VOLT RESOURCES LIMITED — Interim / Quarterly Report 2011

Oct 26, 2011

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MOZAMBI COAL LTD

(ASX: “MOZ”, “Company” or “Mozambi”)

ASX RELEASE

27 OCTOBER 2011

QUARTERLY REPORT – QUARTER ENDED 30 SEPTEMBER 2011

HIGHLIGHTS

Highlights during the September 2011 quarter and up to the date of this report include:

• MOU signed for the acquisition of 80% of Exploration Licence 2738L (“Songo”)

• Completion of mapping and drill hole site preparation on the Songo licence

• Commencement of aeromagnetic surveys on the Songo, Muturara and Tete West licences

• Commencement of the initial drilling program on the Songo licence

• Initial drilling results announced for the Tete West licence

• Private placement for A$1.875m at $0.25 per share completed with major shareholder Polo Resources PLC

New projects

On 14 July the Company announced that it had entered into a Memorandum of Understanding (“MOU”) with Xiluva Mineral Resources Limitada (“Xiluva”) to acquire 80% of Exploration Licence 2738L (“Songo” Project) in the Tete Province, Mozambique.

Exploration Licence 2738L is situated approximately 115km to the west of the city of Tete within the Songo district and covers 224km[2] . The licence has potential for 25.8km[2] of coal-bearing Lower Karoo sediments, and a Target Mineralisation of between 1.86 to 2.32 billion tonnes with a CV in the range from 4,500 to 5,500kcal /kg*

The Company will earn an 80% interest in 2738L following:

• Payment of US$25,000 to Xiluva upon signing MOU for surface tax and bonds – paid in July 2011

• Payment of US$250,000 to Xiluva on submission of an application to the National Directorate of Mines in Mozambique requesting the transfer of 2738L

Mozambi Coal Limited ACN 106 353 253 Level 2, 640 Murray Street, West Perth, Western Australia 6005 Tel: (+618) 9321 0774 Fax: (+618) 6314 1557

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• A final payment of US$1,250,000 to Xiluva upon successful transfer of 2738L and the completion of legal and technical due diligence by Mozambi.

Exploration Programme

During the quarter, the Company conducted exploration activities on all 3 license areas in its portfolio as follows:

Songo Project (2738L)

During the quarter, the Company completed mapping and survey work on 2738L to assist in the identification of potential first pass drill targets.

In addition, the Company also commenced an airborne geophysical survey (Magnetic and Radiometric) over its Songo licence. A total of 2,321 line km were completed with lines 100m apart covering the south-eastern part of the license area. The survey was conducted by Aeroquest (Aust) Pty Ltd, a Perth based Geophysical company with operations in Africa. Data processing is underway with final interpreted results due in the coming weeks.

A preliminary drilling programme of between 3000 – 5000m of diamond drilling with Major Drilling Mozambique SA has commenced. The purpose of this first program is to determine if the license has the expected potential coal bearing formations. Drilling will be accompanied by downhole geophysics through South Figure 1: Geological map of 2738L showing focus of exploration African company Quick Log Geophysics to provide activities additional stratigraphic information allowing an understanding of the overall position of the project area relative to known stratigraphic features. No results are available at this time.

Figure 1: Geological map of 2738L showing focus of exploration activities

The Company has also engaged specialist Australian coal consultants Salva Resources Pvt Ltd to assist the Company with core logging, and sample preparation/handling to provide state of the art processes and techniques.

The initial drilling programme is scheduled for completion during Q4 2011 or Q2 2012 depending on weather conditions.

Mozambi Coal Limited ACN 106 353 253 Level 2, 640 Murray Street, West Perth, Western Australia 6005 Tel: (+618) 9321 0774 Fax: (+618) 6314 1557

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Tete West (3245L)

The Company has completed its initial exploration program on the northeast corner of 3245L. First-pass diamond drilling commenced during May 2011 and was completed during August 2011. A total of 5 drillholes were completed for a total of 1,365m. To date, a total of 35 samples from 3 drillholes have been submitted to ALS Witlabs laboratories in South Africa. A further 17 samples from the final 2 drillholes have been prepared for assay and await approval for export to South Africa from the Department of Mineral Resources in Mozambique. Results from the first 3 drillholes have been analysed and collated below (Table 2).

Drilling of the northeast corner of the Tete West Project by Agua Terra Limitada has successful intersection of some Karoo Coal Seams. The coal seams encountered in the licence area are generally thin and the quality is average for the Tete Province.

