ZEOTECH LIMITED — Interim / Quarterly Report 2012

Apr 29, 2012

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Quarterly Report

For the three months ending 31 March 2012

30 April 2012

Laconia Resources Limited

ASX Code: LCR ABN: 29 137 984 297

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

115.57 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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Summary & Highlights for the Quarter

Rasuhuilca Gold-Silver Project acquisition, Peru

• Due Diligence on proposed acquisition of Rasuhuilca Project successfully completed.

• Project is a high-grade gold and silver asset with nearterm development potential & major exploration upside.

• Acquisition, when complete, will establish Laconia as an emerging precious metals producer and complement its existing portfolio of precious and base metals projects in WA.

Lennons Find Base Metals Project

• Preliminary test work completed on composite samples from the oxide Resource; sulphuric acid leach extracted 75% of the copper and 87% of the zinc.

• Subsequent cyanide leach tests extracted 87% of the gold and 94% of the zinc.

• Geological and litho-geochemical study completed in preparation for detailed field mapping and interpretation of the mineralising system.

• Total mineral Resource is; 1.80Mt @ 82g/t silver, 0.26g/t gold, 0.2% copper, 1.4% lead and 5.1% zinc .

701 Mile Project

• Phase 2 in-fill geochemical auger drilling commenced during the quarter.

Barramine Project

• 6,500 soil samples collected; gold in soil anomalism identified two target areas for infill soil sampling.

Corporate

• Cash at bank at quarter end was $2 million.

Exploration Planned for June 2012 Quarter

• Reverse Circulation (RC) drilling targeting additional oxide resources at Lennons Find.

• Metallurgical test work on bulk samples from Lennons Find oxide resources.

• RC drill testing of co-incident XTEM and geochemical targets at Barramine project.

• Complete Phase 2 infill and regional auger drilling at 701 Mile.

• Field mapping and litho-geochemical studies at Lennons Find.

• Mapping of banded iron formations, and flying an airborne survey at Mooletar Project.

PAGE 1

Laconia Resources – March 2012 Quarterly Report

Rasuhuilca Gold-Silver Project acquisition, Peru (100% Laconia)

In November the Company announced an agreement to acquire the Rasuhuilca advanced goldsilver development project in Peru. The project is located approximately 500km south east of the capital Lima, in southern part of the country (see Project Location map on following page).

During the quarter, the Company announced that it had successfully completed its due diligence over the Rasuhuilca project, and would proceed with the acquisition of the project.

The acquisition is now subject to due regulatory process, which is underway, and to the approval of Laconia shareholders. A meeting will be convened for this purpose in the near future.

About the Rasuhuilca project

The Rasuhuilca project is an advanced, high-grade gold and silver development project with outstanding near-term development potential and major exploration upside.

A Feasibility Study was conducted at the project in 2008 and (post completion of the acquisition) Laconia will aim to bring it into production within 12-18 months and use revenues to unlock the project’s major exploration upside. The acquisition will establish Laconia as an emerging precious metals producer and will complement the Company’s existing portfolio of precious and base metals projects in WA.

Acquisition Consideration

The project will be acquired from Perth-based exploration company Gold Mines of Peru Limited. Consideration for the acquisition is:

• 42.055m ordinary Laconia shares;

• 14.5m performance shares;

• $120,000 paid over 6 months to a third party;

• $500,000 from production revenue only if production revenue is reached within 5 years;

• Dr Saliba Sassine, Chairman of Gold Mines of Peru, will join the Laconia Board on completion of the acquisition.

The project currently has an Inferred Resource estimate[1] of; 360,000t @ 1.97g/t Au and 179g/t Ag (at a 2.5 g/t AuEq cut-off[2] ).

This Resource statement was based on historical data and there was a lack of independent QAQC data available, which resulted in reporting of the Resource in the Inferred category. Once independent sampling has been completed to confirm the tenor of the historic data, it is envisaged that the Resource category and size will be upgraded, so that it can be used as the basis for mine planning activities.

1 Refer to ASX announcement 25 January 2012.

2 All cut offs based on an Xg/t Au Eq are conceptual in nature only. There has been insufficient metallurgical test work to date to determine eventual metallurgical recoveries and it is uncertain that the conceptual cut offs used below will be appropriate following further metallurgical test work.

