Quarterly Activities and Cashflow Report

Level 1

33 Ord Street Telephone: + 61 8 9420 9300

West Perth, Western Australia 6005 Facsimile: + 61 8 9420 9399

Australia

ACTIVITIES REPORT FOR THE QUARTER ENDED 31 DECEMBER 2011

During the quarter the Company completed due diligence and acquired an advanced thermal coal project located in Utah, USA which has infrastructure (rail, water and utilities) in place (Kinney Project).
The Company will be releasing a JORC Resource report for the Kinney Project in the 1st quarter of 2012.
Significant milestones for the quarter ended 31 December 2011 include:

• Completion of due diligence and acquisition of the Kinney Project located in Utah, USA

• Hire of a strong management team with a proven track record of project delivery in North

America

• Initiation of the JORC Resource Report to quantify the resource base of the Kinney

Project

• Commencement of work on the Bankable Feasibility Study on the Kinney Project

• Raised $11,550,000 in equity capital to complete the acquisition of the Kinney Project and commence the BFS

The Kinney Project is situated in the Eastern Wasatch Plateau and is located approximately
160km southeast of Salt Lake City, Utah near the town of Scofield. The permit process was successfully completed in June 2011 and targets initial production to commence in 2013. The project plan includes underground mining of two major coal seams using conventional, continuous miner sections. Entry will be via an exposed coal seam outcrop within the permitted area.
The Kinney Project includes over 2,100 hectares of mineral rights (land tenements) for two coal seams. In addition, a preliminary application for adjacent Federal Land, Mineral Coal Rights for these same two seams. Acquisition of the adjacent Federal Coal will allow the Company to significantly expand its resource base.
The Kinney Project has high quality thermal coal which has export potential. Discussions have already commenced on an evaluation of various railroad and port options.
The Kinney project is located in a mature coal-producing region in the western United States. Historical production from this region has been over 30 million tonnes of coal per annum. This region provides an experienced, local workforce combined with major mining service centers located within 50km of the portal. Existing, rail spur access is within 1km of the portal site.

New Horizon Coal Ltd

ABN 61 143 932 110

PO Box 637, West Perth, 6872, Western Australia

Appendix 5B Mining exploration entity quarterly report Appendix 5B 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

NEW HORIZON MINERALS LTD

Rule 5.3

ABN Quarter ended ("current quarter")

61 143 932 110 31 DECEMBER 2011

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) administration

(c) occupancy

(d) corporate compliance (e) management services (f) audit services

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 GST paid

1.7a Other (net GST PAYG activity - BAS)

1.7b Other

Net Operating Cash Flows

+ See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(7,218)	(7,483)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Cost of shares & options issued 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other Net financing cash flows	11,550 (795)	11,550 (815)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Cost of shares & options issued 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other Net financing cash flows	10,755	10,735
Net increase (decrease) in cash held 1.20a Cash at beginning of quarter/year to date 1-20b Cash acquired due to acquisition of prospect 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	3,537 2,084 127	3,252 2,369 127
Net increase (decrease) in cash held 1.20a Cash at beginning of quarter/year to date 1-20b Cash acquired due to acquisition of prospect 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	5,748	5,748

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'000

1.23 Aggregate amount of payments to the parties included in item 1.2 77

-

1.24 Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Fees paid to directors and/or director related entities - 60

Office Rent and Outgoings paid to a director related entity - 14

Salary and super paid to a director net after PAYG withheld - 3

Payment are net of any applicable GST

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

Acquisition of Delta Coal Fund Pty Ltd and Wasatch Natural Resources LLC - Kinney Coal Project in Utah, USA. Consideration for the acquisition, other than cash, was the issue of 10,000,000 fully paid ordinary shares and the issue of 30,000,000 performance shares, 10,000,000 each of class A, B and C performance shares

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

Appendix 5B Mining 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

Estimated cash outflows for next quarter

4.1 Exploration and evaluation

4.2 Development

4.3 Production

4.4 Administration

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.

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed

6.2 Interests in mining tenements acquired or increased

+ See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report 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.

7.12 Unsecured notes

(totals only)

+ See chapter 19 for defined terms.

Appendix 5B Page 4 17/12/2010

Appendix 5B Mining exploration entity quarterly 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.
Gary Steinepreis
Director
January 2012

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 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.

17/12/2010 Appendix 5B Page 5