WEEBIT NANO LTD — Interim / Quarterly Report 2011

Oct 31, 2011

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Quarterly Report

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ACN 146 455 576

Quarterly Activities Report For the Three Months Ended 30 September 2011

Highlights

• ∗ Significant progress made in exploration and drill programs during the quarter

• ∗ Resource drilling completed at Die Hardy Range – resource modelling commenced and will be completed in December quarter

• ∗ Scoping study completed for Die Hardy Range

ASX Release 31 October 2011

Suite 2, 12 Parliament Place West Perth WA 6005 PO BOX 902 West Perth WA 6872

• ∗ Aeromagnetic survey conducted to complete detailed coverage over all Radar tenure – new zones of potential hematite mineralisation identified

• ∗ Metallurgical testing indicates Die Hardy project has excellent concentration properties

• ∗ A drill rig has been secured at Johnston Range and drill testing of hematite targets is scheduled for the December quarter.

• ∗ Successful capital raising of $2.48M completed subsequent to quarter end

Overview

P + 61 8 9482 0580 F + 61 8 9482 0505 E info@radariron.com.au W www.radariron.com.au

The Board of Radar Iron Ltd (“Radar”) is pleased to present its quarterly activities report for the quarter ended 30 September 2011. Radar is focused on identifying and defining hematite and magnetite resources in the Central Yilgarn district of Western Australia.

Contact

Jonathan Lea Managing Director E jlea@radariron.com.au

Phillip Wingate

Company Secretary E pwingate@radariron.com.au

Directors

Alan Tough - Chairman Jonathan Lea - Managing Director Ananda Kathiravelu - Non-Executive

Exploration during the quarter has focussed on the resource definition drill testing of a major magnetite body at the Die Hardy Range project. Drill intercepts have indicated a body at least 2km long and up to 300m wide extending to at least 350m below surface. Extensive test work and the resulting highly encouraging metallurgical properties indicate that the project has excellent potential to produce a saleable concentrate.

Around 20 hematite targets have been identified in the Johnston Range and Evanston project areas, drilling approvals have been obtained and site clearing has commenced. Drilling is scheduled to commence in the December quarter.

An aero-magnetic survey was undertaken to complete high density coverage over all Radar’s tenure. Initial data review suggests the potential for a number of new hematite targets in the Boondine and Jackson areas. Field mapping has commenced to further assess potential.

Figure 1: Project Area

Issued Capital

71,162,129 Ordinary Shares 20,626,704 Listed Options 23,050,000 Unlisted Options

ASX Code

RAD (Fully Paid Ordinary Shares) RADO (Listed Options)

Media Enquiries:

Fortbridge +612 9331 0655 Luke Dean 0414 535 433

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Quarterly Activities Report

For the Three Months Ended 30 September 2011

Exploration Summary – September Quarter

Radar’s exploration focus in the September Quarter was on resource definition drilling at the Die Hardy Range Project (Figures 2 & 3). 16 RC drill holes for 4,665m were drilled at the project with the programme finishing in early September. Resource modelling commenced in October and is expected to be finalised in November.

The arrangement for the purchase of iron rights from Southern Cross Goldfields Limited (SXG) was formally completed In July, 2011. Hence the other key focus of the September Quarter was on the generation of new hematite targets over the new and existing tenement holdings. It is expected new targets will be progressively drill testing in coming months. The aim remains to establish an initial hematite resource inventory in the first half of 2012. To this end, a number of activities were undertaken:

• Approvals obtained and earth works commenced to enable testing of approximately 20 previously identified hematite targets at Johnston Range and Evanston. A rig has been secured and drilling is scheduled to commence in the December Quarter.

• A helicopter borne magnetic survey was completed over the Die Hardy, Jackson and Boondine projects. Coupled with the purchase of existing aero-magnetic data Radar now has high density magnetic data over all its projects. The data is being analysed with the main objective being to identify potential zones of hematite enrichment but with the potential to also identify significant new magnetite occurrences.

• Purchase of Landsat and Aster satellite imagery data to assist in identifying new drill targets.

• Regional mapping by Radar personnel and external contractors to identify potential mineralisation and follow up on geophysical targets.

