TIDMFND 
 
Finders Resources Ltd 
 
Quarterly Report for the Period Ended December 31(st) 2009 
 
 
 Wetar Copper Project 
 
 ·      Definitive Feasibility Study positive. 
 
- Life of mine operating costs estimated to be US$1.00/lb Cu 
- Project, as scoped, has a total funding requirement of up to US$118 million. 
- NPV(10) US$240 million pre-tax at $6,500/t Cu 
 ·      Whim Creek SX-EW Plant purchased 
 
- Dismantling underway. 
 ·      Expanded Demonstration Plant project delivery study completed; revised 
scope contemplates 
 
- 7,000 tpa cathode capacity (up from 5,000 tpa) 
- Utilisation of Whim Creek plant to reduce capital requirements 
- Board approval scheduled for next quarter 
 ·      Modifications to irrigation and demonstration plant completed. 
 
- Plant running at nameplate capacity by end of period 
 ·    Definitive Feasibility Study positive. 
 
 
 
Ojolali Gold-Silver Project 
 
 
 
 ·      Diamond drill testing of new areas of epithermal gold-silver veining at 
Way Neki  underway 
 
 ·      Initial results include 
 
- 1 m at 8.13 g/t Au from 60.7m in WNK04 
- 6.25m at 1.3 g/t Au and 24 g/t Ag from 14.7m in WNK01 
 ·      Detailed remodelling of geological controls for the Jambi oxide gold 
deposit complete. 
 
Corporate 
 
 ·    The Company issued 13,421,439 fully paid ordinary shares to a subsidiary of 
Straits Resources Limited in consideration for the acquisition of the Whim Creek 
      SX-EW plant 
 
Photographs A, B & C 
 
 Wetar Copper Project 
 
(FND 94% and earning through expenditure) 
 
 
Background Information on the Wetar Copper Project 
 
The  Wetar Copper  Project comprises  two high  grade deposits,  Kali Kuning and 
Lerokis,  which are located within 3km from the  coast and suitable for open pit 
mining. 
 
During  2009 Finders  has  constructed  and  operated  a  5 tonne  per day SX-EW 
demonstration plant to optimise process design and provide data required for the 
recently  completed Definitive  Feasibility Study  (DFS). The  test heaps are at 
heights  similar  to  commercial  operations  worldwide and the SX-EW technology 
being  used is industry standard. SX-EW  technology is currently responsible for 
approximately 22% of the world's copper production. 
 
The  Ore Reserves have  been independently assessed  by Australian Mine Design & 
Development  Pty  Ltd  and  in  accordance  with  the  JORC  Code (Table 1). The 
following  statement uses a cut-off  of 0.5% copper for two  pits at Kali Kuning 
and Lerokis with an overall waste to ore ratio of 0.98. 
 
 
=------------------------------------------------------------------------------- 
 Table 1:  Wetar Ore Reserves 
=------------------------------------------------------------------------------- 
                 Category  Tonnes (m) Grade % Cu Contained   Contained Copper 
                                                 Copper (kt)  Attributable to 
                                                             Finders (94%) (kt) 
 
 Kali Kuning Pit Proved       4.91       2.5     123                        116 
 
                 Probable     0.85       2.2     19                          18 
 
                 Sub-Total    5.76       2.5     142                        133 
=------------------------------------------------------------------------------- 
 Lerokis Pit     Proved       2.05       2.4     49                          46 
 
                 Probable     0.37       2.3     9                            8 
 
                 Sub-Total    2.42       2.4     58                          55 
=------------------------------------------------------------------------------- 
 Combined        Proved       6.96       2.5     172                        162 
 
                 Probable     1.22       2.2     28                          26 
 
                 Total        8.18       2.5     205                        193 
=------------------------------------------------------------------------------- 
 
The  tonnes and grades are  stated to a number  of significant digits reflecting 
the  confidence  of  the  estimate.   Since  each  number  and  total is rounded 
individually  the columns and rows in the above table may not show exact sums or 
weighted averages of the reported tonnes and grades. 
 
