Hexagon Resources : App 5B – Quarterly Cash Flow Report 31 January 2017

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 HEXAGON RESOURCES LIMITED ABN Quarter ended ("current quarter") 29 099 098 192 31 December 2016 Consolidated statement of cash flows Currentquarter $A'000

1. Cash flows from operating activities

2. Receipts from customers

3. Payments for

   Year to date (6 months) $A'000

   - -

4. exploration & evaluation

   (1,079) (1,440)

5. development - -

6. production - -

7. staff costs (42) (62)

8. administration and corporate costs (213) (462)

9. Dividends received (see note 3) - -

10. Interest received 1 5

11. Interest and other costs of finance paid - -

12. Income taxes paid - -

13. Research and development refunds - 602

14. Other (provide details if material) - -

    1.9 Net cash from / (used in) operating activities (1,333) (1,357)
15. Cash flows from investing activities

16. Payments to acquire:

17. property, plant and equipment - -

18. tenements (see item 10) - -

19. investments - -

20. other non-current assets - -

    Consolidated statement of cash flows Currentquarter $A'000

21. Proceeds from the disposal of:

22. property, plant and equipment

    Year to date (6 months) $A'000

    - -

23. tenements (see item 10) - -

24. investments - -

25. other non-current assets - -

26. Cash flows from loans to other entities - -

27. Dividends received (see note 3) - -

28. Other (provide details if material) - -

    2.6 Net cash from / (used in) investing - - activities
29. Cash flows from financing activities

30. Proceeds from issues of shares

    2,000 2,000

31. Proceeds from issue of convertible notes - -

32. Proceeds from exercise of share options 162 237

33. Transaction costs related to issues of shares, convertible notes or options

    (110) (110)

34. Proceeds from borrowings - -

35. Repayment of borrowings - -

36. Transaction costs related to loans and - - borrowings

37. Dividends paid - -

38. Other (provide details if material) - -

    3.10 Net cash from / (used in) financing activities 2,052 2,127
39. Net increase / (decrease) in cash and cash equivalents for the period

40. Cash and cash equivalents at beginning of period

41. Net cash from / (used in) operating activities (item 1.9 above)

42. Net cash from / (used in) investing activities (item 2.6 above)

43. Net cash from / (used in) financing activities (item 3.10 above)

44. Effect of movement in exchange rates on cash held

    4.6 Cash and cash equivalents at end of period

    1,051 1,000

    (1,333) (1,357)

    - -

    2,052 2,127

    - -

    1,770 1,770
45. 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

46. Bank balances 75 134

47. Call deposits 1,695 917

48. Bank overdrafts - -

49. Other (provide details) - -

    5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 1,770 1,051
50. Payments to directors of the entity and their associates Currentquarter $A'000

51. Aggregate amount of payments to these parties included in item 1.2 16

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

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

54. Payments to related entities of the entity and their associates Current quarter $A'000

55. Aggregate amount of payments to these parties included in item 1.2 -

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

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

58. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A'000 Amount drawn at quarter end $A'000

59. Loan facilities - -

60. Credit standby arrangements - -

61. Other (please specify) - -

62. 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	400
9.2	Development	-
9.3	Production	-
9.4	Staff costs	20
9.5	Administration and corporate costs	180
9.6	Other (provide details if material)	-
9.7	Total estimated cash outflows	600

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	-	-	-	-