Carbon Minerals : March 2017 Quarterly Activities and Cashflow Reports (New)

Carbon Minerals Limited

ABN 29 001 836 586 - ASX Code CRM

Seam Gas Pioneers of the Gunnedah Basin NSW

www.carbonminerals.com.au

Suite 3, Level 2, 66 Clarence Street Postal Address

SYDNEY NSW 2000 GPO Box 120

Phone [phone] SYDNEY NSW 2001

Fax + 61 (0)2 9299 8195

[e-mail]

QUARTERLY ACTIVITIES REPORT to March 31, 2017 REVIEW of OPERATIONS GUNNEDAH BASIN COALBED METHANE PROJECT

PETROLEUM EXPLORATION LICENCES 1 AND 12, NSW (GUNNEDAH BASIN)

These tenements are held by wholly owned subsidiary, Australian Coalbed Methane Pty Ltd (ACM) and are subject to a Joint Venture (JV) with Santos QNT Pty Ltd (Santos), as previously advised. Santos holds a 65% interest in the tenements and is the project Operator.

Field operations during the quarter remained limited to routine inspection and maintenance of existing wellheads, surface facilities and access tracks. Statutory reporting was prepared and submitted to the NSW Government by the JV Operator Santos.

No advice has been received from the NSW government regarding progress of the renewal applications for PELs 1 and 12.

Securing a cleaner energy future

CARBON MINERALS LIMITED ABN 29 001 836 586 QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 31 MARCH 2017 Exploration Expenditure Incurred

Exploration expenditure incurred during the quarter ended 31 March 2017 on the group's projects is set out below:-

Project Amount Incurred

New South Wales

PELs 1 & 12 (Gunnedah Basin) $67,692

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SCHEDULE OF MINERAL TENEMENTS AS AT 31 MARCH 2017

LOCATION	TENEMENT	HOLDER	INTEREST	AREA	CURRENT TO
New South Wales: Gunnedah Bando	PEL 1 PEL 12	ACM ACM	35%1 35%1	72 blocks 31 blocks	10/02/20152 26/09/20162

Key to Tenement Types

PEL Petroleum Exploration Licence

Key to Tenement Holders

ACM Australian Coalbed Methane Pty Limited

Notes

1. PELs 1 and 12 are subject to an arrangement with Santos QNT Pty Ltd ("Santos"), in which Santos has a 65% interest in each tenement.

2. Application for renewal submitted.

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
CARBON MINERALS LIMITED
ABN	Quarter ended ("current quarter")
29 001 836 586	31 MARCH 2017

Consolidated statement of cash flows	Current quarter $A	Year to date (3 months) $A
1. Cash flows from operating activities	4,691	4,691
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation	-	-
(b) development	-	-
(c) production	-	-
(d) staff costs	(178)	(178)
(e) administration and corporate costs	(43,565)	(43,565)
1.3 Dividends received (see note 3)	-	-
1.4 Interest received	38,909	38,909
1.5 Interest and other costs of finance paid	-	-
1.6 Income taxes paid	-	-
1.7 Research and development refunds	-	-
1.8 Other (provide details if material)	(631)	(631)
1.9 Net cash from / (used in) operating	(774)	(774)
activities

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

Consolidated statement of cash flows	Current quarter $A	Year to date (3 months) $A
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 - loans repaid by other entities	-	-
2.6 Net cash from / (used in) investing	-	-
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	- - - - - - - - -	- - - - - - - - -
	-	-

Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	4,780,156 (774) - - -	4,780,156 (774) - - -
	4,779,382	4,779,382