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TAW - Tawana - Quarterly Activities and Cash Flow Report

Release Date: 31/07/2009 11:21:02      Code(s): TAW
TAW - Tawana - Quarterly Activities and Cash Flow Report                        
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 April - 30 June 2009                                                          
Key Points                                                                      
Kareevlei Wes                                                                   
*    Funding for Trial Mining close to being finalised.                         
*    Joint Venture with Nowak terminated and negotiations underway for a new    
joint venture partner.                                                          
*    Fundraising in final stages.                                               
*    Surplus assets of the Company continue to be liquidated to strengthen      
    financial position whilst not impacting on the ability to commence trial    
    mining at short notice.                                                     
*    Potential deals assessed during the Quarter.                               
South Africa                                                                    
*    Kareevlei Wes Project, Kimberley Region, South Africa                      
(100% owned and operated by Tawana)                                             
As reported during the March quarter, the Company had previously concluded an   
agreement with Risk Free Investments 2 (Proprietary) Limited t/a Agio Diamond   
Investments ("Agio") for the sale of a 26% interest in Tawana`s Kareevlei       
Project  for Rand 12Million (approximately A$1.7million at current exchange     
rates). Agio defaulted in regards to the purchase price and a High Court Summons
was executed.  The Company believes that the matter will be resolved in favour  
of the company.                                                                 
*    St. Augustines Kimberlite Project, Kimberley, South Africa                 
(Operated by Tawana; Tawana 30% equity in Vecto Trade 436 (Pty) Ltd)            
As reported during the January quarter, the Company is still pursuing parties   
concerning further future work on the Project.                                  
Prospecting activities over the northern portion of the Prospecting Right will  
continue in order to evaluate the area associated with the old St Augustine     
kimberlite mine area once the Company has raised the necessary funds to do so.  
*    Orapa Project, Botswana                                                    
(Tawana 100%, Nowak Investments Pty Ltd earning 51%)                            
As reported during the March quarter, Tawana has cancelled the previous Joint   
Venture with Nowak and is in discussions with a number of interested parties    
concerning further evaluation of this highly prospective tenement.              
*    South Yarra Office                                                         
The South Yarra Office was leased during the quarter which has resulted in a    
major drain on operating overheads being eliminated without any disruption to   
corporate activity.                                                             
Over the past quarter, there has been substantial cost reduction in the         
corporate overheads of Tawana.                                                  
Corporate operating expenses have been continuously reduced and continuous      
attention is being directed on costs to ensure that cash is directed to actual  
or potential projects to continue to safeguard asset values.                    
The ability of the company to continue as a going concern is dependent on       
obtaining additional funding to finance ongoing activities and costs, including 
future production, mine development and exploration activities.                 
The Company is in advanced negotiations with advisers in relation to a capital  
raising involving a placement and underwritten rights issue.  The details of the
capital raising are expected to be released within a fortnight.                 
Tawana continues to look at the sale of all surplus plant assets to strengthen  
its financial position.                                                         
As a potential contingency, the company is pursuing alternate sources of funding
and is also holding discussions with various groups regarding possible joint    
ventures on the company`s projects.                                             
Euan Luff                                                                       
Tel: +61 (0)3 9224 1000                                                         
Tawana Resources- a world class diamond and mineral exploration company listed  
on the Australian and Johannesburg Stock Exchanges committed to the principles  
of enhancing shareholder value through being ethically, socially and            
environmentally conscious corporate citizens.                                   
