Australian Silica Quartz : December 2020 Quarterly Activities and Cashflow Report

AUSTRALIAN SILICA QUARTZ GROUP LIMITED DECEMBER 2020 QUARTERLY REPORT

HIGHLIGHTS

SILICA PROJECTS

Albany White Hill Silica Sand Project

• Exploration work completed on the Albany White Hill Silica Sand project including hand auger drilling, vacuum drilling, metallurgical testwork and Mineral Resource estimation
• 76 vacuum drill holes completed for 489 m with white silica sand intersections of up to 13.0 m from 0.5 m
• Maiden Inferred Mineral Resource estimate of 11.6 Mt with >99.9% SiO2 and <50 ppm Fe2O3
• Preliminary metallurgical testwork confirms potential to produce very high- grade, low iron silica sand suitable for the PV cover-glass market along with other specialty industrial applications
• Testwork indicates the silica sand is easily processed using low capital and operational cost washing screening and gravity technology. Following preliminary discussions with engineering companies, the Company expects the processing plant capital cost to be <$5m
• Scoping Study underway looking at exports of 0.5 - 1.0 million tonnes per annum
• The Silica Sand resource is within a tree farm on private freehold land with an exploration and mining access agreement in place and no clearing of native vegetation required for mining

Other Silica Projects

• Trial 45 tonne shipment of silica sand product ASQ-GWW1 well received by customer in South Korea and followed by immediate order for additional 44 tonne shipment with ongoing containerized orders expected
• R&D testwork continues with the aim of achieving a High Purity Silica product (>99.99% SiO2)

JULIMAR ASQ DEVEX 50/50 JV NICKEL COPPER PGE's

• DevEx completed ground based MLEM surveys on 3 of 5 priority airborne EM targets on the Sovereign magnetic complex located on ASQ's E70/3405, along strike from the Chalice Gold Mines Ltd Ni-Cu-PGE Julimar discovery in WA
• DevEx plan to start aircore drilling in late January 2021 and to finish the MLEM surveying early in 2021 following harvest

SOUTH STIRLING NICKEL COPPER PROJECT

• Desktop assessment and program planning commenced over the four application leases that ASQ believes has potential for Ni/Cu magmatic sulphide mineralisation associated with mafic-ultramafic intrusions emplaced into granulite facies country rocks.

FINANCIAL

• Cash at bank at 31 December 2020 was $6.2m. The Company has no debt and additional assets including two unencumbered rural properties in the Bindoon area of Western Australia

29 January 2021

ASX Code: ASQ

AUSTRALIAN SILICA QUARTZ GROUP LTD

ABN: 72 119 699 982

DIRECTORS:

Robert Nash

Non Executive Chairman

Luke Atkins

Non Executive Director

Neil Lithgow

Non Executive Director

Pengfei Zhao

Non Executive Director

CHIEF EXECUTIVE OFFICER AND COMPANY SECRETARY:

Sam Middlemas

Head Office:

Suite 10, 295 Rokeby Road

Subiaco WA 6008

Mail:

Suite 10, 295 Rokeby Road

Subiaco WA 6008

1. [phone]

1. [phone]

1. [e-mail]

1. www.asqg.com.au

Share Registry:

Automic Group

GPO Box 5193

Sydney NSW 2001

1. 1300 288 664 (within Australia)

1. [phone] (international)www.automicgroup.com.au

Suite 10, 295 Rokeby Road, SUBIACO WA 6008

Suite 10, 295 Rokeby Road, SUBIACO WA 6008

Phone: [phone] Fax: [phone] www.asqg.com.au

Phone: [phone] Fax: [phone] www.asqg.com.au

Figure 1: ASQ Project Locations

SILICA SAND PROJECTS - GINGIN, ALBANY AND ESPERANCE

The Gingin Silica Sand Project consists of one application exploration licence located 20km north of Perth, the Albany Silica Sand Project consists of three granted exploration licences and four application exploration licences within 10-80 km of the Port of Albany, the East Esperance Silica Sand Project consists of two granted exploration licences 15-50 km East of the Port of Esperance.

