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TAW - Tawana - Quarterly Activities and Cash Flow Report,

Release Date: 30/04/2008 12:27:02      Code(s): TAW
TAW - Tawana - Quarterly Activities and Cash Flow Report,                       
              1 January - 31 March 2008                                         
Tawana Resources NL                                                             
(Incorporated in Australia)                                                     
(Registration number ACN 085 166 721)                                           
Share code on the JSE Limited: TAW                                              
ISIN: AU000000TAW7                                                              
Share code on the Australian Stock Exchange Limited: TAW                        
ISIN: AU000000TAW7                                                              
("Tawana" or "the Company")                                                     
Quarterly Activities and Cash Flow Report                                       
1 January - 31 March 2008                                                       
Key Points                              30 April 2008                           
Orapa                                                                           
Joint Venture with Nowak Investments                                            
Bulk Sampling commenced                                                         
Kareevlei Wes                                                                   
Crushing circuit upgrade commenced                                              
Rakana                                                                          
Aquila Joint Venture manganese discovery                                        
Flinders Island                                                                 
Joint Venture identifies new kimberlite targets                                 
Rights Issue                                                                    
Funds raised for projects                                                       
Botswana                                                                        
Orapa Project, Botswana                                                         
(Tawana 100%, Nowak Investments Pty Ltd earning 51%)                            
Tawana agreed to the terms of a joint venture with Nowak Investments (Pty)      
Limited (Nowak) to continue the exploration and evaluation of Tawana`s Orapa    
Diamond Project in Botswana. While the agreement is subject to Ministerial      
approval, Nowak has commenced the agreed program.                               
Under the terms of the agreement Nowak will be required to conduct and sole     
fund evaluation work to earn a 51% interest in the project, including:          
1.   Review all the results from the work completed by Tawana.                  
2.   Select kimberlites for mini-bulk sampling at the 30 metres below           
surface. For this purpose, the Management Committee, comprising members     
    of Tawana and Nowak, will determine the selected kimberlites.               
3.   Excavate at least one shaft per selected kimberlite to a depth of 30       
    metres.                                                                     
4.   Excavate from horizontal drives at 30m below surface no less than 100      
    tonnes of kimberlite for processing from the selected kimberlites less      
    than 1 hectare in surface area, and no less than 200 tonnes of              
    kimberlite from the selected kimberlites greater than 1 hectare in          
surface area.  A maximum of 1100 tonnes of kimberlite will be excavated     
    for processing during this initial phase. If warranted, additional bulk     
    samples of up to 3000 tonnes per kimberlite could be excavated and          
    processed in subsequent phases.                                             
Nowak has also undertaken to conduct exploration on the Borolong and            
Moshaiwa kimberlite projects.                                                   
At the completion of the above program Tawana will have the option to           
contribute 49% of ongoing expenditure or allow Nowak to continue sole           
funding to earn 70% interest in the projects by completing a bankable           
feasibility study. Thereafter both parties will contribute pro-rata to          
expenditures.                                                                   
Tawana has been advised by Nowak that excavations on the Orapa Project          
kimberlite BK24 have commenced.                                                 
Nowak is excavating three shafts into the kimberlite to access fresh            
kimberlite at approximately 30m below surface. The shafts in early April        
were at 12.5m, 11m and 2.7m depth.                                              
Once fresh kimberlite is intersected in the shafts, mini-bulk samples will      
be excavated and processed on site for diamond recovery and assessment.         
Schedule                                                                        
Shaft 1 is scheduled for completion at the end of the first week of June,       
Shaft 2 at the end of June and Shaft 3 at the end of July.                      
These dates are dependent on a number of items, including water seepage         
management and penetration rates of the surface calcrete and the kimberlite     
itself.                                                                         
Nowak has acquired a Dense Media Separation (DMS) plant which is due to be      
erected on site with commissioning to be completed by the end of May. It is     
expected that a realistic estimation for the completion of processing of the    
excavated kimberlite will be possible once the DMS is commissioned.             
Background                                                                      
Nowak is a Botswana registered unlisted company. The Managing Director of       
Nowak is Roy Spencer, formerly CEO of European Diamonds plc. Technical          
consultant to Nowak is Dr. Leon Daniels, formerly a director of Tawana. Dr.     
Daniels and Mr. Spencer have a wealth of experience in diamond exploration,     
evaluation and mining. Dr Daniels was instrumental in acquiring the AK6         
kimberlite for AIM listed African Diamonds Plc and Roy Spencer discovered       
the world class Grib Diamond Deposit in Russia and recently brought the         
Liqhobong Diamond Mine in Lesotho into production.                              
The probable development by De Beers and African Diamonds plc (AFD-L) of a      
new diamond mine in the Orapa area on the AK6 kimberlite (located 25km to       
the south of the Tawana licence), which was originally discovered and           
evaluated in the 1970`s and considered at that time to be a small, low-grade    
kimberlite, provides an indication of the potential that still remains in       
Botswana. It is also noteworthy that Firestone Diamond plc (FDI-L) has also     
reported encouraging results from its work in the Orapa field and elsewhere     
in Botswana.                                                                    
The Orapa kimberlite field is located in north eastern Botswana, and            