Subsequent to the drilling of hematite prospects, planned to commence in November, this targeting work is expected to produce a number of new prospects for drill testing over the next 6 months following approvals being obtained.

Figure 2: Project Location

.

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Quarterly Activities Report

For the Three Months Ended 30 September 2011

Exploration Detail – September Quarter

Die Hardy Range Project

An RC drilling programme commenced in May 2011 and was completed in September with 16 holes drilled for 4,665m being completed during the quarter. Total drilling for the project stands at 25 holes for 7214m (Table 1). The drilling was aimed at providing sufficient drill data to enable an Inferred Mineral Resource to be estimated for the prospect. Two kilometres of the 3.4km strike length is targeted in the initial drill campaign.

The potential for a major body of magnetite mineralisation at the Die Hardy Range was indentified in 2010 through reconnaissance mapping. The prospect, approximately 3.4km long, was given the initial name of ‘Lara’. Two RC drill holes were completed in late 2010 to provide initial samples of the mineralisation for metallurgical testing. Both assay results and the preliminary metallurgical test work were highly encouraging. Further drilling was planned and a number of botanical surveys completed earlier in 2011 to facilitate drill approvals.

Consultant group, Calibre Global, was engaged to coordinate metallurgical test work using material from the initial two drill holes. A grind size test was completed that produced recommendations for the optimum Davis Tube Recovery (DTR) process. The key recommendation was for a grind size of 80% passing 50 micron, a relatively coarse grind size. This procedure has been implemented for all recent DTR test work.

Based on encouraging surface geology, drill hole data and metallurgical assessments, the Die Hardy Range magnetite was selected for the first resource drill out for Radar. Five drill sections, spaced nominally at 400m with holes 80m apart, were drilled between May and September. This density of drilling is sufficient to enable at least an Inferred Mineral Resource to be estimated and this work is scheduled for October/November this year. Assaying was completed on two metre intervals with Davis tube test work undertaken on four metre composite samples. Results are shown in Tables 2 and 3.

Using newly acquired magnetic data, the exploration potential for the Die Hardy Range mineralisation has was estimated by an independent geophysical consultant in October using surface geology, aeromagnetic data and drilling data as being:

• Primary Magnetite BIF: 0.83 Bt – 1.38 Bt at 25-35% Fe*

• Potential Enriched Material: 129 Mt – 214 Mt at 40-65% Fe*

The magnetic data also highlighted new untested magnetic units within 1km to the north and south of the main magnetite ridge at Lara, both with strike lengths of approximately 2km. The northern unit was included in the estimate of exploration potential while the southern unit was not.

These new zones indicate a greater depth to primary magnetite, possibly indicating prospectivity for oxidised or direct shipping mineralisation (i.e. hematite).

The exploration potential of the Die hardy magnetite mineralisation had been previously estimated internally by Radar Iron personnel and produced a similar result. The recent review reinforces the previous estimate but also identifies new potential for both hematite and magnetite mineralisation to the north and south of the main Lara mineralisation.

• ∗ The potential quantity and grade of iron deposits reported as exploration potential is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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Quarterly Activities Report

For the Three Months Ended 30 September 2011

TABLE 1 Die Hardy Range RC Drilling Details

Hole No	East	North	RL	Azimuth	Dip	Depth
RIRC001*	734977	6680849	504	120	‐60	120
RIRC002*	735262	6680310	495	166	‐60	166
RIRC043*	735237	6680554	504	20	‐60	204
RIRC044*	735214	6680473	499	20	‐60	288
RIRC045*	735163	6680418	492	20	‐60	365
RIRC046*	735145	6680346	488	20	‐60	372
RIRC047*	735510	6680358	496	20	‐60	330
RIRC048*	735464	6680205	483	20	‐60	362
RIRC049*	735124	6680262	484	20	‐55	342
RIRC050	734970	6680739	504	20	‐58.7	150
RIRC051	734952	6680658	497	20	‐61.5	198
RIRC052	734893	6680593	492	20	‐76.2	384
RIRC053	735584	6680498	504	20	‐60	156
RIRC054	735556	6680422	500	20	‐60	286
RIRC055	735488	6680282	489	20	‐60	378
RIRC056	734851	6680520	489	20	‐60	384
RIRC057	735947	6680397	496	350	‐60	318
RIRC058	735960	6680317	494	350	‐60	331
RIRC059	735931	6680482	500	350	‐60	180
RIRC060	736351	6680452	496	350	‐60	210
RIRC061	735978	6680242	489	350	‐55	322
RIRC062	736357	6680376	488	350	‐60	276
RIRC063	735956	6680358	486	350	‐60	336
RIRC064	736378	6680293	483	0	‐60	360
RIRC065	736403	6680219	480	0	‐60	396

