Realm Resources : Quarterly Activities and Cashflow Report

Company Announcements ASX Limited‌‌

By Electronic Lodgement 12 July 2017

Highlights QUARTERLY UPDATE

• Foxleigh Mine produced 519kt of saleable production and shipped 790kt in the June quarter and 1,488kt 2017 YTD.
• Railings returned to normal following the impacts of Tropical Cyclone Debbie in April.
• June Quarter 2017 Benchmark low-volatile PCI coal price was set at US$135/t (vs. US$180/t in March quarter).
• Cash generated in the quarter was A$19 million and cash on hand at 30th June 2017 was A$107 million. Realm Resources Ltd (ASX: RRP) ("Realm" or the "Company") is pleased to provide an update on activities during the quarter. Safety & Environment

  • One lost time injury (LTI) and one medical treatment injury (MTI) during the June quarter.

  • The SHMS Simplification Project, which re-focuses safety procedures on risk identification and management, commenced rollout during the quarter.

  • 25ha contract for rehabilitation re-shaping signed. YTD spoil re-shaping is now 187ha, with over 125ha topsoiled, awaiting seeding.

Figure 1: - Total Recordable Injury Frequency Rate

12 MTH ROLLING TRIFR

18.0

16.0 14.0

12.0

10.0

8.0 6.0

4.0

2.0

0.0

TRIFR 12Mth Rolling Average 2017 Target 2015-16 Industry Average

Production and Sales

Key operating results for the June quarter 2017 are shown in Table 1.

Table 1: - Foxleigh Coal Mine (100%) Operating Results

Last quarter	Since acquisition
ROM coal produced (kt)	920	3,220
ROM strip ratio (bcm waste / ROM t)	7.9:1	7.0:1
Saleable coal produced (kt)	519	2,426
Total coal sales (kt)	790	2,470

Impact of Tropical Cyclone Debbie

Aurizon Holdings re-opened the Goonyella rail system on 26th April, following repairs as a result of Tropical Cyclone Debbie. Foxleigh re-commenced railings on 28 April.

All speed restrictions were lifted on 10 May 2017, at which time the Company's above-rail provider, Pacific National, lifted its force majeure notice.

Foxleigh Plains Cockatoo Creek Diversion and Levee

The 4.1km creek diversion, which included the realignment of a public road and the construction of 5.6km of flood protection levees, reached Operational Completion during the June quarter. This project will extend the life of the Foxleigh Plains pit.

Exploration and Development

The Company continued the exploration program on the existing mining leases and EPC's, including:

Project	Open Hole (m)	Cored (m)	Total Drilling (m)
One Tree West	-	87	87
Foxleigh Plains	1,147	28	1,175
Roper Creek	1,595	431	2,026
Total	2,742	546	3,288

Katingan Ria Coal Project

The Company continues to engage with PLN (Indonesian State owned Electricity Corporation) and other potential partners/buyers to progress its power station strategy. The Katingan Ria thermal coal project (Realm 51%) is suited to supply a mine mouth power station in the region.

At the time of writing the expected price for Katingan Ria coal is US$40.00/t. This, together with the downward revision of the forecast production costs for the project, have encouraged management to reassess the viability of the project.

South African Projects Aluminium Waste Toll Treating Business Health and Safety

There was one disabling injury during the quarter. The focus on safety training and monitoring continues. The disabling injury frequency rate (DIFR) for the June quarter 2017 was 1.2% (0.0% in the prior quarter).

Smelting and recovery performance comparison

Alumicor	Q4 2015	Q1 2016	Q2 2016	Q3 2016	Q3 2016	Q4 2016	Q1 2017	Q2 2017	% change Q1 2017
Tonnes smelted Average recovery	5,412 56%	4,868 57%	4,473 57%	5,083 60%	5,083 60%	4,391 59%	5,182 59%	4,005 61%	-23% 3%

Tonnes smelted was down during the quarter as a result of furnace refurbishments. Alumicor continues to operate profitably and deliver positive cash flow.

Constructive discussions with Hulamin are continuing with the aim of securing a mutually beneficial long term processing agreement in the near term.

Platinum Group Metals

Chrometco (JSE:CMO), in which Realm owns 45m shares, and the Sail Group of Companies ("Sail"), have entered into conditional agreements that could result in Sail acquiring just less than 90% of Chrometco. In return, Chrometco will receive cash, a controlling stake in two fully financed chrome projects and a stake in Sail Minerals. By joining the respective strengths of Sail and Chrometco as well as the potential of two exceptionally good chrome projects, the new entity will be well placed to become a significant player in the chrome market (Refer http://www.chrometco.co.za/).

The Company continues to keep its mineral rights situated in the Eastern Limb of the Bushveld Igneous Complex in good standing.

Business Development

Numerous opportunities continue to be reviewed, with the focus directed at projects or mines with near term cash generation capacity, largely in first world jurisdictions.

Financial results

Referring to the attached 5B schedule, net operating cash inflows were AUD$23,684,000 for the quarter (inflow of AUD$29,788,000 in the prior quarter).

Realm's cash on hand as at 30th June 2017 was A$107 million.

About Realm

Information on Realm Resources Limited is available on the Company's website at

www.realmresources.com.au.

For further information, please contact:

Gemma Yeates

Financial & Corporate Relations (FCR) T: [phone]

[e-mail]