ZEOTECH LIMITED — Interim / Quarterly Report 2014

Oct 29, 2014

Summary & Highlights

Laconia Resources Ltd

ASX Code: LCR, LCROA ABN: 29 137 984 297 www.laconia.com.au

Capital Structure 530.6 million listed shares 343.7million listed options

Board of Directors

Matthew Howison Non-Executive Chairman

Ian Stuart Managing Director

Matthew Edmondson Non-Executive Director

• Completion of historic data review at the Favi Vent Zone with addition of Breccia 18, Barita vein and San Valentin vein to the known copper-gold-silver systems at Kimsa Orcco Project, Peru

• High grade results identified from historical work, with greater than 1,000 metres of copper-gold-silver mineralised veining now been recognised in the Favi Vent Zone

• Addition of the Pebble Vein and San Valentin East veins to the known gold-silver prospects

• Molybdenum results in rock chip samples from the Northern Kimsa Orcco alteration zones indicative of slightly deeper level in the porphyry/epithermal system

• Detailed work program planning and budgeting outlining systematic geochemical surveys, mapping and phase 1 drilling

• Scoping and costing of geophysical surveys completed

Company Secretary

Corporate

Matthew Edmondson

• CPS Capital Group appointed to manage Non-Renounceable Entitlements Offer and Shortfall Offer

Planned Activities for December 2014 Quarter

• Phase 1 drill program for 1,000 metres at the Favi, Indigena and Española 2 veins to test for copper-gold-silver mineralisation

• Sampling programs of Favi Vent Zone prospects and Northern Kimsa Orcco prospects to be conducted during the period

• Surface and adit channel sampling at the Southern Kimsa Orcco prospects, including Rasuhuilca, Condor, Huallatas, Olga and Marcelita

Phone Number: +61 8 9486 1599 Fax Number: +61 8 9486 7899

Laconia Resources Ltd – September 2014 Quarterly Report

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Kimsa Orcco Project - Peru

(Kimsa Orcco Project – Patacancha Tenements 100% Laconia Resources Ltd; Huaco Cucho Tenements subject to 80% earn in option)

Permission to Drill Granted (Ordene Initio)

During the June Quarter Laconia was granted Permission to drill (Ordene Initio) from the Peruvian regulator the Ministry of Energy and Mines (MINEM) by Directoral Resolution Nº 0106-2014-MEM/DGM[1] . During the September Quarter, continuing plans and preparation have been made for commencement of the phase 1 drill program at the Favi Vent Zone, scheduled for the December 2014 Quarter.

This follows Laconia’s gaining of all necessary environmental approvals and Social Licence over its immediate area of impact of its Kimsa Orcco Project comprising its 100 per cent owned Patacancha tenements and the contiguous Huaco Cucho tenements, over which Laconia has an option to earn an 80 per cent indirect interest[2] .[ .] The Kimsa Orcco Project collectively covers over 8,387 hectares of highly prospective geology in the Peruvian Andes, (refer Figure 1).

Follow up – Sampling Field Trip and Site Visits by Potential JV Partners

During the June Quarter, the Company undertook a field trip to the Kimsa Orcco Project. The field trip achieved a number of objectives for the Company including showing potential JV partners the project geology as part of their due diligence process; sampling at Española, Fortuna prospects and preliminary investigations at the Northern Kimsa Orcco prospects.

The field trip was highly successful, with results received and reported in the June Quarter for all aspects of the work, with the exception of the stream sampling and the alteration characterisation. In the September Quarter the remaining results were received and interpretation is in progress.

1 Refer ASX Release 24 April 2014

2 Refer ASX Release 26 March 2013

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Figure 1: Laconia’s Kimsa Orcco Permits and Interests

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Northern Kimsa Orcco Prospect Rock Chip Results

During a field program of surface and adit sampling at the Kimsa Orcco Project during April 2014[3] , 59 samples were collected over the Northern Kimsa Orcco prospects including the Huaco, Antaripa and Camp anomalies. The main focus of sampling was the largest Huaco anomaly that is interpreted to be the western exposure of a larger alteration system, of which the Antaripa anomaly is the eastern exposure[4] . Between the two areas of alteration is the main central valley that is filled with colluvium and alluvium, and that is a large erosional valley formed by glacial action. Figure 1 shows the location of the Northern Kimsa Orcco prospects where sampling was conducted during April 2014.