 
In  addition there is  a third deposit,  Meron, located 2 km  from Kali Kuning. 
This  prospect has a potential size  of 1mt @ 2.3% Cu (Non-JORC compliant) based 
on  historical drilling results  from the previous  gold mining operation.  This 
estimate  is an exploration target which is  conceptual in nature and may or may 
not  be converted  into a  Mineral Resource  depending on future exploration and 
resource  modelling work. Meron  is not included  in the current  DFS due to its 
lack  of  technical  definition,  however,  engineering  plans  do recognize the 
potential  for later  additional leach  ore from  Meron and  additional leaching 
space is available in the DFS. 
 
Copper  mineral species at  Kali Kuning and  Lerokis are dominated by chalcocite 
and  covellite, which are  readily amenable to  bacterial assisted leaching, and 
chalcopyrite which leaches faster at higher temperatures.  A two year laboratory 
test program indicated copper recoveries of up to 80%. 
 
The  project is at the same location as  an old gold mine which operated between 
1989-1997 and   benefits   from   having   existing   infrastructure  in  place, 
particularly a wharf, camp and roads. 
 
Demonstration Plant Update 
 
During  the period, considerable  effort was spent  optimising lime and soda ash 
dosing  levels  to  assist  the  reduction  of  high  levels of free acid in the 
pregnant leach solution. 
 
High  acid  levels,  together  with  consumable  shortages  (as  a result of new 
procedures  for customs clearance of speciality chemicals), led to a significant 
period of reduced cathode production during the quarter (60% of design). 
 
However,  by the end of the period free  acid levels had dropped by 50% and with 
the   delivery   of  the  speciality  chemicals,  the  plant  resumed  nameplate 
production. 
 
Modifications to the irrigation delivery system (larger pumps and wobblers) were 
completed  resulting in a  doubling of solution  on-flow and a  pick-up of leach 
recovery rates. 
 
=------------------------------------------------------------------------------- 
 Table 2: Operating Parameters 
=------------------------------------------------------------------------------- 
 Leach Performance*                          Heap 2       Heap 3       Heap 4 
 
 Grade (Cu %)                                 3.6           4.9         5.0 
 
 Recovered Copper (total) - Tonnes            420           565         382 
 
 Approx. % Copper Recovery to date            51%           60%         23% 
 
 Approx. Number of weeks under Irrigation      47           41           22 
 
 Electrowinning (+)                          Actual       Target      Variance 
 
 Copper Produced - Tonnes                         1127          1542       -27% 
 
 Copper Shipped - Tonnes                          1011          1510       -33% 
=------------------------------------------------------------------------------- 
 *As of 16 Jan 2010. All subject to final mass balances and weight 
 reconciliations 
 (+) All figures project to date (31 Dec 2009), based on 5tpd nameplate 
 capacity 
 
 
 
The  month of  December sees  the onset  of the  wet season at Wetar, with daily 
rainfall  commonly  exceeding  50mm. The  heaps  have  proven very stable during 
torrential  downpours  and  very  minor  ponding  has  been  evident on the heap 
surface. 
 
Rainfall  has no  negative effect  on the  leaching process  but does affect the 
water  balance.   Pond  levels  are  gradually  rising and during the quarter an 
additional  storm water pond was built to provide extra storage capacity for the 
wet season. 
 
 
Figures 1 & 2 
 
Definitive Feasibility Study (DFS) 
 
On November 12(th) 2009, the Company announced positive results of the DFS which 
indicate  an economically robust project with  a mine life of approximately nine 
years. 
 
Life  of mine operating costs are estimated  to be US$1.00/lb Cu and the project 
has a total funding requirement of up to US$118 million. 
 
The  DFS envisaged three  stages of project  development, with Stage 1 being the 
expansion  of the current 1,800 tpa copper cathode demonstration plant to 5,000 
tpa, followed by Stage 2, final expansion to 23,000 tpa copper cathode utilizing 
the  Whim Creek SX-EW plant.  Stage 3 is  the development of the Lerokis pit and 
haulage  of Lerokis  ore to  the Kali  Kuning plant  to maintain  copper cathode 
production at 23,000 tpa. 
 
