Quarterly Activities Report

RNS Number:9006A
Finders Resources Limited
26 July 2007


Finders Resources



QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 JUNE 2007



HIGHLIGHTS



Wetar Copper Project



  * Heap leaching selected as the preferred process route for the Wetar Copper
    Project due to comparable copper recoveries, lower capital and operating
    costs than other process alternatives.
  * Copper recoveries in excess of 80% have been attained in bench leach test
    work for both the Kali Kuning and Lerokis deposits. Column testing at
    elevated temperatures up to 50degree C is ongoing.
  * Permitting process commenced for on-site test heaps and pilot SX-EW plant.
  * Operations Manager appointed to execute project development strategy
  * Full-scale production leach pad design, environmental, geotechnical and
    social studies ongoing to support completion of a definitive Feasibility
    Study in mid-2008.
  * Exploration around known deposits within new tenements is underway.



Ojolali Gold-Silver Project



  * Successful metallurgy test work of Jambi oxide gold samples with
    indicative gold recoveries of around 90%.
  * Tambang metallurgical test work underway, preliminary results indicate
    high precious metal recoveries into low grade base metal concentrates
  * Integrated modelling of resistivity and newly acquired magnetics data
    provides basis for a revised exploration model.
  * Prospect ranking continued with extensive soil and rock channel sampling
    and limited drilling with encouraging results from Kencur and Jambi South.



Corporate



  * The Company was admitted to the ASX on 8 June 2007
  * 10,999,998 new ordinary shares were issued during June to institutional
    and retail investors to raise A$6 million before expenses. The funds will be
    used to finance the Wetar and Ojolali Projects and business development
    activities.
  * 181,818 new ordinary shares and 500,000 options expiring on 13 June 2010
    were issued in relation to advisory services for the ASX listing.
  * Cash held at 30 June 2007 totalled A$5.16 million.
  *



1.    Wetar Copper Project, Indonesia

Finders Resources Limited 72% and earning through expenditure



Background Information

At the Wetar Copper Project, Finders has previously announced Measured,
Indicated and Inferred Resources at a 0.5% copper cut-off grade, of 9.8 million
tonnes at 2.5% copper for 248,000 tonnes contained copper in two deposits, Kali
Kuning and Lerokis.

For further information on results previously reported and a full resource
statement please visit our website www.findersresources.com



Process Selection

Following a positive scoping study in June 2006, Finders commenced a two stage
feasibility study targeting up to 25,000 tonnes per annum of copper commencing
in 2009.  Finders completed extensive evaluation of the production of a copper
concentrate followed by off-site hydrometallurgical processing to produce copper
cathode.  Concurrently, positive results from bacterial leach test work
suggested that on-site production of copper cathode by heap leaching and SX/EW
was a viable alternative.

Further encouraging results this quarter led the Directors to select bacterial
heap leaching as the preferred process route. Overall leach copper recoveries
approach those achieved by concentrate production/hydrometallurgy but with
significantly lower capital and operating costs, and potentially shorter lead
time to production.

The Directors' preliminary estimates indicate a 40% reduction in both capital
(US$65M) and operating costs (US$0.50c/lb) for a heap leach with on site SX/EW
plant, compared to the previously announced Scoping Study base case involving
concentrate production and off-site hydrometallurgical production of copper
cathode.



Leach Test Work

Finders is conducting ongoing leach test work on Wetar ore samples (from both
the Kali Kuning and Lerokis deposits) using a variety of alternative leaching
media.

Preliminary results received from a second stage of bench scale leaching tests
using BioHeapTM proprietary bacterial strains on pulverized representative
samples from the Kali Kuning and Lerokis deposits have yielded copper recoveries
into solution of 84.4% and 80.2% respectively. These encouraging results are
being followed up with 5m column tests.

Separately, an ongoing program of 1 and 2m column tests at HRL laboratories in
Brisbane, using a range of leaching media, including synthetic ferric sulphate
and non proprietary bacteria, has yielded recoveries up to 71% for Kali Kuning
ore and demonstrated good mechanical stability and percolation for the columns.

An additional program of 2m columns has recently commenced at higher
temperatures which are similar to those expected in commercial heaps using both
Kali Kuning and Lerokis composite samples, and bacteria cultured from the Wetar
site; the program is planned to run for 90 days.



Trial Heaps and Pilot Plant

Design work has commenced for on site test heaps of sufficient scale to validate
the commercial production process, with construction to commence as soon as the
necessary permitting is complete.

