VOLT RESOURCES LIMITED — Interim / Quarterly Report 2012

Oct 30, 2012

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QUARTERLY REPORT – QUARTER ENDED 30 SEPTEMBER 2012

MOZAMBI COAL LTD

(ASX: “MOZ”, “Company” or “Mozambi”)

31 October 2012

During the quarter, the Company completed the following key activities:

• Renegotiated the financial terms of the Company’s Songo acquisition, including a US$1.25 million reduction in near-term liabilities

• Completed an interpretation of airborne magnetic and radiometric geophysical data for the Company’s Songo and Muturara Licenses, including the identification of 32.5km[2 ] of potential Lower Karoo areas within the Songo License

• Commenced a ground based geophysical survey over the Songo license area

• Signed a subscription agreement with KAR Mining Co to raise A$1,360,000 through the issue of 17,000,000 shares at $0.08 per share

• Continued discussion regarding and evaluation of several potential new regional acquisitions.

Songo Acquisition Update

During the quarter, the Company revised the terms for the acquisition of its Songo License (2738L). The new terms are as follows:

• US$100,000 payable on completion of a legal and technical due diligence and the successful transfer of the License (US$175,00 already paid)

• US$625,000 payable in the event that a JORC compliant resource is defined and 100,000,000 JORC compliant "measured" tonnes of coal are defined in the Licence area

• An additional US$625,000 payable in the event that a JORC compliant resource is defined and 200,000,000 JORC compliant "measured" tonnes of coal are defined in the Licence area

Previously agreed terms are as follows:

• Payment of US$25,000 to Xiluva upon signing MOU for surface tax and bonds (Paid)

• Payment of US$250,000 to Xiluva on submission of an application requesting the transfer of 2738L to the National Directorate of Mines in Mozambique (US$150,000 paid)

• 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.

Mozambi Coal Limited (ASX: MOZ) ACN 106 353 253 Tel: +61 8 9321 0774 | Fax: +61 8 6314 1557 www.mozambicoal.com

Level 2, 640 Murray Street West Perth WA 6005 Australia

PO Box 1571 West Perth WA 6872 Australia

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Exploration Programme

During the quarter, exploration activities included the interpretation of aeromagnetic and radiometric data acquired over the Company’s Songo and Muturara Licence areas in conjunction with interpreted satellite imagery, to assist in structural interpretation of the coal basin covered by each license.

2738L “Songo” Project, Zambeze Coal Basin

As previously reported, the Company is still in the early stages of its exploration programme on the Songo Project. Interpretation of the airborne magnetic and radiometric geophysical survey has now been completed by Salva Resources (consultant coal specialists). This interpretation has revealed that the License covers two new target areas (Figure 3).

• Target 1 – covering the north-east corner is a priority target area of approximately 7.5km[2 ] of Lower Karoo (potentially the Productive Series); and

• Target 2 – covering approximately 25km[2 ] adjacent to Target 1 is a further target area of potentially shallow Upper Karoo overlying the full sequence target coal seams of the Lower Karoo Productive Series.

Additionally, the interpretation has confirmed that the License covers structurally complex “block faulted” Karoo sediments within the previously drill tested 25km[2] target area situated in the southeast corner of the License. Further work is required to assess the viability of this part of the license where the depth to coal may be prohibitive.

Given the structural complexity demonstrated by the study, the Company has now commenced ground geophysics to assist in targeting areas in the north-east of the License (as a priority) in preparation for drilling in the coming months.

3246L “Muturara” Project, Zambeze Coal Basin

Interpretation of the airborne geophysical survey covering the Muturara Project has been completed and this work has identified significant “block faulting” in the target area situated on the northern portion of the licence (Figure 4). The target zone (Productive Series – Lower Karoo) is still interpreted to be at a significant depth but the block faulting may have lifted some blocks nearer to the surface than originally interpreted.

Additional surface geophysical surveys will now planned prior to any drilling activity.

Mozambi Coal Limited (ASX: MOZ) ACN 106 353 253 Tel: +61 8 9321 0774 | Fax: +61 8 6314 1557 www.mozambicoal.com

Level 2, 640 Murray Street West Perth WA 6005 Australia

PO Box 1571 West Perth WA 6872 Australia

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Capital Raising

On 4 September, the Company announced that it had successfully negotiated the terms of a private placement with KAR Mining Co (“KAR”) to raise A$1,360,000 through the issue of 17,000,000 shares at $0.08 per share.

New Licenses

The Company is currently in discussion regarding and evaluation of several potential highly prospective coal acquisition opportunities in the region.

Corporate

As at 30 September, the Company had $1.6m of cash.

Mozambi Coal Limited (ASX: MOZ) ACN 106 353 253 Tel: +61 8 9321 0774 | Fax: +61 8 6314 1557 www.mozambicoal.com

Level 2, 640 Murray Street West Perth WA 6005 Australia

PO Box 1571 West Perth WA 6872 Australia

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About Mozambi

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 resources companies including Rio Tinto (LON: RIO), Vale, Jindal Steel and ENRC have undertaken coal exploration and development projects in the basin.

The combined tenement size held by the Company 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 3605C 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[2] 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 1: Map of Mozambique within Africa

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Figure 2: Map of Mozambi Coal’s Tenements within Zambeze Basin

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Level 2, 640 Murray Street West Perth WA 6005 Australia

Mozambi Coal Limited (ASX: MOZ) ACN 106 353 253 Tel: +61 8 9321 0774 | Fax: +61 8 6314 1557 www.mozambicoal.com

PO Box 1571 West Perth WA 6872 Australia

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Figure 3: Geological Map of Songo Project (2738L)

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Figure 4: Geological Map of Muturara Project (3246L)

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Mozambi Coal Limited (ASX: MOZ) Level 2, 640 Murray Street ACN 106 353 253 West Perth WA 6005 Tel: +61 8 9321 0774 | Fax: +61 8 6314 1557 Australia www.mozambicoal.com

PO Box 1571 West Perth WA 6872 Australia

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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 40 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 (ASX: MOZ) Level 2, 640 Murray Street ACN 106 353 253 PO Box 1571 West Perth WA 6005 Tel: +61 8 9321 0774 | Fax: +61 8 6314 1557 West Perth WA 6872 Australia www.mozambicoal.com Australia

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 Consolidated statement of cash flows		Quarter ended (“current quarter”) 30 September 2012	Quarter ended (“current quarter”) 30 September 2012
			30 September 2012
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 Net Operating Cash Flows		Current quarter $A’000		Year to date (3 months) $A’000
		- (48) - - (521) - 24 - - -		- (48) - - (521) - 24 - - -
		(545)		(545)
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)		- - - - - - - - -		- - - - - - - - -
		-		-
		(545)		(545)

• 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)	(545)	(545)
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	- - - - - -	- - - - - -
	-	-
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	(545) 2,145 -	(545) 2,145 -
	1,600	1,600

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
		183
		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
	152
	-
	-
	385
Total	537

Reconciliation of cash

Total Reconciliation of cash		537
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)	359	319
	1,241	1,826
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,600	2,145

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.

17/12/2010 Appendix 5B Page 3

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	114,941,982	93,207,732	Various	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	20,000,000 250,000 250,000 250,000 2,500,000 475,000	- - - - - -	Exercise price $0.25 $0.35 $0.45 $0.55 $0.30 $0.25	Expiry date 21/02/2014 30/06/2014 30/06/2014 30/06/2014 22/07/2013 02/08/2016
	-	-	-	-
	-	-	-	-
	-	-	-	-
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: 31 October 2012 ~~(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.

17/12/2010 Appendix 5B Page 5