Quarterly Report For the 3 Months ended December 2016

This Quarterly Report updates activities undertaken during the period 1 October 2016 to 31 December 2016.

  1. PROJECTS

    Savoy Hill Coal Project (100%)

    As previously notified, the Savoy Hill tenement, Exploration Licence 6812 (EL 6812) has been extended until 20 June 2018.

    The Company has completed necessary exploration across the tenement to consider the longer term mining options for the project and has undertaken initial marketing analysis for a potential open-cut operation, supplying the nearby domestic power stations. Further work will be undertaken as required.

    Dellworth Coal Project (100%)

    As previously noted, NuCoal executed a Tenement Sale Agreement (Agreement) for the sale of Exploration Licence 6594 (EL 6594). This Agreement was conditional upon the Department approving the renewal of the tenement and transfer of the tenement in accordance with Condition 36 of the Exploration Licence Conditions (Coal) 2012.

    The transfer from Dellworth Pty Ltd to Glendell Tenements Pty Ltd was approved by the Minister on 24 March 2016 pursuant to Section 121(1)(a) of the Mining Act 1992, and more recently the Company received duly executed documentation regarding the renewal from the Department. Given the completion of both conditions precedent, the Company received settlement under the terms of the Agreement on 13 October 2016.

  2. NUCOAL’S LEGAL CASES

    Background

    On 31 January 2014, the NSW Government passed the Mining Amendment (ICAC Operations Jasper and Acacia) Act 2014 (NSW) (Mining Amendment Act), cancelling Exploration Licence 7270 (EL 7270) with no compensation payable to NuCoal. The legislation was passed following an inquiry by the Independent Commission Against Corruption (ICAC).

    Registered Office

    Unit 8, 24 Garnett Road

    Greenhills NSW 2323

    T +61 2 4015 0500

    F +61 2 4015 0599

    E admin@nucoal.com.au

    www.nucoal.com.au

    ASX:NCR Share Information

    Issued Shares: 768.6m

    Board of Directors

    Chairman: G. Galt

    Managing Director: G. Lewis Non Executive Director: J. Beecher Non Executive Director: M. Davies Company Secretary: M. Etcell

    During the quarter, NuCoal continued to implement the legal and political strategy previously announced to seek redress for shareholders following the unfair and unjust cancellation of EL 7270 by the NSW Government.

    Judicial Review Proceedings

    The Judicial Review hearing of NuCoal vs Independent Commission Against Corruption was held in the NSW Supreme Court on 27 October 2014 before Justice Stephen Rothman. The hearing lasted one day and NuCoal was represented by Neil Williams SC and Jonathan Kay Hoyle.

    The Judicial Review Judgment was handed down by Justice Stephen Rothman on 24 September 2015. On the legal aspects of NuCoal’s case, the Court could only review and comment on whether the Commission acted in accordance with its statutory and common law duties. The Court found that it did.

    During the proceedings and in the judgement both ICAC and the Court made clear statements that NuCoal’s shareholders were completely innocent and this fact of innocence was why ICAC had recommended compensation in its August 2013 report. NuCoal is continuing to use this information to press for compensation for its US Investors under Australia’s international treaty obligations, refer further details below.

    Free Trade Actions

    The Company is continuing to pursue claims against the Australian Government on behalf of US shareholders under the Australia US Free Trade Agreement (AUSFTA). This potential international action is being progressed with a view to obtaining compensation from the Australian Government for the decision by the NSW Parliament, on the advice of the O’Farrell led Government, to expropriate EL 7270 without payment of compensation

    The Company, on behalf of its U.S. Investors, lodged a submission to the AUSFTA Joint Committee on 7 April 2016 following a public invitation to make comments regarding the general functioning of the Australia US Free Trade Agreement. The Review Meeting of the AUSFTA Joint Committee was held on 4 May 2016 and NuCoal is aware that the NuCoal matter was discussed at some length during the meeting.

    In June 2016, NuCoal’s Chairman visited Washington D.C. and met with senior staff of politicians who could be influential in pressuring the Australian Government to allow an action under the AUSFTA. Visits were also made to the US Trade Representative’s legal staff and the Australian Ambassador. A number of meetings were also held with NuCoal investors in the USA to update them directly regarding progress. A number of these investors are now pursuing the matter directly with their local Congressman and Senators.

    NuCoal has engaged US Lobbyists, BGR Group, to assist with progressing action under the AUSFTA, and the Group’s Managing Director visited Washington D.C. in September and again in November. To date NuCoal has participated in twenty two (22) meetings with relevant government offices including the USTR and The Australian Embassy. The meetings have been extremely positive and further visits will be scheduled to progress the matter on behalf of US shareholders.