Albany White Hill Silica Sand Project

The Company has entered into an Exploration and Mining Access agreement ("access agreement") on a private freehold property located 70km east of Albany (See Figure 2). This property has been selected following extensive desktop assessment and roadside reconnaissance over the last +18 months.

The access agreement covers an area of 189 Ha located on ASQ's 100% owned exploration licence E70/5262 and covers access for both exploration and also for mining should the project progress to development.

During the quarter the Company completed a program of auger drilling to refine the exploration target ahead of resource definition drilling work (ASQ (2020). Exploration Update. ASX Release 23 September 2020). A vacuum drilling program consisting of 76 holes for 489 m was undertaken in November 2020 (ASQ (2020). Encouraging Results from Albany Silica Sand Drilling. ASX Release 9 December 2020).

Composite samples from the vacuum drilling program have been used to carry out preliminary metallurgical testwork. Results indicate the silica sand is readily processed by conventional washing and gravity separation to produce a very high grade silica sand product that has potential for industries such as general and specialty glass making including PV panel cover glass and optical glass. Other potential applications include foundry and filter sands, electronics component manufacturing and engineered stone

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manufacturing. The sand is expected to be high yielding with little waste produced(ASQ (2021). Maiden High Grade, Low Iron, Silica Sand Resource. ASX Release 28 January, 2021).

An independent Mineral Resource estimate was carried out by Ashmore Advisory Pty Ltd ("Ashmore"). The Mineral Resource totals 11.6 Mt with >99.9% SiO2 and <50 ppm Fe2O3 and extends over a strike length of 1,650m (from 6,159,250mN to 6,160,900mE, has a maximum width of 1,565m (from 639,975mE to 641,530mE) and was modelled from surface to a depth of approximately 14m below surface (ASQ (2021). Maiden High Grade, Low Iron, Silica Sand Resource. ASX Release 28 January, 2021).

Table 1 below gives the results of the Mineral Resource estimate.

Table 1 - Albany White Sand Hill Silica Sand Deposit January 2021 Inferred Mineral Resource Estimate

Size	Tonnes	Yield	Fe2O3	Al2O3	TiO2	CaO	K2O	Na2O	MgO	∑Ox.	SiO2
+LOI
Fract
Mt	(%)	ppm	ppm	ppm	ppm	ppm	ppm	ppm	%	%
Fine	8.2	70.6	46	145	410	12	16	19	10	0.07	99.93
Coarse	3.4	29.1	43	137	668	6	12	19	3	0.09	99.91

A Scoping Study has commenced looking at the suitability of the deposit for development into a 0.5 - 1.0 Mtpa export operation. The study will include stakeholder consultation, preliminary engineering design, environmental assessment, logistics and market assessments along with operational and capital expenditure estimates and financial modelling.

The Company aims to be able to report the results of the Scoping Study and commence a feasibility study by Q3 2021.

Albany White Hill

Silica Sand Project

Figure 2: Location of the Albany White Hill Silica Sand Project on E70/5262 east of Albany. ASQ South Stirling Ni-Cu Sulphide tenements shown for context. Other holder tenements not shown.

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008

Phone: [phone] Fax: [phone] www.asqg.com.au

ASQ/URBAN RESOURCES PARTNERSHIP - SILICA SAND PROJECT

ASQ continues to market the two high grade silica sand products developed from the 10.7 million tonnes

• 99.8% SiO2 JORC 2012 Inferred Mineral Resource it delineated at the Bullsbrook tenement M70/326(1) (ASQ (2020). Marella Road Silica Sand Deposit Maiden Resource. ASX release 23 April 2019 & Silica Sand Testwork. ASX Release 29 January 2020).

Trial Silica Sand Shipments to South Korea

In Q3 2020 the Company sent two 20'GP sea containers loaded with 45 tonnes of bagged ASQ-GWW1 silica sand product to a customer in Busan, South Korea. The silica sand was sold on a CFR basis at a premium to the expected bulk sand price to cover the additional costs of bagging and loading into a container (ASQ (2020). Trial Shipment of Silica Sand Exported to South Korea. ASX release 21 October 2020). The silica sand was well received by the customer and they have now ordered an additional 44 tonnes which will be dispatched in February 2021. The customer has indicated they expect to place ongoing orders for containerised silica sand at higher volumes.

