Quarterly Report. Quarter ASX: BWD. Highlights. ENERGY to GROW

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1 ENERGY to GROW Quarterly Report Quarter ASX: BWD Level Adelaide Street Brisbane, QLD, 4000 T: F: E: info@bwdcorp.com.au Board of Directors Barry Bolitho Rex Littlewood Will Randall Andrew Simpson Company Secretary Patrick McCole Senior Management CEO Todd Harrington CFO David Smith GM Exploration QLD Mark Winsley GM Bus Dev Brendan Schilling Principal Geo Intl Joel Yago Highlights Expansion of JORC Exploration Target at South Pentland project to 3.6 to 5.0 billion tonnes A JORC Exploration Target of 300 to 420 million tonnes D announced at Bymount project Blackwood now has a combined total of 5.0 to 6.9 billion tonnes # of JORC Exploration Targets across its four key projects Geological review indicates that Dingo project has known coal intersections of up to 7m of PCI style coal at opencut depths A$5 million facility agreed with Noble Group Blackwood appointed to QLD State Government s North Queensland Resources Supply Chain Steering Committee Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement Blackwood Corporation Ltd ABN April 2012

2 EXPLORATION UPDATE South Pentland Blackwood announced during on the 8 th of October a JORC Exploration Target within the range 1.5 billion tonnes to 1.8 billion tonnes A at the Lauderdale Project, a second prospect within the South Pentland Project (Figure 1) This target is the result of a program involving 63 km of new 2D seismic, 4 additional drill holes intersecting coal on the seismic lines, and a comprehensive review of all available historical data. These elements were used to build a detailed geological model of the Project area and projected coal seams. The South Pentland Project now has a total of billion tonnes A JORC Exploration Target thermal coal. 2 Figure 1: Blackwood Corporation s South Pentland Project and associated infrastructure Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement

3 South Pentland Lauderdale SubProject Overview 3 The South Pentland Project (EPC s 1486, 1762, EPC applications EPCa 2842 & 2853; total 542 subblocks, 1,626km 2 ) is owned by Blackwood Corporation Limited through its subsidiary Matilda Coal Pty Ltd. The Project is strategically located in the northeast Galilee Basin, 40 km south east of Pentland township, making it one of the closest Galilee projects to the coast (<250km). An additional significant advantage is that major roads (Flinders Highway) and railway (Great Northern Line) are already established, traversing the northern edge of the tenure. The Lauderdale Project is the second significant target area at South Pentland identified by the Blackwood exploration team. Figure 2 illustrates the two subprojects, of the South Pentland project: Lauderdale and Longton. Figure 2: Blackwood Corporation s South Pentland Project with the Lauderdale and Longton project areas. Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement

4 4 Blackwood is exploring the coal seams of the Permian Betts Creek Beds, which are the main coal bearing sequence throughout the Galilee Basin, and have demonstrated potential for significant quantities of export quality thermal coal. The South Pentland Project contains the coal seams of the Permian Betts Creek Beds. These coal measures and the seams contained within are regionally consistent and are correlatable for many hundreds of kilometres. Blackwood s South Pentland project is therefore the northern extension of Hancock/GVK s Alpha & Kevin Corners Projects, and Adani s Carmichael Project Figure 3 Regional correlation of Betts Creek Beds South Pentland Exploration 2012 Recent drilling includes 3 core holes drilled on the newly acquired 63km of seismic lines to confirm coal occurrence, thickness and coal quality. The Lauderdale Project drilling confirms more than 4 coal seam groups present in all holes, with a cumulative coal thickness of 11 to 15m. Importantly, 4 seams have potential working sections of greater than 2m in thickness. All holes have been processed, validated and interpreted together with the historical data set. Blackwood geologists recreated the geological model for South Pentland Project containing 114 drill holes and enhanced by 5 seismic lines and 65km of new 2D seismic. The geographical spread of the data used in Blackwood s geological models and Exploration Target Area is shown in Figure 5.