Finders intend to replicate the full scale operations planned for the Kali
Kuning deposit by means of several staged 20-25,000t test heaps (to a maximum of
100,000t) and a 3-5 tonne per day pilot SX-EW plant to produce copper cathode
(Figure 1).  The test heaps will allow Finders to optimise several key
parameters related to maximising copper recovery from the planned commercial
operation.




Feasibility Study Progress

The corporate target for the Wetar project remains the completion of a
definitive feasibility study for a 20-25,000 tonnes per annum copper cathode
operation at Wetar by mid 2008 and commercial production by 2009.

Finders' commitment to achieving the project milestones has been boosted by the
recent appointment of Grant Harding as Operations Manager.  Mr. Harding, a
qualified extractive metallurgist, has over 25 years of extensive industry
experience in a range of roles incorporating copper leach operations,
commissioning and project development. His experience in Indonesia includes
positions with Avocet Mining, Straits Resources and Newcrest.

Pit Design

Revised pit optimisation studies by AMDAD of Brisbane were untaken to assess
constant metal and constant mining options for the development of the Wetar
Copper project using the current Resource Estimate block model (Hellman &
Schofield Pty Ltd, February 2007).  Initial estimates indicate a lower strip
ratio of 0.57, equivalent to approximately 1 million tonnes less waste over the
life of the mine from both the Lerokis and Kali Kuning deposits.

Extraction of the copper deposits at Kali Kuning will require a deepening of the
current pit floor by approximately 15m. Concurrently SRK Consulting (Perth) has
completed the first stage of the geotechnical study of the Kali Kuning pit. From
the initial study the following conclusion are made:

*         Berm widths of 2m will confine most modelled failures.

*         A conservative bench face angle of 60degrees with a limiting bench
stack height of 9m

*         A Limiting Overall Slope Angle of 45.5degrees.

Plant Site Geotechnical Study

SRK Consulting (Perth) has completed an initial study of the foundation
conditions for the selected plant site location.  The results confirm that
founding conditions are generally very good for light and moderate structures
from 0.5m below ground level using conventional footings or pad foundations.
Depending upon settlement sensitivity, heavy structures could also be
constructed using relatively shallow pad, pier or raft foundations in selected
locations.

Environmental

HLA-Envirosciences have completed water quality baseline studies and preliminary
studies assessing water management and flood risk assessments.  The former gold
mining operations at Wetar have resulted in streams immediate to the old pits
having lower pH and higher Cu concentrations than undisturbed drainages in the
project area.

Social studies

PT ERM Indonesia has been appointed to assist with community development
planning.

Exploration

During the period initial reconnaissance mapping and stream sediment sampling
was undertaken in the tenements on the southern coast of Wetar Island.  The main
focus of the exploration program is to delineate the extent of mineralisation
systems around known deposits which have similar styles of mineralisation to the
Kali Kuning and Lerokis deposits.

During the quarter activities focussed around the following prospects:

W6 (Ilwaki) Prospect: 8 drill holes (777m) by previous explorer with best result
of 14m @ 0.55g.t Au and 95g/t Ag

J91 (Batu Duri) Prospect: 9 drill holes (602.5m) by previous explorer with best
results of 10m @ 4.5% Cu.

Observed mineralization, outside of the drilled prospect areas, mostly occurs as
limonite-hematite fracture fill in the dacitic tuffs or andesite rock units with
base metal veins observed adjacent to the W6 prospect area, consisting of
quartz-pyrite-galena veins within silicified andesites. Gossanous barite
mineralization, similar in style to the mine feed of the former Billiton gold
operations was observed in float in streams adjacent to the known prospect
areas.




2.    Ojolai Project, Indonesia

Finders Resources Limited 72% with option



Background Information

At the Ojolali Project, Finders has previously announced Inferred Resources at
the Jambi Oxide gold deposit (3.2 Mt @ 1.0 g/t Au, 6.9 g/t Ag at a 0.5 g/t Au
cut-off, and including mining dilution) and Inferred Resources at the Tambang
Prospect (7.9 Mt @ 167g/t Ag and 0.7 g/t Au at a 1 g/t Au equivalent cut-off
using drilling data from a previous explorer).

Finders' believes that the Ojolali project has strong potential to generate
short-term cash flow through open pit CIL/CIP development of the gold resource
at the Jambi Oxide gold deposit. Other prospects have outstanding potential for
the discovery of additional resources using modern geophysical techniques to
optimize drill targeting.