includes the Orapa, Letlhakane and Damtshaa diamonds mines, which produce in    
excess of 13 million carats of diamonds per year. The Orapa kimberlite field    
is one of the largest diamondiferous kimberlite fields in the world,            
containing 79 known kimberlites, of which the majority has been proven to be    
diamondiferous. The Orapa mine is one of the largest producing kimberlites      
in the world and is 113 hectares in surface area.                               
The Orapa mine is located 20 km to the west, Letlhakane is 30km to the          
south, and Damtshaa is 6km to the south of the Tawana licence.                  
South Africa                                                                    
Kareevlei Wes Project, Kimberley Region, South Africa                           
(74% owned and operated by Tawana; 26% Seven Falls)                             
The Kareevlei Wes Project comprises a cluster of 5 diamondiferous kimberlite    
pipes (KV1-KV5). Previous drilling and bulk sampling by Tawana has shown        
that KV1 and KV2 are potentially economic.                                      
The Company`s 25 tph processing plant has been constructed on site and the      
Dense Media Separation (DMS) section has been commissioned.  Work has           
commenced on upgrading the crushing circuit.                                    
Contracts for the trial mining earthmoving will be let when the placement of    
the Right Issue shortfall has been completed.                                   
Rakana /Aquila Joint Venture                                                    
(74% owned and operated Aquila Resources Limited; 26% Rakana Consolidated       
Mines Pty Ltd; 6.8% indirect Tawana)                                            
In April Carbon steel resources producer and developer, Aquila Resources        
Limited (ASX:AQA Aquila) announced promising manganese assay results from       
its Avontuur Projects located 75km north west of Kuruman, in the Northern       
Cape Province of South Africa.                                                  
Tawana holds an indirect interest of 6.8% (previously incorrectly stated as     
5.2%) in the Joint Venture through its 26% holding in Rakana.                   
Highlights of intersected manganese mineralisation include:                     
6.69m at 46.13% Manganese                                                       
6.09m at 48.60% Manganese                                                       
3.70m at 40.81% Manganese                                                       
The results are from the first three holes assayed from the 74% owned           
Avontuur Projects, which comprise a permit area of 370sq km. The manganese      
discoveries were identified on two mineralised prospects some 20km apart and    
adjoining the northern-most farms of the main Kalahari Manganese Field.         
Australia                                                                       
Flinders Island Joint Venture                                                   
(80% Tawana; 20% Orogenic Exploration Pty Ltd; Flinders Diamonds Limited        
operator and earning 70%)                                                       
Tawana`s joint venture partner and operator, Flinders Diamonds Limited          
("Flinders") has reported that it has flown REPTEM (a form of high              
resolution electro-magnetic survey) over the northern part of Flinders          
Island. A gravity survey was also completed, with a regional 200 x 200m grid    
over the entire island and more detailed infill to 100 x 100m over REPTEM       
targets. These include the "Gem Valley" and "Flinders Valley" in the north      
and five other promising EM "Conductive Sinkhole" targets. Assessment and       
interpretation of the datasets is continuing.                                   
Flinders has also reported that it has completed a helicopter-borne magnetic    
survey over the Venus Bay project area and has identified interesting           
targets over indicator mineral anomalies which resulted from previous           
exploration.                                                                    
Flinders is able to earn 70% in the Flinders Island and Venus Bay project       
areas by sole funding $2million of exploration.                                 
Melbourne Laboratory                                                            
Activity within the Melbourne Laboratory during the quarter was focused on      
the examination of the Orapa exploration samples.                               
Treatment, examination and reporting of third party exploration samples from    
South Africa and Australia were also undertaken.                                
Corporate                                                                       
Tawana completed a renounceable rights issue during the quarter, raising        
$538,650 before costs. The proceeds of the Rights Issue provides additional     
working capital to fund the Company`s projects which include trial mining at    
Kareevlei Wes and an assessment of the Tawana Alluvials and St Augustines       
Projects in South Africa.                                                       
Tawana announced a one for four renounceable rights issue to shareholders on    
20 February 2008. The Rights Issue, which closed on 28 March 2008, entitled     
shareholders to subscribe for one new share, at a price of $0.08 per share,     
plus one option exercisable at $0.10 on or before 1 April 2011.                 
The rights issue resulted in a 29% take up by its shareholders. The             
Directors reserve the right to place the 71% shortfall within the next three    
months in accordance with ASX listing rules.                                    
Contact:                                                                        
Wolf Marx                                                                       
Tel: +61 (0)3 98635222                                                          
Mob: + 61 (0)428 398446                                                         
Email:wolf.marx@tawana.com.au                                                   
This report is based on information compiled by Wolf Marx BSc, BA, FAusIMM,     
CPGeo, Managing Director of Tawana Resources NL. He has sufficient              
experience relevant to the style of mineralisation and types of deposits        
under consideration, and to the activities undertaken, to qualify as a          
competent person as defined in the 2004 edition of the "Australasian Code       
for the Reporting of Mineral Resources and Ore Reserves"                        
Rule 5.3                                                                        
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                                                                  
Tawana Resources N.L.                                                           
ABN                                   Quarter ended                             
("current quarter")                          
69 085 166 721                        31 March 2008                             
                                                                                
