FYI Resources : Quarterly Activities and Cashflow Reports

abf876a8-95ae-4cc5-ad39-8f49ff593a84.pdf

ASX: FYI

QUARTERLY REPORT FOR THE PERIOD ENDING 31 March 2016

HIGHLIGHTS

• Joint venture negotiations underway for the Sino-Lao potash project

• Due diligence activities for the Sino-Lao project in progress

• Active quarter proposed including drilling program

• Additional opportunities for developing potash production in Thailand and Laos being evaluated

REVIEW OF OPERATIONS

Potash Activities Laos

Production Joint Venture

Following successful discussions regarding potential joint venture arrangements with the Yuntianhua Group for the Sino-Lao project in Laos, FYI remains committed to progressing its potash production strategy.

The Company commenced a due diligence review on the Sino-Lao potash project to verify asset quality and value and to explore various development and production options.

The detailed due diligence review includes, but is not limited to, reviews of:

• Data review and verification

• Geology

• Geophysics

• Mining studies and design

• Metallurgical studies and flowsheet optimisation

• Legal and financial

• Market studies

Sino-Lao Potash Project - view of auxiliary access shaft.

To support the due diligence review, a drilling program and detailed review of the project potash processing facility is currently being implemented. The review studies and drilling are designed to verify the geology, mineralisation and grade of the deposit.

53 Canning Highway, VICTORIA PARK, WA 6100

Tel: [phone] Fax: [phone] Website: www.fyiresources.com.au

ACN 061 289 218

Thailand

Potash Tenement Applications (SPL)

The West Mekong Minerals (WMM) SPLs remains in application and are before the office of the Director General for approval.

Current Quarter Objectives

Objectives for the June 2016 quarter include:

• Commencement of a drilling program at the Sino-Lao project and supporting down-hole geophysics program;

• Review of Sino-Lao potash processing and underground operations;

• Continuation of the Sino-Lao due diligence review;

• Advancement of the Sino-Lao joint venture production agreement;

• Confirming of geological resource and model

• Underground sampling and Run of Mine grade verification review;

• Metallurgical test-work on of underground samples;

• Initial flowsheet testing and design;

• Initial mining engineering scoping studies;

  Sino-Lao Potash Project - view of 200 level access drive.

• Submission of a feasibility study to the Laos Ministry for the Khammouane project; and

• Continuation of efforts to obtain the grant of the WMM SPL applications

Potash Capabilities

FYI has aligned its development objectives with a number of key industry groups that augment FYI's capacity in developing a major potash production project.

The partnerships with these selected groups will complement the Company's development model from the exploration stage through to resource definition, mine scheduling and design, economic studies, mining, process engineering and off-take (marketing).

These relationships are also critical for the successful advancing and development of the Company's longer term potash strategy for Southeast Asia - particularly as a number of opportunities are drawing near to being finalised.

About Potash

Potash is the common term used for a group of various mined and manufactured salts containing potassium minerals in water-soluble form that are used principally as agricultural fertilizers.

Potassium is an important plant and crop nutrient along with nitrogen and phosphorus. Potash has been used since ancient history as a soil fertiliser which accounts for about 90% of its current use.

Potash is important for agriculture because it improves water retention, yield, nutrient value, taste, colour, texture and disease resistance of food crops. It has wide application to fruit and vegetables, rice, wheat and other grains, sugar, corn, soybeans, palm oil and cotton, all of which benefit from the nutrient's quality enhancing properties.

About FYI

FYI is an ASX listed natural resources focused public company. The Company's principal objective is to assemble a portfolio of quality potash projects in Southeast Asia with the view to long term development and production.

FYI is targeting shallow, thick, high grade deposits typically associated with the geology of the basin regions in Thailand and Laos.

The FYI Board and the assembled in-country management groups believe the targeted Thai and Laos project areas have the potential to host world class potash deposits

Further Information:

Roland Hill Managing Director Tel: [phone]

[phone]

Interest in Mineral Tenements at 31 March 2016

Tenement	Location	Interest	Change in Interest
During Quarter
WMM SPLs (6) ESM SPLs (6)	Thailand Thailand	100% (under application) 100% (under application)	- -

Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

Rule 5.3

FYI Resources Limited

ABN Quarter ended ("current quarter")

85 061 289 218

31 March 2016

Consolidated statement of cash flows

Cash flows related to operating activities Receipts from product sales and related debtors Payments for (a) exploration & evaluation development production administration Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other (Net R&D rebate + GST refund) of new projects Net Operating Cash Flows		Current quarter $A'000	Year to date (9 months) $A'000
		- (94) - - (94) - 4 - - -	- (172) - - (252) - 6 - - 5
		(184)	(413)
1.8	Cash flows related to investing activities Payment for purchases of: (a) prospects equity investments other fixed assets Proceeds from sale of: (a) prospects equity investments other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material) Net investing cash flows Total operating and investing cash flows (carried forward)	-	-
-		-
-		-
1.9		-	-
-		-
-		1,000
1.10		-	-
1.11		-	-
1.12		-	-
-		1,000
1.13		(184)	587

+ See chapter 19 for defined terms.

30/9/2001 Appendix 5B Page 1