dr P Woolrich $7,500 Total Directors Fees $15,000 Dr P Woolrich also received $45,125 in consulting fees. Superannuation contributions totalling $7,487 accrued from the prior quarter were also paid onbehalfoftheDirectors.

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

• 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

Financing facilities available

Add notes as necessary for an understanding of the position.

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

3.1 Loan facilities 3.2 Credit standby arrangements

Amount available Amount used $A’000 $A’000 - - - -

Estimated cash outflows for next quarter

4.1 Exploration and evaluation

4.2 Development

• 4.3 Production 4.4 Administration

Total

$A’000 300 - - 220 520

Reconciliation of cash

Reconciliation of cash
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 follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Term Deposits	171	375
	1,026	150
	-	-
	152	1,921
Total: cash at end of quarter(item 1.22)	1,349	2,446

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 note3) (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 through returns of capital, buy- backs, redemptions	NIL	NIL
	NIL	NIL
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	143,717,844	143,717,844
	NIL	NIL
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	NIL	NIL
	NIL	NIL
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	71,857,670	71,857,670	Exercise price 10 CENTS	Expiry date 30 JUNE 2013
	NIL	NIL
	NIL	NIL
	NIL	NIL
7.11 Debentures (totals only)	NIL	NIL

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.12 Unsecured NIL NIL notes (totals only)

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 give a true and fair view of the matters disclosed.

Sign here: ................. ................... Date: .... 27 JANUARY 2011 ...... (Company secretary)

Print name: .............. RICHARD BAKER ...........................................

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.

Appendix 5B Page 5

30/9/2001