    Meetings with Politicians

    NuCoal officers and advisers continued to meet with politicians and Ministers in NSW and federally during the quarter. The aim of the meetings is to educate and eradicate any misconceptions about the facts surrounding NuCoal’s circumstances and to ensure that people understand that the Company is well funded and that the intention is not to cease the pursuit of justice until appropriate compensation is received.

  3. OTHER RELEVANT MATTERS

    Social media – “Wave the Flag”

    A number of relevant articles have been posted to WaveTheFlag.org.au over the last few months with matters concerning the NuCoal story continuing to be a key focus.

    We continue to invite all shareholders to participate in this forum as it is a good opportunity to collectively be the “voice for reason” amongst numerous unreasonable voices of mal- aligned intentions.

  4. CORPORATE

    During the quarter cash on hand was increased from the formal sale of the Company’s Dellworth tenement ($940k) and the sale of a property around the Doyles Creek area (approximately $600k). An assessment of other land holdings in the area resulted in a further three properties being formally listed For Sale during the quarter.

    Cash and deposits as at 31 December 2016 were A$2.45 million.

  5. ADDITIONAL REPORTING REQUIREMENTS

The following additional information is provided in accordance with ASX Listing Rule 5.3.3.

Interests in Mining Tenements

The Company held the following mining tenements during the quarter.

Tenement

Location

% interest at the beginning of the quarter

Acquired and/or disposed

%

interest at the end of the quarter

EL 6812

Savoy Hill, New South Wales

100

N/A

100

EL 6594

Dellworth, New South Wales

100

N/A

NIL*

* As outlined above, the Company’s interest in EL 6594 was sold to Glendell Tenements Pty Ltd on 13 October 2016.

Beneficial percentage interests held in farm-in or farm-out agreements

NuCoal does not hold any interests in farm-in or farm-out agreements.

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

NuCoal Resources Ltd

ABN

Quarter ended (“current quarter”)

29 060 352 990

December 2016

Consolidated statement of cash flows

Current quarter

$A’000

Year to date (six months)

$A’000

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(6)

(606)

(a) exploration & evaluation

(b) development

(c) production

(d) staff costs

(69)

(132)

(e) administration and corporate costs

(300)

(605)

1.3

Dividends received (see note 3)

1.4

Interest received

15

34

1.5

Interest and other costs of finance paid

(1)

1.6

Income taxes paid

1.7

Research and development refunds

1.8

Other (provide details if material)

1.9

Net cash from / (used in) operating activities

(360)

(1,310)

  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’000

    Year to date (six months)

    $A’000

    2.2 Proceeds from the disposal of:

    1,536

    3,607

    (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 (provide details if material)

    2.6 Net cash from / (used in) investing

    1,536

    3,607

    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

    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

    1,282

    (360)

    1,536

    161

    (1,310)

    3,607

    2,458

    2,458

    5.

    Reconciliation of cash and cash equivalents

    at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

    Current quarter

    $A’000

    Previous quarter

    $A’000

    5.1

    Bank balances

    2,438

    1,262

    5.2

    Call deposits

    5.3

    Bank overdrafts

    5.4

    Other (provide details) – Term Deposits

    20

    20

    5.5

    Cash and cash equivalents at end of quarter (should equal item 4.6 above)

    2,458

    1,282

    Current quarter

    $A’000

    91

    1. Payments to directors of the entity and their associates
    2. Aggregate amount of payments to these parties included in item 1.2

    3. Aggregate amount of cash flow from loans to these parties included in item 2.3

    4. Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

      Current quarter

      $A’000

    5. Payments to related entities of the entity and their associates
    6. Aggregate amount of payments to these parties included in item 1.2

    7. Aggregate amount of cash flow from loans to these parties included in item 2.3

    8. Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

      Total facility amount at quarter end

      $A’000

      Amount drawn at quarter end

      $A’000

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

    11. Credit standby arrangements

    12. Other (please specify)

    13. Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

    14. 9.

      Estimated cash outflows for next quarter

      $A’000

      9.1

      Exploration and evaluation

      40

      9.2

      Development

      9.3

      Production

      9.4

      Staff costs

      70

      9.5

      Administration and corporate costs

      90

      9.6

      Other (provide details if material)

      9.7

      Total estimated cash outflows (inflows)

      200

      10.

      Changes in tenements (items 2.1(b) and 2.2(b) above)

      Tenement reference and location

      Nature of interest

      Interest at beginning of quarter

      Interest at end of quarter

      10.1

      Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

      EL 6594

      Dellworth, NSW

      Titleholder

      100%

      NIL

      10.2

      Interests in mining tenements and petroleum tenements acquired or increased

      Compliance statement

      1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

      3. Sign here: Date: 31 January 2017

        (Director/Company secretary) Print name: Megan Etcell

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

        2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

        3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

    NuCoal Resources NL published this content on 31 January 2017 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 01 February 2017 00:21:05 UTC.