Apex Minerals N.L. June 2007 Quarterly Report

Apex Minerals N.L. Quarterly Report for the period ending 30th June 2007

Highlights

• Apex Minerals NL unveils gold consolidation strategy focussed on the Eastern Goldfields region of Western • Strategy includes the acquisition of the Gidgee, Youanmi and Aphrodite gold projects as announced on 3rd May 2007 (stage 1) and the acquisition of the as announced on 20th June 2007 (stage 2) • A$32.2 million (gross) capital raising completed heavily oversubscribed at 52 cents per share to fund stage 1 acquisitions announced on 20th June • Mr Glenn Jardine appointed to the Apex Board as Director Operations • Exploration success at Wiluna, Gidgee and Aphrodite from initial drill programs aimed at increasing existing resources • Narndee JV interest restructured • Share placement at $1 per share to raise $35 million (gross) announced on 30th July to complete the purchase of, and advance, the Wiluna project Corporate Activities

Gold Consolidation Strategy

During the quarter, Apex unveiled its regional gold consolidation strategy focusing on high grade refractory gold deposits located in ’s Eastern Goldfields region. This involved the acquisition of four projects from four separate parties and represents the culmination of over nine months of analysis by the Company of various corporate opportunities mainly within Australia.

The first stage of the strategy was announced on the 3rd May 2007, namely the simultaneous execution of three separate agreements in respect of acquisitions which together represent the initial stage of a broader regional gold consolidation strategy designed to rapidly elevate Apex to the status of a mid-tier Australian gold producer with significant potential for further growth.

For personal use only use personal For The acquisitions include:

• The , located 640 kilometres northeast of Perth and covering 90 kilometres of strike of the Gum Creek greenstone belt. The Project comprises a total JORC compliant resource inventory of 490,000 ounces gold, including the Wilsons refractory gold deposit (Current Resource: Apex Minerals N.L. June 2007 Quarterly Report

734,000t @ 6.9g/t for 164,000oz), a 600,000tpa gold treatment plant (currently not in operation), a 150 man camp, additional high-grade non- refractory resources close to the existing developments, and significant exploration upside.

The Gidgee Mine is being acquired from ASX-listed Legend Mining Limited (ASX:LEG) through the issue of 34 million Apex shares, representing a purchase price equivalent to A$11 million. Apex understands that Legend intends to distribute these shares in specie to its shareholders following Completion and Apex has agreed to assist in this process. The Agreement includes a further contingent payment of A$5 million by Apex to Legend, payable upon future production from the Gidgee tenements reaching 250,000 ounces;

• The Youanmi Gold Mine, located 480 kilometres northeast of Perth and covering 40 kilometres of strike of the Youanmi shear zone. The Project comprises a total JORC and NI 43-101 compliant resource inventory of 951,000 ounces of gold, including the Youanmi Deeps refractory gold deposit (Indicated and Inferred resource of 2.4 million tonnes @ 8.5 g/t for 658,000 ounces of gold) plus a 600,000tpa gold treatment plant, a 270,000tpa sulphide flotation plant and a BacTech bacterial oxidation treatment plant capable of treating the gold concentrate (currently not in operation).

The Youanmi Mine is being acquired from TSXV-listed Goldcrest Resources Ltd for a total consideration of A$10 million, to be satisfied by the payment of A$5 million in cash and the issue of 14,285,714 Apex shares.

• The Aphrodite Gold deposit, located 65 kilometres north of Kalgoorlie and covering 51 square kilometres of the Bardoc Tectonic Zone. The Project comprises a refractory gold deposit with a JORC compliant Inferred Resource of 1.44 million tonnes @ 6.2 g/t for 287,000 ounces of gold as well as a significant inventory of unclassified gold mineralisation.

The Aphrodite deposit is being acquired from Barrick (PD) Australia Limited for a total consideration of A$7 million, to be satisfied by the payment of A$5 million in cash and the issue of A$2 million worth of Apex shares (the number of shares to be calculated based on the Apex share price just prior to Completion).

The second stage of Apex’s strategy was unveiled on the 20th June 2007 with the announcement that the Company had entered into an agreement with Oxiana Limited to acquire 100% ownership of the Wiluna gold mining and processing operation. The acquisition includes the plant and infrastructure, existing gold resources and additional exploration potential.