Analysis of the rock chip results indicates that the Northern Kimsa Orcco prospects are alteration zones that have higher molybdenum content at surface than the Southern Kimsa Orcco prospects. It is understood that as deeper levels of the epithermal/porphyry environment are encountered it is expected that molybdenum values will increase. This important conclusion from the sampling is the implication that the Northern prospects are at deeper levels of the epithermal/porphyry system.

The rock chips were collected specifically for alteration analysis and did not return significant gold or silver values. This may indicate that any possible gold and silver mineralisation in the area is either not outcropping, or was not located during this initial field campaign. It must also be noted that sample size was small, with the average sample weight being 500 grams. Normally a field rock chip sample would be between 2.5 – 3 kg to ensure representivity and to detect any nuggetty gold mineralisation. Due to these low weights, the samples are not considered to successfully test the area for precious metal mineralisation. Weakly elevated lead, zinc and molybdenum values are present[5] , and further work is required to systematically test the alteration zones and determine the position of the surface in the context of a porphyry exploration model. Following this interpretation of results, further work is planned with systematic gridded geochemical surveys over the Northern Kimsa Orcco prospects. In addition, detailed mapping of the area is planned so all further sampling can be understood in the context of the regional geology.

Highlighted molybdenum results at the Huaco anomaly include:

• Sample H-0030B with 25.18 ppm Mo

• Sample H-0015A with 19.04 ppm Mo

3 Refer ASX releases dated 10 June 2014 and 18 June 2014

4 Refer ASX release dated 4 December 2013

5 Refer ASX release dated 24 July 2014

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Spectral analysis (a technique that measures the reflectance and absorption of light waves on rock surfaces to determine mineralogy), was conducted on some of the rock chip samples collected from the Northern Kimsa Orcco prospects during the sampling program conducted in April 2014. The purpose of the analysis was to determine the clay species present in the alteration zones.

Analysis of the spectral results has only been recently received and are being interpreted for a specific release in the coming Quarter.

Completion of Historic Data Review at Favi Vent Zone

During the September Quarter further prospects were reviewed and the information from historic exploration by Buenaventura Ingenieros SAC was interpreted. Within the Favi Vent Zone, surface sampling at the Barita vein that forms part of the Española 1 prospect and the San Valentin vein to the north of the Favi vein were reviewed, adding to the known copper-gold-silver mineralised veining. Breccia 18 to the east of Española 1 prospect was also identified to contain some elevated copper results, plus outstanding precious metals results in surface samples. Greater than 1,000 metres of copper-gold-silver mineralised veining has now been recognised in the Favi Vent Zone.

South of Breccia 18, the Pebble Vein is a mineralised north-south striking structure, hosting precious metals. The San Valentin East vein also contains precious metals mineralisation. The Pebble Vein and San Valentin East veins are higher in the epithermal environment than the rest of the Favi Vent Zone, and correspondingly they do not contain any significant copper mineralisation.

Figure 2 shows the Favi Vent Zone and surrounds with the location of the above-mentioned prospects.

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Figure 2: Prospect map of the Southern Kimsa Orcco area. Grid used is PSAD56, Zone 18S.

Barita Vein

The Barita vein consists of 280 metres strike of parallel veining immediately west of the Española 1 veins, and also broadens the width of outcropping veining at the area to 130 metres wide. The vein is parallel to and about 65 metres west of the veins at the Española 1 prospect that is about 900 m to the east of the Rasuhuilca deposit (see Figure 2). The dominant vein orientation at the Española 1 prospect strikes about northwest to southeast. The Barita vein has two structures that are parallel, and about 15 metres apart. Figure 3 shows the Barita vein and the Española 1 prospect geology and historic surface sampling, with samples coloured by gold values.

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Figure 4: Plan View of the Barita vein and Española 1 prospect geology, with high-grade copper-gold-silver results shown in red at Barita vein. Select Española 1 prospect surface sampling results are shown in black. The location of the high-grade copper-gold-silver adit intersection from Laconia sampling in April 2014 is highlighted. Grid used is PSAD56, Zone 18 South.

Limited surface sampling has been done at the Barita vein, and potential remains for strongly mineralised breccia pipes in the area that have not yet been identified due to extensive shallow cover by scree slope material. For example, Figure 4 shows a breccia pipe that is about 10 metres wide by 20 metres long that has not been sampled. In addition, there are large areas of strong silicification and alunite alteration that require further sampling, as these alteration zones have been demonstrated to host modest gold and silver values in other parts of the project, such as the Huallatas prospect[6] that is 320 metres west of the Rasuhuilca Deposit, along the Rasuhuilca Trend (see Figure 2).

