WEEBIT NANO LTD — Interim / Quarterly Report 2011

Jul 27, 2011

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Quarterly Report

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ACN 146 455 576

ASX Release

28 July 2011

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

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

Quarterly Activities Report For the Three Months Ended 30 June 2011

Highlights

Exploration

• ∗ Major magnetite body intersected at Die Hardy Range Project – resource definition drilling in progress. Best drill intercept 194m at 34.2% Fe. Mineralisation has excellent metallurgical properties, indicating strong potential to produce saleable concentrate

• ∗ Scoping study planned for Die Hardy Range in 2011

• ∗ Significant intervals of magnetite mineralisation intercepted at Johnston Range - best intercept 128m at 33.5% Fe

• ∗ Over 20 hematite targets identified at Johnson Range – drilling approvals obtained

Overview

The board of Radar Iron Ltd (“Radar”) is pleased to present its quarterly activities report for the quarter ended 30 June 2011. Radar is focused on identifying and defining hematite and magnetite resources in the Central Yilgarn district of Western Australia. Radar has the key advantaged over many explorers elsewhere in Western Australia by having realistic port and rail infrastructure options.

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

Issued Capital

62,880,112 Ordinary Shares 20,626,704 Listed Options 22,750,000 Unlisted Options

ASX Code

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

Media Enquiries:

Fortbridge +612 9331 0655 Luke Dean 0414 535 433

Exploration during the quarter has focussed on drill testing magnetite targets at the Johnston Range and Die Hardy Range projects. Encouraging drill intercepts have been returned from both areas, with the Die Hardy Range project being selected for resource definition drilling owing to its excellent size and metallurgical characteristics (i.e. a coarse grind sizing). A resource estimate for the Die Hardy Range is planned for October this year.

Also at the Johnston Range project, a detailed mapping and geophysical data review has resulted in the definition of over 20 hematite targets. Drilling approvals were obtained and these targets will be tested in coming months.

Radar’s overall exploration objectives in 2011 are to focus on defining initial hematite and magnetite resources and to continue assessing the large tenement holding for further prospects. Once resource identification is complete scoping or feasibility studies will commence to enable rapid progress towards mining.

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Figure 1: Project Area
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Quarterly Activities Report

For the Three Months Ended 30 June 2011

Exploration Summary – June Quarter

Radar’s exploration focus in the June Quarter was on the Johnston Range and Die Hardy Range Projects (Figure 2). 18 RC drill holes for 4,107m have been completed at the two project areas.

Highly encouraging metallurgical results from earlier Die Hardy Range drilling led to that project being selected for the first resource definition drill programme, which is continuing into the September quarter. Results to date have been highly encouraging with a large body of magnetite mineralisation indicated with excellent metallurgical properties.

The Johnston Range drilling also returned significant intercepts of magnetite mineralisation and metallurgical test work is continuing.

Further surface mapping and geophysical data interpretation has resulted in over 20 hematite targets being identified in the Johnston Range area with drilling approval now obtained.

The acquisition of iron ore rights over a significant tenement holding (as reported previously) will result in an active exploration programme aimed at rapidly identifying hematite targets for drill testing later in 2011 and 2012. A helicopter borne aeromagnetic survey has been commissioned for August that will provide an initial targeting tool in conjunction with on-going field mapping.

Additional flora surveys were completed at Johnson Range and at Die Hardy Range to facilitate future drilling approvals. The Conservation Management Plan (CMP) for the region was progressively refined and updated again to assist in streamlining future exploration approvals. Programme of Works approvals were submitted to the Department of Minerals and Petroleum and approvals were gained for a number of targets.

.

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Figure 2: Project Location

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Quarterly Activities Report

For the Three Months Ended 30 June 2011

Exploration Detail – March Quarter

Die Hardy Range Project

An RC drilling programme commenced in May 2011 with 7 holes drilled for 2,263m. 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, are being drilled between May and August – 25 holes in total. This density of drilling should be sufficient to enable at least an Inferred Mineral Resource to be estimated and this work is scheduled for October/November this year.

The exploration potential for the Die Hardy Range mineralisation has been estimated using surface geology, aeromagnetic data and the size and grade is indicated by the drilling as being:

0.7-1.2Bt at 29-33% Fe*

Seven holes have been drilled to date (see Table 1) with results returned for the first four, (Table 2). DTR test work has been completed for 163, 4m long composite samples from the first four holes with highly encouraging results – mass recovery of 40%, concentrate grade of 69% Fe and silica averaging 4.1% (Table 3).