For further information on results previously reported and a full resource
statement please visit our website www.findersresources.com



Jambi Oxide Gold Deposit: Metallurgical test work

Composite drill core samples were selected across a range of grades, depths and
oxidation states for test work at Independent Metallurgical Laboratory Pty (IML)
in Perth, Australia. The composite samples represent 90% of the domains used in
the current Inferred Resource model.  Leach tests were conducted at a variety of
grind sizes to assess the suitability of heap leach and CIL/CIP process routes
for different ore types in the deposit.

Results from the test work are very encouraging (Appendix 1).  Milled composite
samples representing CIP/CIL feed from representative of parts of the deposit
with full oxidation showed gold recoveries of around 90%.  Around 70% silver
recovery was achieved from a silver-rich composite (15g/t Ag).  Samples of
partially oxidised material averaged around 77% recovery for both gold and
silver.  All samples were insensitive to the range of grind sizes tested,
suggesting that the Jambi deposit can be processed using relatively coarse grind
sizes and a simple grind circuit.

The 12mm crush size tests of fully oxidised material indicated average gold
recoveries of around 75%, although higher grade composites achieved better
recoveries of up to 81.5%.  A partially oxidised composite sample gave lower
gold recovery of around 40%.

The test work indicates that acceptable gold recoveries are achievable at Jambi
and that there is scope to consider heap leach treatment of marginal ore.



Tambang Metallurgy

Metallurgical test work of core material from the Tambang deposit is underway at
G&T Metallurgical Services Ltd (Canada).  Two composite samples are being tested
with differing silver/base metal ratios , namely a high silver (150 g/t Ag), low
base metal (0.7% combined) sample and high base metal (2.2% combined), moderate
silver (80 g/t Ag) sample.

The first stage of test work which assess lead and zinc rougher concentrate
production has resulted in approaximately 90% recovery of silver and gold into
low grade base metal concentrates.



Geophysical Surveys and Interpretation

The results of gradient array surveys within the tenement area have shown a
clear association between resistivity and chargeability and known mineralisation
within the project area.  On this basis, two blocks were selected for follow-up
by means of offset dipole configurations, a technique which permits three
dimensional modelling. During the quarter over 40 line km of surveys was
completed.

In addition recently acquired airborne magnetics data for the project areas has
allowed an integrated assessment of mineralisation controls in the prospect area
for the first time (Figure 3.)



Known mineralisation is clearly within and at the margins of a pull-apart basin
bounded by blocks of more magnetic basalticbasement rocks.  Priority prospects
such as Kencur, Lada and Tambang East are largely undrilled and show coherent
zones of high resistivity of similar magnitude to the drilled Tambang prospect.
Also highlighted is a one kilometer long zone of en echelon high resistivity
bands between the Chandra and B-1 prospects. Oxide mineralisation at the Jambi
deposit and the Cugah prospect (undrilled) has a typically subdued resistivity
footprint.



Prospect Evaluation

Metallurgical and Scout drilling

During the quarter, assay results were received from a further twelve drill
holes (1,616m). Three of the holes TBG09, 11 and 12 were drilled primarily to
recover fresh sample for metallurgical test work. The remainder were scout holes
to test geophysical targets from the gradient geophysics survey and assess the
prospect stratigraphy based on the sequence known at the Tambang prospect.
Collar locations are provided in Appendix 2.



Core recovery in the mineralised sections was highly variable due to broken
ground and Hole TBG13, which was targeted along strike of the current Inferred
resource at Tambang, was abandoned and failed to hit target depths.

Finders has decided to postpone further drilling until a reverse circulation
(RC) rig can be sourced (due late September).  The rig will also be used for the
Jambi Oxide deposit drill-out and this is expected in the final quarter of 2007.


Significant assay results using a 1g/t Au equivalent+ cut-off are tabulated
below and further confirm the width and mineralogical nature of the Tambang vein
system.


