Announcement PDF QUARTERLY ACTIVITIES REPORT Estrella Resources Limited ABN 39 151 155 207 Quarter ending 31 December 2019 ASX RELEASE 31 January 2020 ASX Code: ESR Board and Management Chief Executive Officer Christopher Daws (CEO) Non-Executive Directors Les Pereira John Kingswood Stephen Brockhurst Company Secretary David McEntaggart Address Level 11, London House 216 St Georges Terrace Perth WA 6000 PO Box 2517 Perth WA 6831 Telephone: +61 8 9481 0389 Facsimile: +61 8 9463 6103 info@estrellaresources.com.au www.estrellaresources.com.au HIGHLIGHTS  Maiden nickel sulphide Resource at Spargoville of 127,000 tonnes @ 1.9% Ni, 0.15% Cu o Including 13,000 tonnes @ 8% Ni  2,370 contained Ni tonnes (Indicated + Inferred)  Over 65% of Ni tonnes in the Indicated category (1,630 Ni tonnes)  Majority of resource located within 100m of surface  Deposit open at depth below high grade drill results  Bonanza gold results Munda gold project drilling  16m @ 21.6g/t Au from 102m o Including 1m @ 234.7g/t Au from 107m Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to provide its Activities Report for the quarter ended 31 December 2019. The focus of work during the quarter was the completion of the 5A JORC 2012 nickel resource at Spargoville, Munda Au Project drilling results and reviewing exploration data at the Carr Boyd Layered Complex (CBLC) . The Company also commenced mine studies and progressed ore offtake discussions for the high-grade oxide nickel resource at the 5A nickel deposit. SPARGOVILLE NICKEL PROJECT 5A Nickel Sulphide Mine – Maiden JORC 2012 Resource The Company reported to shareholders its maiden 5A nickel sulphide deposit Mineral Resource at the Spargoville Nickel Project, located approximately 30km south-west of Kambalda, Western Australia during the December 2019 Quarter (see ASX release 18 October 2019). The maiden Indicated + Inferred Mineral Resource stands at 127,000 tonnes at 1.9% Ni and 0.15% Cu for a contained nickel metal inventory of 2,370 tonnes (Table 1) and is reported in compliance with the JORC Code (2012). The Mineral Resource is shallow with the majority of nickel within 100m of surface and amendable to open pit mining. The maiden Mineral Resource follows a detailed assessment of historic drilling and the inclusion of significant high-grade nickel sulphide drilling results achieved by the Company (see ASX release 18 December 2018) which included;  15m at 10.45% Ni, 0.78% Cu, 0.20% Co, 0.87g/t Pb, and 1.15g/t Pt from 20m  5m at 11.32% Ni, 0.54% Cu, 0.21% Co, 0.42g/t Pd, and 0.22g/t Pt from 61m  3m at 12.90% Ni, 1.37% Cu, 0.29% Co, 1.86g/t Pd, and 0.67g/t Pt from 69m Over 65% of the contained nickel tonnes in the 5A deposits maiden Mineral Resource has been classified as Indicated category (69,000 tonnes at 2.4% Ni and 0.19% Cu for 1,630 tonnes of contained nickel metal) with there being sufficient drill density and understanding of the mineralisation to satisfy this classification (Table 1). The deposit is open at depth below the high-grade nickel sulphide drill intercepts which allows potential for an increase in the current resource with further drilling. The 5A nickel sulphide deposit is one of a number of significant nickel sulphide occurrences that make up the Company’s 100% owned Spargoville Nickel Project which was purchased at a time when nickel projects were not in favour and nickel prices were much lower. The Company has commenced discussions with third parties which could lead to the mining and treatment of the high grade 5A nickel resource if economic conditions are favourable. Table 1: Spargoville JORC Mineral Resource5A Nickel Sulphide Deposit October 2019 Mineral Resource Estimate - Min Type (0.5% Ni Cut-off) Indicated Mineral Resource Type Tonnage Ni Cu Ni Cu kt % % t t Disseminated 37 0.7 0.05 250 20 Matrix/Breccia 20 2.1 0.17 430 30 Semi-massive/Massive 12 8.1 0.63 950 70 Total 69 2.4 0.19 1,630 130 Inferred Mineral Resource Type Tonnage Ni Cu Ni Cu kt % % t t Disseminated 41 0.7 0.10 270 40 Matrix/Breccia 17 2.5 0.13 410 20 