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Laconia Resources – March 2012 Quarterly Report

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Rasuhuilca Project location map

. Exploration Activities

Preliminary Metallurgical test work on Oxide Resource at Lennons Find Project – Base Metals, East Pilbara WA (95% Laconia)

M45/368, E45/3293

During the quarter the Company announced the results from preliminary metallurgical leach tests at Lennons Find, based on Reverse Circulation (RC) drill chips from the oxide component of the project’s Resource[3] .

Results to date have been encouraging and RC drilling will commence in the June quarter to increase the oxide Resource. Basic metallurgical testing will continue, including column leach testing of coarser material with cyanide leach. Future work will focus on column leach testing at coarser crush sizes, which will more closely represent the conditions expected in a small scale/low capital cost heap leach operation.

3 Refer to ASX announcement 15 March 2012.

PAGE 3

Laconia Resources – March 2012 Quarterly Report

Metallurgical Testwork

The metallurgical testing of RC chips from the oxide Resource was conducted at ALS AMMTEC metallurgical laboratories in Perth, under the supervision of the company’s consulting metallurgist, Mr Phil Hunt of Phil Hunt and Associates Pty. Ltd., Perth.

The preliminary leach tests on RC chips produced the following results[4] :

• After 4 days of intermittent bottle roll a sulphuric acid leach extracted 75% of the copper metal and 87% of the zinc metal.

• After 4 days of intermittent bottle roll a subsequent cyanide leach extracted 87% of the gold and 94% of the silver .

Upcoming Work

The results of the leach tests of the oxide Resource indicate that the metals are leachable, and, on this basis the Company will explore for additional oxide Resources. The next phase of RC drilling will target resource extensions at Bronze Whaler and Tiger prospects plus exploration drilling at the Grey Nurse and Mako prospects, within the project area.

Laconia will also take bulk samples of the oxide Resource for column testing so that greater size fractions can be assessed.

Consulting Geologist Dr Susan Belford will progress detailed mapping and litho-geochemical sampling. Her work will concentrate on understanding the overall mineralising system at Lennons Find, and this information will be incorporated into an exploration model for the Lennons Find area.

The sulphide ore Resource at the Hammerhead deposit at Lennons Find appears to have a south east plunging high grade zone which, to date, has been drilled to a vertical depth of 300 metres. Following the drilling to target additional oxide Resources the company will rank its exploration targets, with a view to discovering additional sulphide Resources on the highest ranked targets.

About the Lennons Find Base Metal Project

The total Mineral Resource at Lennons Find is:

• 1.8Mt @ 82g/t silver, 0.26g/t gold, 0.2% copper, 1.4% lead and 5.1% zinc (in Indicated and Inferred categories, at various Zn Equivalent cut-off grades[5] ).

• Resource also includes an oxide Resource of; 200,000t @ 89g/t silver, 0.37g/t gold, 0.2%copper, 1.2 % lead and 1.4% zinc[6] .

The Mineral Resource at Lennons Find was estimated by Optiro Pty Ltd. in accordance with the JORC Code 2004 and incorporated results from a successful 42 hole, 1,939 metre drilling campaign conducted at the project in the latter part of 2011[7] .

4 Refer to Appendix 1

5 All cut offs based on an X% Zn Eq are conceptual in nature only. There has been insufficient metallurgical test work to date to determine eventual metallurgical recoveries and it is uncertain that the conceptual cut offs used below will be appropriate following further metallurgical test work.

6 The Bronze Whaler deposit is reported above 1% Zn Eq. The Hammerhead deposit is reported above 2% Zn Eq. The Tiger deposit is reported above 4% Zn Eq.

7 Refer to ASX announcement 19 January 2012.

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Laconia Resources – March 2012 Quarterly Report

Lennons Find Resource Estimate as January 2012

	Deposit Ore Type Tonnes (t) Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%)
Indicated	Bronze Whaler Oxide 30,000 0.29 60 0.3 0.9 0.2
	Hammerhead Oxide 140,000 0.41 95 0.2 1.3 1.8
	Tiger Oxide 20,000 0.18 93 0.1 0.9 0.8
	Total - Indicated Oxide 200,000 0.37 89 0.2 1.2 1.4
Inferred	Bronze Whaler Sulphide 150,000 0.15 33 0.1 0.7 1.5
	Hammerhead Sulphide 1,400,000 0.27 87 0.2 1.6 6.1
	Tiger Sulphide 50,000 0.03 36 0.1 0.3 2.8
	Total - Inferred Sulphide 1,600,000 0.25 81 0.2 1.5 5.6
Total	Bronze Whaler 180,000 0.18 37 0.1 0.7 1.3
	Hammerhead 1,600,000 0.28 88 0.2 1.6 5.7
	Tiger 70,000 0.08 55 0.1 0.5 2.2
	Total - Lennons Find 1,800,000 0.26 82 0.2 1.4 5.1