6 Refer ASX Release dated 20 March 2014

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San Valentin Veins

The San Valentin and San Valentin East veins lie to the north of the Favi prospect in the Huaco Cucho No 1 tenement (see Figure 2). The San Valentin veins strike east – west and are sub-vertical. Historic sampling by Buenaventura Ingenieros SAC is shown in Figure 4. An initial program of surface channel sampling was completed during the 1999 field season, with encouraging results for copper, gold, silver and tellurium at the San Valentin vein. The San Valentin East vein returned good grades for gold and silver, without the accompanying copper and tellurium, signifying a transition away from the vent area. Copper is hosted in the mineral enargite with sub-ordinate covellite. Lead is present as galena.

To follow-up on these encouraging results, Buenaventura undertook a campaign of trenching during 2002, creating sampling trenches at regular intervals along the San Valentin and San Valentin East veins as part of their work campaign. The results from this work supported the initial sampling, with results verifying that significant mineralisation occurs between the areas of outcrop as well[7] .

Surface sampling has returned the best results where multiple structures intersect. These intersecting structures are interpreted to form dilational zones, controlling the plunge of strongly mineralised shoots within the plane of the main vein.

Three diamond drill holes were completed at the San Valentin vein, testing the area of highest coppergold-silver veining at the east end of the vein. The drill holes demonstrated that the structures continue to depth, as indicated by the logged silicified veins, disseminated sulphide and weak mineralisation encountered. Figures 5 and 6 show the cross sections for the drill holes done during 2002. As with other areas of the project, the drill holes also indicate the presence of numerous other silicified vein structures that do not crop out at surface due to the pervasive scree covering throughout the project area.

7 Refer ASX Release dated 16 September 2014

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Figure 4: Plan View of the San Valentin and San Valentin East Vein prospects. Buenaventura channel sampling is shown, coloured by gold grades. Grid used is PSAD56, Zone 18 South. Cross Section locations for Figure 5 and Figure 6 are shown adjacent to drill holes as blue text A – A’ and B – B’.

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Figure 5: Cross Section of SDB-09-2002 drill hole, showing multiple silicified structures that are concealed at surface. All intercepts on the cross section are down hole lengths, not true widths.

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Figure 6: Cross Section of SDB-10-2002 drill hole, showing numerous zones of low grade mineralisation. The cross section interpretation includes multiple silicified

Breccia 18 and Pebble Vein

Breccia 18 and Pebble Vein lie to the east of the Española 1 prospect in the Patacancha 3 tenement (See figure 2). The sampling across the Pebble Dyke, Breccia 18 and Pebble Veins prospects are shown in Figure 7, in context with the Española 1 prospect. The geology of the zones and the location of all channel samples collected by Buenaventura Ingenieros SAC are shown. The highest grade samples are highlighted on the map.

The Pebble Dyke extends 500 metres to the north east from the Española 1 prospect. Limited channel sampling has been done along the dyke, warranting follow up work on the few low-grade samples collected during Buenaventura Ingenieros SAC exploration in 1999.

Breccia 18 is immediately adjacent to the Pebble Dyke, about 320 metres north east of Española 1, and returned exceptional high-grade gold, silver and lead values, in addition to elevated copper and tellurium values. Breccia 18 is another demonstration of the presence of poly-metallic mineralisation at the Southern Kimsa Orcco prospects.

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Figure 7: Plan View of the Pebble Dyke, Breccia 18 and Pebble Vein prospects, east of the Española 1 prospect. Buenaventura channel sampling is shown, coloured by gold grades. Grid used is PSAD56, Zone 18 South.

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Exploration Model

Laconia has developed a regional exploration model for the Kimsa Orcco Project, consisting of highsulphidation epithermal copper-gold-silver or gold-silver prospects in the upper reaches of the project, and porphyry copper mineralisation potential in the lower-lying areas of the project. Figure 8 illustrates this model, with some of the prospects already identified labeled on the image.

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Figure 8: Schematic diagram of the epithermal and porphyry exploration model at the Kimsa Orcco Project, showing alteration and metal zonation. Some examples of mineralisation already identified in the Southern Kimsa Orcco prospects are shown. This image contains vertical exaggeration.