Semi-massive/Massive 1 7.6 0.35 60 Total 58 1.3 0.11 730 70 Total Mineral Resource Type Tonnage Ni Cu Ni Cu kt % % t t Disseminated 78 0.7 0.08 520 60 Matrix/Breccia 37 2.3 0.16 840 60 Semi-massive/Massive 13 8.0 0.61 1,000 80 Total 127 1.9 0.15 2,370 190 MUNDA GOLD PROJECT The Company reported that bonanza gold assay results had been returned from diamond core drilling completed at the Company’s 100% owned Munda Gold Project (Gold Rights only) at Widgiemooltha, 34km south west of Kambalda, WA (see ASX release 8 October 2019). Results exceeded the Company’s expectations, returning numerous very high-grade mineralised zones which contain “Bonanza” grades as shown in Table 2 below and detailed in Table 4. Drilling was designed to target and define interpreted high-grade plunging gold shoots at depth, away from the main pit zone (Figure 1). The high-grade plunging shoot interpretation is a new concept, significantly different to interpretations undertaken by previous explorers. The interpreted high-grade gold shoots were 3D modelled by The Company using implicit modelling software on historical drilling datasets. The new drilling reported in this announcement has confirmed the high-grade plunging shoot interpretation. This will have a significant impact on future drill targeting, allow an update to the JORC 2012 Mineral Resource, provide confidence in the 3D geological models, and allow robust economic evaluations to occur for the first time on The Project. Table 2: Significant Gold Intersections >1.0 g/t Au Hole ID From (m) To (m) Width (m) Grade Au g/t EMD002 57.00 65.00 8.00 3.3 including 57.00 58.00 1.00 19.6 EMD002 102.00 118.00 16.00 21.6 including & including 102.00 103.00 1.00 9.5 107.00 116.00 9.00 35.9 107.00 108.00 1.00 234.7 109.45 109.70 0.30 24.6 111.50 111.75 0.25 53.4 113.00 116.00 3.00 12.8 EMD002 124.00 130.00 6.00* 2.0 EMD002 134.00 138.00 4.00* 4.4 EMD001 EMD001 75.00 84.10 77.00 91.00 2.00 6.90 9.3 4.8** EMD001 125.00 140.00 15.00 2.6 including & including EMD001 125.00 126.00 1.00 15.7 135.00 136.00 3.00 3.8 143.00 144.00 1.00 1.4 EMD001 149.00 150.10 1.10 1.7 which includes Comments Weathered and altered ultramafic above broken quartz vein zone from 64.5-67.0m Weathered & bleached ultramafic Weakly altered & quartz veined basalt below contact Thin quartz veinlets & weak alteration in basalt Quartz vein stockworks in weak-moderately altered basalt Chlorite altered basalt with minor quartz veinlets & quartz sweats Qtz-sulphide vein with high grade remobilised Ni sulphide blebs. 10cm wide quartz-chlorite vein in basalt Altered basalt with numerous cross-cutting quartz veinlets Minor quartz veinlets with weak alteration in coarse grained basalt-dolerite Minor quartz veinlets with weak alteration in coarse grained basalt-dolerite Altered and veined ultramafic Sheared & quartz veined zone in ultramafic. Silicified & altered basalt below ultramafic contact Quartz veined contact zone between units Narrow quartz veinlet in basalt with weak alteration Narrow quartz veinlets in basalt 10cm wide quartz-sulphide vein in basalt near EOH. * Two meter composite samples. Requires 1m resampling. ** Core loss occurred in the middle of the zone between 85.9m-88.9m through a shear zone (35% recovery). Recovered sample (see Figure 2) from this interval grades 3.647g/t Au and has been used as the average grade of the entire 3m interval. Figure 1: Location of drill holes EMD001 and EMD002 north of the Munda gold pit. Simplified geology and gold intersection are shown over an aerial photo image. Multiple zones of mineralisation were intersected, with mineralisation occurring within the upper ultramafic but mainly directly below the nickel sulphide mineralisation within the lower basaltic unit (Figure’s 2 & 3). The gold mineralisation is generally associated with zones of silicified and bleached or chlorite altered rocks surrounding weak to moderate quartz vein/veinlet development. Rare thick (>10cm), late-stage quartz veins occur and contain gold mineralisation as well as remobilised