ZEOTECH LIMITED — Interim / Quarterly Report 2014

Jul 30, 2014

Summary & Highlights

Laconia Resources Ltd

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

Capital Structure 483.7 million shares 296.8 million listed options 20.5 million unlisted options

• Permission to Drill (Ordene Initio) granted from the Peruvian regulator; the Ministry of Energy and Mines (MINEM)

• Successful first field sampling program at Kimsa Orcco Project following completion of permitting.

• High-grade copper-gold-silver surface channel samples from Fortuna and Española 1 prospects

• High-grade copper-gold-silver adit channel sample intersection repeated at Española 1 prospect

• Further results pending from preliminary prospecting of the Northern Kimsa Orcco prospects

Board of Directors

• Site visits conducted by potential JV partners

Matthew Howison Non-Executive Chairman

Ian Stuart Managing Director

Matthew Edmondson Non-Executive Director

Company Secretary

Matthew Edmondson

Corporate

• Placement to sophisticated investors for $885,500 completed

• R & D Tax Incentive received of $114,000

Planned Activities for September 2014 Quarter

• Further channel sampling of surface outcrop and underground adits at the Favi Vent Zone prospects

• Soil sampling orientation program in preparation for gridded soil sampling programs at the Favi Vent Zone and the Northern Kimsa Orcco prospects

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

• Preparation for maiden drilling program to evaluate copper-goldsilver mineralisation at Favi, Indigena, Española 1, Española 2, Fortuna and Rosita prospects, through 3D geological modelling

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

Laconia Resources Ltd – June 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] .

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).

Field Trip and Site Visits by Potential JV Partners

During the Quarter, the Company undertook a field trip to the Kimsa Orcco Project to complete the following:

• To show potential JV partners the project geology as part of their due diligence process

• Conduct channel sampling at the Española 1 prospect adit, to confirm a high-grade historical copper-gold-silver intersection

• Conduct channel sampling of surface outcrop at the Española 1 and Fortuna prospects, as part of the process of validating the excellent historical Buenaventura Ingenieros SAC datasets

• Undertake preliminary investigation of the Northern Kimsa Orcco prospects through surface rock sampling and stream sampling

• Undertake preliminary spectral analysis of Northern Kimsa Orcco prospect rock samples, to characterise alteration types

The trip was highly successful, with results received and reported for all aspects of the work, except the stream sampling and the alteration characterisation, which are still being interpreted.

1 Refer ASX Release 24 April 2014

2 Refer ASX Release 26 March 2013

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Laconia Resources Ltd – June 2014 Quarterly Report

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Figure 1: Laconia’s Kimsa Orcco Permits and Interests

Española 1 Adit Channel Sampling

Underground channel samples collected at the Española 1 prospect in April this year have confirmed a historic high-grade copper-gold-silver intersection from Buenaventura Ingenieros SAC sampling. The Española 1 prospect is within the southern portion of the Company’s flagship Kimsa Orcco Project in Peru (see Figure 1).

The Española 1 vein system was originally recognised as a gold and silver prospect, but was elevated in priority in Laconia’s exploration plan when it established there was an historic adit channel sampling

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Laconia Resources Ltd – June 2014 Quarterly Report

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intersection of 24.9 metres at 3.88 % Cu, 2.98 g/t Au and 66.63 g/t Ag, including 15.5 m at 6.54 % Cu, 4.77 g/t Au and 103.86 g/t Ag[3] hosted in a breccia pipe and enargite-covellite veining.

Laconia has undertaken a program of repeat underground channel sampling at Kimsa Orcco during April 2014 that has confirmed the intersection, with 25 samples collected over 14 of the 16 original Buenaventura channel sample locations. Figure 2 shows the adit being re-opened after being closed since Buenaventura finished work in the area at the start of 2003. The new intersection returned from sampling by Laconia is 21.5 m at 2.55 % Cu, 2.26 g/t Au and 50.97 g/t Ag, including 12.3 m at 3.72 % Cu, 3.22 g/t Au and 69.74 g/t Ag. The slightly smaller length reported for this intersection is due to the first sample of the adit not being repeated, due to removal of the zone at this point by minor caving of the breccia at the adit entrance.