5 5 The drilling campaign has been used to obtain the detailed coal seam thickness information and coal core is currently undergoing analysis at the BureauVeritas lab in Brisbane. The regional seismic data has been used to confirm continuity of coal seams across the target area (Figure 4 seam continuity in seismic section). The seismic data also shows the geological structure of this area, which is an important consideration in coal prospect with underground mining potential. As with other areas of the Galilee Basin the fault frequency is low, wide spaced and relatively benign. Figure D seismic line example Lauderdale Exploration Target Borehole collars and seam picks were interpreted by Blackwood personnel, collated into a Mincom GDB Database and correlated and modelled in Minescape. The exploration target for Lauderdale of billion tonnes A was released on 8 th October, following joint competent person sign off by Mr Mark Winsley, GM Queensland Exploration from Blackwood, and Mr Lyndon Pass of Encompass Mining Pty Ltd. Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement Constraining factors for the Exploration Target were as follows: Area of target estimate is with in the polygon shown in Figures 2 and 5 (below). Coal seams were modelled to >0.3m thick and <1000m depth, however only seams with average thickness >2.0m thickness and <600m were used in the estimation of the Exploration Target Coal seams are not weathered or intruded An appropriate geological loss factor of 20% was applied to all seams to account for unexpected seam splitting and thinning

6 6 Figure 5 Lauderdale exploration target polygon and the associated drilling and seismic. Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement No new coal quality results are available, as reported previously from the adjacent Milray deposit, the historical coal quality ranges are as follows in Table 1 Raw Coal Analysis (air dried) Dseam Average Range Moisture % Ash % Volatile Matter % Fixed Carbon % Sulphur % Specific Energy Mj/kg Specific Energy kcal/kg HGI Table 1 Coal Quality ranges for the D seam, from the adjacent Milray deposit.

7 Taroom Project 7 Drilling on the Taroom project continued throughout the Quarter, with a total of nine holes drilled on the Broadmere and Juandah Creek subprojects. Excellent progress was made at Broadmere, with several samples sent for coal quality testing. Over 40% of the total planned drilling campaign was completed on the Broadmere project throughout the Quarter. Further exploration to better understand the mineralisation at the Taroom project will resume upon finalisation of funding arrangements. Bymount Project The Bymount Project is owned by Blackwood Corporation Limited through its subsidiary Matilda Coal Pty Ltd. The Project is located in the western part of the Surat Basin, 25km southwest of the Injune township and 50km north of Roma (Figure 6). Figure 6 Blackwood Corporation s Bymount Project (highlighted) and associated infrastructure

8 8 The Bymount Project is close to existing major roads (Carnarvon Development Road & Roma Taroom Highway), while and rail infrastructure is already established 50km to the south. The Bymount Project is 148 km 2 in total and is comprised of 3 tenures (EPC s 1563, 1600, 1724), covering 49 granted sub blocks. Blackwood is exploring the coal seams of the Walloon Coal Measures, which are the main coalbearing sequence throughout the Surat Basin. These sequences have demonstrated potential for significant quantities of export quality thermal coal. The Bymount Project contains the Wambo, Iona and Argyle coal seams of the Juandah Coal Measures and the Auburn, Bulwer and Condamine seams of the Taroom Coal Measures, part of the Walloon subgroup (Figure 7). These coal measures and the seam groups contained within are known to be regionally consistent and correlatable for hundreds of kilometres. Blackwood s geological team have produced a 3D regional model that maps the Juandah Coal Measures, Tangalooma Sandstone and the Taroom Coal Measures, Hutton Sandstone, Evergreen and Precipice Sandstone as groups, while an additional local model was made to correlate and quantify the coal seams in the project area. Figure 7 Surat Basin Walloon Subgroup

9 Bymount Exploration Target 9 During the Quarter, Blackwood announced a JORC Exploration Target for the Bymount Project within the range 300 million tonnes to 420 million tonnes D. This target is the result of a comprehensive review of all available data before building a detailed geological model of the Project area and coal seams. This exploration target is based upon borehole collars and seam picks that were interpreted by Blackwood personnel, collated into a Mincom GDB Database, correlated and modelled in Minescape. An independent geological model review was undertaken by Lyon Barrett of Measured Resources Pty Ltd. The geological model has been constructed as a high level seam group model with no individual seam plies currently defined in the model. The geological model is a parting model where any noncoal intervals included in a seam group are excluded during the estimation stage to only report material that has been designated as coal. Hence all stone/waste intervals have been excluded from the quantities reported for each seam group. Constraining factors for the Exploration Target were: Only seams with an average thickness >0.25m thickness and <150m depth were used in the estimation of the Exploration Target; Coal seams are not weathered or intruded; and An appropriate geological loss factor of 35% was applied to all seams to account for unexpected seam splitting and thinning. Although there are numerous coal seams in the region, only the confident interpretations and correlatable coal seams of the Bulwer, Auburn, Wambo, Iona and Argyle seams were included for the Exploration Target. A conservative relative density of 1.35 was applied to the coal seams. The coal quality of seams is assumed to be consistent with other Northern Surat coals. Coal quality stated here is derived from core holes drilled on an adjacent deposit (Cornwall Deposit Aquila Resources ASX announcement 4 May 2012). The parameters and the ranges which were reported in the Aquila Resources announcement were as follows (all on an air dried basis): raw ash level is 5.6% with a mean of 18%, minimum volatile matter is 26.8% (ADB) with a mean of 39.4%. Mean GCV are MJ/kg and 6,056 kcal/kg (adb). This announcement does not, however, contain a range of values for the analysis consequently, the following values have been used in the Exploration Target. Raw Coal analysis (air dried From To Moisture % Ash % Volatile Matter % Fixed Carbon % Sulphur % Specific Energy (Calorific Value) Specific Energy (Calorific Value) HGI Table 2 details the parameters and the ranges reported in Aquila Resources Cornwall Deposit which is within the geological model area, as announced by Aquila Resources to the ASX on 4 th May Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement

10 10 Figure 8 shows the subcrop of the Argyle seam and its associated floor contours as well as the subcrop of the Bulwer Seam. Additionally the approximate location of the 466Mt Cornwall coal resource as defined by Aquila Resources Limited (Argos (QLD) Pty Ltd is a subsidiary of Aquila Resources Limited) is shown adjacent to the project. Figure 8 Argyle seam subcrop with floor contour and Bulwer Subcrop Exploration drilling commenced through the Quarter, with unseasonal rain delaying the completion of the program. Initial scout/confirmation drilling results for EPC 1600 and EPC 1724, confirm coal at less then 150m depth. Results are presented in Table 3 below. HOLE ID DEPTH CUMULATIVE COAL EPC BY_001R EPC 1600 BY_002R EPC 1600 BY_006R EPC 1563 Table 3 Initial Bymount drilling results

11 Dingo Project 11 Desktop analysis and correlation of historical drilling data has resulted in several planning advances being achieved on the Dingo Project (EPC 1562 and EPCA 1535). Of particular note is the finding that the lease has known drill intersections of up to seven (7) metres of cumulative coal at depths amenable to opencut extraction methods. The area is known for PCI coals; however, the area is geologically complex and a comprehensive drilling campaign will be required to provide confidence in the historical data. Figure 10 below gives an overview of the project and the historical drilling and seismic campaigns that surround the project. Figure 10 Overview of Dingo Project and Historical Drilling/Seismic in Region Safety Blackwood Corporation operates with a zeroharm policy towards site and employee safety. Blackwood Corporation is pleased to report that there were no incidents or accidents during the third quarter of equivalent man days (57,945 hours) of on site exploration were completed, with zero lost time injuries.

12 CORPORATE UPDATE Finance 12 On 1 st August 2012, Blackwood Corporation executed a $5,000,000 unsecured draw down facility ( Facility ) with its subsidiary, Matilda Coal Pty Ltd, and its controlling shareholder, Noble Group Limited. The key terms of the Facility are: 1. A facility limit of $5,000,000, to be drawn down at any time prior to the Repayment Date in multiples of $250, The Repayment Date is the earlier of: a. the 5 th business day after receiving subscription monies from the Share Placement to Mulsanne Resources Pty Ltd as approved by shareholders on 12 July 2012; or b. 31 December Any funds raised either through a capital raising or debt funding must, within 5 business days of receipt, be applied towards repaying the draw downs. 4. Interest is payable at 12.5 % per annum, payable monthly in arrears. Blackwood may elect to capitalise interest prior to the Repayment Date. The final interest payment will be paid on the Repayment Date. 5. Blackwood s obligations under the Facility are guaranteed by Blackwood s subsidiary Matilda Coal Pty Limited. 6. Blackwood may, with 10 business days notice, elect to repay an amount of principal before the Repayment Date. With 15 day s written notice Blackwood may elect to cancel the entire facility before the Repayment Date without penalty or cost. On 12 July 2012, Shareholder approval was granted for the Share Placement Agreement to issue 94,689,760 shares at $0.30 per share Mulsanne Resources Pty Ltd, a company associated with the Tinkler Group ( Share Placement ) to raise $28.4 million, Completion of the Share Placement was had not yet occurred and as announced on 25th September 2012, the Company has commenced Court proceedings by applying to wind up Mulsanne Resources and seeking the Court to appoint a liquidator in respect of monies owing to Blackwood under the Share Purchase Agreement. The winding up application has been listed before the Supreme Court of New South Wales for hearing on Tuesday, 6 November The Company continues to investigate and consider its options regarding the recovery of the amounts outstanding.