The magnetite intersected has been massive with minor thin bands of other rocks widely spaced through the rock mass. Hence long intervals of magnetite have been returned as evidenced in Table 2.

TABLE 1 Die Hardy Range RC Drilling Details

Hole No.	Prospect	Easting	Northing	Length	Azimuth	Dip
RIRC043	Lara	735237	6680554	204	020	‐60
RIRC044	Lara	73520	6680479	288	020	‐60
RIRC045	Lara	735162	6680417	365	020	‐60
RIRC046	Lara	735144	6680346	372	020	‐60
RIRC047	Lara	735509	6680357	330	020	‐60
RIRC048	Lara	735464	6680205	362	020	‐60
RIRC049	Lara	735124	6680260	342	020	‐60

∗ 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 June 2011

TABLE 2 Die Hardy Range – Assay Results

Hole No.	From	To	Interval	Fe %	SiO2%	Al2O3%	P%	LOI %
RIRC0043	84	112	28	30.8	50.2	1.53	0.08	‐0.5
RIRC0044	60	220	160	29.8	50.8	1.43	0.08	‐0.5
RIRC0045	66	228	162	30.4	48.6	2.50	0.08	‐0.1
RIRC0045	240	365	125	28.6	51.8	1.81	0.07	‐0.3
RIRC0046	112	164	52	34.6	46.0	1.37	0.06	‐1.0
RIRC0046	178	372	194	34.2	45.8	1.76	0.07	‐1.0

Notes: 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

TABLE 3 Die Hardy Range – DTR Summary Results for Holes RIRC043-046

Hole No.	From	To	Fe %	SiO2%	Mass Recovery
RIRC043	86	112	70.2	3.5	36.5
RIRC044 RIRC044	60 176	168 220	68.6 70.4	4.8 3.2	37.2 36.8
RIRC045 RIRC045 RIRC045 RIRC045*	70 124 254 280	102 224 274 365	69.6 69.1 69.0 69.1	3.7 4.9 4.7 4.4	38.2 41.2 41.0 40.2
RIRC046 RIRC046*	112 188	164 372	70.0 69.7	2.8 3.9	45.1 41.9
**Average **			69.4	4.1	40.3

Notes:

Test intervals – 4 metres DTR procedure completed by Spectrolab, Geraldton Nominal P80 passing 50micron grind Summary based on 163 analyses

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Quarterly Activities Report

For the Three Months Ended 30 June 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 June 2011

Figure 5: Die Hardy Range – Cross Section – Line 2

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RC Drilling at the Die Hardy Range project has intersected massive magnetite mineralisation over a width of approximately 250m on the first section completed. 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 metallurgical test work that commenced several months ago, as reported previously, forms an integral part of the characterisation of the magnetite mineralisation.

Davis Tube Recovery (DTR) metallurgical 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.

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Quarterly Activities Report

For the Three Months Ended 30 June 2011

163 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.

RC drilling of approximately 2km of strike length will continue before resource estimation is undertaken. Radar intends to produce a maiden JORC compliant resource statement in October/November this year. A scoping study into the project will also commence in 2011 to identify key project drivers and infrastructure solutions.

Johnston Range

Hematite Targets

Further ground mapping and geophysical interpretation has 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.

All approvals are now in place and drill testing of the targets is scheduled for coming months. 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

An RC drilling programme was completed in May 2011 with 11 holes drilled for 1,844m. The drilling targeted magnetite mineralisation from several prospects for metallurgical test work and assessment.

The objectives of the RC drilling were to:

• further test the magnetite potential at Johnston Range by establishing the depth continuity of the magnetite mineralisation exposed at surface;

• test the continuity of mineralisation widths and grades along strike; and,

• provide samples for metallurgical test work to determine the zones with the best metallurgical properties prior to further drilling.

Magnetite targets were tested on the western limb of the 40km long Johnston range BIF complex (Figure 6). Assaying was completed based on a 2m sample length. Details of the holes are shown in Table 4 with assay results in Table 5 below. Metallurgical assessment has commenced using DTR test work and using Calibre Global as metallurgical consultants.

A number of significant intersects of magnetite were identified in areas not previously drill tested, particularly at the Shipley and Rowling prospects. The wide spaced drilling served to confirm the continuity of the magnetite in these areas and also at the Muldoon prospect.