About the Kimsa Orcco Project

The Kimsa Orcco Project is located approximately 500km southeast of the Peruvian capital, Lima, in the southern part of the country. It is an advanced, high-grade copper-gold-project in the Ayacucho region of Southern Peru across four 100% Laconia Resources Ltd permits covering 27.65 km[2] and a further 11 contiguous permits through an 80% earn in option agreement, covering 56.22 km[2] . The total area of 83.87 km[2] hosts the entire Ccarhuaraso volcanic system that is proven to host high sulphidation epithermal copper gold and silver with near-term development potential and significant exploration upside potential.

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Work Completed at the Kimsa Orcco Project during the September Quarter 2014

• Review of the remaining historic data for the Favi Vent Zone and surrounds[8]

• Interpretation and reporting on the Northern Kimsa Orcco prospect rock chip sample results collected in April 2014[9]

• Work program planning and budgeting for exploration activities including surface sampling, geochemical surveys and 1,000 metres of drilling at the Favi Vent Zone

Kimsa Orcco Project – Further Exploration Potential

The Kimsa Orcco Project is situated on the collapsed rim of the Ccarhuaraso strato-volcano within a highly visible zone of secondary argillic alteration. Laconia aims to target the following mineralisation styles:

• The network of outcropping gold-silver veins in lower temperature acidic outflow zones (silicaalunite-sulphide alteration);

• Large-scale, sub-horizontal disseminated gold-silver mineralisation within outflow zones;

• High-grade bonanza gold veins beneath the acidic outflow zones; and

• Copper-gold mineralisation within buried intrusive stocks, or gold-silver-zinc mineralisation in skarns surrounding buried intrusive stocks.

The Company believes there is potential for porphyry copper mineralisation at the Project. Figure 9 shows the argillic alteration footprint at the Project relative to other known copper deposits in the world.

8 Refer ASX releases dated 10 July 2014, 31 July 2014, 16 September 2014

9 Refer ASX release dated 24 July 2014

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Laconia Resources Ltd – September 2014 Quarterly Report

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Figure 9: Illustration of the alteration zone distribution at the Kimsa Orcco Project, relative to some known Porphyry Districts in the world, displayed at the same scale. Modified from Hedenquist JW et al; 2012; “Geology and Genesis of Major Copper Deposits and Districts of the World: A Tribute to Richard H. Sillitoe”; Society of Economic Geologists, INC. Special Publication Number 16; p. 2

Virtual Data Room

The scale and size of the Project has attracted the interest of a number of internationally focussed copper companies looking for advanced copper exploration properties. A number of companies have executed a confidentiality agreement and commenced their review of Laconia’s virtual date room.

Several of these have advanced their due diligence and more site visits are planned this Quarter. Laconia is actively managing this process and will update the market as appropriate.

Since the acquisition of the Kimsa Orcco Project (formerly Rasuhuilca and Huaco Cucho Projects), Laconia has compiled a database that contains greater than 3,000 channel samples from approximately 5km of underground development and adits, and more than 40 diamond drill holes, plus associated

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Laconia Resources Ltd – September 2014 Quarterly Report

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survey and assay data from the Southern Kimsa Orcco Prospects. Increasingly, Laconia’s systematic review of data and field reconnaissance has highlighted the copper potential of the Northern and Southern Kimsa Orcco prospects, in addition to the known gold-silver epithermal vein systems that are extensively developed at the southern Kimsa Orcco prospects.

Australian Exploration Activities

701 Mile Project – Precious and Base Metals, Pilbara, WA

(E52/2688 80% Laconia: mineral rights excluding manganese and iron and 70% Laconia: manganese and iron rights)

No field work was completed during the Quarter.

Goldsworthy Project – Base Metals, Pilbara, WA

(E45/3904 100% Laconia)

During the Quarter, the Company received notice that Independence Group NL has decided to leave the earn-in arrangement.

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Tenement Information as Required By Listing Rule 5.3.3

The following is a table setting out the information as required by ASX Listing Rule 5.3.3, namely:

1. mining tenements held at the end of the Quarter and their location;

2. mining tenements disposed during the Quarter and location; and

3. beneficial percentage interests held in farm–in or farm-out agreements at end of Quarter; and

4. beneficial percentage interest in farm-in or farm-out agreements acquired or disposed of during the Quarter.