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Figure 2: Excavation and re-opening of the Española 1 4805 level Adit for Laconia’s re-sampling program in April 2014 .

3 Refer ASX release 27 February 2013

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The presence of enargite breccia around the locale of the Española 1 adit entrance was confirmed in February 2013 during a site visit[4] . It has been a priority of the Company to undertake repeat sampling of the intersection since the Buenaventura results were first recognised. Figure 3 below shows the location of the channel samples collected by Laconia within the Española 1, 4805 level adit. Historic results for copper are annotated on the sample locations for comparison.

Laconia is pleased it has been able to demonstrate the repeatability of the initial intersections reported from the Española 1 Adit.

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Figure 3: Plan View of the high-grade copper intersections in adit channel sampling at the Española 1 Adit (4805 level). The historic channel sampling by Buenaventura is notated above and below the channel sample lines and the new channel samples completed by Laconia are shown to the right or left of the adit in the text balloons. Grid used is PSAD56, Zone 18 South.

4 Refer ASX Release Dated 27 February 2013

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Laconia Resources Ltd – June 2014 Quarterly Report

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Surface Sampling at Española 1 and Fortuna Prospects

Surface channel samples collected at the Española 1 and Fortuna prospects in April this year[5] have confirmed historic high-grade copper-gold-silver mineralisation hosted by enargite-quartz-pyrite veins and breccias. The Española 1 and Fortuna prospects are within the southern portion of the Company’s flagship Kimsa Orcco Project in Peru (see Figure 1).

The Company has compiled a database of results from surface and adit sampling by previous companies that worked in the area, such as Cominco Peru SA and Buenaventura Ingenieros SAC. The historic sampling results highlight the prospectivity throughout the Southern Kimsa Orcco prospects for coppergold-silver mineralisation within the epithermal environment. Channel sampling of surface outcrops by Laconia at the Española 1 and Fortuna prospects has now returned grades that validate the excellent existing dataset.

At Kimsa Orcco, a central region called the Favi Vent Zone that contains copper-gold-silver mineralisation has been recognised through systematic review of data with the benefit of modern 3D computer software. This has consolidated Laconia’s understanding of the greater zone of mineralisation and its geological controls. Figure 4 shows the Favi Vent Zone together with the location of the Española 1 and Fortuna prospects. The extent of surface outcrop is also shown in the figure, and one of the priorities in upcoming planned work is to test for the presence of any mineralisation beneath extensively developed scree slopes throughout the zone.

The architecture of the Favi Vent Zone is dominated by three regional faults, the Huaco Fault, the Huarmicocha Fault and the San Valentin Fault. These faults appear to be a major controlling factor on the location of high-grade copper at the Project, and the area within these triple point faults is interpreted to be one of at least two volcanic centres at the Southern Kimsa Orcco prospects.

The Española 1 prospect has high-grade copper-gold-silver mineralisation at surface from the entry of the 4805 level adit, extending north towards the Indigena and Favi. South of the 4805 level adit, the surface outcrop is mineralised with high-grade gold-silver in multiple veins and breccias. Figure 5 below shows the Española 1 prospect surface mapping and location of repeat sampling at the Española 1 prospect, with grades of the best-mineralised samples shown. A parallel zone called the Barita Vein has now been recognised about 65 metres west of the Española Vein (Figure 4).

5 Refer ASX release dated 18 June 2014

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Figure 4: Plan View of the Favi Vent Zone. Areas of outcrop are shown as areas of silicification and/or alunite. All areas between are covered with scree slope. Repeat sampling by Laconia during April 2014 was conducted at Española 1 and at Fortuna prospect.

