Nemex Resources : March 2016 Quarterly Report

Microsoft Word - NXR Mar 2016.docx

Quarterly Activities Report - March 2016

29 April 2016

Fast Facts

Capital Structure

Shares on issue 241.3M Options 12M

ASX Code NXR

Project Highlights WBT Investment

• Biometric technology

• Potential global market

  Guinea (Iron)

• High-grade iron discovery

• Large resource potential

  W Australia (Iron)

• Woodley DSO Project

.

Contacts

Mr Hui Zhang

T: +61 8 9388 2277

www.nemexres.com.au

Nemex Resources Limited (ASX: NXR, Nemex or the Company) reports its activities and corporate developments for the March 2016 Quarter.

INVESTMENT IN SECURITY BIOMETRIC TECHNOLOGY

During the quarter, Wavefront Biometric Technologies Pty Ltd ("Wavefront") advised Nemex that it had lodged its taxation return and has received a cash refund under the Federal Government's Research and Development (R&D) Tax Incentive Scheme (Scheme) in respect of the year ended 30 June 2015.

The refund will in part be used to settle existing creditors, partially repay the current Nemex loan and make necessary amendments to the Wavefront technology in relation to the International Centre for Biometric Research at Purdue University ("Purdue ICBR") validation report.

Nemex intends to assist and support Wavefront in continuing to examine alternatives to address the issues identified by Purdue ICBR and intends to re- process data from previous testing with a view to undertaking further independent validation at Purdue ICBR.

Wavefront advised Nemex that Dr Shanny Dyer will resign as Managing Director of Wavefront effective from 15 April 2016. Dr Dyer will continue in her role as Chairperson/Director of Wavefront.

MINERAL INTERESTS

During the quarter, Nemex relinquished its rights to E57/634 as the results to date are considered to be low grade with diminished prospects of an economic deposit being defined and to reduce holding costs in the short to medium term.

Nemex is reviewing its interests in its remaining mineral projects in conjunction with consideration of a potential change in activities.

Reinstatement to Trading

NXR expects that the suspension to the quotation of its securities will end upon NXR making an announcement in respect of an update on the Company's investment in Wavefront, update on discussions with potential customers, development partners and investors based in China relating to assisting Wavefront in further development of its technology and an appointment to the Board. NXR expects that this announcement will be made by 1 July 2016.

For further information about Nemex contact:

Hui Zhang (Director) Nemex Resources Limited P: 08 9388 2277

About Nemex Resources

NXR boasts a diversified asset portfolio comprising interests in both the minerals and technology sectors.

NXR has acquired a 40% interest in Australian-based biometric technology developer Wavefront, and has the right to increase this to a 51% interest.

Wavefront's core business is developing innovative biometric solutions for authentication of identity utilising the unique properties of the eye. Wavefront's vision is to become the identity authentication platform provider for all mobile devices and transactions requiring end-user verification, across government and military; enterprise; and consumer markets.

NXR also holds interests in two prospective resources projects, the Telimele DSO Iron project in Guinea and the Woodley Iron project in Western Australia.

Addendum to March 2016 Quarterly Report

NXR provides the following addendum to the March 2016 Quarterly Activities Report lodged with the ASX in relation to additional information required by Listing Rule 5.3.3.

Mining Tenements held at the end of the quarter and their location

Western Australia
Woodley
E57/632	Granted

Mining Tenements acquired during the quarter and their location

None.

Mining Tenements disposed of during the quarter and their location

E57/634 - Woodley Project

Relinquished

Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter

Farm-in Agreements

NXR has a 70% interest in licence number No A2010/578/PR/MMEH/SGG in Guinea, West Africa under the Coastal Iron Project Joint Venture Agreement signed December 15, 2010 with Africaine de Developpement Minier Sarl (ADEM). This interest did not change during the quarter. NXR is earning up to 85% interest in this licence.

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter

None.

A ppend ix 5B M ining exploration entity qu arterly report

A ppendix 5B M ining exploration entity qu arterly report

Introd u ced 1 /7 /96. O rigin: A ppend ix 8 . A mend ed 1 /7 /97 , 1 /7 /98 , 30 /9/2001 .

N ame of entity

Ru le 5.3

N EM EX RESO URC ES L IM ITED

A B N Q u arter end ed ("cu rrent qu arter")

44 146 243 8 43

31 M arch 2016

C onsolidated statement of cash flows

C ash flows related to operating activities 1 Receipts from sales 2 P ayments for exploration and evalu ation d evelopment prod u ction 3 D ivid end s received 4 Interest and other items of a similar natu re received 5 Interest and other costs of finance paid 1 .6 Income taxes paid (d ) ad ministration 1 .7 O ther revenu es - N et O perating C ash Flows		C u rrent qu arter $A '000	Y ear to d ate (9 months) $A '000
		- (11 ) - - (7 5) - - - - -	- (67 ) - - (58 7 ) - 3 - - 4
		(8 6)	(647 )
C ash flows related to investing activities	-	-
1 .8			P ayment for pu rchases of:
(a)prospects
(b)equ ity investments	-	-
(c)other fixed assets	-	-
1 .9	P roceed s from sale of:
(a)prospects	-	-
(b)equ ity investments	-	-
(c)other fixed assets	-	143
1 .10	L oans to other entities - W avefront	-	(350 )
1 .11	L oans repaid by other entities	-	-
1 .12	O ther -	-	-
N et investing cash flows	-	(207 )
1 .13	Total operating and investing cash flows	(8 6)	(8 54)
(carried forward )

+ See chapter 19 for d efined terms.

30 /9/2001 A ppend ix 5B P age 5