MZI Resources : Quarterly Cash Flow Report - June 2018

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Appendix 5B

+Rule 5.5

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

MZI RESOURCES LIMITED

ABN

523 077 221 722

Quarter ended ("current quarter")

30 June 2018

Consolidated statement of cash flows	Current quarter $A'000	Year to date 12 months $A'000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs (f) project costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Payment for Bonds 1.8 Proceeds from foreign currency contracts 1.9 Net cash from / (used in) operating activities	3,467 (27) - (14,543) (626) (829) (10) 5 (1,343) (14) (215)	38,887 (276) (49,575) (2,513) (2,359) (44) 15 (4,841) (14) 1,476
	(14,135)	(19,244)

2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments

(6,712)

(11,033)

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A'000	Year to date 12 months $A'000
(d) other non-current assets 2.2 Proceeds from the disposal of: (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 from / (used in) investing activities	1	1
	(6,711)	(11,032)

3. Cash flows from financing activities 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 or options 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 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	83,821 (62,156)	96,587 (69,995)
	21,665	26,592

4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)

6,156 (14,135) (6,711) 21,665

10,656 (19,244) (11,032) 26,592

+ See chapter 19 for defined terms

1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A'000	Year to date 12 months $A'000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	254	257
	7,229	7,229

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 5.2 Call deposits 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)	7,229	6,156
	7,229	6,156

• 6. Payments to directors of the entity and their associates

• 6.1 Aggregate amount of payments to these parties included in item 1.2

• 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

  Current quarter

  $A'000

• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

192

• 7. Payments to related entities of the entity and their associates

• 7.1 Aggregate amount of payments to these parties included in item 1.2

• 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

  Current quarter

  $A'000

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

• 8. Financing facilities available

  Add notes as necessary for an understanding of the position

• 8.1 Loan facilities

• 8.2 Credit standby arrangements

• 8.3 Other (please specify)

  Total facility amount at quarter end $A'000	Amount drawn at quarter end $A'000
  187,926	177,376

• 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 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	- - 14,697 626 1,158 -
	16,481

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

+ See chapter 19 for defined terms

1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2

This statement gives a true and fair view of the matters disclosed.

Sign here:

Date:

31 July 2018

(Director/Company secretary)Print name:

John Traicos

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

• 2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

• 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

+ See chapter 19 for defined terms

1 September 2016

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