INDIA RESOURCES : Quarterly activity and cash flow report 31 March 2017

Level 1

18 Kings Park Road, West Perth Western Australia 6005

Tel +618 9327 7400

Fax +618 9327 7499

ABN 77 121 339 704

India Resources Limited ("India Resources", "IRL" or "the Company") is pleased to present this quarterly activities report.

David Humann Chairman

Arvind Misra Managing Director

For the quarter ended March 2017

Surda Mine - Copper

• Copper ore processed for the March 2017 quarter was 76,810 tonnes at 0.90% Cu (76,616 tonnes hoisted from the mine) to produce copper metal in concentrate (MIC) of 631 tonnes (equivalent mined).

  Project Development

• The Surda Mine Expansion and Development project (SEPC project) achieved 141 metres advance in raises, drives and cross-cuts in the quarter. In December 2016 quarter, SEPC project achieved 128 metres.

• The achievement at shaft sinking site was 15.1m of sinking and 17.9m of lining for the quarter ending March 2017. In the December 2016 quarter the achievement was 14.1m and 13.6m respectively.

  Aravalli Project

• Government of Rajasthan (GOR) submissions to Revision Authority maintained its decision to process CMPL's mining lease application confirming CMPL's right derived from successful Reconnaissance Permit program.

  Corporate

• HCL has given 9 months interim extension. IRL has accepted the offer of extension on the basis that HCL will resolve the minimum wage escalation matter and work towards resolving $15M claims.

• After the successful appeal for Swan Gold (Now Eastern Goldfields) with the Indian income tax Office (ITO) for the 2010/11, 2011/12 and 2012/13 financial years, IRL was able to recover 9M INR (AUD 186K) for the FY 13-14 and INR 7M (AUD140K) for the FY12-13 in the month of January 2017 and February 2017 respectively. It is awaiting some more refunds from the tax office.

• Company is in discussion with several prospective investors who have shown interest in future funding.

• Mr Frank Campagna resigned from the post of Company Secretary with effect

h

from 1Q1

April 2017. Mr David Humann, Chairman, has taken additional

responsibility as the Company Secretary.

Surda Project

Mining activities by the company produced 631 tonnes of copper metal in concentrate (equivalent mined) in the March 2017 quarter.

Safety

During Quarter 1, January - March, 2017, the number of Lost Time Injury (LTl) recorded at the Surda Mines was Zero (0) and Concentrator plant zero (0). Injuries requiring Medic a I T re at m e nt (MT I) w a s 3 at S u rd a M i ne s a nd Z e r o ( 0 ) at C o nc e nt ra t o r p la nt . Fi rst A id t re a t m e nt for the Surda Mines & Concentrator Plant operations were 17 and O respectively as also shown below starting from 2016 Quarter 4 to 2017 Quarter 1 Statistics.

0ct -16 - Dec-16 (04) Statistics

Jan-17 - Mar-17 (01) Statistics

Production

The Surda Copper Mine produced 631 tonnes of ( Copper) metal-in-concentrate (MIC) during the March 2017quarter.

Surda Expansion Project

The Surda Expansion Project achieved 141 metres advance in the December 2016 quarter compared to 128 metres of horizontal driving, raise and cross-cutting for the previous quarter. Highlights were as follows:

• Level 12, Shaft 3 achieved two faces of development , driving south and150m South raise.

• Level 10, shaft 4 driving northward and cross-cut presented another raise position to develop.

• Mechanisation at shaft sinking continues towards full mechanisation. GRAB was commissioned. Commissioning of larger winder also completed during the quarter. Fully mechanised shaft sinking is likely to commence during June quarter, after obtaining necessary approvals from the Director General of Mines Safety in India.

  Next quarter:

• Opening up of 13th level faces after dewatering of 25 S winze at shaft 3

• Opening up of 11th level faces after dewatering of 1200 S winze at shaft 4

• Completion of full mechanisation at the shaft sinking.

  BUSINESS DEVELOPMENT

  There has been no activities for business development during the March 2017 quarter .