Stage  1 uses expanded heap leach areas all within the footprint of the existing 
disturbed  area from  previous mining  at the  Kali Kuning  deposit.  It has the 
distinct  advantage  of  making  Finders  a  profitable  copper  producer at the 
earliest  opportunity,  and  of  equal  importance, it significantly reduces the 
construction  risk in Stage 2.  The timeline for achieving Stage 1 production is 
expected  to  be  five  months  after  completion  of  the  permitting  process. 
 
 
Stage  2 comprises expansion  to 23,000 tpa  copper cathode, comprising on-going 
production of 5,000 tpa from the expanded demonstration plant plus an additional 
18,000 tpa,  utilizing a newly constructed pad  area in the adjacent Kali Kuning 
valley  and the  Whim Creek  SX-EW plant.  Subject to obtaining project finance, 
full  capacity cathode production is expected  to be reached within 12 months of 
Stage 1 completion. 
 
Stage  3 development envisages additional  ore feed from  the Lerokis deposit to 
maintain  full  production  levels  at  the  existing  plant  and is expected to 
commence in Year 3 of operations. 
 
Key results from the DFS on a 100% project basis are summarized below Table 3. 
 
 
 
=------------------------------------------------------------------------ 
  Table 3: Key Results 
=------------------------------------------------------------------------ 
  Ore Tonnes*                                      8.4   Million tonnes 
 
  Strip Ratio                                      1.0 
 
 
 
  Life of Mine (LOM) Production                146,000   Tonnes cathode 
 
  Mine Life                                        8.7   Years 
 
  Average Grade (LOM)                             2.5%   Cu 
 
  Average Recovery (LOM)                           71% 
 
 
 
  Average operating cost (LOM)                US$ 1.00   per lb Cu 
 
  Capital  - Stage 1 / EDP                      US$ 12   million 
 
                  - Stage 2 / incl. Whim Ck     US$ 91   million 
 
  Working capital                               US$ 15   million 
 
 
 
  Pre-tax Payback (Stages 1 & 2)                   1.4   years 
 
  Pre-tax NPV10                                US$ 240   Million(+) 
 
  Pre-tax IRR                                      60% 
=------------------------------------------------------------------------ 
*  Includes 0.2Mt of Inferred Resource within  the pit shell; (+ )using $6,500/t 
cu price 
 
These  capital estimates  include a  total of  almost US$40  million in indirect 
costs  included  in  vendor  and  contractor  quotations,  principally  for  the 
earth-moving  component of  the initial  pre-strip and  pad construction and for 
EPCM (overall management and delivery) for Stage 2. 
 
Finders'  management considers that significant savings to capital estimates are 
possible  on the basis of its review of the DFS and during the period  commenced 
optimization  studies  based  on  results  of  the  DFS  including;  targeting a 
reduction  in the earthworks  in the KK  Valley associated with  the disposal of 
waste  from  mining  operations;  reduction  in  EPCM and indirect capital costs 
through   the  use  of  more  Indonesian  contractors  and  improving  the  cost 
effectiveness  of integrating the Whim Creek  process plant acquisition into the 
overall 23,000tpa cathode development plan. 
 
Nine  geotechnical drill holes (768m) were completed in the area of the proposed 
eastern  pit wall at Kali Kuning, the vicinity of the plant site and at Lerokis. 
It  is expected that additional analysis will enable the volume of waste at Kali 
Kuning  currently  in  the  DFS  to  be reduced significantly, resulting in less 
earthworks for the planned Heap Leach pad area. 
 
In  addition, a  new waste  dump site  was located  and this  will significantly 
reduce the cost of waste material handling. 
 
 
Whim Creek SX-EW Plant 
 
On  23(rd) December  2009, the  Company  announced  completion  of  the outright 
purchase  of the Whim Creek  SX-EW plant from a  subsidiary of Straits Resources 
Limited ("Straits"). 
 