The A$26.5 million cost of the Wiluna acquisition is to be satisfied by the payment to Oxiana of A$16.5 million in cash and the issue of A$10 million in Apex shares (based on the volume weighted average price of Apex over the 30 day period prior to Completion). In addition, a further payment of A$3 million will be made upon the

For personal use only use personal For resumption of gold production from the Sale Tenements.

Apex will take possession of the Wiluna Project on 1st August 2007 on a care and maintenance basis. To that end, Oxiana ceased mining operations during June with processing of ore continuing into July 2007. Apex Minerals N.L. June 2007 Quarterly Report

The Wiluna Project is situated approximately 1,000 kilometres northeast of Perth and comprises granted mining leases covering approximately 50 square kilometres, as well as miscellaneous licences. The operation has access to the Goldfields Gas Pipeline and includes gold resources totalling over 700,000 ounces (see Table 1), a ~1Mtpa processing facility and a BIOX® bacterial oxidation plant, along with other established infrastructure.

Following the Wiluna acquisition and subject to relevant feasibility studies, Apex expects to be in a position to commence gold production within approximately 18 months at the initial rate of around 200,000 ounces per annum, increasing to approximately 350,000 ounces per annum within three years, which contemplates future production from Aphrodite.

Capital Raisings

On the 20th June 2007, Apex announced that it had received advice from Sydney- based stockbroking group, Southern Cross Equities that, in accordance with the mandate referred to in the Company’s statement to the ASX on 3rd May 2007, it would place to institutional and sophisticated investors, 62 million ordinary shares in Apex Minerals at a price of $0.52 per share (a small discount to the last price traded on ASX) to raise A$32.2 million gross (A$30.3 million net of broker and management fees). These funds will be used to satisfy the cash component of the Gidgee, Youanmi and Aphrodite acquisitions and to substantially advance those projects with the aim of moving toward a development decision and to provide additional regional exploration funding and general working capital.

Significant support for the Placement was received from Australian, North American and European institutional and sophisticated investors, with Southern Cross advising that the offering was heavily oversubscribed with firm bids received far exceeding the placement allocations.

The Placement was completed in two tranches, with the initial 23,000,000 shares to raise A$12 million (gross) being issued using Apex’s ability to issue up to 15% of its capital within a 12 month period without the need for shareholder approval. These shares were issued on the 23rd June 2007. This resulted in an increase in Apex’s issued capital at the end of the quarter to 182,119,755. The issue of the remaining 39,000,000 shares, which was subject to shareholder approval, was obtained at an Extraordinary General Meeting of Apex held post the end of the quarter on 18th July 2007.

On 30th July 2007, The Company announced a further capital raising with Southern Cross Equities and Hartleys ltd acting as joint lead arrangers to raise $35 million by placing 35 million shares to Australian, North American and European institutional and sophisticated investors at $1.00 per share. The issue will be in two tranches with 30 million shares being issued immediately with the remaining 5 million shares being issued subject to shareholder approval (expected to be secured by the end of August). The funds raised will be used to fund the cash component of the Wiluna acquisition ($16.5m) and to provide for significant underground and surface

For personal use only use personal For exploration programs and to advance the project to a development decision during 2008.

Apex Minerals N.L. June 2007 Quarterly Report

Share Capital

The share capital of the Company at the end of the quarter totalled 182.1 million. However, a number of transactions that are in progress will result in a material change to this number. For the sake of clarification, the following is a summary of those transactions and the impact they will have on the shares on issue:

Million shares On issue at 30th June 2007 182.1 2nd tranch of June placement (settled July) 39.0 Issue of shares to Goldcrest (Youanmi acquisition) 14.3 Issue of shares to Legend (Gidgee acquisition) 34.0 Issue of shares to Barrick (Aphrodite acquisition) 2.0* Issue of shares to Oxiana (Wiluna Acquisition) 10.0* Placement announced 30th July 2007 (tranch 1) 30.0 Placement announced 30th July 2007 (tranch 2) 5.0 TOTAL 316.4 million All the above shares issues are expected to be completed during this September quarter.

* Shares to be issued to Barrick and Oxiana are based on average share price prior to Completion of those transactions. Assume the above assumes (for illustration purposes) an average price of $1.05/sh

Addition to the Apex Board and Recruitment of Personnel

On the 1st June 2007, Apex announced that Mr Glenn Jardine, a highly experienced mining engineer with particular expertise in mine planning, development and operations, had accepted an invitation to join the Board of Apex in an executive role as Director Operations.