Once metallurgical tests are completed this data will enable resource definition drilling to be targeted. 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 later in 2011 and 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.

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Quarterly Activities Report For the Three Months Ended 30 June 2011

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Figure 6: Johnston Range – Drill hole location
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Quarterly Activities Report For the Three Months Ended 30 June 2011

TABLE 4 Johnston Range Drilling Details

Drill Hole Number	Drill Hole Data and Location	Drill Hole Data and Location	Drill Hole Data and Location	Drill Hole Data and Location	Drill Hole Data and Location	Drill Hole Data and Location
	Prospect	Length	East	North	Dip	Azimuth
RIRC032	Muldoon	60	714297	6711805	‐60	70
RIRC033	Muldoon	134	714556	6711559	‐45	60
RIRC034	Muldoon	276	713127	6712721	‐60	250
RIRC035	Muldoon	222	713258	6711891	‐60	255
RIRC036	Muldoon	66	713218	6711789	‐60	070
RIRC037	Muldoon	102	712550	6711658	‐50	250
RIRC038	Muldoon	132	712104	6712894	‐60	280
RIRC039	Rowling	210	711224	6716433	‐60	290
RIRC040	Shipley	198	709124	6724705	‐60	80
RIRC041	Shipley	288	709131	6724023	‐60	100
RIRC042	Rowling	156	710721	6717817	‐60	80

TABLE 5 Johnston Range Assay Results

Hole No.	From	To	Interval	Fe %	SiO2%	Al2O3%	P%	LOI %
RIRC0032	0	52	52	36.1	36.3	4.09	0.05	4.2
RIRC0033+	56	94	38	33.6	46.3	0.96	0.06	2.5
RIRC0034	82	134	52	35.2	44.9	0.62	0.07	‐1.1
RIRC0034	206	270	64	34.7	45.1	0.95	0.07	‐1.1
RIRC0035	60	98	38	34.0	45.5	1.39	0.07	‐0.9
RIRC0035	166	206	40	33.2	47.1	1.38	0.08	‐0.8
RIRC0036	14	58	44	39.5	35.8	2.55	0.06	3.5
RIRC0037*	0	102	102	32.5	44.8	2.84	0.04	3.4
RIRC0038	0	46	46	35.7	37.2	4.45	0.05	6.1
RIRC0038	66	188	122	32.4	44.2	2.53	0.06	2.2
RIRC0039	66	194	128	33.4	44.1	1.96	0.06	0.0
RIRC0040	18	178	160	33.3	43.8	1.70	0.05	1.4
RIRC0041	146	182	36	30.4	46.3	2.54	0.06	‐0.4
RIRC0041	208	230	22	32.7	43.4	2.36	0.06	‐0.6
RIRC0041	246	262	16	32.5	44.1	2.30	0.06	‐0.3
RIRC0042	20	50	30	41.3	21.2	8.43	0.08	9.7

Notes: 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 + Assays from 122m‐134m pending

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Quarterly Activities Report

For the Three Months Ended 30 June 2011

Iron Rights Acquisition

Radar has completed the agreement to acquire a significant package of iron ore rights from Southern Cross Goldfields Ltd (SXG) in the central Yilgarn iron district of WA which was initially agreed in February 2011.

The iron rights, covered by tenement holdings of 913 km[2] , more than triple Radar’s current land position (previously around 300 km[2] ). SXG will continue to hold the tenement titles with Radar having the right to access, explore and exploit all iron and associated minerals. Over 80 linear kilometres of Banded Iron Formation (BIF) has been identified on the tenements. The ground has had limited exploration for iron mineralisation in the past and is considered highly prospective for direct shipping hematite ores and magnetite mineralisation.

The acquisition was completed on July 4 with the signing of a joint mineral rights agreement to ensure compatible exploration and mining activity between Radar and Southern Cross and to maximise potential synergies between the companies.

Regional Exploration

Regional geological reconnaissance was continued on existing Radar tenements and those recently acquired from SXG. A number of areas have been identified as containing outcropping hematite mineralisation and magnetite potential is widespread.

Being a large holding with significant potential in a number of areas, Radar will use geophysical techniques along with field validation to define drill targets. While the ground has potential for both hematite and magnetite mineralisation, Radar intends to focus on identifying hematite targets in the first instance for drill testing later in 2011 and 2012.

