MOD.L Regulatory News (MOD)

Name of entity

MOD RESOURCES LIMITED

ABN

Quarter ended ("current quarter")

78 003 103 544

31 March 2019

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(1,659)

(1,659)

(a) exploration & evaluation1

(b) feasibility studies

(1,660)

(1,660)

(c) development

-

-

(d) production

-

-

(e) staff costs2

(922)

(922)

(f) administration and corporate costs

(835)

(835)

1.3

Dividends received

-

-

1.4

Interest received

14

14

1.5

Interest and other costs of finance paid

-

-

1.6

Income taxes paid

-

-

1.7

Research and development refunds

-

-

1.8

Other - MTR transaction, London Stock Exchange listing and Advisory fees3

(210)

(210)

1.9

Net cash used in operating activities

(5,272)

(5,272)

Notes

1Based on 100% of Exploration and Evaluation payments and therefore includes Metal Tiger (MTR) 30% contribution on JV licences (refer section 3.9).

2Payments include short term incentive awards for the 2018 year.

3Payments in relation to the completion of the MTR Transaction, the dual listing on the London Stock Exchange and other advisory fees.

2.

Cash flows from investing activities

(155)

(155)

2.1

Payments to acquire:

(a) property, plant and equipment

(b) tenements (see item 10)

-

-

(c) investments

-

-

(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 used in investing activities

(155)

(155)

3.

Cash flows from financing activities

15,125

15,125

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, options or performance rights

(1,078)

(1,078)

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

MTR contributions to Joint Venture

233

233

3.10

Net cash from financing activities

14,280

14,280

4.

Net increase/(decrease) in cash and cash equivalents for the period

5,038

5,038

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash used in operating activities (item 1.9 above)

(5,272)

(5,272)

4.3

Net cash used in investing activities (item 2.6 above)

(155)

(155)

4.4

Net cash from financing activities (item 3.10 above)

14,280

14,280

4.5

Effect of movement in exchange rates on cash held

(71)

(71)

4.6

Cash and cash equivalents at end of period

13,820

13,820

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

2,820

3,038

5.2

Call deposits

11,000

2,000

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)

13,820

5,038

6.

Payments to directors of the entity and their associates

Current quarter$A'000

6.1

Aggregate amount of payments to these parties included in item 1.2

540

6.2

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

-

6.3

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

Included in 6.1 are payments for director fees, company secretarial fees and short term incentive payments paid to a director or director associated companies.

7.

Payments to related entities of the entity and their associates

Current quarter$A'000

7.1

Aggregate amount of payments to these parties included in item 1.2

245

7.2

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

-

7.3

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

Included in 7.1 are consultancy services for metallurgical test work and feasibility study work provided by Independent Metallurgical Operations Pty Ltd and Metallurgy Pty Ltd, companies associated with Steve McGhee and consultancy services provided by Integra Management Solutions a company associated with Bronwyn Barnes.

8.

Financing facilities availableAdd notes as necessary for an understanding of the position

Total facility amount at quarter end$A'000

Amount drawn at quarter end$A'000

8.1

Loan facilities

-

-

8.2

Credit standby arrangements

-

-

8.3

Other (please specify)

-

-

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 evaluation1

2,000

9.2

Studies2

500

9.3

T3 Project capital cost and other capital cost3

2,200

9.4

Staff costs

500

9.5

Administration and corporate costs

600

9.6

Other (provide details if material) 4

Other (provide details if material) 5

800

(250)

9.7

Total estimated cash outflow

6,350

Notes:

1. Predominantly consisting infill drilling on the T3 Copper Project, T3 Underground Project, T4-T23 area and A4 Dome.

2. Costs associated with the T3 Feasibility Study and further study work on the T3 Underground Project.

3. Predominantly consisting the payment to complete the purchase the farm on which the T3 Copper Project is located, subject to MOD taking a decision to develop the T3 Copper Project.

4. Success fees in relation to the MTR Transaction and fees for advisors and independent technical experts on the strategic investor and debt process for the T3 Copper Project.

5 Reflects the MTR JV contributions.

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

-