Mr Jardine has over 20 years experience in the mining industry and was most recently Managing Director of LionOre Mining International’s Australian operations, where he also held roles including Chief Operating Officer and prior to that, General Manager, New Business and Project Manager. During his time with LionOre Australia, Mr Jardine oversaw the successful development of the Emily Ann, Maggie Hays and Waterloo nickel mines, leading teams whose work was subsequently recognised by the achievement of two separate major environmental awards.

In addition, Apex has recruited a number of key staff in the areas of geology, engineering, maintenance and administration in order to further facilitate its plans of becoming a mid-tier gold producer within 18 months.

Narndee JV restructure For personal use only use personal For

On 15th May 2007, Apex announced it had reached agreement with Maximus Resources (Maximus) and other parties to restructure its residual minority interests (diluting to 15%) in various tenements in which Maximus was earning a 70% interest. Under the terms of the restructure, Apex will receive 1.5 million shares and 1 million options in Maximus, increasing Apex’s stake in Maximus to 3.5 million shares and 2 Apex Minerals N.L. June 2007 Quarterly Report

million options. The transaction was approved by Maximus’ shareholders on 28th June.

Exploration Activities

Wiluna

Under the terms of the Wiluna purchase agreement (announced to the market on 20th June 2007), Oxiana is continuing with underground exploration and development activities on Apex’s behalf (funded by Apex), utilising the existing underground drilling and mining crews prior to formal handover of the site on 1st August 2007.

As detailed in previous ASX announcements of 27th June, 9th July and 17th July, infill and extensional drilling of both the 50 and 100 Lenses which form part of the east lode mineralisation at Wiluna, has continued to intersect significant mineralisation (Figs. 1 & 2). Extensional drilling has intersected mineralisation beyond the June 2007 resource model limits and close spaced infill drilling continues to provide the closer spaced data required to upgrade the resource classification in several zones. Intersections are shown in Tables 1 & 2 and Figs. 3 & 4. Better intersections are summarised below:

Burgundy (formerly termed Calais South 50 Lens):

• 18.0m @ 10.2g/t (est. 9.0m true width) in CADH612. • 12.5m @ 6.4g/t (est. 8.8m true width) in CADH610.

Henry5 North (100 Lens):

• 11.8m @ 18.7g/t gold (est. 8.6m true width) in WDH1127A. • 14.4m @ 4.7g/t gold (est. 10.0m true width) in WDH1129. • 11.7m @ 6.1g/t, (est. 8.2m true width) including 7.2m @ 8.3g/t (est. 5.1m true width) in WDH1126.

Henry5 (50 & 100 Lens):

• 13.4m @ 13.7g/t (est. 6.7m true width) in CADH575.

Calais (50 & 100 Lens):

• 5.5m @ 6.7g/t (est. 4.8m true width) in CADH630. • 5.0m @ 6.8g/t (est. 4.3m true width) in CADH631.

For personal use only use personal For • 2.2m @ 20.5g/t (est. 1.6m true width) in CADH631. • 6.0m @ 12.1g/t (est. 4.2m true width) in CADH628a.

The drilling indicates that the Calais and Henry5 lenses remain open down dip and, importantly, that the Burgundy (formerly termed Calais South) and Henry5 North lenses have the potential to be significant new mineralised positions.

Apex Minerals N.L. June 2007 Quarterly Report

Drilling will continue to extend and infill these areas over the coming months. Additional targets such as the Brothers Reef, Scroop, Crispin and Calvert targets will all be tested as new drilling positions become available.

Gidgee

As disclosed in the ASX announcement of 17th July, diamond drilling commenced in mid-June focussing on the key target areas at the Wilsons deposit. This program will test the grade continuity and potential extensions to the Wilsons3 shoot and confirm and expand on the resources at Wilsons1 and Wilsons2.

The first of the three diamond holes drilled to date on the Wilsons 3 shoot (AGDD1) intersected mineralisation where expected, confirming the internal continuity of the known resource (Table 3). The result for this hole is as follows:

• 7.2m @ 11.5g/t gold from 199.5m (est. 6.6m true width) in drill hole AGDD1, including 5.0m @ 14.8g/t gold from 200.00m (est. 4.6m true width), within the previously estimated resource envelope.

The second and third holes (AGDD2 & 3) intersected a narrow interval of sub-grade mineralisation which is thought to be outside of the target zone, due to deviation from the intended azimuth. These holes will be redrilled in the near future as part of an ongoing program to extend and define resources on all three shoots.