Three locations at the Fortuna prospect were re-sampled. The re-sample locations and the highlight grades are shown in Figure 6 below. Historic diamond drill holes by Buenaventura Ingenieros SAC also intersected the copper-gold-silver mineralisation in the Fortuna veins at depth. These historic drill intersections in the vicinity of the repeat sampling are also shown below. The Fortuna prospect abuts the regional Huaco Fault and is one of the priority prospects for diamond drill testing.

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Laconia Resources Ltd – June 2014 Quarterly Report

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Figure 5: Plan View of the Española 1 prospect, with Laconia channel sampling locations shown. Best samples are annotated. The location of the adit entrance and the high-grade copper-gold-silver intersection is also marked.

Work planned at Southern Kimsa Orcco prospects includes drill testing of the strike extent of copper-goldsilver veins and breccias in the Favi Vent Zone using diamond drilling, plus testing concealed areas between the known veins for further mineralised structures. As demonstrated by the extent of surface outcrop outlined in Figure 4, there are vast slopes of scree (colluvium) that may conceal additional veins and areas of mineralised alteration. Additionally, the Project is considered prospective for both epithermal gold-silver (+/- copper) mineralisation and porphyry copper (+/- gold, +/- molybdenum) mineralisation. Figure 7 illustrates the exploration model being applied at the Kimsa Orcco Project.

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Figure 6: Plan View of the geology, historic diamond intersections (black text) and surface samples at Fortuna prospect. Repeat sampling of high-grade copper-gold-silver mineralisation by Laconia is plotted as triangles, with historic samples by Buenaventura Ingenieros SAC plotted as circles. Grid is PSAD56, Zone 18 South.

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Figure 7: 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.

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Laconia Resources Ltd – June 2014 Quarterly Report

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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.

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

• Site visits by potential JV partners as part of their due diligence process

• Permission to Drill (Ordene Initio) granted by MINEM

• Repeat channel sampling at the Española 1 adit, confirming the historical high-grade coppergold-silver intersection[6]

• Channel sampling at the Española 1 and the Fortuna prospects, confirming the presence of high-grade copper-gold-silver mineralisation at surface[7]

• Surface rock chip sampling[8] , and stream sediment sampling (pending interpretation) at the Northern Kimsa Orcco prospects

• Spectral analysis of alteration samples from the Northern Kimsa Orcco prospects (pending interpretation)

• Ongoing 3D geological modeling, work program planning and budgeting

6 Refer ASX release dated 10 June 2014

7 Refer ASX release dated 18 June 2014

8 Refer ASX release dated 24 July 2014

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Laconia Resources Ltd – June 2014 Quarterly Report

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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 8 shows the argillic alteration footprint at the Project relative to other known copper deposits in the world.

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Figure 8: 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 visited site during the Quarter 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

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5km of underground development and adits, and more than 40 diamond drill holes, plus associated 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 work was completed during the Quarter.

Goldsworthy Project – Base Metals, Pilbara, WA

(E45/3904 100% Laconia)

During the Quarter, the Company, Independence Group NL was managing exploration as part of an earnin with Laconia.

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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 – IGO Limited can earn in up to 80%(presently100% beneficial interest)	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

Capital Placement

In the previous Quarter, Laconia had announced that it has resolved to raise $885,500 before costs in a two tranche placement in accordance with Section 708 of the Corporations Act. CPS Capital Group Pty Ltd was appointed Lead Manager to manage the placement. Laconia advised that the funds would be used to primarily progress the exploration programs of the Company at its flagship Kimsa Orcco Project in Peru including meeting related option obligations9 as well as providing working capital.

Laconia previously announced on 27 May 2014, that it had completed Tranche 2 of the Placement raising $225,500. Tranche 2 of the Placement consisted of:

1. the 27,500,000 ordinary shares issued at an issue price of $0.008;

2. 55,000,000 free attaching options exercisable at $0.06 each on or before 30 September 2018 issued on the basis of one option for each of the 110,000,000 shares issued in the Placement; and

3. 55,000,000 options exercisable at $0.06 each on or before 30 September 2014 at an issue price of $0.0001 per option.