Rule 5.3                                                                        
Appendix 5B - 2nd Quarter                                                       
Mining exploration entity quarterly report                                      
Name of entity                                                                  
Tawana Resources N.L.                                                           
69 085 166 721                                                                  
Quarter ended ("current quarter") 30 June 2009                                  
Consolidated statement of cash flows                                            
                                  Current        Year to date                   
Cash flows related to operating    quarter        (6 months)                    
activities                         $A`000         $A`000                        
1.1  Receipts from product sales   -              -                             
    and related debtors                                                         
1.2  Payments for                                                               
(a) exploration and           (80)            (110)                         
    (b) development               -              -                              
    (c) production                -              -                              
(d) administration            (112)          (156)                          
1.3  Dividends received                                                         
1.4  Interest  received                                                         
1.5  Interest and other costs of                                                
finance paid                                                                
1.6  Income taxes paid                                                          
1.7  Other (provide details if     -              6                             
(VAT Refund from SARS)                                                      
    Net Operating Cash Flows      (192)          (260)                          
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        23             50                             
1.10 Loans to other entities       -              -                             
1.11 Loans repaid by other                                                      
entities                      -              -                              
                                  23             50                             
    Net investing cash flows                                                    
1.13 Total operating and                                                        
    investing cash flows          (170)          (211)                          
    (carried forward)                                                           
Current        Year to date                   
                                  quarter        (6 months)                     
                                  $A`000         $A`000                         
1.13 Total operating and                                                        
investing cash flows                                                        
    (brought forward)             (170)          (211)                          
    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      -              200                           
1.17 Repayment of borrowings       -              -                             
1.18 Dividends paid                -               -                            
1.19 Other (provide details if                                                  
    material)                     -               -                             
    Net financing cash flows      -              200                            
Net increase (decrease) in                                                  
    cash held                     (170)          (11)                           
1.20 Cash at beginning of                                                       
    quarter/year to date          172            13                             
1.21 Exchange rate adjustments to                                               
    item 1.20                     -              -                              
1.22 Cash at end of quarter        2              2                             
Payments to directors of the entity and associates of the                       
Payments to related entities of the entity and associates of the                
related entities                                                                
1.23 Aggregate amount of payments to the parties                                
    included in item 1.2                         16                             
1.24 Aggregate amount of loans to the parties                                   
included in item 1.10                        Nil                            
1.25 Explanation necessary for an understanding of the                          
Director fees                                                                   
Non-cash financing and investing activities                                     
2.1  Details of financing and investing           Nil                           
    transactions which have had a material                                      
effect on consolidated assets and                                           
    liabilities but did not involve cash flows                                  
2.2  Details of outlays made by other entities    Nil                           
to establish or increase their share in                                     
    projects in which the reporting entity has                                  
    an interest                                                                 
Financing facilities available                                                  
Add notes as necessary for an understanding of the position.                    
                                  Amount         Amount used                    
available      $A`000                         
3.1  Loan facilities               Nil            Nil                           
3.2  Credit standby arrangements   Nil            Nil                           

Estimated cash outflows for next quarter                                        
4.1  Exploration and evaluation                   0                             
4.2  Development                                  0                             
    Total                                        0                              
Reconciliation of cash                                                          
Reconciliation of cash at the end  Current        Previous                      
of the quarter (as shown in the    quarter        quarter                       
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       2              172                           
5.2 Deposits at call               -              -                             
5.3 Bank overdraft                 -              -                             
5.4 Other (provide details)        -              -                             
   Total: cash at end of quarter  2              172                            
(item 1.22)                                                                  
Changes in interests in mining tenements                                        
6.1 Interests in    Tenement   Nature of   Interest   Interest                  
mining          reference  interest    at         at end of                  
   tenements                  note (2)    beginning  quarter                    
   relinquished,                          of                                    
   reduced or                             quarter                               
   Interests in                                                                 
   acquired or                                                                  
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      Amount             
                        number       quoted       price per  paid up            
                                                  security   per                
7.1  Preference                                                                 
    (description)       Nil          Nil                                        
7.2  Changes during                                                             
    (a)  Increases                                                              
    through issues                                                              
    (b)  Decreases                                                              
through returns of                                                          
    capital, buy-                                                               
    backs, redemptions                                                          
7.3  +Ordinary                                                                  
securities          117,138,854  117,138,854  Various    Various            
7.4  Changes during                                                             
    (a) Increases       3,375,720    3,375,720    $0.07      $0.07              
through issues                                                              
    (b) Increase                                                                
    through exercise                                                            
    of options                                                                  
7.5  +Convertible debt                                                          
                        6,666,667    -            $0.03      $0.03              
7.6  Changes during                                                             
    (a) Increases       6,666,667    -            $0.03      $0.03              
    through issues                                                              
(b) Decreases                                                               
    through securities                                                          
    matured, converted                                                          
7.7  Options                                                                    
(description and                              Exercise   Expiry             
    conversion factor)                            price      date               
                        42,430,053   13,240,053   various    various            
7.8  Issued during                                                              
quarter             Nil          Nil                                        
7.9  Exercised during                                                           
    quarter             Nil          Nil                                        
7.10 Expired during                                                             
quarter             Nil          Nil                                        
7.11 Debentures                                                                 
    (totals only)       Nil          Nil                                        
7.12 Unsecured notes                                                            
(totals only)                                                               
                        Nil          Nil                                        
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: (Director)                             Date:                     
Print name: Euan Luff                             31st July, 2009           
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    
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.                                                      
31 July 2009                                                                    
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 31/07/2009 11:21:01 Supplied by www.sharenet.co.za                     
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