Reverse Circulation (RC) drilling was completed at the Eagle deposit to test for plunge extensions and at the Premium deposit to test the internal continuity and geometry of the mineralisation (Table 3). Best results from this drilling include:

• 7m @ 7.1 g/t gold from 243m in drill hole AGDC8 at Premium.

• 5m @ 6.4 g/t gold from 157m in drill hole AGDC5 at Premium.

• 7m @ 8.3 g/t gold from 166m in drill hole AGDC9 at Eagle.

These results continue to provide additional close spaced data which confirms the orientation of the high grade lodes at Premium and extends the mineralisation under the pit at Eagle.

Aphrodite

As disclosed in the ASX announcement of 17th July, drilling has commenced on both the Phi and Alpha lodes at Aphrodite with the first two drillholes at Phi intersecting mineralisation where predicted (Table 4, Fig. 5). The two holes, designed to test large gaps in previous drilling and provide early information on grade continuity, intersected mineralisation comprising:

For personal use only use personal For • 20m @ 5.2g/t gold from 272m (est. 11.8m true width), including 13.3m @ 6.4g/t gold from 272.7m (est. 7m true width) in drill hole AAPD1, approximately 100m down dip and 100m up dip from previous mineralised intersections in widely spaced drill holes.

Apex Minerals N.L. June 2007 Quarterly Report

• 5m @ 6.7g/t gold from 283m (est. 2.9m true width) in drill hole AAPD2, some 80m to the south of AAPD1

Drilling has identified three separate mineralised lodes within the overall envelope of mineralisation at Phi, termed Phi 10, Phi 15 and Phi 20. The drilling appears to confirm the internal continuity and the presence of widths and grades in this area, with Phi 15 being the best developed. Assays are awaited for the third hole, which was drilled to test the Alpha Lode.

Apex will commence an infill and extensional diamond drilling program from September for the remainder of the year. This program will be designed to upgrade most of the current inferred resource at Alpha into an indicated category and to convert the unclassified mineral inventory at Phi into a JORC compliant inferred resource. The program will also provide additional material for metallurgical testwork programs.

Prior to September, re-logging of most of the historic holes into the Phi lode will be completed in order to better determine the geometry, continuity and geological and structural controls on the mineralisation.

Youanmi

A diamond drilling program to infill and extend the current Youanmi Deeps resource is planned to commence in the September quarter. This program will be designed to provide an increased level of confidence in the grade and continuity of mineralisation prior to any decision being made to commence rehabilitation of the flooded decline. It is expected that this drilling program will take approximately 4 months to complete.

Apollo Hill JV

Apex is earning a 51% interest in the Apollo Hill project by expending $3 million within three years. At this point, at Hampton’s election, Apex can earn a further 9% by free carrying Hampton for a further $2 million within five years of commencement. Hampton can contribute or reduce its interest to 20% in exchange for being free carried to a Decision to Mine. At the Decision to Mine point, should it have elected to reduce to 20%, it can elect to have its share of mine capital costs loaned to it by Apex to be repaid with accrued interest out of 80% of its share of mine proceeds.

A small drilling program to test for southerly plunging extensions to the Main and Eastern zones of mineralisation identified a southerly extension of the Eastern Zone in drillhole AAHD0004, which intersected 3.1 metres @ 7.6g/t from 94.9 metres. This zone is interpreted to be a shallow, easterly dipping envelope of alteration which contains small veins and lenses of higher grade mineralisation and is consistent with mineralisation in the Eastern Zone further north. Additional drilling will be required to determine the degree of internal continuity or connectivity of these higher grade zones.

For personal use only use personal For Work during the September quarter will focus on reviewing regional targets within the project tenements.

Apex Minerals N.L. June 2007 Quarterly Report

Lawlers Nickel JV

Apex has entered into an agreement with Barrick Gold to earn an initial 56% interest in the nickel rights on approximately 120 square kilometres of Barrick’s tenements in the Lawlers district of the North Eastern Goldfields of Western Australia. The terms of the JV are detailed in the ASX announcement of 11th December 2006. The Barrick tenements are part of Barrick’s Lawlers Gold Operations, and contain over 40 strike kilometres of relatively unexplored nickel sulphide prospective ultramafic rocks in the heart of a world class nickel province, being surrounded by Jubilee’s Cosmos, Prospero and Sinclair nickel deposits, BHPB’s Perseverance and Rockys Reward nickel mines, and LionOre’s Waterloo nickel mine. Importantly, no effective nickel sulphide exploration has been undertaken on these tenements since Selection Trust explored the area thirty years ago. Since then, nickel sulphide exploration has been very limited, with most exploration focussing on nickel laterite and gold.