Hole                   From (m)          Width (m)        Au g/t        Ag g/t         Au Eq*           Pb           Zn
BLD01                      62.0                4.0          1.22             4           1.29          n/s          n/s
BLD01                      84.0                1.0          1.40             6           1.49          n/s          n/s
BLD01                      93.5                1.0          0.70            50           1.54          n/s          n/s
CDR02                      12.0                1.0          0.55           185           3.63          n/s          n/s
CDR02                     101.0                2.0          0.33            54           1.95          n/s          n/s
SPR01                       1.3                1.9          1.14             2           1.17          n/s          n/s
SPR01                      92.0                1.0          1.08             2           1.11          n/s          n/s
TBG09                      80.0               26.0          0.18            77           1.46        0.34%        0.78%
TBG09                     129.0                2.0          0.11            94           1.67        0.10%        0.16%
TBG11                     117.0               11.5          0.30           185           3.39        0.94%        1.39%
TBG11                     138.0                3.0          0.49           170           3.32        0.16%        0.31%
TBG11                     145.0               16.0          0.64            64           1.71        0.31%        0.65%
TBG12                      15.0                2.0          0.63            45           1.38          n/s          n/s
TBG12                      57.0               16.0          0.24           139           2.55        0.18%        0.32%
TBG12                      78.0                3.0          2.67            40           3.34        0.55%        0.24%
TBG12                      85.0                4.0          0.25            49           1.07        0.07%        0.23%
TBG12                      97.0                1.0          0.36            46           1.13        0.21%        2.14%
TBG13                      62.0                1.0          0.95            39           1.60          n/s          n/s
TBG13                      74.0                1.0          0.91             7           1.03        0.09%        0.27%
TBG13                      92.0                1.0          0.17            68           1.31        0.49%        1.33%
TBG13                      96.3                2.0          2.09            94           3.66        2.13%        2.35%

+  Au equivalents are calculated using Ag g/t divided by 60 plus Au g/t



Geochemical Sampling

An extensive program of soil and rock channel sampling has begun in the priority
prospect areas. Intial results are encouraging with, at

1.      Kencur; best channel samples of 12m @ 2.98 g/t Au and 6m @ 3.99 g/t Au
in oxide material similar in character to the Jambi oxide gold deposit,

2.      Jambi; a 225m wide soil anomaly with an average gold grade of 0.6g/t Au
located approximately 100m south of the current drilling area


3.    Corporate



The Company was admitted to the Australian Stock Exchange ("ASX") on 8 June 2007
when 10,999,998 new ordinary shares were issued to institutional and retail
investors to raise A$6 million before expenses. The funds will be used to
finance the Wetar and Ojolali Projects and business development activities.

181,818 new ordinary shares and 500,000 options expiring on 13 June 2010 were
issued in relation to advisory services for the ASX listing.

The capital structure of the Company (AIM & ASX ticker FND) following its
successful listing on the ASX and its associated capital raising is as follows:


Type of Security                                        Exercise Price          Expiry Date          Number in Issue

Fully Paid Ordinary Shares ("Shares")
Previous Shares in issue                                      -                      -                       54,393,220
New Shares issued at A$0.55 under Australian                  -                      -                       10,999,998
prospectus to raise A$6m
New Shares issued to adviser in relation to the ASX           -                      -                          181,818
listing
Total Shares now in issue                                     -                      -                       65,575,036

Options
Unlisted Options (previously in issue)                      A$0.50             20 March 2009                  3,201,867
Unlisted Options (previously in issue)                       24p               22 March 2009                  1,322,881
New Options issued to adviser in relation to the ASX       A$0.6875             13 June 2010                    500,000
listing
Total Options now in issue                                                                                    5,024,748


The Company's cash held at 30 June 2007 totalled A$5.16million.  The mining
exploration entity quarterly report (Appendix 5b) is appended.

Chris Farmer

Managing Director

Further details for all projects including location maps, tenement schedules and
technical descriptions may be found on the Finders website at
www.findersresources.com


4.    Statements from Finders



The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (the 'JORC Code') sets out minimum standards, recommendations
and guidelines for Public Reporting in Australasia of Exploration Results,
Mineral Resources and Ore Reserves. The information contained in this
announcement has been presented in accordance with the JORC Code and references
to "Indicated" and "Inferred Resources" are to those terms as defined in the
JORC Code.

Geological information in this announcement is based on information compiled by
Dr R Fountain who is a Fellow of the Australasian Institute of Geoscientists and
a Director of Finders. Dr Fountain has sufficient experience that is relevant to
the styles of mineralisation and types of deposits under consideration and to
the activity that he is undertaking to qualify as Competent Person as defined in
the JORC Code. He consents to the inclusion in this announcement of the matters
based on his information in the form and context in which they appear.

All assaying of Ojolali samples was undertaken by the ITS laboratory in Jakarta.
ITS is one of the world's largest product and commodity testing, inspection and
certification organizations. The Jakarta laboratory is ISO 17025 accredited and
employs a Laboratory Information Management System (LIMS) for sample tracking,
quality control and reporting.