The  Whim  Creek  SX-EW  plant  is  capable of producing 18,000 tonnes of copper 
cathode  per annum  and is  well suited  to Finders'  needs at  the Wetar Copper 
Project.  It represents  a major  advance towards  development of the full scale 
project, by providing certainty of both supply and timing for key components for 
the development, as well as significant cost savings compared to the purchase of 
new equipment. 
 
The  Whim Creek  plant is  currently located  in Western Australia.  Finders has 
already commenced dismantling work and preparations for transportation to Wetar. 
 
Finders  have assumed  the Statutory  Managers role  at Whim  Creek under the WA 
Mines  regulations. Twelve contractors are currently working on a 7 day per week 
basis with Karridale Construction Pty Ltd appointed to manage the process. 
 
Figures 3 & 4 
 
Project Development - Expanded Demonstration Plant (EDP) 
 
The  first  stage  of  the  Wetar  Project  development involves the brown-field 
expansion  of the existing demonstration plant.  During the quarter, the Company 
has  detailed  a  project  execution  plan  which  outlines the strategy for the 
development of the EDP Project. 
 
The  DFS scope  has been  succeeded by  a planned  expansion to 7,000 tpa copper 
cathode (up from 5,000 tpa). It is expected that a formal proposal for the newly 
increased  Stage  1 capacity  will  be  lodged  for  Board  approval in the next 
quarter. 
 
The  objective of the plan is to  minimise the engineering required, use as much 
existing  Whim Creek equipment as possible,  maximise the use of local resources 
without  risking the quality of work  and minimise the construction period.  The 
modular  nature of an EW cell house is  ideal for this approach. Basically it is 
planned  to remove four bays from the  Whim Creek EW Facility and integrate this 
with  the existing demonstration  plant. There are  also sufficient cathodes and 
anodes  in good working order at Whim Creek to equip the EDP.  A second SX train 
would be built in Indonesia using similar design principals as the Demonstration 
Plant  and additional power generating capacity also locally sourced.  The scope 
of work for the EDP includes the following: 
 
 §   Expansion of the demonstration  heap leach pad and  construction of the Gold 
Pit leach pad; 
 
 §  Integration of the Gold Pit leach pad with the EDP; 
 
 §  Construction of the Gold Pit ROM pad & associated access road upgrade; 
 
 §  Relocation of the demonstration crushing plant & agglomerator to the Gold Pit 
ROM pad; 
 
 §  Expansion of the demonstration SX-EW Plant from 1,825 tpa to 7,000 tpa; 
 
 §  Expansion of the demonstration neutralisation plant; 
 
 §  Construction of the raw water pipeline; and 
 
 §  Construction of an airfield. 
 
 
 
 Figure 5 
 
Ojolali Project 
Finders Resources Limited 72% with option to increase to 100% 
 
Background Information 
Finders  believe  that  the  Ojolali  project  has  strong potential to generate 
short-term cash flow by open pit CIL/CIP development of the gold resource at the 
Jambi Oxide gold deposit (Table 4.) 
 
 
 
=------------------------------------------------------------------------------- 
 Table 4. Jambi Mineral Resource Estimates 
=------+-----------------+---------------+-----------------+---------+---------- 
  Cut  |    Indicated    |   Inferred    |      Total      |Contained| Attrib. 
  off  |                 |               |                 |         |   FND 
       |                 |               |                 |         | 
 Au g/t|Mt   Au g/t  Ag  |Mt   Au    Ag  |Mt   Au g/t  Ag  | Au koz  |(72%) Au 
       |             g/t |     g/t   g/t |             g/t |         |   koz 
       |                 |               |                 |         | 
  0.5  |2.98  1.1    8.3 |1.1  0.9   5.7 |4.08  1.05   7.6 |   138   |   99 
       |                 |               |                 |         | 
  1.0  |1.13  1.74   8.5 |0.3  1.6   6.7 |1.43  1.71   8.1 |   79    |   57 
=------+-----------------+---------------+-----------------+---------+---------- 
 
Finders has previously announced Inferred Resources at the Tambang Prospect (7.9 
Mt  @ 167g/t Ag and 0.7 g/t  Au at a 1 g/t  Au equivalent cut-off using drilling 
data from a previous explorer).  Previous regional exploration by Finders, using 
both  soil geochemistry and ground geophysics  has located numerous targets with 
outstanding potential for the discovery of additional resources. 
Finders'  current exploration strategy at Ojolali  is to increase the oxide gold 
resource  to +300,000 Oz  Au, to provide  the basis for  a low cost 30-50,000 Oz 
gold  per year open pit mine  based on the Jambi oxide  resource, and to use the 
cash  flow  from  this  plant  to  fund exploration for additional resources and 
progressive expansion of the project. 
 