nickel sulphides (Figure 3; @ 109.5m). The gold mineralised zones are low in arsenic (As) and silver (Ag), with the only exception being the shear zone in EMD001 between 86-91m which contains elevated As (max 462ppm) and Ag (max 3.49ppm) (Figure 5). The primary mineralised gold zones (Figures 4 & 6) characteristically contain narrow stockwork veinlets with weak-moderate alteration, returning elevated bismuth (Bi), cesium (Cs), potassium (K), molybdenum (Mo), rubidium (Rb), strontium (Sr), tellurium (Te) & tungsten (W) geochemistry, indicating a granitic source to the mineralizing fluids rather than a classic shear hosted origin. Further analysis of the structural/mineralisation controls, as well as alteration mapping, is required. In addition, geochemical modelling of the multi-element data will be used to vector towards the primary source of the mineralising fluids to better define the next stage of drill targeting. Table 3: Diamond drill hole collar details. Hole ID Final Depth Easting Northing Dip Azimuth Status EMD001 150.0m 360427.5 6513798.0 -65 063 Snapped Rods EMD002 171.2m 360427.0 Kambalda 6513799.0 -60 090 Completed Figure 2: Oblique cross-sections of EMD001 showing simplified geology and significant gold intersections. Figure 3: Oblique cross-sections of EMD002 showing simplified geology and significant gold intersections. Figure 4: High-grade intersection in EMD002 which returned 16m @ 21.6g/t Au (102.0m – 118.0m). This includes “Bonanza Grade” intersection of 9m @ 35.9g/t Au from 107.0m – 116.0m (red arrows) which includes 1m @ 234.7g/t Au from 107.0 m – 108.0m (red outline). Figure 5: Quartz vein-shear hosted gold mineralisation within upper zone EMD001 from 84.1m – 91.0m (6.9m @ 4.8g/t Au). Figure 6: Higher grade mineralised zone within EMD001 returned 3m @ 3.8g/t Au (135.0m – 128.0m). Narrow stockwork veinlets with weak-moderate alteration defining the broader mineralised zone (15m @ 2.6g/t Au from 125.0 – 140.0m). Table 4: Detailed Table of Significant Intersections >0.5 g/t Au Munda Significant Intersections Hole_ID SampleID From To Interval Au_ppm EMD002 EX176458 56.00 57.00 1.0 0.015 EMD002 EX176459 57.00 58.00 1.0 19.55 EMD002 EX176460 58.00 59.00 1.0 0.034 EMD002 EX176461 59.00 60.00 1.0 0.032 EMD002 EX176462 60.00 61.00 1.0 1.294 EMD002 EX176463 61.00 62.00 1.0 2.697 EMD002 EX176464 62.00 63.00 1.0 0.864 EMD002 EX176465 63.00 64.00 1.0 0.378 EMD002 EX176466 64.00 65.00 1.0 1.807 EMD002 EX176467 65.00 66.00 1.0 0.045 EMD002 EX176508 101.30 102.00 0.7 0.066 EMD002 EX176509 102.00 103.00 1.0 9.469 EMD002 EX176511 103.00 103.55 0.5 1.744 EMD002 EX176512 103.55 103.80 0.3 11.640 EMD002 EX176513 103.80 104.75 1.0 2.235 EMD002 EX176514 104.75 105.00 0.3 5.879 EMD002 EX176515 105.00 106.00 1.0 0.179 EMD002 EX176516 106.00 107.00 1.0 0.209 EMD002 EX176517 107.00 108.00 1.0 234.658 EMD002 EX176518 108.00 109.00 1.0 7.905 EMD002 EX176519 109.00 109.45 0.5 2.538 EMD002 EX176520 109.45 109.70 0.3 24.614 EMD002 EX176521 109.70 110.50 0.8 9.285 EMD002 EX176522 110.50 111.50 1.0 4.495 EMD002 EX176523 111.50 111.75 0.3 53.434 EMD002 EX176524 111.75 113.00 1.3 EMD002 EX176526 113.00 114.00 EMD002 EX176527 114.00 EMD002 EX176528 EMD002 Intersection Summary 8 m@ 3.3 g/t Au 1 m@ 19.6 g/t Au 16 m@ 21.6 g/t Au including 1 m@ 9.5 g/t Au 7.739 & includes 9 m@ 35.9 g/t Au 1.0 18.172 with 1 m@ 234.7 g/t Au 116.00 2.0 10.077 with 3 m@ 12.8 g/t Au 116.00 118.00 2.0 2.785 EX176529 118.00 120.00 2.0 0.883 EMD002 EX176530 120.00 122.00 2.0 0.67 EMD002 EX176531 122.00 124.00 2.0 0.71 EMD002 EX176532 124.00 126.00 2.0 4.175 EMD002 EX176533 126.00 128.00 2.0 0.461 EMD002 EX176534 128.00 130.00 2.0 1.446 6 m@ 2.0 g/t Au EMD002 EX176535 130.00 132.00 2.0 0.159 EMD002 EX176536 132.00 134.00 2.0 0.394 EMD002 EX176537 134.00 136.00 2.0 5.905 EMD002 EX176538 136.00 138.00 2.0 2.985 4 m@ 4.4 g/t Au EMD002 EX176539 138.00 140.00 2.0 0.843 including Munda Significant Intersections Hole_ID SampleID From To Interval Au_ppm EMD001 EX176312 60.0 61.0 1.0 0.031 EMD001 EX176313 61.0 62.0 1.0 