JULIMAR ASQ/DEVEX JOINT VENTURE - NICKEL COPPER PGE'S

SOVEREIGN PROJECT

Figure 3: Location of Julimar Complex Sovereign Project with existing Ni-Cu-PGE discoveries on Aeromagnetic RTP image

ASQ and DevEx Resources Limited ("DevEx", ASX: DEV), are engaged in a joint venture, (JV) on the portion of the 6x7km Sovereign magnetic complex located on ASQ's E70/3405 with DevEx earning-in to the non-bauxite rights of the tenement by an initial spend of $3m to earn a 50% interest with a minimum spend of $250,000. Once DevEx has earnt its initial 50% interest, ASQ may elect to contribute to further exploration to maintain its 50% interest, or opt to allow DevEx to spend an additional $3m to earn a further 20% interest with ASQ diluting (ASQ (2020). ASQ Reaches Agreement for Exploration Funding of its Tenement in Julimar Region, WA. ASX Release 1 June 2020).

1. Mining lease M70/326 is held by Stefanelli Developments Pty Ltd. An agreement between Urban and Stefanelli grants Urban the exclusive right to conduct mining

on M70/326 subject to an owner royalty and options up to 30 June 2022. Negotiations are continuing to extend the agreement for an additional 5 years to 30 June 2027.

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Phone: [phone] Fax: [phone] www.asqg.com.au

E70/3405 and the Sovereign magnetic complex is located along strike from the Chalice Gold Mines Ltd (ASX: CHN) nickel-copper-platinum group elements (Ni-Cu-PGE) Julimar discovery in WA (see Figure 3).

Re-assaying of the ASQ bauxite drilling samples and surface rock chip sampling has returned individual assays of up to 1,210ppm nickel (Ni), 395ppm copper (Cu), 6,830ppm chromium (Cr) and 83ppb palladium + platinum (Pd+Pt). These results are indicative of the presence of mafic-ultramafic rocks, similar to the rocks of the Julimar Complex which host the recent high-gradeNi-Cu-PGE discovery by Chalice Gold Mines Limited. (ASQ (2020). Update on ASQ/DevEx 50/50 JV in Julimar Region, WA. ASX Release 19 August 2020)

During the quarter the JV completed ground based moving loop electromagnetic (MLEM) surveys on 3 of 5 priority airborne electromagnetic targets on the Sovereign magnetic complex. DevEx plan to finish the MLEM surveying early in 2021 once the crops have been harvested. Aircore drilling is planned to be started in late January 2020.

SOUTH STIRLING NICKEL COPPER PROJECT - ALBANY FRASER BELT, WESTERN AUSTRALIA

ASQ has secured a strategic position in the Biranup Zone of the Albany-Fraser Orogeny located in the south-west of Western Australia in the shires of Plantagenet and the City of Albany. (ASQ (2020). Exploration Update. ASX Release 23 September 2020)

The Company has applied for four tenements totalling 1,603 km2 over a strategic section of the Biranup Zone of the Albany-Fraser Orogeny located in the south-west of Western Australia (see Figure 4 & 5) following the identification of an anomalous drill hole with elevated Ni, Cu and Cr. In 2015 Iluka Exploration Pty Ltd (Iluka) drilled 39 broad spaced air-core holes within the application area looking for mineral sand deposits in the overlying tertiary sediments. Drill hole W00324 was logged as ending in dark orange brown saprolite at a depth of 28.5 - 30 m. The Company considers the copper, nickel, and chromium results to be highly anomalous. This drill hole has never been followed up. Key element assay results for the W00324 EOH sample are given in Table 1.

Table 2. EOH assay results for Iluka air-core drill hole W00324

	Easting			Northing		From			To		Cu		Ni		Co			Cr		Zn
	mGDA94		mGDA94		metres		metres		ppm			%		ppm	%		ppm
602024		6172779	28.5		30	974			0.79		832	0.52	523

The Company considers the application area has potential for Nickel-Copper magmatic sulphide mineralisation associated with mafic-ultramafic intrusions emplaced into granulite facies country rocks.

