ZEOTECH LIMITED — Interim / Quarterly Report 2011

Jul 27, 2011

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Quarterly Report

For the three months ending June 2011

28 July 2011

Laconia Resources Limited

ASX Code: LCR ABN: 29 137 984 297

Summary & Highlights for the Quarter

Lennons Find Base Metal Project

• Drilling commenced at Lennons Find.

Level 1, 41‐43 Ord Street West Perth WA 6005

PO Box 1151, West Perth WA 6872

Tel: 08 9486 1599 Fax: 08 9486 7899 Email: info@laconia.com.au www.laconia.com.au

Capital Structure

81.92 million shares 24.1 million unlisted options

Board Members

Michael Sharwood Chairman Ian Stuart Managing Director

Matthew Howison Non‐Executive Director

Graeme Smith Company Secretary

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• Ground based fixed loop electromagnetic survey complete.

• Significant near surface silver values at Lennons Find greatly enhance the project’s potential. At current commodity prices, equates to a Zinc Equivalent of grade 16% at Lennons Find.

• Project has a JORC Code Inferred Resou rce of 853,000t @ 7.7% Zn, 1.8% Pb, 0.7% Cu and 115g/t Ag at the Hammerhead sulphide zone. Mineralisation is open down dip and along strike.

• Project hosts four other VHMS prospects over a 4km strike length and contains significant shallow mineralisation which requires additional drilling to define a resource.

Yandicoogina Project

• High grade gold values and anomalous base metal results from rock chips confirm the potential to contain significant base metal and precious metal mineralisation.

Kookynie Gold Project

• 12 hole, 1,200m RC drilling program complete.

• Drilling intersected gold mineralisation with a best result of;

o 2m @ 3.9g/t Au (including 1m @ 6.5g/t Au)

7 01 Mile Project

• Regional Auger drilling program in progress.

Corporate

• Cash at bank at quarter end was $2.2 million.

Exploration Planned for September Quarter

• Lennons Find. Resource definition and exploration drilling.

• Barramine. Co-funded exploration drilling.

• 701 Mile. Analysis of auger drilling results.

PAGE 1

Laconia Resources – June 2011 Quarterly Report

Exploration Activities

Lennons Find Project – Base Metals, East Pilbara WA (95% Laconia)

M45/368, E45/3293

Drilling has commenced on Laconia’s maiden drilling program at its Lennons Find base metals project, near Marble Bar.

The Company is intent on increasing the Resource base at Lennons Find. The drill program will be a 2,000 metre Reverse Circulation program, which will test the Tiger, Hammerhead South, Hammerhead North, Shovel Nose, Mako and Bronze Whaler EM anomalies (refer to Figure 1). Results from the drill program will be released as soon as they become available.

The project currently has a JORC Code Inferred Resource of 853,000 tonnes grading 7.7% Zn, 1.8% Pb, 0.7% Cu and 115g/t Ag , at the Hammerhead sulphide zone, and potentially may host an additional five volcanic hosted massive sulphide (VHMS) style base metals prospects.

The Lennons Find project area has the potential to host VMS/VHMS-type base metals and silver deposits. These style deposits often occur in clusters, and the Company is of the view that there may be the potential for significant tonnages of ore at the Tiger, Hammerhead South and Bronze Whaler prospects, where there are ore grade intercepts in historic drilling to a vertical depth of 2030 metres below gossaneous and copper oxide stained outcrop.

There is also the potential for new discoveries to be made on coincident EM and geochemical targets at Shovel Nose and Mako, at the same stratigraphic horizon as the current resource at Hammerhead.

Also at Lennons Find, a review of the resource model has indicated significant silver mineralisation, near surface. Based on current commodity prices, the Zinc Equivalent* grade is 16% which greatly enhances the prospectivity of the project.

Precious metals are commonly associated with VHMS deposits and it is reasonable for gold mineralisation to be associated with the zinc/copper/lead/silver assemblage found at the Lennons Find project. Gold has been sporadically assayed throughout the current resource, but it will now be systematically incorporated in the assay suite in any new drilling conducted by Laconia.

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Laconia Resources – June 2011 Quarterly Report

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Figure 1: Lennons Find Project, EM targets over maximum down hole copper in existing drill holes and Cu in soils anomalism, June 2011.