13 13 Infrastructure Blackwood has been appointed to the North Queensland Supply Chain Steering Committee, as notified by the Queensland Government Department of State Development, Planning and Infrastructure on the 24th September The purpose of this committee is to prioritise projects and investment in North Queensland, predominantly driven by the Mt Isa to Townsville rail system with funding of $1.66 million for infrastructure planning. Blackwood has been intimately involved in the supply chain since work commenced on the South Pentland project, previously holding a position on the Mt Isa to Townsville Economic Zone (MITEZ) "Fifty Year Freight Infrastructure Plan" steering committee. Tenement Summary Blackwood advises that five of its tenure applications have recently been granted and renewed by the Department of Natural Resources & Mines. Of particular note is EPC (1603) adjacent to New Hope's proposed Elimatta infrastructure area, which could potentially provide Blackwood with long term associated infrastructure benefits on its Taroom projects. These are: GRANTED EPC 1603, Taroom, 1 sub block GRANTED EPC 2138, Bowen North, Calen 15 sub blocks RENEWAL GRANTED EPC 1461, Dalby, 11 sub blocks RENEWAL GRANTED EPC 1530, Warwick South, 26 sub blocks RENEWAL GRANTED EPC 1531, Rolleston North, 11 sub blocks The Company still has several outstanding applications awaiting process by the Government, and expects these grants to continue throughout the next quarter. Tenure Count Jul12 Aug12 Sep12 APPLICATION COMPETING APPLICATION EXPLORATION PERMIT PROPOSAL PRIORITY APPLICANT IN ASSESSMENT GRANTED RENEWAL LODGED GRANTED Grand Total Table 4: Count of QLD EPC s by number

14 14 SubBlock Count Jul12 Aug12 Sep12 APPLICATION COMPETING APPLICATION EXPLORATION PERMIT PROPOSAL PRIORITY APPLICANT IN ASSESSMENT GRANTED RENEWAL LODGED GRANTED Grand Total Table 5: Count of QLD EPC subblock tenures by status Mineral Tenures: EL26891 Northern Territory EL29433 Northern Territory EL26820 Northern Territory EL29438 Northern Territory EL70/3292 Western Australia CEO Commentary Chief Executive Officer of Blackwood Corporation, Todd Harrington, commented that the Company continued to make steady progress across its multipronged exploration program. The additional Exploration Target announcements at Lauderdale and Bymount were indicative of the further progress made by Blackwood throughout the Quarter. The relative proximity of the Lauderdale and Longton deposits to each other and the existing Great Northern rail line appear to confirm the attractiveness of the South Pentland prospect, whilst early results at Bymount appear very encouraging he said. During the latter part of Quarter 3 the Company has regulated the allocation of working capital to ensure the appropriate use of its funding, which has also highlighted the benefits that Blackwood enjoys from its association with cornerstone investor Noble Group. Mr Harrington also mentioned his pleasure at the Company being appointed to the North Queensland Resources Supply Chain Steering committee. This committee has been set up by the Queensland State Government to manage the forward plans of the Mt Isa to Townsville Supply Chain Corridor. Through Blackwood having a seat at the table, we are able to have a strong voice in guiding the forward development of the Supply Chain, which can only assist with providing certainty for our projects, he said.

15 About Blackwood Corporation 15 Blackwood Corporation Limited (ASX: BWD) is an emerging Australian energy and resources company, with a primary focus on the exploration and development of its coal tenement portfolio in Queensland, Australia. Through its wholly owned subsidiary, Matilda Coal Pty Ltd, Blackwood Corporation holds tenure of over 6,100 square kilometres in world class and internationally recognized coal basins, such as the Bowen Basin, Galilee Basin, Surat Basin and ClarenceMoreton Basin. The company has established 7 priority projects and 10 pipeline projects, aimed at providing long term growth opportunities. Many of its assets are adjacent to proven coal reserves of significant size and export quality, as well as excellent infrastructure. For more information, please contact Todd Harrington Chief Executive Officer Competent Persons Statement The information in this report that relates to Exploration Results, Exploration Targets and Minerals Resources is based on information compiled by Mr Mark Winsley, Mrs Merryl Peterson, Mr Lyon Barrett and Mr Lyndon Pass, who are all members of The Australian Institute of Mining and Metallurgy (AUSIMM). Mr Winsley is Blackwood Corporation Limited s General Manager QLD Exploration and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Winsley consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Mrs Peterson is engaged as Principal Geologist at Runge Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mrs Peterson consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Mr Barrett is engaged as Principal Resource Geologist/Director at Measured Resources Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Barrett consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Mr Pass is engaged as Principal Resource Geologist/Director at Encompass Mining Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Pass consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