Statements in this document that are forward-looking and involve numerous risks
and uncertainties that could cause actual results to differ materially from
expected results are based on the Company's current beliefs and assumptions
regarding a large number of factors affecting its business. Actual results may
differ materially from expected results. There can be no assurance that (i) the
Company has correctly measured or identified all of the factors affecting its
business or the extent of their likely impact, (ii) the publicly available
information with respect to these factors on which the Company's analysis is
based is complete or accurate, (iii) the Company's analysis is correct or (iv)
the Company's strategy, which is based in part on this analysis, will be
successful.



For further information please contact:



Finders Resources Ltd:
Russell Fountain, Executive Chairman, [phone]
Chris Farmer, Managing Director, [e-mail]



Financial PR:
Doug Macdonald, [phone], Capital Group (in Australia)
Paddy Blewer or Nick Elwes, 020 7457 2020, College Hill (in the UK)


RFC Corporate Finance Ltd - Nomad and Corporate Adviser:
Rob Adamson, [phone] or Stuart Laing, + 61 (0) 8 9480 2500


Appendix 1: Jambi Metallurgy Results


                          Silver                                                       Gold
  Calc Head (g/t)       Residue (g/t)       Recovery (%)      Calc Head (g/t)       Residue (g/t)       Recovery (%)
Low Grade Gold Composites - Full oxidation (6 tests)
        7.5                  5.9                21.7                0.66                0.06                90.8
Medium Grade Gold Composites - Full oxidation (6 tests)
        4.9                  3.4                29.6                1.44                0.19                86.1
High Grade Gold Composite - Full oxidation (3 tests)
        6.1                  2.8                53.6                3.67                0.33                90.9
High Grade Silver Composite - Full oxidation (3 tests)
        45.8                14.3                68.9                1.24                0.16                86.8
Low Grade Gold Composite - Partial oxidation
        12.7                 3.0                76.4                1.01                0.25                75.2
Medium Grade Gold Composite - Partial oxidation
        9.5                  2.9                69.4                2.06                0.42                79.6
High Grade Silver Composite - Partial oxidation
        63.1                15.8                75.0                2.50                0.77                69.2
Medium Grade Gold Composite - Partial oxidation (2 tests)
        11.7                 3.5                 70                 1.60                0.32                80.4

Results for Finer Grind Sizes P80 ((micro)m) at -75, -106 and -150 (24 hour leach)


                          Silver                                                       Gold
 Calc Head (g/t)     Residue (g/t)        Recovery (%)       Calc Head (g/t)      Residue (g/t)        Recovery (%)
Low Grade Gold Composite - Full oxidation
       7.4                6.4                 13.2                0.94                 0.4                 57.3
Medium Grade Gold Composite - Full oxidation
       4.2                3.4                 18.9                1.27                0.24                 81.2
High Grade Gold Composite - Full oxidation
       6.7                3.7                 44.6                3.90                0.76                 80.5
High Grade Silver Composite - Full oxidation
       44.1               32.8                25.7                1.21                0.26                 78.6
Medium Grade Gold Composite - Partial oxidation
       18.1               14.1                22.0                2.45                1.46                 40.5

Results for Coarser Crush Sizes 100% -12.5mm (72 hour leach)


Appendix 2: Ojolali Drilling Collar Locations


Hole                     Easting+        Northing+        Rl              Dip            Azimuth             Depth (M)
TBG09                      444060          9480520       170              -60               90                  145.20
TBG10                      444234          9481091       132              -60               90                   90.90
TBG11                      444011          9480515       161              -60               90                  178.00
TBG12                      444061          9480623       157              -60               90                  104.50
TBG13                      444083          9480849       147              -50               90                  122.20
B1_01                      444357          9482020       108              -50               90                  160.20
B1_02                      444290          9481783       108              -50               90                  152.60
BLD01                      445287          9482981       146              -50               90                  121.30
CDR01                      443986          9481263       113              -50               90                   62.50
CDR02                      443701          9480759       119              -50               90                  152.60
SPR01                      445711          9482473       161              -50               90                  161.80
WSW01                      445351          9481916       137              -50               90                  164.05

+  UTM Zone 48S, WGS84




                                                                        Rule 5.3

Appendix 5B



                   Mining exploration entity quarterly report

Introduced 1/7/96.  Origin:  Appendix 8.  Amended 1/7/97, 1/7/98, 30/9/2001.




Name of entity
 FINDERS RESOURCES PTY. LTD.