A soil sampling program completed in April and review of historic drilling data has identified several target areas for an initial surface electromagnetic (EM) survey. To this end, a moving loop EM (MLEM) geophysical survey is underway and several conductors have been identified. It is expected that the survey will be completed by mid July and data processing and reporting complete by around the end of that month. Field checking is planned for August prior to drilling in September or October.

Jillawarra JV (Abra Mining)

The Jillawarra Joint Venture (“JJV”) covers an area of approximately 1,500 square kilometres adjoining and to the west of Abra Mining’s namesake lead-zinc deposit, which is estimated to contain 50mt @ 5.5% lead. The project is managed by Abra Mining, which can earn a 51% interest by the expenditure of $500,000 by April 2008, and a 70% interest by the expenditure of an additional $850,000 by April 2010.

Gradient and dipole-dipole IP surveys were completed over the Copper Chert prospect during the quarter. The gradient data shows a north-west trending chargeability anomaly and an east-west trending chargeability anomaly (Figure 6). These anomalies correlate with chargeability anomalies identified on the dipole- dipole sections.

On IP section 649,940E (Figure 7) a strong chargeability anomaly is located below and to the north of drillhole CCRC007, which intersected 35 metres of disseminated chalcopyrite and pyrite mineralisation averaging 0.28% copper from 165 metres to the end of hole. This hole will be deepened during the September quarter. A second drillhole inclined to the north is also planned.

The relatively sharp northern termination of the chargeable response on section 649,940E is interpreted to represent a fault (see Inverted Chargeability - Figure 7). Another IP anomaly occurs to the south of CCRC007, representing an additional target.

China

Apex, through its wholly owned Chinese subsidiary Apex Xinjiang NL is in the final stages of gaining statutory approvals from the Chinese regulators to transfer its interest to a third party. It is expected that this will be finalised early in the September quarter.

For personal use only use personal For Yours Sincerely,

Mark Ashley Managing Director Apex Minerals N.L. June 2007 Quarterly Report

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Dr. Mark Bennett and Mr. Andrew Thompson who are employees of the company. Dr. Bennett and Mr. Thompson are Members of the Australasian Institute of Mining and Metallurgy and have sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons as defined in the 2004 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Bennett and Mr. Thompson consent to the inclusion in this report of the matters based on information in the form and context in which it appears.

For personal use only use personal For Apex Minerals N.L. June 2007 Quarterly Report

Table 1. Drilling results – Wiluna East Lode 50 Surface: Calais Lens 50, Henry5 F/W & Burgundy (formerly Calais South).

Downhole True Grade Hole Id From To Lens Length Width g/t Au Location CADH610 225.0 237.5 Burgundy 12.5 8.8 6.4 40m Sth of defined resource CADH611 199.8 200.6 Burgundy 0.8 0.6 19.0 On fringe of defined resource CADH612 226.0 244.0 Burgundy 18.0 9.0 10.2 25m beneath defined resource CADH613 191.0 192.7 Burgundy 1.7 1.2 1.4 On the northern fringe of resource boundary CADH614 166.6 170.0 Burgundy 3.4 2.4 6.4 +50m north of resource CADH615 235.9 238.4 Burgundy 2.5 1.6 4.7 75m north down plunge of resource CADH628a 176.0 182.0 Calais Lens 50 6.0 4.2 12.1 50m beneath CADH632 & defined resource CADH630 88.0 90.0 Calais Lens 50 2.0 1.7 13.4 CADH631 79.0 84.0 Calais Lens 50 5.0 4.3 6.8 On fringe of defined resource CADH632 139.2 142.0 Calais Lens 50 2.8 1.7 21.8 Calais 50 resource infill CADH575 494.2 498.0 Henry5 F/W 3.8 1.9 4.7 40m beneath defined resource CADH571 537.0 546.0 Henry5 F/W 9.0 4.5 3.7

Table 2. Drilling results – Wiluna East Lode 100 Surface: Calais Lens 100 – Henry5 – Henry5 North.