Table 1: Drillhole Collar Details

Borehole ID	East	North	Elevation	Depth(m)
BH C1	544136	8214877	224	427.33
BH C2	543270	8214848	235	190.40
BH C3	543740	8214835	243	411.62
BH C4	543349	8214852	234	139.28
BH C5	543349	8214998	236	196.32
Total				1364.95m

The 35 samples were tested for proximate analysis on an air dried basis. The results were grouped and weight averaged for each drillhole to produce the average quality. Correlation of the seams and estimation of quality of each seam will be finalised once the remaining results are received. These theoretical total cumulative coal parameters are presented below.

Detailed geological logging of the core is underway to determine the stratigraphic position of the intersected coal seams with the view to correlate this information with other known coal seams in the region.

Mozambi Coal Limited ACN 106 353 253 Level 2, 640 Murray Street, West Perth, Western Australia 6005 Tel: (+618) 9321 0774 Fax: (+618) 6314 1557

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Table 2: Main Weighted Average Coal Quality Results.

Hole ID	Cumulative coal seams thickness	IM%	Ash%	VM%	FC%	CV% MJ/Kg	TS%	SI	RD
C1	4.15m	1.07	59.14	15.99	23.80	13.12	2.06	1.73	1.92
C2	8.00m	1.10	62.09	15.85	20.97	11.35	2.30	1.56	1.98
C3	5.15m	1.50	58.39	17.64	22.47	13.15	2.60	1.52	1.94

Note 1: Sampling for coal is undertaken for each drillhole. Based on physical properties sample plies are made as per standard sampling procedures. The coal samples collected were packed in airtight plastic bags and labeled clearly before sending to the local ACT-UIS Laboratorios de Mocambique, LDA laboratory for sample preparation.

The prepared sample pulps were then sent to Witlab (Pty) Ltd, an ALS group Coal Testing facility in South Africa who are an ISO 17025;2005 certified laboratory with the accreditation valid until November 2015.

The samples were tested for Proximate analysis on air dried basis including inherent moisture (IM%), ash (%), volatile matter (VM%), fixed carbon (FC%), calorific value (CV MJ/kg), total sulphur (TS%), swelling index (SI) and relative density equivalent to specific gravity (RD).

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Figure 2: Target Area for Initial Drilling Program on Tete West licence

The Company also commenced an airborne geophysical survey (Magnetic and Radiometric) over the Tete West licence. A total of 208 line km were completed with lines 100m apart covering the northern portion of the license area and will be used to assist in determining future activity on the project. The survey was conducted by Aeroquest (Aust) Pty Ltd, a Perth based Geophysical surveying company with operations in Africa. Data processing is underway with final interpreted results due in the coming weeks.

Following the completion of assaying, correlation of the seams and estimation of quality (of each seam), the Company will consider further exploration on the licence based on the correlated data and the recently flown geophysical survey.

Mozambi Coal Limited ACN 106 353 253 Level 2, 640 Murray Street, West Perth, Western Australia 6005 Tel: (+618) 9321 0774 Fax: (+618) 6314 1557

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Muturara (3246L)

Work during the quarter has centred on the Aeroquest (Aust) Pty Ltd airborne geophysical survey (Magnetic and Radiometric). A total of 1,246 line km were completed with lines 100m apart covering the northern portion of the license area and will be used to assist in determining future activity on the project including drill hole target selection. Data processing is underway with final interpreted results due in the coming weeks.

No other field activity was completed during the period.

Corporate

During July the Company completed a placement of 7,500,000 shares and 2,500,000 options to cornerstone shareholder Polo Resources PLC to raise $1.875m.

As at 30 September, the Company had $4.155m of cash.

• This exploration target is conceptual in nature. There has been insufficient exploration to define a mineral resource under JORC guidelines and it is uncertain whether further exploration will result in the determination of a mineral resource. This conceptual target may or may not be outlined with future work, either in whole or in part.

Mozambi Coal Limited ACN 106 353 253 Level 2, 640 Murray Street, West Perth, Western Australia 6005 Tel: (+618) 9321 0774 Fax: (+618) 6314 1557

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ABOUT THE COMPANY

Mozambi Coal Ltd is a coal exploration company listed on the Australian Securities Exchange under ASX code MOZ. The Company intends to develop as an Africa-focused coal mining company through the exploration and development of its’ existing exploration licences in Mozambique, East Africa, and the acquisition of further assets in the region.