Location	Mining Tenement	Ownership	Acquired or Disposed
Peru(Ayacucho)	Patacancha N° 1	100% owned	Not Applicable
Peru(Ayacucho)	Patacancha N° 2	100% owned	Not Applicable
Peru (Ayacucho)	PatacanchaN°3	100%owned	NotApplicable
Peru (Ayacucho)	PatacanchaN° 4	100%owned	NotApplicable
Peru (Puno)	Jess Gold1	100%owned	NotApplicable
Peru (Aricash)	Jess GoldII	100%owned	NotApplicable
Peru(Moquegua)	Jess Iron 1	100% owned	Not Applicable
Peru (Ayacucho)	Huaco Cucho N o1	Option to acquire 80% indirect ownership interest (presently 0% beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho N o2	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Tres	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Cuatro	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Cinco	Option to acquire 80% indirect ownership interest( presently0% beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Seis	Option to acquire 80% indirect ownership interest( presently0% beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Siete	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Ocho	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Nueve	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Diez	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Peru (Ayacucho)	Huaco Cucho Once	Option to acquire 80% indirect ownership interest ( presently 0%beneficial interest)	Not Applicable
Western Australia (Pilbara)	E45/3904	100% owned	Not Applicable
Western Australia (NorthernGascoyne)	E52/2688-I*	80% owned **	Not Applicable

• I = Iron Ore Endorsement

• ** Mineral rights held by Laconia Resources Ltd (80%) and Pandell Pty Ltd (20%). Manganese and iron ore rights held by Laconia Resources Ltd (70%) and Pandell Pty Ltd (30%).

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Corporate

Fund Raising

On 28 August 2014, Laconia announced a non-renounceable rights offer to raise a maximum of $1,727,580 at an issue price of $0.005 on the basis of five (5) New Shares for every seven (7) shares held on 11 September 2014, together with one (1) free attaching option exercisable at $0.06 each on or before 30 September 2018 for every one (1) New Share subscribed for and issued. ( Entitlement Offer ).

Laconia advised that the funds would be used to primarily progress fund Company’s next phase of exploration drilling and drill targeting at its flagship Kimsa Orcco Project in Peru 10 as well as providing working capital.

On 26 September 2014, Laconia announced it had received valid applications for 46,910,568 New Shares and New Options, comprising applications for 45,762,184 New Shares and New Options pursuant to shareholder entitlements and 1,148,384 additional New Shares and New Options pursuant to shareholder shortfall applications. Gross proceeds raised totalled $234,553. Further, during the Quarter, Scarfell Pty Ltd, a company associated to Mr Ian Stuart provided a $50,000 interest free loan facility to the Company.

CPS Capital Group was appointed Lead Manager to the Entitlements Offer and the Shortfall Offer. The Shortfall Offer is open for three months from the closing date of 26 September 2014. The Company is working with the Lead Manager in relation to placing the shortfall.

Outlook for December 2014 Quarter

Kimsa Orcco Project

• Phase 1 drill program for 1,000 metres at the Favi, Indigena and Española 2 veins to test for copper-gold-silver mineralisation

10 Refer ASX Release 26 March 2013

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• Conduct orientation program for soil sampling programs to determine optimal sieve size to detect precious metal, trace and base metal elements at the Kimsa Orcco Project

• Interpretation of the TerraSpec™ results from the Northern Kimsa Orcco rock chip samples, collected in April 2014

• Conduct a gridded geochemical soil sample survey over the Favi Vent Zone

• Regional and prospect-scale mapping at the Northern Kimsa Orcco prospects

• Continued preparation for maiden 1,000 metre diamond drill program at the Favi Vent Zone.

• Surface and adit channel sampling at the Southern Kimsa Orcco prospects, including Rasuhuilca, Condor, Huallatas, Olga and Marcelita

Western Australian Projects

• Project reviews will be undertaken, and costed work programs formed.

*ENDS***

For further information on Laconia Resources Limited please contact:

Ian Stuart

Managing Director Laconia Resources Limited

P: +61 8 9486 1599

E: istuart@laconia.com.au

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

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About Laconia Resources Limited

ASX Listed Laconia Resources Limited (ASX: LCR) is a Perth-based precious and base metals exploration and development Company with a Latin American focus. The Company’s flagship Kimsa Orcco Project in Peru is an advanced copper-gold-silver project in the Ayacucho region of Southern Peru, across four 100% Laconia Resources Ltd permits covering 27.65 km[2] and a further 11 contiguous permits through an 80% earn in option agreement, covering 56.22 km[2] . The total area of 83.87 km[2] hosts the entire Ccarhuaraso volcanic system that is proven to host high sulphidation epithermal copper gold and silver.

