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 +61 (0)2 9299 3655 SYDNEY NSW 2001

Fax + 61 (0)2 9299 8195

admin@carbonminerals.com.au

QUARTERLY ACTIVITIES REPORT to September 30, 2016 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 included routine care and maintenance of existing wells and access tracks. Additional proactive safety work included pressure testing of the Georges Island wells and Leak Detection and Repair inspections of Georges Island and Kahlua wells in PEL1 and Longlea well in PEL12. No leaks were detected at any of the sites.

In August a renewal application for PEL12 together with supporting documentation was lodged with the NSW Government. As with the renewal application for PEL1, renewal of this licence is not expected until government administrative procedures are in place to accommodate changes in NSW legislation.

Santos continues with community consultation including meetings, site tours and manning of an information stand at the annual AgQuip agricultural field day held in Gunnedah.

Securing a cleaner energy future

CARBON MINERALS LIMITED ABN 29 001 836 586 QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2016 Exploration Expenditure Incurred

Exploration expenditure incurred during the quarter ended 30 September 2016 on the group's projects is set out below:-

Project Amount Incurred

New South Wales

PELs 1 & 12 (Gunnedah Basin) $23,687

======

SCHEDULE OF MINERAL TENEMENTS AS AT 30 SEPTEMBER 2016

LOCATION

TENEMENT

HOLDER

INTEREST

AREA

CURRENT TO

New South

PEL 1

ACM

35%1

72 blocks

10/02/20152

Wales:

Gunnedah

Bando

PEL 12

ACM

35%1

31 blocks

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

30 SEPTEMBER 2016

Consolidated statement of cash flows

Current quarter

$A

Year to date (9 months)

$A

1.

Cash flows from operating activities

3,683

21,333

1.1

Receipts from customers

1.2

Payments for

(2,100)

(141,227)

(a) exploration & evaluation

(b) development

-

-

(c) production

-

-

(d) staff costs

(553)

(553)

(e) administration and corporate costs

(61,535)

(163,797)

1.3

Dividends received (see note 3)

-

-

1.4

Interest received

35,709

87,026

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)

-

(1,229)

1.9

Net cash from / (used in) operating activities

(24,796)

(198,447)

  1. Cash flows from investing activities

  2. Payments to acquire:

  3. property, plant and equipment - -

  4. tenements (see item 10) - -

  5. investments - -

  6. other non-current assets - -

  7. Consolidated statement of cash flows

    Current quarter

    $A

    Year to date (9 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

    -

    (11,000)

    2.4 Dividends received (see note 3)

    -

    -

    2.5 Other - loans repaid by other entities

    -

    11,000

    2.6 Net cash from / (used in) investing

    -

    -

    activities

  8. Cash flows from financing activities

  9. Proceeds from issues of shares

  10. Proceeds from issue of convertible notes

  11. Proceeds from exercise of share options

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

  13. Proceeds from borrowings

  14. Repayment of borrowings

  15. Transaction costs related to loans and borrowings

  16. Dividends paid

  17. Other (provide details if material)

  18. 3.10 Net cash from / (used in) financing activities

  19. -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

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

    2. Cash and cash equivalents at beginning of period

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

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

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

    6. Effect of movement in exchange rates on cash held

    7. 4.6 Cash and cash equivalents at end of period

      8. 4,820,553

      (24,796)

      -

      -

      -

      4,994,204

      (198,447)

      -

      -

      -

      4,795,757

      4,795,757

    Carbon Minerals Ltd. published this content on 23 October 2016 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 24 October 2016 07:22:05 UTC.

    Original documenthttp://www.carbonminerals.com.au/September%202016%20Quarterly%20Activities%20and%20Cashflow%20Reports.pdf

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