0.727 EMD001 EX176314 62.0 63.0 1.0 0.523 EMD001 EX176315 63.0 64.0 1.0 0.062 EMD001 EX176327 74.0 75.0 1.0 0.031 EMD001 EX176328 75.0 76.0 1.0 15.7 EMD001 EX176329 76.0 77.0 1.0 2.890 EMD001 EX176330 77.0 78.0 1.0 0.062 EMD001 EMD001 EMD001 EX176335 EX176336 EX176337 82.0 84.1 85.0 84.1 85.0 85.9 2.1 0.9 0.9 0.539 1.788 6.103 Core loss. Sample Excluded EMD001 EX176338 85.9 88.9 3.0 3.647 Core loss. Sample Included EMD001 EX176339 88.9 90.0 1.1 6.857 EMD001 EX176340 90.0 91.0 1.0 7.838 EMD001 EX176341 91.0 92.0 1.0 0.083 EMD001 EX176376 124.0 125.0 1.0 0.101 EMD001 EX176377 125.0 126.0 1.0 15.690 EMD001 EX176378 126.0 127.0 1.0 0.349 EMD001 EX176379 127.0 128.0 1.0 3.851 EMD001 EX176380 128.0 129.0 1.0 0.156 EMD001 EX176381 129.0 130.0 1.0 0.319 EMD001 EX176382 130.0 131.0 1.0 1.040 EMD001 EX176383 131.0 132.0 1.0 0.435 EMD001 EX176384 132.0 133.0 1.0 1.949 EMD001 EX176385 133.0 134.0 1.0 0.512 EMD001 EX176386 134.0 135.0 1.0 0.704 EMD001 EX176387 135.0 136.0 1.0 5.895 EMD001 EX176388 136.0 137.0 1.0 0.726 EMD001 EX176389 137.0 138.0 1.0 4.753 EMD001 EX176390 138.0 139.0 1.0 0.333 EMD001 EX176391 139.0 140.0 1.0 2.152 EMD001 EX176392 140 141 1.0 0.357 EMD001 EX176394 142.0 143.0 1.0 0.159 EMD001 EX176395 143.0 144.0 1.0 1.431 EMD001 EX176396 144.0 145.0 1.0 0.238 EMD001 EX176401 148.0 149.0 1.0 0.114 EMD001 EX176402 149.0 150.1 1.1 1.696 EOH Intersection Summary 2 m@ 0.6 g/t Au 2 m@ 9.3 g/t Au 6.9 m@ 4.8 g/t Au 15 m@ 2.6 g/t Au including 1 m@ 15.7 g/t Au including 3 m@ 3.8 g/t Au 1 m@ 1.4 g/t Au 1 m@ 1.7 g/t Au CARR BOYD ROCKS Ni / Cu PROJECT T-5 Nickel-Copper Sulphide Discovery As previously announced1, Estrella completed two RC drill holes in late May (Table 5) testing the T5 EM target which was previously identified by the Company during its earlier ground Moving Loop ElectroMagnetic (MLEM) program2. The T5 Target was located approximately 1,000-1,200m North-North West of the Carr Boyd Nickel Mine and is a significant new zone of nickel-copper sulphides discovered away from the known historic mineralisation. Modelling of the geological and geophysical data is supportive of mineralisation extending to the north, south, and at depth. Historic drilling2 ~400m further to the south, intersected disseminated and matrix sulphides on the interpreted basal contact of the western ultramafic unit, returning 3.35m at 0.79% Ni & 0.35% Cu which included a higher-grade zone of 0.61m grading 2.12% Ni & 0.56% Cu from 100.89m in drill hole GD124. The MLEM survey identified the T5 Target zone to the north of this historic drilling within an area untested by deeper drilling. Table 5: Significant Intersection Results above 0.4% Ni cut-off grade. Hole ID From To Width Ni% Cu% Co ppm CBP042 129m 137m 8m 1.11% 0.36% 507ppm 133m 137m 4m 1.60% 0.31% 689ppm 126m 127m 1m 0.61% 0.57% 346ppm Incl l CBP043 Matrix Sulphide Zone Footwall Basalt Sulphide Zone Host Ultramafic Figure 7. Sulphide mineralised samples within CBP042 at Carr Boyd. Black samples are the higher grade, sulphide rich matrix zone. 1: ASX:ESR-28/05/2019 Nickel Discovery Carr Boyd Rocks 2: ASX: ESR-26/11/2018 EM Confirms Two High Priority Targets at Carr Boyd 3. ASX: ESR-08/07/2019 Assays confirm Ni Sulphide Discovery The host ultramafic sits against a primary basal contact (not sheared) and is underlain by a sequence of mafic basalts and felsic sediments to the west. The base of the ultramafic sequence comprises lowmagnesium ultramafics which have a weakly to highly disseminated sulphide zone developing from the base upwards (Figure 7). This is overlain by a geochemically different, second pulse of ultramafic comprising the higher-grade matrix sulphides at the base of a thicker, magnesium-rich (20-25% MgO) host ultramafic which develops eastwards. DHTEM clearly defines that the drilling intersected the T5 MLTEM conductor. The modelling of the data is supportive of mineralisation continuing along the length of the basal contact to the north, as well as at depth below the drilling to the north & south. Deep diamond core drilling has