  EXPLORATION ACTIVITIES

  Aravalli (Base Metals)

  • The Revision Authority in the Ministry of Mines, government of India, conducted a hearing in early February in relation to the Revision filed by Hindustan Zinc Limited (HZL) against the Government of Rajasthan (GOR).The details of the hearing has already been announced in ASX on 27th February 2017. A further hearing and conclusion of the matter is likely to happen in the next few months. The Company is pleased with the consistent position taken by GOR in relation to HZL's overlapping claims.

  • The Aravalli Project is attracting the interest from new investors .The company has received a Farm-in proposal for banking feasibility study. Company is evaluating this offer along with the funding options at the parent entity level.

    FINANCE

• The shaft sinking project is now contributing to improved performance.

• The copper production was below target during the quarter mainly due to the supply constraint in the mines. This was due to the excessive deductions made by HCL from Company's regular bills which affected the cash flow.

• IRL was able to recover the Tax deducted at source of 9M INR (AUD 186K) for the FY 13-14 and INR 7M (AUD140K) for the FY12-13 in the month of January 2017 and February 2017 respectively. The company is expecting some more refund in the near future.

• The quarter ending March 2017 had a positive cash flow from operating activities as a direct result of refund of the money received from the Indian Tax Office.

• Cash flow difficulties and high level of liability requires continued good will from all stakeholders to sustain the business. The creditors and workforce at the site level are being

  managed as per Indian customs and laws by the Executive Committee made up of senior management team of the Company.

• The Axis Bank continues to provide temporary overdrafts of 10M INR ($0.20M). Discussions continue to replace the temporary overdraft facility with an overdraft for the Surda Expansion Project.

• The Company accepted the 9 months interim extension order provided by HCL on the condition that HCL will compensate for the recent wage escalation as per recent notification by the Ministry of Labor and Employment and resolve claims I further extension as per the presentation made. by Company's Managing Director to the full board of HCL on 13th December 2016.

  STATUS OF LEGAL AND ARBITRATION CASES

  • The dispute on Superannuation of 22 employees, which was being arbitrated by Labour Commissioner, has been disposed of. The Certified Copy of the order is being awaited.

    The new wage settlement dispute is still pending.

  • The dispute regarding the bonus payments for the FY 2015-16 is still pending. The Ministry Of Labour and Employment has rejected Company's request for exemption. However, the matter is pending for consideration of Labour Commissioner.

HCL has given 9 months interim extension. IRL has accepted the offer of extension on the basis that HCL will resolve the issue of minimum wage escalation and continue resolving other existing claims including up to 66 months extension as presented to HCL board on 13th December 2016 by the Company's Managing Director.

SEPC contract also received 9 months extension. SPEC have accepted this extension on condition that the contract will receive full extension of 33 months (inclusive of 9 months). Company's Surda contract is also linked to the finish date of SEPC contract and is coterminous .

Minimum wages escalation remains under discussion between all stakeholders including Company, HCL, Worker's Union, Local Administration (LA) and Labor Commissioner (LC). All stakeholders expect HCL to make a reasonable decision in time. Company's workers, after having waited for a decision for about three months, went on strike for about a week during the month of April 2017. Subsequent to strike and intervention by LA and LC, HCL agreed to pay additional wages directly to Company's labor force . Company and HCL remain in discussion to find a long term solution to the issue of wages escalation .

Delay in receiving extension, strike by labor and significant blockage of funds by HCL has deteriorated the performance of the Surda and SEPC contract. This shall impact future performance, however Company has taken steps to contain costs by reducing manpower and other costs.

After the successful appeal for Swan Gold (Now Eastern Goldfields) with the Indian income tax Office (ITO) for the 2010/11, 2011/12 and 2012/13 financial years, IRL was able to recover 9M INR (AUD 186K) for the FY 13-14 and INR 7M (AUD140K) for the FY12-13 in the month of January 2017 and February 2017 respectively. The company is expecting some more refund in the coming months.

There has been still a trading halt on the securities of India Resources Limited and voluntary suspension of trading, pending release of an announcement.