In Western Australia, the Company has mineral projects across two granted tenements covering an approximate 98.7 km[2] in the Pilbara and Northern Gascoyne region.

Competent Person Statement

The information in this report that relates to Exploration Results is extracted from reports lodged with the ASX titled “Porphyry Copper Potential Confirmed By Field Work in Peru” dated 14 December 2013”, “Exploration Results Updated to JORC 2012” dated 20 March 2014, “High-grade Copper Intersection at Espanola 1 Prospect, Peru” dated 10 June 2014, “High-grade Copper-Gold-Silver Surface Samples, Peru” dated 18 June 2014, “ Copper-GoldSilver Barita Veins Expand Mineral System, Peru” dated 10 July 2014, “Anomalous Base Metals and Molybdenum, Kimsa Orcco, Peru” dated 24 July 2014, “High-grade Breccia Identified at Kimsa Orcco Project, Peru” dated 31 July 2014 and “High-grade Copper and Precious Metals at Favi Vent Zone” dated16 September 2014. These reports were based upon information compiled by Mr Vincent Algar, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. These reports are available to view at www.laconia.com.au. Mr Algar is presently a consultant for Laconia Resources Limited. At the time of preparation of the reports other than the report dated 14 December 2013, when he was also a Non-Executive Director, Mr Algar was a consultant for Laconia Resources Limited. Mr Algar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Algar consented to the inclusion in these reports of the matters based on his information in the form and context in which they appeared.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented has not been materially modified from the original market announcements.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

LACONIA RESOURCES LIMITED

ABN

29 137 984 297

Quarter ended (“current quarter”) 30 September 2014

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) 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 (GST, Other Income) Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	(120) ‐ ‐ (92) ‐ 3 ‐ ‐ 18	(120) ‐ ‐ (92) ‐ 3 ‐ ‐ 18
	(191)	(191)
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)	‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐	‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
	‐	‐
	(191)	(191)

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(191)	(191)
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	235 ‐ 25 ‐ ‐ ‐	235 ‐ 25 ‐ ‐ ‐
	260	260
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	69 183 ‐	69 183 ‐
	252	252

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

1.23 1.24	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
			10
			‐
1.25 Explanation necessaryfor an understandingof the transactions Item 1.23 includes aggregate amounts paid to directors including salary, director’s 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 N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest N/A		Explanation necessaryfor an understandingof the transactions
		Item 1.23 includes aggregate amounts paid to directors including salary, director’s fees, consulting fees and superannuation
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	N/A

• See chapter 19 for defined terms.

Appendix 5B Page 2

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available	Amount used
		$A’000	$A’000
3.1	Loan facilities (director related interest free
	facility)	50	25
3.2	Credit standby arrangements
		‐	‐

Estimated cash outflows for next quarter

• $A’000

• 4.1 Exploration and evaluation 125 4.2 Development ‐ 4.3 Production ‐ 4.4 Administration 100 225

• 4.4 Administration Total

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)	245	152
	7	31
	‐	‐
	‐	‐
Total: cash at end of quarter(item 1.22)	252	183

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased	Tenement reference and location	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note3) (cents)	Amount paid up per security (see note3) (cents)
7.1 Performance Rights Performance Shares 7.2 Changes during quarter (a) Issued during quarter (b) Exercised during quarter (c) Lapsed during quarter	10,200,000 14,500,000	Nil Nil	Exercise Price $0.00 Exercise Price $0.00	Expiry 31 Dec 2015 (5,100,000) Expiry 31 Dec 2016 (5,100,000) Expiry 20 June 2017
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs	530,633,165	530,633,165
	46,910,568	46,910,568	$0.005	$0.005

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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	343,788,417 6,000,000	343,788,417 Nil	Exercise price 6.0 cents 1.4 cents	Expiry date 30 September 2018 30 September 2018
	46,910,568	46,910,568	6.0 cents	30 September 2018
	20,500,000	Nil	19.87 cents	30 September 2014
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)
	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

• 2 This statement does / ~~does not*~~ (delete one) give a true and fair view of the matters disclosed.

==> picture [101 x 46] intentionally omitted <==

Sign here: ............................................................ Date: 30 Oct 2014

(Company Secretary)

Print name: Matthew Edmondson

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 5

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

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