Given the historically high price for precious metals at present, Laconia has commenced a shallow Reverse Circulation drilling program to define the extent of mineralisation. This will be conducted in conjunction with resource definition drilling on the current resource at Lennons Find. Significant silver mineralisation along strike at the Bronze Whaler, Grey Nurse and Tiger prospects at the project also exists.

About the Lennons Find Base Metal Project

Laconia acquired a 95% interest in the Lennons Find project (M45/368) from Jabiru Metals Limited in March 2011. At the same time it announced the acquisition of the nearby Yandicoogina base metals project from Shaw River Resources (ASX: SRR). The two projects are located approximately 40 km from Marble Bar on the southern edge of the Mt Edgar Granitoid Complex, in the East Pilbara region of Western Australia (see Projects Location Map attached).

Within the project areas outcropping gossanous veins with elevated base metals grades occur at a consistent horizon in the Duffer Formation, and it is this horizon which is the current focus for Laconia’s base metals exploration.

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Laconia Resources – June 2011 Quarterly Report

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Figure 2- Lennons Find Project Geology

*Zinc Equivalent Calculation

Zinc equivalent (Zn Eq) calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent Zinc percentage. These results are taken from the Lennons Find JORC Code Inferred resource and no allowance is made for metallurgical recoveries. No definitive metallurgical test work has been conducted on the project at this stage of its development, however, it is the Company’s opinion that the elements expressed here have a reasonable potential to be recovered as evidenced in similar deposit styles in the Pilbara region of Western Australia.

Zinc Equivalent conversion factors and long term price assumptions used are as follows:

Zinc Equivalent Formula = Zn% + (Cu(%)x4) + (Pb(%)x0.9) + (Ag(ppm)x0.0364)

Price Assumptions: Zn(US$1.00/lb), Cu(US$4.00/lb), Pb(US$0.90/lb), Ag(US$25/oz)

Yandicoogina Project – Base Metals, East Pilbara WA

(100% Laconia)

At the Yandicoogina project, the previous owners (Shaw River Resources, ASX: SRR) conducted a comprehensive rock chip sampling program in November 2010, and collected 123 samples which were analysed for Au, Ag, Cu, Pb, Zn, Mo, Sb, Sn, and W.

The program tested areas containing ferruginous shears and gossans and historical gold workings. It outlined an area of anomalous gold and base metal geochemistry centred approximately 3km east of the Marble Bar–Nullagine road (see Table 1 below for significant gold and base metal rock chip sample results).

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Laconia Resources – June 2011 Quarterly Report

Exploration results from Yandicoogina confirm the prospectivity of the Duffer Formation to contain significant base metal and precious metal mineralisation.

Table 1: Significant results gold and base metal rock chip sampling.[1]

Sample ID	Northing	Easting	Au(ppm)	Ag(ppm)	Cu(ppm)	Zn(ppm)	Pb(ppm)
SR13925	7626460	200044	148	23.2	286	1190	1180
SR13927	7626100	199938	30.6	2.55	7	20	2
SR13303	7635954	213691	12.2	54.9	113000	39600	21400
SR13995	7625436	195202	8.49	3.65	3220	41	3
SR13903	7628059	205898	8.21	1.1	12	31	18
SR13926	7626100	199938	6.39	0.55	26.5	15	14
SR13906	7626876	205871	4.39	23.5	37200	4300	111

Note 1: Samples reported are rock chips. Projected Coordinate System – GDA 94 - MGA zone 51. Analysis is by Ultratrace Laboratories Perth, using Aqua Regia Digest and Inducting Coupled Plasma (ICP) Mass Spectrometry.

About the Yandicoogina Project

The Yandicoogina Project (E45/3293) is less than 10km SW along strike from the Lennons Find Project (Figure 1), 50km north of Nullagine and 46km southeast of Marble Bar. The area is easily accessible by numerous graded tracks and the Nullagine to Marble Bar road transects the western side of the Project.

The Yandicoogina Project includes a significant strike length (some 13km) of felsic volcanics and sediments of the Duffer formation, which host the Lennons Find Mineralisation. Within E45/3293 the Duffer Formation is known to host gossaneous stringers with elevated gold and base metal grades.

The Project lies adjacent to, and west of, the Yandicoogina gold mining centre which produced 199kg of gold from 3,293 tonnes of ore (yielding an average grade of 61.5g/t from 1897-1985). A number of shallow workings involving shafts, pits and local alluvial workings lie within the Project area.