A helicopter borne aero-magnetic survey has been commissioned by Radar and will be flown in August/September over significant parts of the acquired tenure. This data will be used in conjunction with ground mapping and possible focussed gravity surveys to define hematite targets for future drill testing.

One zone of potential hematite mineralisation has already been identified in the Evanston Project area adjacent to Johnson Range (Figures 2 & 7) through ground reconnaissance. The zone is approximately 2 km long and lies along strike and on the same BIF unit that hosts the 20Mt+ Deception hematite deposit of Cliff’s Natural Resources and Mineral Resources Ltd to the south.

10 rock chip samples have returned assay grades averaging 60% Fe (Table 6). Drill approvals are pending with the intent to drill test the zone when the hematite drill testing of the nearby Johnston Range hematite targets commences in coming months.

TABLE 6 Evanston Project – Drilling Rock Chip Sample Details

Sample No.	Easting	Northing	Fe%	**SiO2% **	**Al2O3% **	P%	LOI%
10452 10453 10454 10455 10456 10457 10458 10459 10460 10461	732018 731935 732305 732368 732427 732484 732533 732600 732867 732965	6712600 6712559 6712967 6713051 6713143 6713234 6713306 6713382 6713694 6713810	59.98 56.03 60.89 60.11 62.53 61.24 59.62 61.06 57.35 61.16	5.25 7.86 2.93 4.52 2.20 4.39 4.57 4.28 5.36 2.87	2.65 3.93 2.42 3.18 1.15 3.25 4.26 3.23 5.30 1.49	0.04 0.03 0.04 0.05 0.11 0.04 0.04 0.04 0.03 0.11	4.66 6.14 5.41 5.69 5.74 4.26 5.80 5.74 5.66 7.48
**Average **			60.00	4.42	3.09	0.05	5.66

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Quarterly Activities Report

For the Three Months Ended 30 June 2011

Figure 7: Evanston Project – Rock Chip Location Plan

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Corporate

Radar Iron’s entitlement issue of options closed on 21 April 2011. Shareholders subscribed for 16,614,773 shares under their entitlements with the remaining shortfall of 4,011,931 being placed in July. The company raised a total of $412,534 from the entitlements issue.

Radar’s cash position at the end of the quarter was $4.75 million. Radar has commitments to pay $1 million to Southern Cross Goldfields Limited in the next quarter as final payment for the acquisition of iron rights

Announcements

The Company made the following announcements during the quarter.

Date	Headline
21/07/2011	Allotment of Entitlements Issue Shortfall
12/07/2011	DieHardyRangeMagnetite- Metallurgical Results
11/07/2011	Investor PresentationJuly2011
6/07/2011	SecondaryTradingNoticePursuant 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
31/05/2011	ExplorationUpdate- Drilling Continues
6/05/2011	Change of Director`s Interest Notice x 2
6/05/2011	Correction to Appendix 3X x 2
2/05/2011	Allotment of EntitlementIssue Options
29/04/2011	Drill Testing Commenced at Johnston Range
28/04/2011	Notificationofundersubscription

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Quarterly Activities Report For the Three Months Ended 30 June 2011

For or on behalf of Radar Iron Ltd

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 June 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 (12 months) $A’000
	- (703) - - (104) - 73 - - -	- (1,597) - - (537) - 131 - - -
	(734)	(2,003)
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)	- - (102) - - - - - -	(550) (120)* (84) - - - - - 18
	(102	(736)
	(836)	(2,739)

• Cash paid in acquisition of Radar Resources Pty Ltd, as disclosed in the Prospectus dated 5 Nov 2010.

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(836)	(2,739)
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	332 - - - - (4)	7,655 - - - - (673)
Net financing cash flows	328	6,982
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	(508) 4,751 -	4,243 - -
	4,243	4,243

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
		89
		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
	1,900*
	-
	-
	150
Total	2,050

• The Company has commitments to pay $1 million to Southern Cross Goldfields Limited in the next quarter as final payment for the acquisition of iron rights as announced on 16 February 2011. This has been included in the above estimated exploration and evaluation cash flows.

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)	2,243	1,751
	2,000	3,000
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	4,243	4,751

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 of quarter	Interest at end of quarter

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
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	16,614,773 20,375,000 2,375,000 39,364,773	16,614,773 -	Exercise price 45 cents 25 cents 30 cents	Exercise date 30/04/12 30/11/13 31/05/14
	16,614,773	16,614,773	45 cents	30/04/12
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: 28 July 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.