ASQ is reviewing historic exploration reports and regional open file datasets that cover the application ground to plan for initial exploration programs. Initial assessment suggests the basement rocks in the application area are mostly under tertiary sedimentary cover. Upon gaining ground access ASQ plans to conduct close spaced air-core drilling aimed to validate the anomalous Iluka result and improve the understanding of the host geology. The Company will also focus on developing an exploration strategy for the greater application area.

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008

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See detail in

figure 10 below

Figure 4. ASQ tenement applications overlying airborne magnetics with the outline of the Biranup Zone of the Albany- Fraser Mobile Belt. ASQ Albany Silica Sand Project tenements shown for context. Other holder tenements not shown. Albany Fraser Mobile Belt - Biranup Zone from the GSWA 1:500,000 Interpreted Bedrock Geology

Figure 5. Iluka and Anglo American Exploration (Australia) Pty Ltd broad spaced drilling overlaying airborne magnetics within ASQ exploration Licence applications E70/5528 (central), E70/5545 (east) & E70/5546 (west)

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008

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HARDROCK SILICA QUARTZ PROJECTS - WESTERN AUSTRALIA AND QUEENSLAND

The Company has two application exploration licences in the South West of Western Australia and three granted exploration permits in Far North Queensland. The leases cover known quartz deposits with the potential to contain high purity silica.

A research and development program is underway utilising samples collected from the Company's tenement package. The program is investigating innovative processing techniques that could yield high purity product from high grade silica sand or quartz.

BAUXITE EXPLORATION ACTIVITIES UNDERTAKEN UNDER THE JOINT VENTURE WITH HD MINING

In 2010 the Company entered into a JV with HD Mining & Investment Pty Ltd (HD Mining) a wholly-owned subsidiary of the Shandong Bureau No1 Institute for Prospecting of Geology & Minerals (Shandong) to explore for bauxite. The JV provides for HD Mining to fund 100% of exploration and feasibility costs for HD Mining to earn:

1. a 40% interest in any defined area of exploration on the making a binding commitment by HD Mining to undertake a detailed feasibility study for the commercial mining of the defined area; and
2. a further 20% interest in a defined area upon completion of the feasibility study and the making by the JV committee of a decision to commence mining.

The current JV resource stands at 94.7Mt and consists of 93.2Mt Inferred Mineral Resource and 1.5Mt Indicated Mineral Resource (refer full detail in the 23 April 2018 Announcement - 48% increase in Bauxite Resource at Ceres Deposit in Darling Range, WA).

ASQ and HD Mining continue to evaluate the potential for economic development of the Dionysus and the combined Ceres/Athena resource areas (Athena: 36.2Mt, 32.8% available alumina, 2.8% reactive silica, see ASX announcement 15/07/14, Dionysus: 20.3Mt, 32.6% available alumina, 3.4% reactive silica, see ASX announcement 24/03/14, Ceres 21.9Mt, 31.4% available alumina, 3.2% reactive silica (ASQ (2020). 48% increase in Bauxite Resource at Ceres Deposit in Darling Range, WA. ASX Release 23 April 2018).

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008

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Figure 6 - ASQ/HD JV Mining Darling Range bauxite tenement holding and resource locations

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008

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CORPORATE

Capital Raising/SPP

The Company successfully completed a capital raising by share placement to institutional and sophisticated investors to raise $2.25 million before costs through Taylor Collison as Lead Manager. The Shares were issued at 7 cents per share representing an 18% discount to ASQ's closing price on 22 September 2020, and a 14% discount to the 5 day VWAP at the time.

A Share Purchase Plan (SPP) followed the Placement allowing current shareholders the opportunity to subscribe for up to $30,000 of new shares and a minimum of $2,000 at the same issue price of 7 cents/share capped at $1.5m. The SPP closed on 23 October 2020 with the full $1.5m being fully subscribed. Shareholders were all allocated a minimum of $10,000 of shares applied for, and oversubscriptions were scaled back at the discretion of the board as advised in the SPP documents.

A total of 32.1 million new shares were issued under the Placement representing 15% of the issued capital at the time of the placement, and a further 21.3m shares have been issued under the SPP, giving a revised Issued Capital of 267,893,712 shares on issue following the Capital Raisings.