Consolidated statement of cash flows                                            
Current        Year to date         
Cash flows related to operating activities   quarter        (12 months)         
                                            $A`000         $A`000               
1.1   Receipts from product sales and        32             32                  
related debtors                                                            
                                                                                
1.2   Payments for                                                              
     (a)  exploration and evaluation        (87)           (87)                 
(b)  development                       -              -                    
     (c)  production                        -              -                    
     (d)  administration                    (176)          (176)                
1.3   Dividends received                                                        
1.4   Interest  received                     2              2                   
1.5   Interest and other costs of finance                                       
     paid                                                                       
1.6   Income taxes paid                                                         
1.7   Other (provide details if material)    8              8                   
     (VAT Refund from SARS)                                                     
     Net Operating Cash Flows               (221)          (221)                
     Cash flows related to investing                                            
activities                                                                 
1.8   Payment for purchases of:                                                 
     (a)prospects                           -              -                    
     (b)equity investments                  -              -                    
(c) other fixed assets                 -              -                    
1.9   Proceeds from sale of:                                                    
     (a)prospects                           -              -                    
     (b)equity investments                  -              -                    
(c) other fixed assets                 -              -                    
1.10  Loans to other entities                -              -                   
1.11  Loans repaid by other entities         -              -                   
                                                                                
Net investing cash flows               -              -                    
1.13  Total operating and investing cash                                        
     flows (carried forward)                (221)          (221)                
                                                                                