Note 1: For Oxide resources the Bronze Whaler deposit is reported above 1% Zn Eq, the Hammerhead deposit is reported above 2% Zn Eq and the Tiger deposit is reported above 4% Zn Eq

Note 2: For Sulphide resources the Bronze Whaler deposit is reported above 1% Zn Eq, the Hammerhead deposit is reported above 2% Zn Eq and the Tiger deposit is reported above 4% Zn Eq

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.

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. To date Laconia has explored 1.0 kilometer of the overall 5.0 kilometers of favourable Duffer Formation.

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Laconia Resources – March 2012 Quarterly Report

Lennons Find Oxide Exploration Plan

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

(80% Laconia – excluding manganese and iron)

E52/2232, E52/2688

During the 2011 field season a total of 1,135 auger and soil samples were assayed for a 42 element suite, at ALS Minerals laboratory in Perth, using low detection limits for precious metals, base metals, uranium, rare earths, and pathfinder elements. The geochemical results highlighted a number of target areas with elevated silver grades (up to 23.9g/t silver) with supporting base metals anomalism[8] . Current in-fill drilling on a 200m grid pattern is currently being conducted on these target areas.

A total of 650 auger holes were completed during the quarter and the samples are currently being assayed at Ultratrace Mineral Laboratory in Perth. The program is approximately 50% complete at the time of writing.

The 701 Mile Project lies within the Collier Basin on the southern edge of the Pilbara Craton in a similar geological setting to known base metal resources at Abra, Prairie Downs and Kumarina.

The project is located proximal to the Tangadee Lineament, and based on aeromagnetic interpretations there is strong evidence for regional fault systems and mafic to intermediate intrusives within the company’s tenements.

Upcoming Work

The auger geochemical drilling will continue into the next quarter as a wider spaced 800m regional grid pattern along the untested eastern side of the tenements, where there is strong evidence of regional structure in the aeromagnetic data.

Assay results from the 200m spaced infill programme will be interpreted and geophysical programs will be planned.

8 Refer to ASX announcement 03 November 2011.

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Laconia Resources – March 2012 Quarterly Report

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701 Mile Auger drilling program 2012.

Update on $7.5M JV for Mooletar Iron Ore Project, Mount Magnet WA

(100% Laconia)

E58/384, M58/110, M58/266, M58/349, P58/865, P58/1053-1056, P58/1129, P58/1383-1388, P58/1408 - 1415, P58/1476-1485, P58/1495-1501, P58/1511.

In August 2011, the Company entered into a $7.5 million Joint Venture (JV) Agreement with Chinese syndicate, Sinoz Mining Investment Group Pty Ltd (Sinoz), for the exploration and development of its Mooletar Iron Ore Project, near Mt Magnet in the Mid West iron ore precinct of Western Australia.

Sinoz has subsequently requested that an additional party be permitted to join the joint venture syndicate. The terms of the transaction remain as previously announced, but Laconia has consented to an extension of the time to allow additional due diligence to be completed.

Upcoming Work

Geophysical company DIMAP has recently flown an aerial survey over the Mooletar tenements and the data is currently being processed to produce a three dimensional DTM (digital terrain model) of the ground surface, plus a high resolution digital ortho-photo image of the tenement area .

The DTM and ortho-photo will be invaluable in planning future surface drilling of the banded iron ridges.

A contract geologist has been engaged to complete surface geological and structural mapping of the banded iron formations at Mooletar during the June quarter.

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Laconia Resources – March 2012 Quarterly Report

About the Mooletar Project

The Mooletar project has an Exploration Target of 220-260 million tonnes of iron at 30- 35% Fe[9] . The Exploration Target was confirmed as a result of two drill programs at the project and a detailed mapping program completed over the project area. It was confirmed by independent consultants, BM Geological Services Pty Ltd[10] .

Two distinct high grade Banded Iron Formation (BIF) units have been identified over a 5km portion at the project. In addition to the Exploration Target, positive results from initial metallurgical test work have confirmed the potential for the project to produce a high grade magnetite concentrate[11] .