Exploration Activities 
 
During  the quarter, a  new program of  diamond drilling commenced, designed for 
initial  testing  of  narrow,  epithermal  gold-silver  vein  targets defined by 
surface  trench sampling. Field-based  work was completed  leading to a detailed 
re-modelling  of  the  geological  controls  for  the  existing Jambi oxide gold 
resource. 
 
Way Neki Drilling 
 
A  six hole diamond drilling program at Way Neki has been largely completed with 
702m drilled  to  date.  The  last  hole,  targeted  for  50m depth, intersected 
increasingly  strong alteration  over the  last 10m so  has been extended and is 
still ongoing (Table 5, Figure 6). 
 
 
 
 
    -------------------------------------------------------------------- 
      Table 5. Drilling Locations 
    -------------------------------------------------------------------- 
      Hole ID   East (m)   North (m)   RL (m)   Azimuth   Dip   TD 
 
  WNK01         446746     9481313     170      90        -50   121.05 
 
  WNK02         446688     9481308     160      90        -50   149.55 
 
  WNK03         446696     9481118     137      90        -50   127.05 
 
  WNK04         446630     9481019     132      130       -50   134.55 
 
  WNK05         446582     9481069     137      130       -50   169.80 
 
  WNK06         446260     9481059     163      90        -50   51* 
=----------------------------------------------------------------------- 
                                                                        *In 
Progress 
 
Assays  have now been received for WNK01-04  (Table 6), with a best intercept of 
1m @ 8.13 g/t Au at a depth of 60.72m in WNK04. 
 
=---------------------------------------------------------------- 
  Table 6. Significant Assay results 
=---------------------------------------------------------------- 
  Hole Number     From   Width   Au ppm                  Ag ppm 
 
  WNK01          14.50   6.25*     1.30                      24 
 
  WNK01          24.60    1.60     1.17                      17 
 
  WNK01          97.00    0.50     2.51                     120 
 
  WNK02          20.70    2.15     1.33                      77 
 
  WNK02          92.70    1.00     1.12                     1.5 
 
  WNK02         103.20    1.78     0.93                      17 
 
  WNK03         107.50    1.00     0.56                     2.3 
 
  WNK03         109.55    1.00     1.56                     3.5 
 
  WNK04          60.72    0.98     8.13                     2.9 
 
  WNK04          98.50    0.50     1.84                     4.7 
=---------------------------------------------------------------- 
  *Includes 0.7m no recovery, assumed average grade for section 
 
A  number of samples show poor reproducibility for gold, indicating the presence 
of  (relatively) coarse gold  particles and visible  gold has been identified in 
drill  core. These samples will be re-assayed by screen fire assay. Narrow 1-2m 
intercepts  of strongly veined material have  been encountered in both WNK05 and 
WNK06.  Final assessment  of this  program awaits  remaining assays,  and also a 
review   of  interpreted  structures  based  on  this  drilling  and  additional 
trenching. 
 
Figure 6 
 
Jambi Resource Remodelling 
 
Detailed  re-modelling of the  Jambi resource envelopes  has been completed, and 
has  clearly defined the grade controlling structures. This work will be used as 
a  basis for  re-appraisal of  the resource  estimate for  the Jambi  oxide gold 
deposit  and has been highly valuable  for targeting potential extensions to the 
Jambi  resource.  Re-estimation  of  the  Jambi  resource  will be undertaken by 
Hellman  & Schofield Pty Ltd  during February.  On completion  of WNK06, the rig 
will move to Jambi to carry out an initial test of potential resource extensions 
previously  indicated  by  trenching,  comprising  approximately 500m of diamond 
drilling in 4 holes (Figure 7). 
 