Downhole True Grade Hole Id From To Lens Length Width g/t Au Location CADH611 72.6 75.6 Calais Lens 100 3.0 2.1 6.6 80m Sth of defined resource CADH612 70.0 73.0 Calais Lens 100 3.0 2.1 13.0 CADH613 64.6 67.0 Calais Lens 100 2.4 1.7 5.8 50m south of resource boundary CADH614 59.2 60.0 Calais Lens 100 0.8 0.6 2.5 50m south of resource boundary CADH615 68.0 70.0 Calais Lens100 2.0 1.5 8.0 100m south of resource boundary CADH627 33.5 40.2 Calais Lens 100 6.7 5.1 7.0 Infill hole within defined resource CADH629 24.0 30.0 Calais Lens 100 6.0 5.2 7.2 On fringe of defined resource CADH630 25.5 31.0 Calais Lens 100 5.5 4.8 6.7 CADH631 48.8 51.0 Calais Lens 100 2.2 1.6 20.5 Infill hole within defined resource CADH632 35.6 38.0 Calais Lens 100 3.4 2.9 8.2 Calais 100 resource infill CADH571 475.0 480.0 Henry5 5.0 2.5 1.1 Infill hole within defined resource CADH575 473.1 486.5 Henry5 13.4 6.7 13.7 On fringe of defined resource WDH1106 543.0 546.0 Henry5 3.0 2.1 8.3 Infill hole within defined resource WDH1126 268.3 280.0 Henry5 Nth 11.7 8.2 6.1 60m south of defined resource WDH1127A 302.0 313.8 Henry5 Nth 11.8 8.6 18.7 +150m south of resource boundary WDH1128 291.0 291.3 Henry5 Nth 0.3 0.3 5.5 On fringe of defined resource WDH1129 355.6 370.0 Henry5 Nth 14.4 10.0 4.7 +150m south of resource boundary

Table 3. Drilling results – Gidgee.

Dip Downhole True Grade Hole Id Northing Easting Azim From To Lens Length Width g/t Au Location Resource AGDD1 6989 10409 076 -60 198.8 206.0 Wilsons 3 shoot 7.2 6.6 11.5 infill hole

Including 200.0 205.0 Wilsons 3 shoot 5.0 4.6 14.8

For personal use only use personal For Extensional AGDD2 6943 10351 055 -60 282.0 283.0 Wilsons 3 shoot 1.0 0.9 1.2 W3 Extensional AGDD3 6922 10321 048 -60 340.0 341.0 Wilsons 3 shoot 1.0 0.9 1.1 W3 Resource AGDC4 6983720 739221 270 -60 182.0 186.0 Premium lode 4.0 4.0 3.1 infill hole Resource AGDC5 6983736 739209 270 -50 157.0 162.0 Premium lode 5.0 5.0 6.4 infill hole Resource AGDC6 6983743 739213 271 -58 173.0 174.0 Premium lode 1.0 1.0 1.0 infill hole Apex Minerals N.L. June 2007 Quarterly Report

Resource AGDC7 6983760 739249 268 -60 221.0 230.0 Premium lode 9.0 9.0 3.4 infill hole Including 246.0 250.0 Premium lode 4.0 4.0 5.6 Resource AGDC8 6983788 739273 266 -60 243.0 250.0 Premium lode 7.0 7.0 7.1 infill hole Including 246.0 250.0 Premium lode 4.0 4.0 10.8 AGDC9 6981820 738686 090 -55 166.0 173.0 Eagle shoot 7.0 7.0 8.3 Extensional AGDC10 6981765 738685 090 -60 190.0 191.0 Eagle shoot 1.0 1.0 4.3 Extensional

Table 4. Drilling results – Aphrodite.

Down- Azim Di hole True Grade Hole Id Northing Easting p From To Lens Length Width g/t Au Location 100m below AAPD1 6659720 328917 090 -60 272.0 292.0 Phi lode 20.0 11.8 5.2 nearest hole

Including 272.7 286.0 13.3 7.0 6.4 80m south AAPD2 6659640 328935 090 -60 283.0 288.0 Phi lode 5.0 2.9 6.7 of AAPD1

For personal use only use personal For Apex Minerals N.L. June 2007 Quarterly Report

Figure 1. Plan of central Wiluna leases showing pits, resources and initial targets.

For personal use only use personal For Figure 2. Composite long projection of Wiluna East and West Lodes showing pits, resources, development and targets.