1.13  Total operating and investing cash     (221)          (221)               
     flows (brought  forward)                                                   
                                                                                
Cash flows related to financing                                            
     activities                                                                 
1.14  Proceeds from issues of shares,        -              -                   
     options, etc.                                                              
1.15  Proceeds from sale of forfeited shares -              -                   
1.16  Proceeds from borrowings               88             88                  
1.17  Repayment of borrowings                -              -                   
1.18  Dividends paid                         -              -                   
1.19  Other (provide details if material)    -              -                   
     Net financing cash flows               88             88                   
     Net increase (decrease) in cash held   (133)          (133)                
1.20  Cash at beginning of quarter/year to   150            150                 
date                                                                       
1.21  Exchange rate adjustments to item 1.20 (1)            (1)                 
1.22  Cash at end of quarter (Note 1)        16             16                  
Note 1: Tawana completed a renounceable rights issue during the quarter,        
raising A$538,650 before costs. These funds were cleared and paid into the      
Company`s account on 4 April 2008                                               
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                                           Nil                  
1.24  Aggregate amount of loans to the parties included in                      
     item 1.10                                             Nil                  
1.25  Explanation necessary for an understanding of the transactions            
                                                                                
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                                                                        
Financing facilities available                                                  
Add notes as necessary for an understanding of the position.                    
                                                  Amount    Amount used         
                                                  available $A`000              
$A`000                        
3.1   Loan facilities                              Nil       Nil                
3.2   Credit standby arrangements                  Nil       Nil                
Estimated cash outflows for next quarter                                        
$A`000              
4.1   Exploration and evaluation                             100                
4.2   Development                                            0                  
     Total                                                                      
Reconciliation of cash                                                          
Reconciliation of cash at the end of the quarter  Current    Previous           
(as shown in the consolidated statement of cash   quarter    quarter            
flows) to the related items in the accounts is    $A`000     $A`000             
as follows.                                                                     
5.1  Cash on hand and at bank (Note 1)            16         150                
5.2  Deposits at call                             -          -                  
5.3  Bank overdraft                                                             
-          -                   
5.4  Other (provide details)                      -          -                  
    Total: cash at end of quarter (item 1.22)    16         150                 
Note 1: Tawana completed a renounceable rights issue during the quarter,        
raising A$538,650 before costs. These funds were cleared and paid into the      
Company`s account on 4 April 2008                                               
Changes in interests in mining tenements                                        
                        Tenement     Nature of    Interest at Interest at       
reference    interest     beginning   end of            
                                     (note (2))   of quarter  quarter           
6.1  Interests in mining                                                        
    tenements                                                                   
relinquished,                                                               
    reduced or lapsed                                                           
6.2  Interests in mining                                                        
    tenements acquired                                                          
or increased                                                                
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.                
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      Issue price  Amount paid     
                          number       quoted      per          up per          
security     security        
7.1   Preference                                                                
     +securities          Nil          Nil                                      
     (description)                                                              
7.2   Changes during                                                            
     quarter                                                                    
     (a)  Increases                                                             
     through issues                                                             
(b)  Decreases                                                             
     through returns of                                                         
     capital, buy-backs,                                                        
     redemptions                                                                
7.3   +Ordinary            92,397,481   92,397,481  various      Various        
     securities                                                                 
                                                                                
7.4   Changes during                                                            
quarter                                                                    
     (a)  Increases                                                             
     through issues                                                             
     (b)  Increase                                                              
through exercise of                                                        
     options                                                                    
7.5   +Convertible debt                                                         
     securities           Nil          Nil                                      
(description)                                                              
7.6   Changes during                                                            
     quarter                                                                    
     (a)  Increases                                                             
through issues                                                             
     (b)  Decreases                                                             
     through securities                                                         
     matured, converted                                                         
7.7   Options                                       Exercise     Expiry date    
     (description and     29,234,843   22,344,843  price        30 April        
     conversion factor)                            $1.00        2008            
7.8   Issued during        Nil          Nil                                     
quarter                                                                    
7.9   Exercised during     Nil          Nil                                     
     quarter                                                                    
7.10  Expired during       Nil          Nil                                     
quarter                                                                    
7.11  Debentures           Nil          Nil                                     
     (totals only)                                                              
7.12  Unsecured notes      Nil          Nil                                     
(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:     W.T.Marx       Date:    30 April 2008                            
             (Director)                                                         
Print name:    W.T.Marx                                                         
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 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.                                       
Sponsor:                                                                        
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 30/04/2008 12:27:01 Supplied by www.sharenet.co.za                     
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