Notes:

• Holes drilled and reported in previous Quarterly Reports Coordinates MGA94 Zone 50

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Quarterly Activities Report

For the Three Months Ended 30 September 2011

TABLE 2 Die Hardy Range – Assay Results

Hole No.	From	To	Length	Fe %	SiO2 %	Al2O3 %	P %	LOI1000
RIRC043+ RIRC044+ RIRC045+ RIRC045+ RIRC046+ RIRC046+ RIRC047+ RIRC047+ RIRC048+ RIRC048+ RIRC049+ RIRC049+ RIRC050+ RIRC051+ RIRC052+ RIRC052+ RIRC053+ RIRC054+ RIRC054+ RIRC055+ including RIRC056+ RIRC056+ RIRC057 RIRC058 RIRC059 RIRC060 RIRC061 RIRC062 RIRC062 RIRC063 RIRC064 RIRC064 RIRC065	84 60 66 240 112 178 44 226 300 350 190 272 66 74 122 260 42 46 132 126 126 204 322 376 96 184 50 40 252 68 132 136 158 200 192	112 220 228 365 164 372 210 298 322 362 254 342 110 144 240 338 98 120 196 366 180 292 362 384 224 331 142 160 298 120 208 316 170 266 230	28 160 162 125 52 194 166 72 22 12 64 70 44 70 118 78 56 74 64 240 56 88 40 8 128 147 92 120 46 52 76 180 12 66 38	30.8 29.8 30.4 28.6 34.6 34.2 27.0 22.8 25.0 28.7 31.0 31.3 25.8 27.8 29.2 29.5 24.5 27.9 27.0 25.0 28.5 27.8 28.1 30.6 29.3 30.6 28.9 29.1 24.7 27.5 30.8 25.6 27.7 27.6 25.5	50.2 50.8 48.6 51.8 46.0 45.8 48.9 52.4 51.3 50.8 47.6 48.6 52.1 50.5 50.3 50.9 51.3 52.4 51.8 50.7 49.1 48.6 48.8 46.1 48.6 47.9 51.2 49.0 51.2 47.6 48.6 50.4 49.1 53.6 52.2	1.53 1.43 2.50 1.81 1.37 1.76 4.70 6.14 2.86 2.14 2.54 1.80 2.02 2.65 1.75 2.20 4.12 2.72 2.50 5.85 4.30 4.80 3.01 0.51 3.2 2.6 1.3 2.9 5.4 5.5 1.2 4.6 4.6 3.7 4.8	0.08 0.08 0.08 0.07 0.06 0.07 0.09 0.11 0.05 0.05 0.07 0.07 0.07 0.08 0.07 0.08 0.09 0.10 0.09 0.09 0.08 0.08 0.07 0.09 0.08 0.07 0.07 0.07 0.05 0.08 0.08 0.08 0.06 0.07 0.06	‐0.5 ‐0.5 ‐0.1 ‐0.3 ‐1.0 ‐1.0 ‐0.4 ‐0.2 3.2 ‐0.4 ‐0.7 ‐0.6 0.4 1.0 0.3 ‐0.6 ‐0.1 ‐0.6 ‐0.4 ‐0.4 ‐0.6 ‐0.6 2.0 1.5 2.0 1.5 ‐0.7 ‐0.7 ‐0.4 0.0 0. 5 1.6 ‐0.4 ‐0.4 0.3

Sampling and assay intervals – 2 metres Assay intervals calculated using a 20% minimum iron grade Maximum of 10m of internal dilution in assay intervals XRF assaying completed by Spectrolab, Geraldton * Hole ended in mineralisation + Data reported previously