been planned to target a zone 300m to the north and south of the current drilling and directly below T5 at a vertical target depth of 300-400m below surface. This planned drilling will test the basal contact over a greater strike length of ~700-800m providing critical geological and geochemical vectoring data. The drilling will also provide a platform for deep DHTEM geophysical testing for strengthening Ni-Cu sulphide mineralisation. CORPORATE The Company held its Annual General Meeting of Shareholders on the 19 November 2019 with all resolutions put to the meeting passing on a majority show of hands. Resolutions passed included the adaption of a replacement constitution, election of Les Pereira and re-election of Stephen Brockhurst to the board of Directors, ratification of prior issue of options and shares, appointment of Auditor and issue of options to Directors. The Company post December Quarter end raised A$450,000 in new working capital via a Convertible Note Deed (see ASX release 31 January 2020). CAPITAL 1,375,000 unlisted options exercisable at $0.40 on or before the 13 November 2019 expired unexercised. The Company issued 14,000,000 unlisted options exercisable at $0.03 to Directors and employees pursuant to the Company’s Employee Share Option Plan (ESOP) as approved by shareholders on the 26 April 2018. During the period the Company’s CEO Chris Daws provided the Company with an unsecured interest free loan for general working capital up to $50,000, drawn down to $24,000 as at quarter end. The Company’s cash balance as at 31 December 2019 was A$3,000 though subsequent to the quarter’s end the Company raised A$450,000 in new working capital and continues to look at opportunities to realise or create value through the Company’s existing assets or via new opportunities. Fully Paid Ordinary Shares 534,647,797 Listed options exercisable $0.05 on or before the 27 June 2021 – 250,980,328 Unlisted options exercisable $0.024 on or before 31 March 2020 - 8,250,000 $0.03 on or before 20 November 2022 – 14,000,000 $0.05 on or before 15 May 2021 – 5,500,000 Competent Person Statement The information in this announcement relating to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neil Hutchison of Geolithic Geological Services, who is a consultant to Estrella Resources and a member of The Australasian Institute of Geoscientists. Mr Hutchison has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr Hutchison consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. ENDS The Board of Directors of Estrella Resources Limited authorised this announcement to be given to ASX. FURTHER INFORMATION CONTACT Christopher J. Daws Chief Executive Officer Estrella Resources Limited info@estrellaresources.com.au P: +61 (08) 9481 0389 Appendix 1 – Tenement Information as Required by Listing Rule 5.3.3. Change in Holding (%) Current Interest (%) Country Location Project Tenement Australia WA Carr Boyd Nickel Project E29/1012 - 100 Australia WA Carr Boyd Nickel Project E29/0982 - 100 Australia WA Carr Boyd Nickel Project L24/0186 - 100 Australia WA Carr Boyd Nickel Project E31/0726 - 100 Australia WA Carr Boyd Nickel Project E31/1124 - 100 Australia WA Carr Boyd Nickel Project M31/0012 - 100 Australia WA Carr Boyd Nickel Project M31/0109 - 100 Australia WA Carr Boyd Nickel Project M31/0159 - 100 Australia WA Carr Boyd Nickel Project E31/1162 - 100 Australia WA Munda Nickel & Gold Project M15/87 Australia WA Spargoville Nickel Project M15/395 Australia WA Spargoville Nickel Project M15/703 Australia WA Spargoville Nickel Project M15/1828 Australia WA Spargoville Nickel Project L15/128 Australia WA Spargoville Nickel Project L15/255 *Nickel rights only **Lithium & Nickel rights held by third parties. ^Gold rights only - 100^** 100* 100* 100* 100* 100* 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, 01/05/13, 01/09/16 Name of entity Estrella Resources Limited and its Controlled Entities ABN Quarter ended (“current quarter”) 39 151 155 207 31 December 2019 Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Current quarter $A’000 Year to date (6 months) $A’000 - - (114) (306) (b) development - - (c) production - - (d) staff costs (20) (79) (e) administration and corporate costs (69) (165) (a) exploration & evaluation 1.3 Dividends received (see note 3) - - 1.4 Interest received - - 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Research and development refunds - - 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (203) (550) 2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment - - (b) tenements (see item 10) - - (c) investments - - (d) other non-current assets - - + See chapter 19 for defined terms 1 September 2016 Page 1 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Consolidated statement of cash flows 2.2 Current quarter $A’000 Year to date (6 months) $A’000 Proceeds from the disposal of: (a) property, plant and equipment - - (b) tenements (see item 10) - 250 (c) investments - - (d) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other - - 2.6 Net cash from / (used in) investing activities - 250 3. Cash flows from financing activities 3.1 Proceeds from issues of shares / options - - 3.2 Proceeds from issue of convertible notes - - 3.3 Proceeds from exercise of share options - - 3.4 Transaction costs related to issues of shares, convertible notes or options - - 3.5 Proceeds from borrowings 24 24 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - - 3.10 Net cash from / (used in) financing activities 24 24 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 182 279 Net cash from / (used in) operating activities (item 1.9 above) (203) (550) 4.2 4.3 Net cash from / (used in) investing activities (item 2.6 above) - 250 4.4 Net cash from / (used in) financing activities (item 3.10 above) 24 24 4.5 Effect of movement in exchange rates on cash held - - 4.6 Cash and cash equivalents at end of period + See chapter 19 for defined terms 1 September 2016 3 3 Page 2 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 5. Reconciliation of cash and cash equivalents Current quarter $A’000 Previous quarter $A’000 at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts 5.1 Bank balances 3 182 5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 3 182 6. Payments to directors of the entity and their associates 6.1 Aggregate amount of payments to these parties included in item 1.2 26 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 Current quarter $A'000 Includes director’s fees and company secretarial / accounting fees for the quarter. Current quarter $A'000 7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 50 24 8.1 Loan facilities 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. Loan provided by Christopher Daws (CEO) for general working capital. The loan is unsecured and interest free. + See chapter 19 for defined terms 1 September 2016 Page 3 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report $A’000 9. Estimated cash outflows for next quarter 9.1 Exploration and evaluation 9.2 Development - 9.3 Production - 9.4 Staff costs 105 9.5 Administration and corporate costs 70 9.6 Other (provide details if material) - Repayment borrowings 24 Total estimated cash outflows 319* 9.7 120 *Subsequent to the end of the quarter the Company received firm commitments to raise $450,000 in working capital via a Convertible Note Deed. 10. Changes in tenements (items 2.1(b) and 2.2(b) above) Tenement reference and location Nature of interest Interest at beginning of quarter Interest at end of quarter 10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced - - - - 10.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Sign here: Date: 31 January 2020 David McEntaggart (Company Secretary) 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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. 2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been + See chapter 19 for defined terms 1 September 2016 Page 4 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. + See chapter 19 for defined terms 1 September 2016 Page 5