Minbos Resources : June 2016 Quarterly Reports

ASX ANNOUNCEMENT/MEDIA RELEASE QUARTERLY ACTIVITIES REPORT-30 JUNE 2016

Minbos Resources Limited (Minbos or the Company) is pleased to present its quarterly report for the period ended 30 June 2016.

HIGHLIGHTS:

• Appointment of Ausenco to deliver the BFS for the Cabinda Project- Ausenco was selected due to its relevant and recent experience in rock phosphate processing in West Africa. Ausenco will complete the work in conjunction with G Mining Services Inc., who will provide the geological and mining studies, and Golder Associates who is responsible for the geotechnical and hydrogeological studies.
• Cacata bulk sampling completed- Samples consist of representative material from two locations in the Cacata deposit. The samples were selected from areas to provide both representative direct shipping grade and "scrub and screen" material.
• Capital placement of $3.4 million finalized- The placement consisted of the issue of 680 million fully paid ordinary shares at $0.005 and 385 million unlisted options at $0.01per option. PLANNED ACTIVITIES FOR CABINDA PROJECT QUARTER 3 2016:
• Progress the testing of the bulk samples- The outcome of the bulk sample testing is expected to be finalized in the December quarter and will optimise the flowsheets for the production scenarios on the Cabinda Project.
• Port logistics evaluation- These studies will determine the optimal route to take product from the Cabinda Project to the Port.
• Trade Off Studies- Based on the bulk sample test Ausenco will review the process engineering, geotech and hydrogeological options for each alternative as well as preliminary mining studies and product transportation studies.
• Award the Environmental and Social Impact Assessment(ESIA) contract- The EISA contract for the BFS of the Cabinda Project is expected to be awarded in early August. CABINDA PROJECT BFS

  Minbos commenced work on the Cabinda Project BFS during the quarter with joint venture partner Petril Projects Ltd(Petril). The bulk sampling on the Cacata deposit was completed in June. Samples consisting of areas representing direct shipping grade and "scrub and screen" material has been sent to Equipment Suppliers and Mintek respectively for testing.

  A contract to deliver the BFS has been awarded to Ausenco. The BFS scope has been divided into two stages. Stage 1 will see the completion of a Trade-Off study to select the beneficiation route that will optimise the whole of resource outcome for the Cacata deposit. The Trade-Off study will compare the following 800,000tpa production scenarios:

• 5 years of drying and sizing followed by 10 years of scrub screen and flotation; and

• 10 years of scrub and screen followed by 5 years of scrub screen and flotation.

The timing and cost to complete the BFS will be determined upon the completion of Stage 1, when the preferred production scenario has been selected. Stage 2 of the BFS will provide a +/- 15% estimate for capital and operating costs for the Cabinda Project based on the process routes selected by the JV partners at the end of Trade-Off study. The scope of work will include geology, mining, beneficiation, infrastructure and services, product transportation and storage and port handling and ship loading.

Minbos paid for all of the BFS funding required of the quarter totalling cash calls of US$500,000. The Company provided joint venture partner Petril with a short term loan for their 50% share of the cash calls. Petril repaid this loan of US$250,000 and interest on 14 July 2016. Following the award of the contract to Ausenco another cash call was issued for the September quarter to the amount of US$800,000(Minbos 50% share US$400,000).

APPOINTMENT OF AUSENCO TO DELIVER THE BFS

Ausenco was selected for its recent and relevant experience in rock phosphate processing in West Africa. Competitive proposals were sought from a number of Tier 1 engineering groups.

Ausenco has bid in conjunction with G Mining Services Inc., who will complete the geological and mining studies, and Golder Associates who will be responsible for the geotechnical and hydrogeological studies. Ausenco has nominated Mr John Riordan as Project Manager. John is an accomplished Process Engineer including extensive experience dealing in Africa. John is now based in Perth but spent several years working in Israel with members of the Cabinda Project technical team.

CACATA BULK SAMPLING COMPLETED

Twenty tonnes of representative material has been obtained from two locations in the Cacata deposit which were chosen based on the Cacata Mineral Resource(as presented in the ASX announcement dated 13 April 2015 and 17 June 2016). The first sample of eight tonnes was taken from an area representative of the "scrub and screen material" within the resource which is defined by having a P2O5 grade >24% and has been freighted to Mintek fortestwork.

The second sample of twelve tonnes was taken from an area where the Mineral Resource indicates "direct shipping grade" (DSO) material is present (defined by having P2O5 grade > 30%) and has been air freighted to the equipment suppliers in the US.

The samples were taken from the central and southern parts of the deposit which allow relatively easy access to the centre of the deposit at around 7m depth. The testing will optimise the flowsheets for each option and provide product samples for potential customers in the last quarter of 2016.

CAPITAL PLACEMENT

Minbos completed a capital placement of 680 million fully paid ordinary shares at $0.005 in May following shareholder approval of Tranche 2 to raise $3.4million before cost. As part of the placement the company also issued 385 million unlisted options at $0.01, expiring on 30 December 2016.

CORPORATE EQUITY

The Company currently has 2.073 billion shares on issue and 696.6 million unlisted options.

CASH

At 30 June 2016, the Company had consolidated cash reserves of $1.609million

INTEREST IN MINING LICENCES

The Company is an exploration entity, below is a list of its interest in licences, where the licences are situated and the percentage of interest held.

Licence Number	Type	Interest	Location
12908	Exploration	49%	Democratic Republic of Congo
12910	Exploration	49%	Democratic Republic of Congo
12911	Exploration	49%	Democratic Republic of Congo
014/04/09/T.P/ANG.MG M.2015	Exploration	50%	Cabinda Province, Angola
015/01/10/T.P/ANG.MG M.2015	Exploration	50%	Cabinda Province, Angola
E08/2335	Exploration	100%	Carnarvon Shire, Western Australia
E08/2336	Exploration	100%	Carnarvon Shire, Western Australia

COMPETENT PERSONS STATEMENT

The information in this report has been reviewed and approved for release by Ms Kathleen Body, Pr.Sci.Nat, who has 20 years' experience in mineral exploration and mineral resource estimation. Ms Body is a Principal Consultant and Director of Red Bush Geoservices (Pty) Ltd and contracted to Minbos. Ms Body is registered with the South African Council for Natural Scientific Professions (SACNASP) as a Professional Natural Scientist.

She has sufficient experience in relation to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (The JORC Code 2012 Edition). Ms Body has consented to inclusion of this information in the form and context in which it appears.

ENDS

For further information, please contact:

Lindsay Reed Chief Executive Officer [e-mail] [phone]

Stef Weber Company Secretary [e-mail] [phone]

About Minbos

Minbos Resources Limited (ASX: MNB) is an ASX-listed exploration and development company focused on phosphate ore within the Cabinda Province of Angola. Through its subsidiaries and joint ventures, the Company is exploring approximately 200,000ha of highly prospective ground hosting phosphate ore.

Minbos is focussing on the development of the high grade Cacata deposit that forms part of the Cabinda Project whilst growing its current resource base in incremental stages on the remaining deposits in Angola.

The Company's strategy is to specifically target the exploration and development of low cost fertiliser-based commodities in order to tap into the growing global demand for fertilisers. Phosphate is an essential component in certain agricultural fertilisers, with the market supported by the increasing global demand for food and bio-fuel products. For more information, visit www.minbos.com