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Quarterly Activities Report

For the Three Months Ended 30 September 2011

TABLE 3 Die Hardy Range – DTR Summary Results for Holes RIRC043-049

Hole No.	From	To	Fe %	SiO2%	Mass Recovery
RIRC043+	86	112	70.2	3.5	36.5
RIRC044+	60	168	68.6	4.8	37.2
RIRC044+	176	220	70.4	3.2	36.8
RIRC045+	70	102	69.6	3.7	38.2
RIRC045+	124	224	69.1	4.9	41.2
RIRC045+	254	274	69.0	4.7	41.0
RIRC045*+	280	365	69.1	4.4	40.2
RIRC046+	112	164	70.0	2.8	45.1
RIRC046*+	188	372	69.7	3.9	41.9
RIRC047	42	118	68.8	4.6	28.2
RIRC047	126	210	69.7	4.0	39.0
RIRC047	226	298	68.9	4.7	28.5
RIRC048	310	322	69.3	3.4	18.0
RIRC048*	359	362	70.8	2.8	28.8
RIRC049	190	254	69.0	4.6	37.8
RIRC049	270	342	68.8	5.1	35.4
**Average **			69.4	4.1	35.9

Notes: Test intervals – 4 metres DTR procedure completed by Spectrolab, Geraldton Nominal P80 passing 50micron grind Summary based on 285 analyses * Holes ending in mineralisation + Data reported previously

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Quarterly Activities Report For the Three Months Ended 30 September 2011

Figure 3: Die Hardy Range Project Plan

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Figure 4: Die Hardy Range – Drill Hole Location Plan

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Quarterly Activities Report For the Three Months Ended 30 September 2011

Figure 5: Die Hardy Range – Cross Sections 1 – 3

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Quarterly Activities Report

For the Three Months Ended 30 September 2011

RC Drilling at the Die Hardy Range project has intersected massive magnetite mineralisation with a width up to approximately 300m. The surface expression of the magnetite is approximately 3.4km and has been shown to continue to at least a depth of 350m below surface. The Davis tube recovery (DTR) metallurgical test work that commenced several months ago forms an integral part of the characterisation of the magnetite mineralisation and the results have indicated the metallurgical properties are superior to many other magnetite projects in Western Australia.

DTR test work simulates the likely performance of magnetite ores being processed through a typical magnetic separation process in a concentration plant. After fine crushing or pulverising the sample is passed by a magnet and the magnetic fraction is then assayed and weighed. Typically a mass recovery of greater than 30% with iron grades around 70% and silica below 5% is considered desirable.

Consultant group, Calibre Global, was engaged to coordinate metallurgical test work. A grind size test was completed in June that produced recommendations for the optimum DTR process. The key recommendation was for a grind size of 80% passing 50 micron, a relatively coarse grind size. This procedure has been implemented for all recent DTR test work.

285 DTR analyses have now been completed using the recommended procedure and the results (Table 3) are consistently encouraging, indicating a relatively homogeneous mineralised body. With an indicative concentrate grade above 69% Fe, low silica and high mass recovery, the potential treatment properties are excellent.

The potential size of the Die Hardy Range magnetite mineralisation and highly encouraging metallurgical properties indicate that it has excellent potential to produce a saleable concentrate.

Resource estimation has commenced using consultant firm CSA Global with the maiden JORC compliant resource statement expected in November this year

Die Hardy Range Scoping Study*

Consultant Group, Engenium, was commissioned by Radar to complete a Scoping Study for the Die Hardy Range magnetite project. The study was aimed at providing justification for ongoing studies and to identify key aspects of the forward work programme such as production strategy and transport solutions.

The Scoping Study considered multiple options for mining, services and transport requirements of the Die Hardy Project based on existing project data and Engenium’s extensive knowledge of infrastructure in the region. A combination of production scenarios, infrastructure and transport options were considered.

Engenium concluded from the study (completed in August) that, “The technical and financial evaluations in the Scoping Study have concluded that further project development is justified based on information currently available…”. An indicative schedule for first ore production was as early as 2014 was considered possible.

Apart from the endorsement this study provides, the indicative figures for financial return indicate that the project has potentially robust economics and - possibly as important - that there are realistic transport options that can be accessed with reasonable capital outlay. This results from the government ownership of the rail and port facilities in the Yilgarn region and recent government support to expand the capacity at the Port of Esperance.