Funds will be used to continue ASQ's current exploration activities and working capital.

Summary of Expenditures for the Quarter

During the quarter the Company incurred a total net expenditure from operating activities of $336k. This was made up of $162k expended on exploration and evaluation activities, $236k on administrative and corporate costs, offset by receipts from customers of $43k with the balance minor items.

Included in these costs were payments made to Directors of the entity and their associates. These payments were Directors Salaries and Superannuation payments of $46k, Consulting fees of $75k, and rental of the Company office of $12k for the quarter. All payments were made on an arms length basis.

Further details on Quarterly expenditures are included in the Appendix 5B - Quarterly Cashflow Report attached to this Quarterly Report.

Cash Position and Shareholder Information

Australian Silica Quartz Group is in a strong financial position with significant cash reserves and no debt. At 31 December the Company held AU$6.16 million in cash.

At 31 December the Company had 1,089 shareholders and 267,993,712 fully paid ordinary shares on issue with the top 20 shareholders holding 66.18% of the total issued capital.

During the quarter the remaining 6,033,336 Performance Rights expired without achieving the Performance Hurdles.

On 4 December 2020, following Shareholder approval at the AGM, there were 26,000,000 Performance Rights issued in equal tranches over 3 years, which if achieved will convert into 26,000,000 fully paid ordinary shares.

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008

Phone: [phone] Fax: [phone] www.asqg.com.au

Future Operations

The Board will continue to focus on its Silica and Bauxite Projects, the Julimar ASQ/Devex Joint Venture and seek to enhance the value of these through exploration and development activities.

The Board will continue to manage the Company in the best manner in which to maximise returns to shareholders.

Sam Middlemas, CEO, Australian Silica Quartz Group Ltd

29 January 2021

Competent persons statement

The information in this document that relates to exploration results and mineral resources is based on data collected under the supervision of Mr Nick Algie, in his capacity as Exploration Manager for Australian Silica Quartz Group Limited. Mr Algie is a registered member of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience that is relevant to the type of deposit and style of mineralisation under consideration to qualify as a competent person under the 2012 edition of the "Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Algie consents to the inclusion of the data in the form and context in which it appears.

Forward Looking Statements

This report may include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", or other similar words and may include, without limitation, statements regarding plans, strategies, and objectives of management. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance and achievements to differ materially from anticipated results, performance or achievements. Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control. Accordingly, readers are cautioned not to place undue reliance on forward looking statements.

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SCHEDULE OF MINING TENEMENTS HELD AS AT 31 December 2020 (all 100% owned)

	Tenement		Location/ Tenement Name		Status
	E70/3160 (a)		Toodyay - Darling Range	Granted
	E70/3405 (a)		Victoria Plains - Darling Range	Granted
	E70/3179 (a)		Congelin - Darling Range	Granted
	E70/3180 (a)		Dattening - Darling Range	Granted
	E70/3890 (a)		Wandering - Darling Range	Granted
	E63/1853		Merivale	Granted
	E63/1962		Merivale East	Granted
	E70/4983		Narrikup	Granted
	E70/5262		Cheyne	Granted
	E70/5270		Ridgetop	Granted
	EPM 26702		Mt Eliza	Granted
	EPM 26727		Pandanus Creek	Granted
	EPM 26741		Douglas Range	Granted
	E70/4982		Green Range	Application
	E70/5144		Warbrook	Application
	E70/5241		Redmond West	Application
	E70/5242		Redmond East	Application
	E70/5243		Redmond South	Application
	E70/5288		Potts Rd	Application
	E70/5528		South Stirling	Application
	E70/5545		South Stirling - East	Application
	E70/5546		Tenterden	Application
	E70/5547		Kwornicup	Application
	E70/5647		Kojarena	Application
	E70/5679		Calcalling	Application
	E77/2684		Lake Seabrook	Application

1. These tenements form the HD Mining & Investments Joint Venture. Under the terms of the Joint Venture, HD Mining is required to fund 100% of all exploration and feasibility costs to earn up to 60% of the bauxite rights. HD Mining is currently working towards obtaining a 40% interest in the bauxite rights on the tenements. This will be triggered if HD Mining enters into a binding commitment to undertake a feasibility study on the tenements. Should HD Mining and ASQ make a decision to mine, HD Mining will earn an additional 20% interest in bauxite rights. ASQ maintains 100% interest in other minerals with DevEx currently earning a 50% interest in the other minerals of E70/3405. At the date of this report ASQ still has 100% interest in bauxite on these tenements.

