VYSARN LIMITED — Interim / Quarterly Report 2015

Jul 26, 2015

MHM Metals Limited Level 4, 100 Albert Road South Melbourne VIC 3205 AUSTRALIA

T: +613 9692 7222 F: +613 9077 9233 E: info@mhmmetals.com www.mhmmetals.com

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ASX Announcement

For immediate release Monday 27 July 2015

MHM QUARTERLY ACTIVITIES REPORT – JUNE 2015

MHM Metals Limited (ASX: MHM) is pleased to provide the following Company Update:

Corporate

During the Quarter the Company’s CEO and Managing Director Matt Keen tendered his resignation with effect 31 July 2015. The Company’s Non Executive Chairman Joseph van den Elsen was appointed as his replacement.

The Company once again acknowledges its appreciation for Matt’s commitment to the role during a challenging period in the Company’s short but eventful history.

Independent, Non Executive Director Paul Kopejtka assumed the role of Chairman effective 1 July 2015.

As at 30 June 2015 the Company held cash reserves of $1,358,000.

Business Development

Company Snapshot

Capital Structure

Ordinary shares on issue: 130,218,145 Market Cap (at 1.3c): $1,692,836 Cash (as at 30 Jun 2015): $1,358,000

Directors

Paul Kopejtka (Non- Executive Chairman) Joseph van den Elsen (Managing Director) Matthew Keen (Executive Director) Chris Goodman (Non-Executive Director)

Company Secretary

Justin Mouchacca

The Company continues to assess new business opportunities in the Resources sector, capable of becoming its primary undertaking.

The Board has considered a number of opportunities across various commodities and jurisdictions, including Australia, USA, Colombia, Peru and Mozambique. To date the most extensive Due Diligence has focused on various base metals projects in Peru.

The Company remains confident it is well placed to execute a transaction which unlocks shareholder value and will keep shareholders informed of all material developments.

MHM Metals Limited ABN 41 124 212 175

Registered Office: Level 4, 100 Albert Road, South Melbourne, VIC 3205 | Tel: 03 9692 7222| Fax: 03 9077 9233 | E: info@mhmmetals.com | www.mhmmetals.com

Moolap Operations

Production for the quarter was 2,477 tonnes.

The Company continues to clean up the last remaining salt slag on site and as June 30, 2015 approximately 790 tonnes remained.

During the Quarter the Company gave notice to its last remaining staff and is working towards a closure date of September 30, 2015 for the Moolap facility.

END

For more information :

MHM Metals Limited Joseph van den Elsen, Managing Director: +61 3 5240 8999

MHM Metals Limited ABN 41 124 212 175

Registered Office: Level 4, 100 Albert Road, South Melbourne, VIC 3205 | Tel: 03 9692 7222| Fax: 03 9077 9233 | E: info@mhmmetals.com | www.mhmmetals.com

Appendix 5B Mining 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, 01/05/2013

Name of entity

MHM METALS LIMITED

ABN 41 124 212 175	Quarter ended (“current quarter”)
41 124 212 175	30 June 2015

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) US development (c) production (d) administration 1.3 Dividends received 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income tax refund 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (12 months) $A’000
	606 - - (1,099) (403) - 1 - - -	4,335 - (34) (5,872) (1,687) - 26 - 2,142 -
	(895)	(1,090)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets (i) Aluminium processing activities 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)	- - - - -	- - - - -
	-	-
	(895)	(1,090)

• 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)	(895)	(1,090)
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	(895) 2,236 17	(1,090) 2,426 22
	1,358	1,358

Payments to directors of the entity, associates of the directors, 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	Curent quarter $A'000
		85
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Directors fees for the June 2015 quarter.

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

Nil

• 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 Nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available		Amount used
		$A’000		$A’000
3.1	Loan facilities
			Nil		Nil
3.2	Credit standby arrangements		Nil		Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	-
	-
	(314)
	(237)
Total	(551)

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.	Curent 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)	1,358	2,236
Total: cash at end of quarter(item 1.22)	1,358	2,236

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

Tenement reference and location Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - 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.	Tenement reference and location Nature of interest (note (2)) Interest at beginning ofquarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - 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
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	130,218,145	130,218,145
7.5 +Convertible debt securities (description)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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	300,000 300,000 150,000 100,000 300,000 1,450,000 150,000 500,000 100,000		Exercise price 85 cents 180 cents 100 cents 126 cents 100 cents 171 cents 135 cents 100 cents 45 cents	Expiry date 6 October 2015 20 June 2016 30 June 2016 23 August 2016 5 November 2016 29 November 2016 14 February 2017 18 July 2017 18 December 2018
7.11 Debentures (totals only)
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.

Sign here: ...........................................................Date: ...27 July 2015............. (Director) Print name: .....Joseph van den Elsen.................................................

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 and petroleum 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 or petroleum 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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