*Investors are advised that the Company does not represent that the results of the Scoping Study present an economically viable project as the assumptions used to date may not be considered sufficiently reliable and the results of the Scoping Study were based upon the Company’s previously announced exploration target of 700-1,200 million tonnes of magnetite at 29-33% Fe.

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Quarterly Activities Report

For the Three Months Ended 30 September 2011

Johnston Range

Hematite Targets

Previous ground mapping and geophysical interpretation reinforced the potential for multiple hematite targets in the Johnston Range project area. Zones of surface hematite enrichment up to approximately 800m in length have been defined by mapping. The target size, as previously indicated, remains current with the potential for a number of 2-5Mt bodies of hematite being the most likely exploration outcome.

With drilling approvals in place a drill rig has been secured and drill testing of the targets is scheduled for the December quarter. Approximately 3,000m of drilling will be sufficient to test the 20 targets defined in the project area with follow up drilling envisaged to better define any mineralisation intercepted.

Magnetite Targets

Drilling in the June Quarter supported the presence of significant magnetite mineralisation at Johnston Range particularly on the western limb of the 40km long Johnston range BIF complex. With the focus this quarter on the Die Hardy magnetite resource drilling, no further work has been completed at Johnston Range.

Further metallurgical test work is planned to establish the priority for resource definition of magnetite mineralisation in the prospect area. As previously stated the Johnson Range project area has an identified primary magnetite exploration potential of 4.0Bt - 6.7Bt at 20-45% Fe* and it is considered likely that significant magnetite bodies will be delineated as exploration progresses over this large area. Further drilling is likely in 2012.

* The potential quantity and grade of iron deposits reported as having exploration potential is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Regional Exploration

Regional geological reconnaissance has continued on existing Radar tenements and those acquired from SXG. A number of areas have been identified as containing outcropping hematite mineralisation and magnetite potential is widespread. The focus is on identifying new hematite targets for drill testing in coming months with an aim of establishing Radar’s initial hematite resource inventory in the first half of 2012.

An aeromagnetic survey was completed over project areas so that Radar now has full coverage of all prospective tenements with high resolution magnetic data. The low level, high resolution helicopter supported, magnetic aerial survey completed in August, totalling some 8,300 flight line kilometres.

The project areas covered by the survey were Die Hardy, Boondine and Jackson (Figure 2), and the new survey data defined over 20km of magnetic responses considered prospective for both hematite and magnetite iron mineralisation within the recently acquired tenements.

As mentioned previously, at the Die Hardy project the data highlighted new untested magnetic units to the north and north-west of the existing drilling indicating a combined strike length of 4km, also with hematite potential.

The survey data adds to recently purchased high resolution aeromagnetic data over the Evanston project area (flown several years ago). Magnetic modelling for all the recently acquired data is currently underway which will lead to the identification and prioritisation of anomalies.

Landsat and Aster satellite imagery data was purchased to assist in targeting of hematite mineralisation. The imagery captures various wavelengths of reflected light (or spectral signatures) and can be used to identify iron enrichment at surface. Analysis of this is being undertaken to compliment the magnetic data interpretation.

Mapping of the Evanston, Jackson Die Hardy, Windarling Peak and Boondine project areas continued using both external contract geological personnel and company geologists. This process will continue in coming months to identify areas with potential for hematite mineralisation and to follow up the geophysical targeting.

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Quarterly Activities Report For the Three Months Ended 30 September 2011

The culmination of all this targeting work should be the identification of new drill targets that will be tested as approvals permit in 2012.

Corporate

The Shortfall from Radar Iron’s entitlement issue was placed during the quarter. A total of 4,011,931 was available in the shortfall and was placed in July with investors identified by the board.

Subsequent to the end of the quarter Radar announced a placement of approximately 8.3 million shares to sophisticated investor clients of FSS Advisory at a price of 30 cents each. The Placement raised $2.48M for the Company.

Radar’s cash position at the end of the quarter was $1.85 million.

Announcements

The Company made the following announcements during the quarter.

