Carbine Tungsten : Quarterly Cashflow Report - December 2016 Qtr

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
CARBINE TUNGSTEN LIMITED
ABN	Quarter ended ("current quarter")
77 115 009 106	31 December 2016

Consolidated statement of cash flows		Current quarter $A'000	Year to date (6 months) $A'000
1.	Cash flows from operating activities	-	-
1.1	Receipts from customers
1.2	Payments for	(49)	(144)
(a) exploration & evaluation
(b) development		(230)	(313)
(c) production		-	-
(d) staff costs		(43)	(88)
(e) administration and corporate costs		(166)	(269)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	6	16
1.5	Interest and other costs of finance paid	(4)	(10)
1.6	Income taxes paid	-	-
1.7	Research and development refunds	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating activities	(486)	(808)

Consolidated statement of cash flows		Current quarter $A'000	Year to date (6 months) $A'000
2.	Cash flows from investing activities Payments to acquire:	-	(1)
2.1
(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	12	12
(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 - Lanstead Sharing Agreement Net	(46)	(91)
Movement
2.6	Net cash from / (used in) investing	(34)	(80)
	activities

Cash flows from financing activities Proceeds from issues of shares Proceeds from issue of convertible notes Proceeds from exercise of share options Transaction costs related to issues of shares, convertible notes or options Proceeds from borrowings Repayment of borrowings Transaction costs related to loans and borrowings Dividends paid Other (provide details if material) 3.10 Net cash from / (used in) financing activities	218 - - (7) - (28) - - -	498 - - (49) - (28) - - -
	183	421

Consolidated statement of cash flows		Current quarter $A'000	Year to date (6 months) $A'000
4.	Net increase / (decrease) in cash and cash equivalents for the period	631	761
4.1	Cash and cash equivalents at beginning of period
4.2	Net cash from / (used in) operating activities (item 1.9 above)	(486)	(808)
4.3	Net cash from / (used in) investing activities (item 2.6 above)	(34)	(80)
4.4	Net cash from / (used in) financing activities (item 3.10 above)	183	421
4.5	Effect of movement in exchange rates on cash held	-	-
4.6	Cash and cash equivalents at end of period	294	294

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	93	228
5.2	Call deposits	201	403
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)	294	631

Current quarter $A'000

83

-

1. Payments to directors of the entity and their associates

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

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

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

   Payment for consulting services at commercial rates.

   Current quarter $A'000

   -

   -

5. Payments to related entities of the entity and their associates

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

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

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

   N/A

   Total facility amount at quarter end $A'000	Amount drawn at quarter end $A'000
   240	240
   -	-
   785,063	265,623

9. Financing facilities available Add notes as necessary for an understanding of the position

10. Loan facilities

11. Credit standby arrangements

12. Other - Lanstead Sharing Agreement

13. 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.

Loan facilities

Loan facilities refer to the loan of US$1 Million established in February 2014 from Mitsubishi Corporation RtM Japan Ltd and is secured against 2.7% of the equity of Carbine's wholly owned subsidiary Tungsten Resources Pty Ltd. Repayments of US$800,000 (AU$1,029,180) were made during the 2016 financial year. The balance of the loan is $240,000 as at 31 December 2016. The loan bears an interest rate of 6% per annum.

Lanstead Sharing Agreement

In March 2016, the Company signed Subscription Agreements to raise, in aggregate, $1,875,000 before expenses from Lanstead Capital L.P. ("Lanstead") by way of a subscription for 75,000,000 ordinary shares at a price of $0.025 per share. The Company also entered into a Sharing Agreement with Lanstead such that the Company's economic interest will be determined and payable in 18 monthly settlement tranches as detailed in the placement announcement of 20 November 2015. As consideration for entering into the sharing agreements, the Company issued 3,000,000 shares on 20 November 2015 and a further 5,000,000 shares on 11 March 2016 such that 83,000,000 shares, in total, have been issued to Lanstead pursuant to the Subscription Agreements at 31 March 2016. During the December 2016 quarter, the Company received

$169,448 in credit support instalments, net of sharing agreement settlements pursuant to the Subscription Agreements. $785,063 remains invested in the Sharing Agreements at 31 December 2016.