An outline of the anomalous zone is presented in Figure 3. A number of high grade results outside the area defined in Figure 3 are associated with historical gold workings

1 Refer ASX Release 19 May 2011

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Laconia Resources – June 2011 Quarterly Report

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Figure 3: Anomalous gold and base metal zone defined from rock chip sampling at Yandicoogina

Coordinates of the anomalous gold and base metal zone defined in Figure 2.

NW Corner of Anomalous Zone	SE Corner of Anomalous Zone
198400mE 7626600mN	200600mE 7626200mN

Barramine Project – Gold and Base Metals, East Pilbara WA

(100% Laconia – excluding manganese and iron)

E45/3312, E45/3233, E45/3234

Laconia Resources has been granted $150,000 in funding in a co-founding arrangement under the WA State Government Exploration Incentive Scheme. Laconia will be required to match the $150,000 funding grant on a dollar for dollar basis on direct drill spending.

Laconia has identified four primary drill targets at its Barramine project from the Company’s detailed geochemical and geophysical surveys, that will test Mississippi Valley Type Deposits (MVT) and Volcanic massive sulphide (VMS) style deposits within the project area for base metal (Cu, Pb and Zn) and precious metal (Au and Ag) mineralisation (see figure 4 for proposed drilling locations).

The Company is delighted by this further recognition of the prospectivity of the Barramine region and the further validation of its comprehensive geological program conducted on the project to date. It is Laconia’s intention to drill test these targets in Q4 this year.

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Laconia Resources – June 2011 Quarterly Report

The program, to date, combined with regional geological mapping, petrography and PIMA alteration studies show the Barramine project has potential for various mineralisation styles. These include:

• Mississippi Valley Type (MVT) – base metal (Pb and Zn) mineralisation associated with the overlying dolomite and chert breccias.

• Volcanic associated – VHMS-style base metal (Cu, Pb and Zn) and precious metal (Au and Ag) mineralisation associated with the underlying mafic to intermediate (and felsic) volcanics and volcaniclastics.

• Structurally controlled and replacement style hydrothermal gold (Cu and Ag) mineralisation within limestone and chert breccia units, similar to the Barramine and Camel Hump prospects, and

• Epithermal-style gold-silver mineralisation.

The Barramine project’s geological position is along strike from known base metal occurrences of Barramine, Camel Hump, Ragged Hills and Braeside. Previous exploration has discovered anomalous zinc and copper in highly altered pyritic acid volcanics in a prospective geological environment for base metal mineralisation.

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Figure 4: Barramine XTEM late time image and proposed drill hole locations

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Laconia Resources – June 2011 Quarterly Report

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Figure 5: Laconia’s Base metal project location

701 Mile Project – Gold and Base Metals, East Pilbara WA

(80% Laconia – excluding manganese and iron)

E52/2232, E52/2688

An auger drilling program is currently in progress. Approximately 1,800 auger holes have been planned to obtain samples for geochemical analysis. Large areas of the tenement are overlain by cover including alluvial wash, calcrete and sand. The program is 80% complete with initial assays results from this work expected in August.

The auger traverses have been planned on 400 x 400m spacing over areas of favourable geology proximal to magnetic structures moving to 800 x 800m spacing’s in other parts of the tenement.

The 701 Mile project lies approximately 80km southeast of Newman in WA within the north eastern portion of the Collier Basin (formally termed the Bangermall Basin) and is transected by a regionally significant structure called the Tangadee lineament.

PAGE 8

Laconia Resources – June 2011 Quarterly Report

The area has little previous exploration with the project scale aeromagnetics indicating a north easterly trending structural grain, interpreted to be a continuation of the Tangadee Lineament, with linear magnetic highs seemingly wrapping around mafic intrusions.

The project is prospective for structurally controlled mineralisation adjacent to mafic intrusions and also in differentiated basal portions of mafic sills.

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Figure 6: 701 Mile Project geology and district mineral occurrences

Mooletar Magnetite Project, Mount Magnet WA

(100% Laconia)

E58/384, M58/110, M58/266, M58/349, P58/865, P58/1053, P58/1054, P58/1055, P58/1056, P58/1129, P58/1383, P58/1384, P58/1385, P58/1386, P58/1387, P58/1388, P58/1408, P58/1409, P58/1410, P58/1411, P58/1412, P58/1413, P58/1414, P58/1415, P58/1476, P58/1477, P58/1478, P58/1479, P58/1480, P58/1481, P58/1482, P58/1483, P58/1484, P58/1485, P58/1495, P58/1496, P58/1497, P58/1498, P58/1499, P58/1500, P58/1501, P58/1511

Laconia is actively seeking avenues to advance this project including joint venture or farm-in proposals. Laconia is evaluating the results of a recent desk top study from engineering firm Engenium that looked at various processing, infrastructure and logistic option for project development (see ASX announcement, 4 February 2011).

