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1 30 October, 2015 October 2015 Quarterly Report Western Mining Network Limited ( WMN or the Company ) is pleased to release the following summary of activities undertaken in the Third Quarter of Financing Efforts The major activity for the was focused on efforts to secure funding for the next phase of development of the Company s graphite projects. Management spoke to a wide range of range of potential investors including both institutional and individual investors and on 29 th October 2015 announced a transaction with Lanstead Capital LP. Under the terms of the placement, Lanstead will subscribe for 30,000,000 ordinary shares to be issued at a price of A$0.20 per share, representing a 25 percent premium to the Company s last traded price. Lanstead will also subject to the satisfaction of certain conditions, receive 7,500,000 options to acquire ordinary shares at a price of A$0.27 per share exercisable on or before 30th June, In addition, the Company has entered into a sharing agreement ( Sharing Agreement ) with Lanstead which enables the Company to secure much of the potential upside arising from any share price appreciation above $0.27 over the next 18 months. The Company will retain A$900,000 of the aggregate A$6,000,000 subscription price and the remainder will be provided as security to Lanstead for the Sharing Agreement, with the first payments under that agreement being received 60 days after the closing. The Sharing Agreement provides that the Company will receive 18 monthly cash settlements determined by WMN s share price performance as measured against a benchmark price of A$0.27 per share (the "Benchmark Price"). The broad effect of the arrangements is that, if the 18 month VWAP of the Company's shares following the date of the deal is A$0.27, the Company should receive approximately A$6,000,000 in total including the initial payment of A$900,000. It will receive more if the average price is above A$0.27, and less if the average price is below A$0.27. Further details are available in the Company s announcement dated 29 th October, Tamboli Project On August 3 rd, 2015, the company was granted a Mining Licence known as an IUPOP (Ijin Usaha Pertambangan Operasi Produksi) for the mine at the Tamboli project. This is a significant milestone for the project, as the certificate is valid until August 3 rd, 2020 and can be extended by two

2 periods of five years beyond that date. This gives the company a total of at least 13 years of operation at Tamboli, assuming a full scale production plant is commissioned by mid2017. PT Grafindo Nusantara (GFN) The transaction between WMN and GFN is proceeding, with 90% of the documentation completed. An extension of the time has been agreed by both parties to close the transaction, which is expected to occur in November. Scoping Studies The company has embarked upon two Scoping Studies for each of its graphite projects (Mekongga and Balai Sebut), in order to fully plan the next steps for these projects and better understand their ore characteristics. This is particularly important in relation to matching the final concentrate products from the mine with their ultimate use in the carbon supply chain. The company is fortunate in having Korean partners in EPetrochemical Company Limited and Dongsung Hichem Co Ltd to provide marketing and product specification advice for the Korean carbon market, one of the largest markets for graphite and graphite products in the world. During the, planning of the projects was advanced and a suite of core samples selected for checkassaying, flake sizing and flotation testing. Consultants and appropriate laboratories have been selected, so development work can proceed at a rapid pace now that funding has been made available. Infrastructure layout and pilot plant design were also addressed during the. Finalisation of these aspects will be completed once the pilot plant has been designed and plant throughput established through the metallurgical test work program. Market Study In parallel with the scoping studies discussed above and in cooperation with its strategic partners, the Company is also continuing its assessment of potential products, downstream markets and customers in order to optimise production, facilitate offtake agreements from customers and maximise overall margins in the longerterm. This effort will be formalised during the coming. On behalf of the board, Budi Santoso Executive Director and Chief Technical Officer

3 TENEMENTS HELD AS AT 31 MARCH 2015 Set out below is the relevant information in relation to Western Mining Network Ltd tenements as required under ASX Listing Rule IUP No. Tenement Name Location Change in % interest % Interest as at 31 December /0102 Genesis Berkat Utama ToliToli, Sulawesi Tengah No change 51% 540/ Persada Bumi Rawas Buol, Sulawesi Tengah No change 75% /104/2 014 Mekongga Sejahtera Kolaka, Sulawesi Tenggara 75% Option 75% Option