16 JORC Exploration Targets 16 Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such, it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement. # The calculation of the total Exploration Target tonnage of billion tonnes is derived from the individual Exploration Targets of the South Pentland Longton ( billion tonnes A ), South Pentland Lauderdale ( billion tonnes A ), Taroom ( billion tonnes B ), Chinchilla ( million tonnes C ) and Bymount ( million tonnes D ) projects.. A Coal Quality Ranges for the South Pentland Project are as follows (all on an air dried basis): Moisture , Raw Ash , Volatile Matter , Fixed Carbon , Total Sulphur , Ave SE 5445 kcal/kg B Coal Quality Ranges for the Taroom Project are as follows (all on an air dried basis): Moisture , Raw Ash , Volatile Matter , Fixed Carbon , Total Sulphur , SE kcal/kg. C Coal Quality Ranges for the Chinchilla Project are as follows (all on an air dried basis): Moisture , Raw Ash , Volatile Matter , Fixed Carbon , Total Sulphur , SE kcal/kg. D Coal Quality Ranges for the Bymount Project are as follows (all on an air dried basis): Moisture , Raw Ash , Volatile Matter , Fixed Carbon 27 40, Total Sulphur , SE kcal/kg.

17 Appendix 5B Mining exploration entity quarterly report Appendix 5B Rule 5.3 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 Blackwood Corporation Limited ABN Quarter ended ( current quarter ) Sept 2012 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors Current quarter $A 000 Year to date (3 months) $A Payments for (a) exploration & evaluation (b) development (c) production (d) administration (1,666) (450) (1,666) (450) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid (2) (2) 1.6 Income taxes paid 1.7 Other (provide details if material) 6 6 (2,100) (2,100) Net Operating Cash Flows Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets (40) (40) 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 (40) (40) 1.13 Total operating and investing cash flows (carried forward) (2,140) (2,140) + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1

18 Appendix 5B Mining exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) (2,140) (2,140) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 5,000 5, Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows 5,000 5,000 Net increase (decrease) in cash held 2,860 2, Cash at beginning of quarter/year to date 1,692 1, Exchange rate adjustments to item Cash at end of quarter 4,552 4,552 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item 1.10 Nil 1.25 Explanation necessary for an understanding of the transactions Payments to directors are made in accordance with contracts/agreements. Noncash 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 reporting entity has an interest N/A + See chapter 19 for defined terms. Appendix 5B Page 2 17/12/2010

19 Appendix 5B Mining exploration entity quarterly report Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used $A 000 $A Loan facilities Nil 5, Credit standby arrangements Nil Nil Estimated cash outflows for next quarter $A Exploration and evaluation 3, Development 4.3 Production 4.4 Administration 500 Total 3,500 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A 000 Previous quarter $A Cash on hand and at bank 4,552 1, Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22) 4,552 1,692 Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed Tenement reference Nature of interest (note (2)) Partial Relinquishment Partial Relinquishment Partial Relinquishment Partial Relinquishment Partial Relinquishment Interest at beginning of quarter Interest at end of quarter + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 3

20 Appendix 5B Mining exploration entity quarterly report 6.2 Interests in mining tenements acquired or increased Granted EPC Granted EPC 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. 7.1 Preference + securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities Total number Number quoted Issue price per security (see note 3) (cents) 185,050, ,050,269 Amount paid up per security (see note 3) (cents) 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks 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) Executive options 1:1 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) Nil Nil Exercise price Expiry date + See chapter 19 for defined terms. Appendix 5B Page 4 17/12/2010

21 Appendix 5B Mining exploration entity quarterly report 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 /does not* (delete one) give a true and fair view of the matters disclosed. Sign here:...patrick McCole... Date: 31 October 2012 (Director/Company secretary) Patrick McCole Print name:... 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 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