The Mooletar Magnetite exploration target has been estimated at 240 million tonnes at an expected grade between 30 to 35% Fe. The Exploration Target sits within a tonnage range of 216- 264Mt, which is ±10% of the estimate of 240Mt.[2]

2 The potential quantity and grade of the Mooletar Project is conceptual in nature and there has been insufficient drilling to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a mineral resource.

PAGE 9

Laconia Resources – June 2011 Quarterly Report

The Mooletar Magnetite Project lies approximately 330km east of Geraldton, adjacent to sealed roads, and approximately 125km from the proposed Mid-West infrastructure corridor rail system that would access the Oakajee Port infrastructure.

The Mooletar Magnetite Project is 100% owned by Laconia and comprises an area of 75km2 covering folded Archaean greenstone belt. The Project is situated over the eastern limb of the Mount Magnet greenstone belt and represents an area with little previous exploration proximal to a major gold producing area.

Kookynie Project - Gold, Kookynie Eastern Goldfields WA

(100% Laconia)

P40/1255, P40/1256 E40/260

A 12 hole, 1,200 metre Reverse Circulation drilling program was completed at the 100% owned Kookynie Gold Project, near Kalgoorlie.

The drill program commenced in March and was designed to test down dip and plunge extensions of previous intersections at the Lily Prospect within the Kookynie project area (below a line of old workings at the Lily Prospect) on P40/1255.

A conjugate reef system was identified with four angled holes from the drill program intersecting gold mineralisation in the footwall vein, and produced a best result of 2 metres @ 3.9g/t Au (including 1 metre @ 6.5g/t Au from 38 metres down hole), at hole KRC004. Significant intersections are presented below in Table 2.

Table 2: Kookynie significant intersections[3]

Hole_ID	East	North	Azimuth	Dip	From (m)	To (m)	Interval	Au
							(m)	(ppm)
KRC001	348231	6750284	300	‐60	64	65	1	0.27
KRC002	348204	6750302	300	‐60	42	43	1	0.74
KRC004	348180	6750255	300	‐60	38	39	1	1.3
KRC004	348180	6750255	300	‐60	39	40	1	6.5
KRC007	348102	6750142	300	‐60	30	31	1	0.87

Note 1: Sampling was conducted on 4 composite metre intervals with some selected samples sampled on a 1 metre basis. Samples being assayed for Au using aqua regia digest with AAS finish. Projected Coordinate System ‐ GDA94, MGA Zone 51.

The host rock at the Kookynie project is a magnetic dolerite/gabbro unit. The Lily Prospect is situated on one of a number of conjugate vein sets with historical gold workings.

Laconia has also acquired a large exploration lease immediately to the southwest of the Lily Prospect (E40/260).

3 Refer ASX Release 31 May 2011

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Laconia Resources – June 2011 Quarterly Report

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Figure 7: ‘Lily Prospect’ Interpreted aerial image with drill collars and down hole intercepts

PAGE 11

Laconia Resources – June 2011 Quarterly Report

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Figure 8: Kookynie interpreted drill section

The drill program was Laconia’s maiden drill campaign at the Kookynie project. The project is host to a number of old workings, including the Lily Prospect, and some significant intersections have previously been recorded at Lily which highlighted the prospectivity for the project to host small high-grade deposits.

The Kookynie project is located approximately 200km from Kalgoorlie (see Project Location Map attached), in the Melita Domain of the Keith–Kilkenny Tectonic Zone, within the NNW-trending Archaean Malcom greenstone belt. The Keith-Kilkenny Tectonic Zone in the vicinity of Kookynie is a triangular shaped area hosting a succession of Archaean mafic-ultramafic igneous and metasedimentary rocks.

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Laconia Resources – June 2011 Quarterly Report

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Figure 9: Kookynie Project Location Map

Gimlet Project – Gold, Kalgoorlie WA

(80% Laconia – 20% Pandell)

E26/120

No work completed on this Project this quarter.

