Quarterly Cashflow Report

Name of entity

MOD RESOURCES LIMITED

ABN

Quarter ended ("current quarter")

78 003 103 544

30 June 2019

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(2,438)

(4,096)

(a) exploration & evaluation1

(b) feasibility studies

(395)

(2,055)

(c) development

-

-

(d) production

-

-

(e) staff costs

(504)

(1,427)

(f) administration and corporate costs

(744)

(1,580)

1.3

Dividends received

-

-

1.4

Interest received

78

93

1.5

Interest and other costs of finance paid

-

-

1.6

Income taxes paid

-

-

1.7

Research and development refunds

-

-

1.8

Other - MTR transaction, London Stock Exchange listing and Advisory fees2

(569)

(779)

1.9

Net cash used in operating activities

(4,572)

(9,844)

Notes

1Based on 100% of Exploration and Evaluation payments and therefore includes Metal Tiger (MTR) 30% contribution on JV licences (refer section 3.9).

2Current quarter includes success fees in relation to the MTR Transaction and fees for advisors and independent technical experts on the strategic investor and debt process for the T3 Copper Project.

2.

Cash flows from investing activities

(806)

(961)

2.1

Payments to acquire:

(a) property, plant and equipment3

(b) tenements (see item 10)

-

-

(c) investments

-

-

(d) other non-current assets

-

-

2.2

Proceeds from the disposal of:

44

44

(a) property, plant and equipment

(b) tenements (see item 10)

-

-

(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 (provide details if material)

-

-

2.6

Net cash used in investing activities

(762)

(917)

Notes

3Includes instalment payment for the purchase of the farm on which the T3 Copper Project is located. This is lower than the forecasted cash outflow in the 31 March 2019 quarterly cash flow report as MOD has not yet taken a decision to develop the T3 Project.

3.

Cash flows from financing activities

-

15,125

3.1

Proceeds from issues of shares

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, options or performance rights

(140)

(1,218)

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

MTR contributions to Joint Venture

42

275

3.10

Net cash from financing activities

(98)

14,182

4.

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

13,820

5,038

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash used in operating activities (item 1.9 above)

(4,572)

(9,844)

4.3

Net cash used in investing activities (item 2.6 above)

(762)

(917)

4.4

Net cash from financing activities (item 3.10 above)

(98)

14,182

4.5

Effect of movement in exchange rates on cash held

(90)

(161)

4.6

Cash and cash equivalents at end of period

8,298

8,298

5.

Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter$A'000

Previous quarter$A'000

5.1

Bank balances

3,798

2,820

5.2

Call deposits

4,500

11,000

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)

8,298

13,820

6.

Payments to directors of the entity and their associates

Current quarter$A'000

6.1

Aggregate amount of payments to these parties included in item 1.2

332

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

Included in 6.1 are payments for director fees and company secretarial fees paid to a director or director associated companies.

7.

Payments to related entities of the entity and their associates

Current quarter$A'000

7.1

Aggregate amount of payments to these parties included in item 1.2

50

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

Included in 7.1 are consultancy services for metallurgical test work and feasibility study work provided by Metallurgy Pty Ltd, companies associated with Steve McGhee and consultancy services provided by Integra Management Solutions a company associated with Bronwyn Barnes.

8.

Financing facilities availableAdd notes as necessary for an understanding of the position

Total facility amount at quarter end$A'000

Amount drawn at quarter end$A'000

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.

9.

Estimated cash outflows for next quarter

$A'000

9.1

Exploration and evaluation

1,400

9.2

Studies1

150

9.3

T3 Project capital cost and other capital cost2

750

9.4

Staff costs3

900

9.5

Administration and corporate costs

600

9.6

Other (provide details if material) 4

Other (provide details if material) 5

670

(120)

9.7

Total estimated cash outflow

4,350

Notes:

1. Finalisation of costs associated with the T3 Feasibility Study and supplementary studies.

2. Predominantly consisting of a further payment for the purchase the farm on which the T3 Copper Project is located, subject to MOD taking a decision to develop the T3 Copper Project.

3. Includes short term incentive payments for the half year to 30 June 2019.

4. Transaction costs in relation to the Scheme of Arrangement between Sandfire Resources NL and MOD Resources Limited.

5 Reflects the MTR JV contributions.

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

PL334/2018

PL335/2018

PL336/2018

PL065/2018

100%

100%

100%

100%

100%

100%

100%

100%