Outlook for September 2014 Quarter

Kimsa Orcco Project

• Further repeat channel sampling of underground adits and surface outcrop at copper-gold-silver prospects within the Favi Vent Zone

• Repeat surface and channel sampling of underground adits and surface outcrops at gold-silver prospects, including Rasuhuilca, Condor, Huallatas, Olga, and Marcelita

9 Refer ASX Release 26 March 2013

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

• Planning of geochemical sampling programs to further validate the porphyry potential

• Completion of a soil orientation program to determine best sieve size in preparation for large gridded programs of the Favi Vent Zone and the Northern Kimsa Orcco prospects

• Completion of tender process and selection of drilling contractors

• Continued 3D geological modeling and completion of preparations for maiden drilling program to focus on the copper-gold-silver mineralisation at the Southern Kimsa Orcco prospects

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

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.

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Competent Person Statement

The information in this report that relates to Exploration Results is extracted from reports lodged with the ASX titled “High-Grade Copper Identified” dated 27 February 2013”, “High-grade Copper Intersection at Española 1 Prospect, Peru” dated 10 June 2014, “High-grade Copper-Gold-Silver Surface Samples, Peru” dated 18 June 2014 and “Anomalous Base Metals and Molybdenum, Kimsa Orcco, Peru” dated 24 July 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. Mr Algar was a Non-Executive Director and consultant for Laconia Resources Limited at the time of preparation. 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 June 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, R&D Rebate) Net Operating Cash Flows	Current quarter $A’000	Year to date (12 months) $A’000
	(329) ‐ ‐ (343) ‐ 1 ‐ ‐ 116	(1,430) ‐ ‐ (988) ‐ 7 ‐ ‐ 109
	(555)	(2,302)
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)	‐ ‐ (12) 76 ‐ ‐ ‐ ‐ ‐	‐ ‐ (12) 501 11 ‐ ‐ ‐ ‐
	64	500
	(491)	(1,802)

• 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)	(491)	(1,802)
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	225 ‐ ‐ ‐ ‐ (3)	1,690 ‐ ‐ ‐ ‐ (137)
	222	1,553
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	(269) 452 ‐	(249) 432 ‐
	183	183

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
			69
			‐
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

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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.

• 3.1 Loan facilities 3.2 Credit standby arrangements

Amount available $A’000	Amount used $A’000
‐	‐
‐	‐

Estimated cash outflows for next quarter

• 4.1 Exploration and evaluation

• 4.2 Development

• 4.3 Production

4.4 Administration Total

$A’000 60 ‐ ‐ 110 170

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)	152 31 ‐ ‐	9
		443
		‐
		‐
Total: cash at end of quarter(item 1.22)	183	452

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

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 7.2 Changes during quarter (a) Issued during quarter (b) Exercised during quarter (c) Lapsed during quarter	10,200,000	Nil	Exercise Price $0.00	Expiry
	5,100,000 5,100,000	Nil Nil	Exercise Price $0.00 Exercise Price $0.00	Expiry 31 Dec 2015 Expiry 31 Dec 2016
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs	483,722,597	483,722,597
	110,000,000	110,000,000	$0.008	$0.008
7.5 +Convertible debt securities (description)

• See chapter 19 for defined terms.

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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	20,500,000 296,877,849 6,000,000	Nil 296,877,849 Nil	Exercise price 19.87 cents 6 cents 1.4 cents	Expiry date 30 September 2014 30 September 2018 30 September 2018
	110,000,000 6,000,000	100,000,000 6,000,000	6 cents 1.4cents	30 September 2018 30 September 2018
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

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 / ~~(delete one)~~ give a true and fair view of the matters disclosed.

31 July 2014 Sign here: ............................................................ Date: ............ (Company secretary)

Print name: Matthew Edmondson

• See chapter 19 for defined terms.

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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

01/05/2013