Waukarlycarl y Project – Uranium, East Pilbara WA

(100% Laconia)

E45/3763

No work completed on this Project this quarter.

Project Generation

The company continues to review joint venture/acquisition opportunities as well as maintain its own project generation strategy both in Australia and internationally.

Corporate

• Laconia has 463 shareholders with the top 20 holding 58% of the total issued capital.

• Cash at bank at the end of the quarter was $2.2 million.

Further reports and an overview of Laconia’s Projects can be viewed on the Laconia website (www.laconia.com.au).

PAGE 13

Laconia Resources – June 2011 Quarterly Report

Outlook for Sept 2011 Quarter

Lennons Find

• Resource definition drilling, targeting mineralised prospects along strike from the known resource at Hammerhead to increase global tonnage on the resource.

• Drill targeting for strike extensions of mineralisation and down dip mineralisation

Barramine

• Co-funded exploration drilling on defined targets.

701 Mile

• Collation and interpretation of auger drilling results.

For further information on Laconia Resources Limited please contact:

Ian Stuart James Moses Managing Director Media and Investor Relations Laconia Resources Limited Mandate Corporate Phone: 08 9486 1599 Mobile: 0420 991 574 istuart@laconia.com.au james@mandatecorporate.com.au

or visit our website at: www.laconia.com.au

Competent Persons Statements

Information in this report relating tho The Mooletar Magnetite Project and has been complied by Mr Darryl Mapleson. Mr Darryl Mapleson who is a member of Australasian Institute of Mining and Metallurgy has compiled the information within this report that relates to mineralisation. Mr Mapleson has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken 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 and consents to the inclusion of this information in the form and context in which is appears in this report. [1] The potential quantity and grade of the Mooletar Project is conceptual in nature and there has been insufficient drilling to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a mineral resource.

Basis of assumption for Zinc equivalent grade, Lennons Find Project

The calculation and commodity prices used are as per Laconia’s ASX release 19 May 2011. This was compiled by Mr Ernie Poole who is a member of the Australasian Institute of Mining and Metallurgy and has compiled the information within this report that relates to mineralisation for the Lennons Find, Barramine, Yandicoogina, 701 Mile and Kookynie Projects. Mr Poole is a full time employee of Laconia Resources Limited and has sufficient experience relevant to the style of mineralisation and type of deposits under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration

PAGE 14

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

	Laconia Resources Limited
	ABN 29 137 984 297 Consolidated statement of cash flows
			30 June 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000		Year to date (12 months) $A’000
		- (378) - - (179) - 46 - - -		- (944) - - (865) - 165 - - -
		(511)		(1,644)
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)		- - (66) - - - - - -		- - (84) - - - - - -
		(66)		(84)
		(577)		(1,728)

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(577)	(1,728)
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 of quarter	(577) 2,831 -	(1,728) 3,982 -
	2,254	2,254

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	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
			77
			-
1.25 Explanation necessaryfor an understandingof the transactions Item 1.23 includes aggregate amounts paid to directors including salary, directors’ fees, consulting fees and superannuation. 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 11,700,000 ordinary shares with a total deemed cost of $1,153,000 were issued as consideration for the acquisition of prospects. 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest		Explanation necessaryfor an understandingof the transactions
		Item 1.23 includes aggregate amounts paid to directors including salary, directors’ fees, consulting fees and superannuation.
	11,700,000 ordinary shares with a total deemed cost of $1,153,000 were issued as consideration for the acquisition of prospects.
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas 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
	Nil	Nil
	Nil	Nil

• See chapter 19 for defined terms.

Appendix 5B Page 2

17/12/2010

Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

	4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration			$A’000
				325
				-
				-
				175
	Total			500
	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)	364		91
		1,890		2,740
		-		-
		-		-
	Total: cash at end of quarter(item 1.22)	2,254		2,831

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
	E52/2688	Earn In Right	Nil	80%

• 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	81,920,010	70,420,010
	11,700,000	11,700,000
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	3,000,000 200,000 400,000 20,500,000	- - - -	Exercise price 20 cents 15 cents 8 cents 20 cents	Expiry date 31 March 2013 31 August 2013 16 May 2014 30 September 2014
	400,000	-	8 cents	16 May 2014
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms. Appendix 5B Page 4

17/12/2010

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 5).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: (Company secretary)

Date: 28 July 2011

Print name: Graeme Smith

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.

== == == == ==

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 5