The Company has a 70% interest in two mineral exploration licences situated in the Zambeze Coal Basin in Mozambique and in July 2011 announced an agreement to acquire an 80% interest in a third exploration licence, 2738L (“Songo” project), also within the Zambeze Coal Basin. The Zambeze Coal Basin is an emerging and highly prospective coal region that is within economic reach of the East African coast. Globally significant resource companies including Rio Tinto (LON:RIO), Vale, Jindal Steel and ENRC have undertaken coal exploration and development projects within the basin.

The combined tenement area covered by the Company’s projects is approximately 609km[2] , spanning three tenements, 2738L (“Songo” Project) 3245L (“Tete West” Project) and 3246L (“Muturara” Project). 2738L is located 115km west of the city of Tete and 40km southwest of Jindal licence 1218L where a 700 million tonne coal reserve has been identified. 3245L is located 12km west of the city of Tete and extends over 182km[2] , and lies immediately southwest of Rio Tinto tenement 946L. 3246L is located 58km southeast of the city of Tete and covers approximately 202km[2] . The tenement is located 45km southeast of the Moatize Coal Mining Camp owned by Vale.

Figure 3: Location Map of Mozambique

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Figure 4: Location Map of Mozambi Coal Tenements

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Mozambi Coal Limited ACN 106 353 253 Level 2, 640 Murray Street, West Perth, Western Australia 6005 Tel: (+618) 9321 0774 Fax: (+618) 6314 1557

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Competent Persons Statements

The information in this report which relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Brian Varndell, who is a Fellow member of the Australasian Institute of Mining and Metallurgy and independent consultant to the Company. Mr Varndell is an associate of Al Maynard & Associates and has over 35 years of exploration and mining experience in a variety of mineral deposit styles including coal and iron ore mineralisation. Mr Varndell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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, Exploration Target Mineralisation, Mineral Resources and Ore Reserves”. Mr Varndell consents to inclusion in the report of the matters based on his information in the form and context in which it appears.

Mozambi Coal Limited ACN 106 353 253 Level 2, 640 Murray Street, West Perth, Western Australia 6005 Tel: (+618) 9321 0774 Fax: (+618) 6314 1557

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining 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

Name of entity

MOZAMBI COAL LIMITED

ABN 28 106 353 253	Quarter ended (“current quarter”)
28 106 353 253	30 September 2011

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 (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	- (297) - - (535) - 31 - - -	- (297) - - (535) - 31 - - -
	(801)	(801)
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)	(144) - (11) - - - - - -	(144) - (11) - - - - - -
	(155)	(155)
	(956)	(956)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(956)	(956)
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) Issue Costs Net financing cash flows	1,875 - - - - -	1,875 - - - - -
	1,875	1,875
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	919 3,236 -	919 3,236 -
	4,155	4,155

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
		222
		Nil
1.25	Explanation necessaryfor an understandingof the transactions
	Director’s fees and consulting fees. Includes payments to director-related entities for provision of company secretarial, financial management, accounting and administrative support services.

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

N/A

• 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

N/A

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities	Amount available $A’000	Amount used $A’000
	-	-

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

3.2 Credit standby arrangements - -

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	759
	-
	-
	326
Total	1,085

Reconciliation of cash

Total Reconciliation of cash		1,085
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)	1,615	3,236
	2,540	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	4,155	3,236

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
	-	-	-	-
	2738L	Right to acquire 80% interest	-	-

• See chapter 19 for defined terms.

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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 note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	-	-	-	-
	-	-	-	-
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	114,207,732	93,207,732	Various	Fully paid
	7,500,000 -	7,500,000 -	$0.25 -	Fully paid -
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-	-	-
	-	-	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	9,700,000 20,000,000 250,000 250,000 250,000 2,500,000	- - - - - -	Exercise price $0.20 $0.25 $0.35 $0.45 $0.55 $0.30	Expiry date 31/12/2011 21/02/2014 30/06/2014 30/06/2014 30/06/2014 22/07/2013
	250,000 250,000 250,000 2,500,000	- - - -	$0.35 $0.45 $0.55 $0.30	30/06/2014 30/06/2014 30/06/2014 22/07/2013
	-	-	-	-
	-	-	-	-
7.11 Debentures (totals only)	-	-

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B Mining exploration entity quarterly report

7.12 Unsecured - - 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 5).

• 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: 27 October 2011 ~~(Director/~~ Company secretary)

Print name: RYAN BROOM

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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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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• See chapter 19 for defined terms.

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