ABN                                                              Quarter ended ("current quarter")
 82 108 547 413                                                  30 JUNE 2007



Consolidated statement of cash flows

                                                      Current quarter           Year to date (.12.months)

Cash flows related to operating activities            $A'000                    $A'000


1.1    Receipts from product sales and related
       debtors


1.2    Payments for         (a)  exploration and
       evaluation
                                                      (1,014)                   (5,119)
                                       (b)
       development

                                       (c)
       production
                                                      (889)                     (2,042)
                                       (d)
       administration
1.3    Dividends received
1.4    Interest and other items of a similar nature   11                        124
       received
1.5    Interest and other costs of finance paid
1.6    Income taxes paid
1.7    Other (provide details if material)
                                                      (1,892)                   (7,037)

       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

                                                      (17)                      (125)
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)
                                                      (17)                      (125)

       Net investing cash flows
1.13   Total operating and investing cash flows       (1,909)                   (7,162)
       (carried forward)



1.13    Total operating and investing cash flows (brought (1,909)                  (7,162)
          forward)


        Cash flows related to financing activities

1.14    Proceeds from issues of shares, options, etc.     5,586                    6,510
1.15    Proceeds from sale of forfeited shares
1.16    Proceeds from borrowings
1.17    Repayment of borrowings
1.18    Dividends paid
1.19    Other (provide details if material)
        Net financing cash flows                          5,586                    6,510


        Net increase (decrease) in cash held              3,677                    (652)


1.20    Cash at beginning of quarter/year to date         1,480                    5,809
1.21    Exchange rate adjustments to item 1.20
1.22    Cash at end of quarter                            5,157                    5,157

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
                                                                              251

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

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


1.25      Explanation necessary for an understanding of the transactions








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


       NONE








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


       NONE










Financing facilities available

Add notes as necessary for an understanding of the position.


                                                          Amount available          Amount used

                                                          $A'000                    $A'000
3.1     Loan facilities                                   NIL                       NIL


3.2     Credit standby arrangements                       NIL                       NIL





Estimated cash outflows for next quarter

                                                                        $A'000
4.1   Exploration and evaluation                                        1900


4.2   Development                                                       NIL




      Total                                                             1900



Reconciliation of cash

Reconciliation of cash at the end of the quarter (as Current quarter           Previous quarter
shown in the consolidated statement of cash flows)
to the related items in the accounts is as follows.  $A'000                    $A'000
5.1   Cash on hand and at bank                       5,157                     1,480
5.2   Deposits at call
5.3   Bank overdraft
5.4   Other (provide details)
      Total: cash at end of quarter (item 1.22)      5,157                     1,480



Changes in interests in mining tenements


                                   Tenement       Nature of interest            Interest at   Interest at
                                   reference                                    beginning of  end of
                                                  (note (2))                    quarter       quarter
6.1    Interests in mining                        No tenements disposal or
       tenements relinquished,                    reduction
       reduced or lapsed




6.2    Interests in mining                        No new tenements granted
       tenements acquired or
       increased





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.


                         Total number       Number quoted      Issue price per    Amount paid up per
                                                               security (see note security (see note 3)
                                                               3) (cents)         (cents)
7.1    Preference        N/A
       +securities
       (description)
7.2    Changes during    N/A
       quarter

       (a)  Increases
       through issues

       (b)  Decreases
       through returns
       of capital,
       buy-backs,
       redemptions
7.3    +Ordinary
       securities
                         65,575,036         47,437,457
7.4    Changes during
       quarter

       (a)  Increases
       through issues    181,818

       (b)  Decreases
       through returns
       of capital,       NIL
       buy-backs
7.5    +Convertible debt N/A
       securities
       (description)
7.6    Changes during    N/A
       quarter

       (a)  Increases
       through issues

       (b)  Decreases
       through
       securities
       matured,
       converted
7.7    Options                                                 Exercise price     Expiry date
       (description and
       conversion        3,201,867          NIL                50c                20.03.2009
       factor)
                         1,322,881          NIL                24p                22.03.2009


7.8    Issued during     500,000            NIL                68.75c             13.06.2010
       quarter

7.9    Exercised during  NIL                NIL
       quarter
7.10   Expired during    NIL                NIL
       quarter
7.11   Debentures

       (totals only)
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 4).



2          This statement does  give a true and fair view of the matters
disclosed.







Sign here:         ..Chris Farmer.........................................
   Date: ....25..July..2007........

(Director/Company secretary)







Print name:       ....Christopher Ben Farmer...........................



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 1022: Accounting for
Extractive Industries and AASB 1026: Statement of Cash Flows apply to this
report.



5          Accounting Standards ASX will accept, for example, the use of
International Accounting 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.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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