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity
Australian Silica Quartz Group Ltd
ABN	Quarter ended ("current quarter")
72 119 699 982	31 December 2020

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(6 months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	43	99
1.2	Payments for
	(a)	exploration & evaluation	(162)	(414)
	(b)	development	-	-
	(c)	production	-	-
	(d)	staff costs	-	-
	(e) administration and corporate costs	(236)	(446)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	6	16
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-

1.7 Government grants and tax incentives

	(Cash Flow Boost 37.5k)	13	50
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating
	activities	(336)	(695)

2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant and equipment	-	-
	(d)	exploration & evaluation	-	-
	(e)	investments	-	-
	(f)	other non-current assets	-	-

ASX Listing Rules Appendix 5B (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(6 months)
				$A'000
2.2	Proceeds from the disposal of:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c) property, plant and equipment	-	-
	(d)	investments	-	-
	(e)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-

2.6 Net cash from / (used in) investing

	activities	-	-
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities	3,750	3,750
	(excluding convertible debt securities)
3.2	Proceeds from issue of convertible debt
	securities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equity
	securities or convertible debt securities	(168)	(168)
3.5	Proceeds from borrowings	-	-
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	3,582	3,582

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

period

2,917

3,276

4.2 Net cash from / (used in) operating

activities (item 1.9 above)

(336)

(695)

4.3 Net cash from / (used in) investing activities

(item 2.6 above)

-

-

4.4 Net cash from / (used in) financing activities

(item 3.10 above)

3,582

3,582

ASX Listing Rules Appendix 5B (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows

1. Effect of movement in exchange rates on cash held
2. Cash and cash equivalents at end of period

Current quarter	Year to date
$A'000	(6 months)
	$A'000
-	-
6,163	6,163

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$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	213	217
5.2	Call deposits	5,950	2,700
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)	6,163	2,917
6.	Payments to related parties of the entity and their		Current quarter
	associates		$A'000

6.1 Aggregate amount of payments to related parties and their

associates included in item 1

134

6.2 Aggregate amount of payments to related parties and their

associates included in item 2

-

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

Item 6 includes amounts paid to directors as follows:

Salary & Super	46.5k
Consulting fee	75.0k
Rent of premises paid to associates	12.2k

ASX Listing Rules Appendix 5B (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. Financing facilities

Note: the term "facility' includes all forms of financing arrangements available to the entity.

Add notes as necessary for an understanding of the sources of finance available to the entity.

7.1 Loan facilities

7.2 Credit standby arrangements

7.3 Other (please specify)

7.4 Total financing facilities

Total facility	Amount drawn at
amount at quarter	quarter end
end	$A'000
$A'000
-	-
-	-
-	-
-	-

7.5

Unused financing facilities available at quarter end

-

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)	(336)

8.2 (Payments for exploration & evaluation classified as investing

	activities) (item 2.1(d))	-
8.3	Total relevant outgoings (item 8.1 + item 8.2)	(336)
8.4	Cash and cash equivalents at quarter end (item 4.6)	6,163
8.5	Unused finance facilities available at quarter end (item 7.5)	-
8.6	Total available funding (item 8.4 + item 8.5)	6,163
8.7	Estimated quarters of funding available (item 8.6 divided by	18.3
	item 8.3)
	Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A".
	Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8	If item 8.7 is less than 2 quarters, please provide answers to the following questions:
	8.8.1 Does the entity expect that it will continue to have the current level of net operating
	cash flows for the time being and, if not, why not?

Answer: N/A

8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: N/A

ASX Listing Rules Appendix 5B (17/07/20)	Page 4
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: N/A

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

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.

Date:

29 January 2021

Authorised by: ...................................................................................

By the Board

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow 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 cash flow report has been 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.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board".
   If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20)	Page 5
+ See chapter 19 of the ASX Listing Rules for defined terms.