For personal use only use personal For

Apex Minerals N.L. June 2007 Quarterly Report

Figure 3. Long projection of East Lode 50 Lens showing Calais 50 Lens, Burgundy Lens (formerly termed Calais South) & Henry5 Footwall zones, with

true width gram-metre contours and new drill intercepts. For personal use only use personal For

Apex Minerals N.L. June 2007 Quarterly Report

Figure 4. Long projection of East Lode 100 Lens showing Calais 100 Lens, Henry5 & Henry5 North zones, with true width gram-metre contours and

previous drilling intercepts. For personal use only use personal For

Apex Minerals N.L. June 2007 Quarterly Report

Figure 5. Long projection of Phi 15 surface at Aphrodite, showing new and previous drilling intercepts. For personal use only use personal For

Figure 6. Jillawarra JV, Copper Chert Prospect – IP Chargeability Plan Showing Location Of 2007 Gradient and Dipole-Dipole Surveys.

Figure 7. Jillawarra JV, Copper Chert Prospect – Pseudo-Section 649,940 mE - Modelled and Inverted IP Chargeability Anomalies With Proposed Drillhole Locations.

For personal use only use personal For Apex Minerals N.L. June 2007 Quarterly Report

Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity APEX MINERALS NL

ABN Quarter ended (“current quarter”) 22 098 612 974 30 June 2007

Consolidated statement of cash flows Current quarter Year to date Cash flows related to operating activities $A’000 (12 months) $A’000 1.1 Receipts from product sales and related - - debtors

1.2 Payments for (a) exploration and (591) (2,370) evaluation (b) development - - (c) production - - (d) administration (530) (1,832) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 142 262 1.5 Interest and other costs of finance paid - (37) 1.6 Income taxes paid - - 1.7 Other - -

Net Operating Cash Flows (979) (3,977)

Cash flows related to investing activities 1.8 Payment for purchases of:(a) prospects (1,000) (1,000) (b) equity - investments (1,576) (c) other fixed assets - (376)

1.9 Proceeds from sale of: (a) prospects - - (b) equity 1,994 investments - (c) other fixed - - assets

1.10 Loans to other entities - -

For personal use only use personal For 1.11 Loans repaid by other entities - - 1.12 Other (Costs relating to acquisitions) (350) (350)

Net investing cash flows (1,350) (1,308) 1.13 Total operating and investing cash flows (carried forward) (2,329) (5,285) Apex Minerals N.L. June 2007 Quarterly Report

1.13 Total operating and investing cash flows (brought forward) (2,329) (5,285)

Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 11,964 12,034 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - (550) 1.18 Dividends paid - - 1.19 Other – capital raising costs - (176)

Net financing cash flows 11,964 11,308

Net increase (decrease) in cash held 9,635 6,023

1.20 Cash at beginning of quarter/year to date 3,629 7,241 1.21 Exchange rate adjustments to item 1.20 - - 13,264 13,264 1.22 Cash at end of quarter Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 147

1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25 Explanation necessary for an understanding of the transactions

All payments to directors and associates are on normal commercial terms.

Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Nil

For personal use only use personal For Apex Minerals N.L. June 2007 Quarterly Report

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

Amount available Amount used $A’000 $A’000 3.1 Loan facilities - -

3.2 Credit standby arrangements - -

Estimated cash outflows for next quarter $A’000 4.1 Exploration and evaluation 2,700

4.2 Development -

Total 2,700

Reconciliation of cash Reconciliation of cash at the end of the quarter Current quarter Previous quarter (as shown in the consolidated statement of cash $A’000 $A’000 flows) to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 12,724 3,102 540 527 5.2 Deposits at call - - 5.3 Bank overdraft - - 5.4 Other (provide details)

Total: cash at end of quarter (item 1.22) 13,264 3,629

Changes in interests in mining tenements Tenement Nature of interest Interest at Interest at reference (note (2)) beginning end of of quarter quarter 6.1 Interests in mining E 570529 100% 0% tenements E 590907 100% 0% relinquished, reduced E 591079 100% 0% or lapsed E591096 100% 0%

For personal use only use personal For Apex Minerals N.L. June 2007 Quarterly Report

6.2 Interests in mining E 570578 0% 100%* tenements acquired or M 570010 0% 100%* increased M 570051 0% 100%* M570075 0% 100%* M570097 0% 100%* M570109 0% 100%* M570135 0% 100%* M570160A 0% 100%* M570164 0% 100%* M570165 0% 100%* M570166 0% 100%* M570167 0% 100%*

