Minbos Resources : Response to ASX Appendix 5B Query

ASX Code: MNB PERTH OFFICE Suite 1,

245 Churchill Avenue

Subiaco WA 6008

T: [phone]

E: [e-mail]

W: www.minbos.com

ABN: 93 141 175 493

12 February 2015
Ben Secrett
ASX Compliance Pty Limited
GPO Box D187
PERTH WA 6840
Dear Mr Secrett

MINBOS RESOURCES LIMITED(MNB or Company)

I refer to you letter dated 11 February 2015 regarding the Company's Appendix 5B for the period ended 31 December 2014, released to ASX Limited (ASX) on 30 January 2015, (the Appendix

5B).

The Company provides the following response to the questions raised in your letter:
1. In Minbos's Quarterly Activities Report for the quarter ended 31 December 2014 it was confirmed that the Company has received a number of funding approaches confirming the ability to raise funds. The Company is well advanced to complete a capital placement in the next few weeks and will therefore be able to fund its activities. The majority of the Company's forecasted expenditure for the quarter ending 31 March 2015 will only be incurred following completion of the capital placement.
2. The Company is an exploration company and expects that it will have negative operating cash flows in the future until commencing production on the Cabinda project. The Company is reliant on capital raising activities to fund its ongoing activities. The Directors assess the Company's cash requirements regularly to meet the Company's planned activities and arrange capital raising activities either through debt or equity arrangements.
3. The Company is well advanced to complete a capital placement in the next few weeks to continue to meet its business objectives and has received a number of funding approaches.
4. The Company confirms that it is in compliance with the listing rules and in particular, listing rule 3.1.
5. With regard to listing rule 12.2, the Directors confirm that the Company is of a financial condition to warrant continued quotation of its securities and its continued listing.
Yours sincerely

Stef Weber
Chief Financial Officer and Company Secretary

11 February 2015
Mr Stef Weber
Chief Financial Officer and Company Secretary
Minbos Resources Limited Suite 1, 245 Churchill Avenue Subiaco WA 6008

By email

Dear Stef

ASX Compliance Pty Limited

ABN 26 087 780 489

Level 40, Central Park

152 - 158 St Georges Terrace

PERTH WA 6000

GPO Box D187

PERTH WA 6840

Telephone [phone]

Facsimile 61 8 9381 1322 www.asx.com.au

Minbos Resources Limited ("Company")

I refer to the Company's Quarterly Report in the form of Appendix 5B for the period ended 31 December 2014,
released to ASX Limited ("ASX") on 30 January 2015, (the "Appendix 5B"). ASX notes that the Company has reported the following.
1. Receipts from interest and other items of a similar nature of $2,000.
2. Net negative operating cash flows for the quarter of $454,000
3. Cash at end of quarter of $147,000.
4. Estimated cash outflows for the next quarter of $280,000 on exploration and evaluation, and $250,000 on administration.
In light of the information contained in the Appendix 5B, please respond to each of the following questions.
1. It is possible to conclude on the basis of the information provided that if the Company were to continue to expend cash at the rate for the quarter (and at the rate anticipated for the next quarter) indicated by the Appendix 5B, the Company may not have sufficient cash to fund its activities. Is this the case, or are there other factors that should be taken into account in assessing the Company's position?
2. Does the Company expect that in the future it will have negative operating cash flows similar to that reported in the Appendix 5B for the quarter and, if so, what steps has it taken to ensure that it has sufficient funds in order to continue its operations at that rate?
3. What steps has the Company taken, or what steps does it propose to take, to enable it to continue to meet its business objectives?
4. Can the Company confirm that it is in compliance with the listing rules, and in particular, listing rule 3.1?
5. Please comment on the Company's compliance with listing rule 12.2, with reference to the matters discussed in the note to the rule.

Listing rule 3.1

Listing rule 3.1 requires an entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity's securities. The exceptions to this requirement are set out in the rule.
In responding to this letter you should consult listing rule 3.1 and the guidance note titled "Continuous disclosure:
listing rule 3.1".
If the information requested by this letter is information required to be given to ASX under listing rule 3.1 your obligation is to disclose the information immediately.
Your responsibility under listing rule 3.1 is not confined to, or necessarily satisfied by, answering the questions set out in this letter.
This letter and your response will be released to the market. If you have any concerns about your response being released, please contact me immediately. Your response should be sent to me on email [e-mail] and [e-mail]. It should notbe sent to the ASX Market Announcements Office.
Unless the information is required immediately under listing rule 3.1, a response is requested as soon as possible and, in any event, not later than 3.00pm AWST on Friday, 13 February 2015.
If you are unable to respond by the time requested you should consider a request for a trading halt in the
Company's securities.
If you have any queries please let me know. Yours sincerely,

[sent electronically without signature]

Ben Secrett

Senior Adviser, Listings Compliance (Perth)

Direct: [phone]