Results from Davis Tube Recovery (DTR) test work indicated that a high grade magnetite product may be achieved with grades up to 70.4% Fe and low levels of phosphorus and silica. The Company has completed a scoping study to evaluate its exploration and development potential.

The Mooletar project lies approximately 330km east of Geraldton and approximately 125km from the proposed rail line in the mid-west infrastructure corridor that would access the Oakajee port infrastructure. The project area is also accessible by sealed roads. The Project is 100% owned by Laconia and comprises an area of 75km[2] of folded Archaean greenstone belt, over the eastern limb of the Mount Magnet greenstone belt.

Barramine Project – Gold and Base Metals, East Pilbara WA

(100% Laconia – excluding manganese and iron)

E45/3312, E45/3233, E45/3234

Laconia Resources was granted $150,000 in funding for the Barramine project, 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.

Exploration progress on the central Barramine tenement E45/ 3233 to date is as follows:

• Heliborne XTEM geophysical surveys have been completed and late time geophysical targets have been identified;

• Structural and geological mapping has been completed;

• Geochemical sampling programmes totalling 6,500 soil samples have identified anomalous zones. A further follow up 1,100 samples have been collected with final assays awaited and expected in May 2012.

Upcoming Work

The final stage of target identification will be undertaken in preparation for Reverse Circulation drilling of coincident geochemical and geophysical targets before the end of the June quarter.

9 Refer to ASX announcement 18 November 2010.

10 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.

11 Refer to ASX announcement 17 August 2010.

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Laconia Resources – March 2012 Quarterly Report

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Barramine defined geochemical target locations.

Yandicoogina Project – Base Metals, East Pilbara WA

(100% Laconia) E45/3293 Field visits and geological mapping were completed on this project this quarter.

Kookynie Project – Gold, Kookynie Eastern Goldfields WA

(100% Laconia) P40/1255, P40/1256 E40/260 Open file data was collated and field investigations were completed this quarter.

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.

Goldsworthy Project – Base Metals, West Pilbara WA

(100% Laconia) E45/3904 Data collated and geological interpretations completed this quarter

PAGE 9

Laconia Resources – March 2012 Quarterly Report

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 511 shareholders with the top 20 holding 51% of the total issued capital.

• Cash at bank at the end of the quarter was $2 million.

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

Outlook for June 2012 Quarter

Lennons Find

• Reverse Circulation drilling targeting additional oxide resources.

• Field mapping and litho-geochemical studies.

• Column leach metallurgical test work on a bulk samples from oxide resources

701 Mile

• Complete and Interpret infill auger sampling.

Barramine

• Collation and analysis of geochemical sampling.

• Reverse Circulation drill testing of coincident XTEM and geochemical targets.

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

PAGE 10

Laconia Resources – March 2012 Quarterly Report

Competent Persons Statements

Information in this report relating to the Lennons Find, Barramine and 701 Mile Projects have been compiled Mr Ernie Poole. Mr Ernie Poole who is a member of the Australasian Institute of Mining and Metallurgy has compiled the information within this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves. 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 Results, Mineral Resources and Ore Reserves and consents to the inclusion of this information in the form and context in which it appears in this report.

Lennons Find Resource Estimate

Mr Michael Andrew who is a member of the Australasian Institute of Mining and Metallurgy has compiled the information within this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves. Mr Andrew is a full time employee of Optiro Pty Ltd 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 Results, Mineral Resources and Ore Reserves and consents to the inclusion of this information in the form and context in which it appears in this report.

Mooletar Magnetite

Information in this report relating to 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 Exploration Results, Mineral Resources or Ore Reserves. 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.

10 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.

Peru

A review of available data was conducted by Mr Michael Andrew, a Principal of Optiro Pty Ltd. Mr Michael Andrew who is a member of the Australasian Institute of Mining and Metallurgy has compiled the information within this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves. Mr Andrew is a full time employee of Optiro Pty Ltd 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 Results, Mineral Resources and Ore Reserves and consents to the inclusion of this information in the form and context in which it appears in this report.

PAGE 11

Laconia Resources – March 2012 Quarterly Report

Appendix1: Lennons Find Metallurgical Leach Test Results

The preliminary metallurgical testwork was completed at ALS AMMTEC metallurgical laboratories in Perth under the supervision of the company’s consulting metallurgist Mr. Phil Hunt, of P.R. Hunt and Associates Pty. Ltd, Perth.