Date	Headline
25/10/2011	$2.48M Placement toFund ContinuedDrillingProgram
25/10/2011	Reinstatement to OfficialQuotation
24/10/2011	Suspension from Official Quotation
20/10/2011	Trading Halt
13/10/2011	Independent Review Confirms Die Hardy Exploration Potential
6/10/2011	Radar Iron Research Report- RM Research
30/09/2011	Annual Report to shareholders
20/09/2011	Aeromagnetic SurveyIdentifiesNew IronOreTargets
19/09/2011	Appendix 3B
15/09/2011	Further Clarification-Die Hardy Scoping Study
7/09/2011	Clarifying Statement-Die Hardy Scoping Study
31/08/2011	Investor Presentation August2011
29/08/2011	DieHardyRange Scoping Study
25/08/2011	Further Encouragement at Die Hardy Range
24/08/2011	Research Report
28/07/2011	Quarterly Activities and Cashflow Report
21/07/2011	Allotment of EntitlementsIssue Shortfall
12/07/2011	DieHardyRangeMagnetite- Metallurgical Results
11/07/2011	Investor PresentationJuly2011
6/07/2011	Secondary Trading Notice Pursuant to s708A(5)
6/07/2011	Die Hardy Magnetite-Significant Mineralisation Identified
5/07/2011	Appendix 3B
5/07/2011	Radar IronConcludesAcquisitionof Iron Rights
4/07/2011	ExplorationUpdate-Johnston Range

For or on behalf of Radar Iron Ltd

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Jonathan Lea

Managing Director

The information in this report accurately reflects information prepared by competent persons (as defined by the Australasian Code for Reporting of Mineral Resources and Ore Reserves). It is compiled by Mr Jonathan Lea, an employee of the Company who is a Member of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting. Mr Lea has sufficient experience which is relevant to the style of mineralisation and the 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, Mineral Resources and Ore Reserves”. Mr Lea consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The potential quantity and grade of iron deposits reported as exploration potential is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Radar Iron Limited

ABN 146 455 576	Quarter ended (“current quarter”)
146 455 576	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 and 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
	- (1,164) - - (325) - 46 - - -	- (1,164) - - (325) - 46 - - -
	(1,443)	(1,443)
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) – Cash acquired on acquisition of subsidiary Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	(1,000) - - - - - - - -	(1,000) - - - - - - - -
	(1,000)	(1,000)
	(2,443)	(2,443)

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(2,443)	(2,443)
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 - Capital Raising Costs	80 - - - - (22)	80 - - - - (22)
Net financing cash flows	58	58
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 of quarter	(2,385) 4,243 -	(2,385) 4,243 -
	1,858	1,858

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
		95
		Nil
1.25	Explanation necessaryfor an understandingof the transactions
	Amounts paid to directors includes salaries and wages for director services.

Non-cash financing and investing activities

• 2.1

• 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.

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

Appendix 5B Mining exploration entity quarterly report

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
	1,400
	-
	-
	150
Total	1,550

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)	858	2,243
	1,000	2,000
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,858	4,243

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased	E77/1320 E77/1474 E77/1490 E77/1630 E77/1650 P77/3808 P77/3809 P77/3810 P77/3811 P77/3812 P77/3900 P77/3902 M77/962 E77/1424 E77/1427 E77/1488 E77/1496 E77/1497 E77/1498 E77/1499 E77/1500 E77/1659 E77/1766 P77/3801 P77/3802 P77/3868 P77/3898 P77/3899 P77/3903 P77/3936 P77/3978 P77/3979 P77/3994 M77/394 M77/646 M77/931 G77/35 P77/3412 E77/3413 P77/3414 P77/3552 E77/1505 E77/1741 P77/3830 E77/1423 E77/1566 E77/1699 P77/3813 P77/3816 P77/3817 P77/3907 P77/3908 P77/3967	100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights 100% of Fe Rights	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

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	61,880,112	36,614,500
	1,000,000	1,000,000	Nil	Nil
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) Total 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	20,626,704 20,375,000 2,375,000 300,000 39,364,773	20,626,704 - - - -	Exercise price 45 cents 25 cents 30 cents 45 cents	Exercise date 30/04/12 30/11/13 31/05/14 31/07/14
	4,011,931 300,000	4,011,931 -	45 cents 45 cents	30/04/12 31/07/14
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

Appendix 5B Mining exploration entity quarterly report

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: (Director/ Company secretary )

Date: 31 October 2011

Print name: Phillip Wingate

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: Cash Flow Statements 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.