M570180 0% 100%* M570196 0% 100%* E570498 0% 80%* E570499 0% 80%* E570500 0% 80%* E570501 0% 80%* P570959 0% 80%* P570960 0% 80%* P570961 0% 80%* P570962 0% 80%* P570963 0% 80%* P570964 0% 80%* P570965 0% 80%* P570966 0% 80%* P570967 0% 80%* P570968 0% 80%* P570969 0% 80%* P571043 0% 100%* E290131 0% 100%* M240662 0% 74%* E240109 0% 100%* P243130 0% 100%* E511144 0% 100%* E511145 0% 100%* E530345 0% 100%* E530957 0% 100%* E531215 0% 100%* E531216 0% 100%* E531217 0% 100%* E570190 0% 100%* E570520 0% 100%* L530046 0% 100%* L530047 0% 100%* L530095 0% 100%* L530096 0% 100%* L530116 0% 100%* L570011 0% 100%* L570012 0% 100%* L570020 0% 100%* M510104 0% 100%*

For personal use only use personal For M510105 0% 100%* M510157 0% 100%* M510185 0% 100%* M510186 0% 100%* M510290 0% 100%* M510410 0% 100%* M510458 0% 100%* Apex Minerals N.L. June 2007 Quarterly Report

M530010 0% 100%* M530500 0% 100%* M530011 0% 100%* M530105 0% 100%* M530153 0% 100%* M530251 0% 100%* M530252 0% 100%* M530716 0% 100%* M530904 0% 100%* M530988 0% 100%*

M570019 0% 100%* M570026 0% 100%* M570033 0% 100%* M570069 0% 100%* M570070 0% 100%* M570071 0% 100%* M570072 0% 100%* M570073 0% 100%* M570074 0% 100%* M570143 0% 100%* M570144 0% 100%* M570145 0% 100%* M570146 0% 100%* M570210 0% 100%* M570231 0% 100%* M570236 0% 100%* M570241 0% 100%* M570242 0% 100%* M570250 0% 100%* M570251 0% 100%* M570349 0% 100%* M570375 0% 100%* P530635 0% 100%* P530636 0% 100%* P530637 0% 100%* P531112 0% 100%* P531152 0% 100%* P531153 0% 100%* P531155 0% 100%* P531163 0% 100%* P531199 0% 100%* M570292 0% 100%* P570662 0% 100%* P570971 0% 100%* P571015 0% 100%* P571024 0% 100%* P571028 0% 100%* M530032 0% 100%* M530069 0% 100%* M530006 0% 100%* M530173 0% 100%* M530205 0% 100%*

For personal use only use personal For M530071 0% 100%* M530095 0% 100%* M530096 0% 100%* Apex Minerals N.L. June 2007 Quarterly Report

M530026 0% 100%* M530027 0% 100%* M530050 0% 100%* M530468 0% 100%* M530200 0% 100%* M530040 0% 100%* M530797 0% 100%* M530043 0% 100%* M530044 0% 100%* M530064 0% 100%* M530030 0% 98%*

* Subject to Completion of the Purchase of the various projects (Gidgee, Youanmi, Aphrodite and Wiluna) Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per Amount paid up security (see per security (see note 3) (cents) note 3) (cents) 7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions 7.3 +Ordinary securities 182,119,755 182,119,755 N/A N/A 20,348,750 20 cents 0.001 cents

7.4 Changes during quarter (a) Increases 23,000,000 23,000,000 52 cents 52 cents through issues (b) Decreases through returns of capital, buy- backs 7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues For personal use only use personal For (b) Decreases through securities matured, converted Apex Minerals N.L. June 2007 Quarterly Report

7.7 Options Exercise price Expiry date (description and conversion 1,500,000 1,500,000 20 cents 3 July 2011 factor) 7,200,000 7,200,000 14 cents 20 July 2011 250,000 250,000 30 cents 17 August 2011 250,000 250,000 35 cents 14 Sept 2011 300,000 300,000 20 cents 31 May 2009 500,000 500,000 35 cents 1 November 2011 1,000,000 1,000,000 35 cents 1 November 2011 275,000 275,000 45 cents 30 November 2011 300,000 300,000 45 cents 30 November 2011 20,000 20,000 40 cents 17 January 2012 2,875,000 2,875,000 65 cents 1 June 2012 7.8 Issued during Issued date quarter 2,875,000 2,875,000 65 cents 1 June 2007

7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: ...... Date: 31 July 2007 (Director/Company secretary)

Print name: GRAHAM ANDERSON.

For personal use only use personal For Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its Apex Minerals N.L. June 2007 Quarterly Report

cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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For personal use only use personal For