4 Mining exploration entity and oil and gas exploration entity ly report Rule 5.5 Mining exploration entity and oil and gas exploration entity ly 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 Western Mining Network Limited ABN Quarter ended ( current ) September 2015 Consolidated statement of cash flows Cash flows related to operating activities Curent 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration (4) (174) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Year to date (3 months) (4) (174) Net Operating Cash Flows (178) (178) 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 Loans repaid by other entities 1.12 Other (cash acquired in purchase of subsidiary) Net investing cash flows Total operating and investing cash flows (carried forward) (143) (143) 1.13 Total operating and investing cash flows (brought forward) (143) (143) 01/05/2013 Page 1

5 Mining exploration entity and oil and gas exploration entity ly report 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 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other cost of share issues proceeds from intended issue of securities Net financing cash flows Net increase (decrease) in cash held (143) (143) 1.20 Cash at beginning of /year to date Exchange rate adjustments to item 1.20 (1) (1) 1.22 Cash at end of Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities 1.23 Aggregate amount of payments to the parties included in item 1.2 Curent $A' Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions 1.23 includes director s fees and salaries for executive and nonexecutive directors 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 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used Page 2 01/05/2013

6 Mining exploration entity and oil and gas exploration entity ly report 3.1 Loan facilities 3.2 Credit standby arrangements Events after the end of the : On 29th October 2015 the Company announced a transaction with Lanstead Capital LP. Under the terms of the placement, Lanstead will subscribe for 30,000,000 ordinary shares to be issued at a price of A$0.20 per share, representing a 25 percent premium to the Company s last traded price. Lanstead will also subject to the satisfaction of certain conditions, receive 7,500,000 options to acquire ordinary shares at a price of A$0.27 per share exercisable on or before 30th June, In addition, the Company has entered into a sharing agreement ( Sharing Agreement ) with Lanstead which enables the Company to secure much of the potential upside arising from any share price appreciation above $0.27 over the next 18 months. The Company will retain A$900,000 of the aggregate A$6,000,000 subscription price and the remainder will be provided as security to Lanstead for the Sharing Agreement, with the first payments under that agreement being received 60 days after the closing. The Sharing Agreement provides that the Company will receive 18 monthly cash settlements determined by WMN s share price performance as measured against a benchmark price of A$0.27 per share (the "Benchmark Price"). The broad effect of the arrangements is that, if the 18 month VWAP of the Company's shares following the date of the deal is A$0.27, the Company should receive approximately A$6,000,000 in total including the initial payment of A$900,000. It will receive more if the average price is above A$0.27, and less if the average price is below A$0.27. Further details are available in the Company s announcement dated 29th October, Estimated cash outflows for next 4.1 Exploration and evaluation(resource, metallurgy & pilot plant design) Development(geotechnical & soil investigation) 4.3 Production 4.4 Administration 398 Total 911 Reconciliation of cash Reconciliation of cash at the end of the (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Curent 5.1 Cash on hand and at bank Deposits at call Previous 01/05/2013 Page 3

7 Mining exploration entity and oil and gas exploration entity ly report 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of (item 1.22) Changes in interests in mining tenements and petroleum tenements 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed Tenement reference and location Nature of interest (note (2)) Interest at beginning of Interest at end of 6.2 Interests in mining tenements and petroleum tenements acquired or increased Issued and quoted securities at end of current 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 (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities 7.4 Changes during (a) Increases through issues (b) Decreases through returns of capital, buybacks Convertible debt securities (description) Total number Number quoted Issue price per security (see note 3) (cents) 164,746, ,746,512 Amount paid up per security (see note 3) (cents) Page 4 01/05/2013

8 Mining exploration entity and oil and gas exploration entity ly report 7.6 Changes during (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) 7.8 Issued during 7.9 Exercised during 7.10 Expired during 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) 406, ,250 1,000,000 Nil Nil Nil Exercise price $0.50 $0.60 $0.60 Expiry date 30 June June June /05/2013 Page 5

9 Mining exploration entity and oil and gas exploration entity ly report Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does give a true and fair view of the matters disclosed. Sign here: Date: 30 October 2015 (Company Secretary) Print name: Adrien M. Wing Notes 1 The ly report provides a basis for informing the market how the entity s activities have been financed for the past 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 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. == == == == == Page 6 01/05/2013