A composite sample of Reverse Circulation drill chips from the Hammerhead, Bronze Whaler and Tiger deposits at Lennons Find was tested for amenability to sulphuric acid leaching for the extraction of copper and zinc[12] followed by cyanidation for extraction of gold and silver. The sample tested assayed 0.48g/t Au, 172g/t Ag, 0.77%Cu, 0.78%Zn and 1.08%Pb. (4 acid digest and ICPOES read for base metals, FA and ICPMS read for gold)

The test results were as follows;

• Sulphuric Acid leach recoveries: 75% of the copper and 87% of the zinc was extracted in an intermittent bottle roll acid leach with a sulphuric acid consumption of 29.5kg/t (H2SO4). As is observed in Graph 1 (below) acid leaching was essentially completed in 4 days.

• Cyanide leach recoveries: Over 87% of the Gold and 94% of the Silver was extracted in a subsequent intermittent bottle roll cyanide leach, with a cyanide consumption of 2.4kg/t (NaCN). As is observed in Graph 2 (below) cyanide leaching was essentially completed in 2 days.

• Lead extraction was low in both acid leach and cyanide leach.

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----- Start of picture text -----

100
90
80
70
60
50
Copper
40
Zinc
30 Lead
20
10
0
0 1 2 3 4 5 6 7 8 9 10
LEACH TIME (DAYS)
)
( %
N
I O
T
C
A
R
T
X
E
----- End of picture text -----

.

Graph 1: Extraction versus sulphuric acid leach time for base metals.

• Note 1: Metallurgical testwork was completed at ALS AMMTEC metallurgical laboratories in Perth, metal in solution measured by ICP-OES method for base metals and FA and ICPMS read for gold.

12 Metallurgical Test work has tested the Lennons Find Oxide Resource for its amenability to acid leaching for the extraction of copper and zinc followed by cyanidation for extraction of gold and silver. No definitive metallurgical test work defining recovery grades has been conducted on the project at this stage of its development. Further testwork to define these parameters is in progress.

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Laconia Resources – March 2012 Quarterly Report

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----- Start of picture text -----

RATE OF METAL EXTRACTION
100
90
80
70
60
50
40 Au
30 Cu
20 Ag
10 Zn
0
0 2 4 6 8 10
TIME (DAYS)
)
(%
N
T IO
A C
T R
X
E
----- End of picture text -----

Graph 2: Extraction versus cyanide leach time for precious metals. Note 1:

Note 1: Metallurgical testwork was completed at ALS AMMTEC metallurgical laboratories in Perth, metal in solution measured by ICP-OES method for base metals and FA and ICPMS read for gold.

Mineralogical test work

A semi quantitative XRD analysis of the head sample was undertaken at ALS AMMTEC laboratory. The predominant minerals were found to be quartz and muscovite comprising over 86% of the sample. Lead, copper and Zinc are presents as carbonates, sulphates and sulphides. Some clay minerals including kaolinite, smectite and possibly nontronite were identified.

Future metallurgical test work

Future work will focus on column leach testing at coarser crush sizes, which will more closely represent the conditions expected in a small scale/low capital cost heap leach operation.

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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		Quarter ended (“current quarter”) 31 March 2012	Quarter ended (“current quarter”) 31 March 2012
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) R&D tax refund Net Operating Cash Flows		Current quarter $A’000		Year to date (9 months) $A’000
		- (84) - - (367) - 25 - - -		- (1,027) - - (889) - 68 - - 333
		(426)		(1,515)
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)		- - (2) - - - - - -		- - (2) - - - - - -
		(2)		(2)
		(428)		(1,517)

• 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)	(428)	(1,517)
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	1,346 - - - - (69)	1,346 - - - - (69)
	1,277	1,277
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	849 1,165 -	(240) 2,254 -
	2,014	2,014

1.22 Cash at end ofquarter 2,014 2,014	1.22 Cash at end ofquarter 2,014 2,014	1.22 Cash at end ofquarter 2,014 2,014
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'000 105 -
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	Explanation necessaryfor an understandingof the transactions
	Item 1.23 includes aggregate amounts paid to directors including salary, directors’ fees, consulting fees and superannuation.

• 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

• 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
	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

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	350
	-
	-
	150
Total	500

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)	966	135
	1,048	1,030
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	2,014	1,165

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
	E45/3904	Registered Holder	Nil	100%

• 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	115,570,010	115,570,010
	33,650,000	33,650,000
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
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:

==> picture [88 x 36] intentionally omitted <==

Date: 30 April 2012

(Company secretary)

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