Figure 7 
 
Corporate 
 
Investments 
 
Finders  Resources  holds  5,900,000 fully  paid  ordinary  shares in Geopacific 
Resources  Ltd. (GPR).  On 20(th) November  2009 GPR issued  9,446,225 new fully 
paid  ordinary shares in a placement  and subsequently on 23(rd) Dec 2009 issued 
72,421,060 new  fully paid ordinary shares in  a rights issue. Finders now holds 
approximately 4% of the undiluted capital of Geopacific Resources. 
 
Capital Structure 
 
Following  approval by  shareholders at  the annual  general meeting  on 24(th) 
November  2009, during  the  quarter  the  Company  issued 13,421,439 fully paid 
ordinary  shares to a  subsidiary of Straits  Resources Limited as consideration 
for the acquisition of the Whim Creek solvent extraction electro-winning plant. 
These  shares  represent  a  total  consideration  of  $5.25 million, being $5.0 
million for the plant plus $0.25 million for a plant purchase option fee payable 
under an option agreed during June 2009 with Straits. 
 
As  reported  previously,  Straits  participated  in  the share placement in the 
September  2009 quarter.   Together with the above  new shares, Straits is now a 
substantial shareholder with a 10.06% interest in the Company. 
 
The capital structure at 31 December 2009 is set out in Table 7. 
 
 
 
=------------------------------------------------------------------------------- 
 
 Table 7. Capital Structure 
 
 Type of Security                                          Number on Issue 
=------------------------------------------------------------------------------- 
 Fully Paid Ordinary 
 Shares ("Shares") 
 
 Shares on issue at 30 
 Sep 2009                                                           180,159,733 
=------------------------------------------------------------------------------- 
 Issued in payment of convertible note 
 interest                                                              146,837 
 
 Issued in payment of Whim Creek SX-EW 
 plant                                                              13,421,439 
 
 Shares on Issue at 31 
 Dec 2009                                                           193,728,009 
=------------------------------------------------------------------------------- 
 Unlisted Options        Exercise Price Expiry Date 
 
                         A$0.6875       June 13, 2010                  500,000 
 
                         A$0.30         April 16, 2012                  500,000 
 
                         A$0.30         April 16, 2014                  500,000 
 
                         A$0.30         May 8, 2014                   2,000,000 
 
                         A$0.37         June 23, 2014                   250,000 
 
                         A$0.37         June 28, 2014                   625,000 
 
                         A$0.37         June 29, 2014                   500,000 
 
                         A$0.37         Aug 29, 2014                    250,000 
 
                         A$0.37         Sep 14, 2014                  1,000,000 
 
 Unlisted Options on 
 issue at 31 Dec 2009                                                6,125,000 
=------------------------------------------------------------------------------- 
                                        Conversion 
 12% Convertible Note    Face Value     Price                     Maturity Date 
 
                         US$1,500,000 
 
                         (A$2,323,972)    A$0.36                19 January 2012 
=------------------------------------------------------------------------------- 
 
 
As at 31 December 2009, Finders had $7.6 million in cash.  This excludes $0.5 
million paid as the GST impost on the acquisition of the Whim Creek plant and 
which is recoverable after the end of the quarter.  The mining exploration 
entity quarterly report (Appendix 5B) is appended. 
 
 
 
Chris Farmer 
 
Managing Director 
Further details for all projects including location maps, tenement schedules and 
technical    descriptions   may   be   found   on   the   Finders   website   at 
www.findersresources.com <http://www.findersresources.com/> 
 
For further information please contact 
 
 
 
 
 Finders Resources Ltd: 
 
 Russell Fountain Non-Executive Chairman       +61 2 9211 8299 
 
 Chris Farmer     Managing Director            info@findersresources.com 
                                               <mailto:info@findersresources.co 
                                               m> 
 
 Financial PR: 
 
 Doug Macdonald   Capital Group (in Australia) +61 424 255 959 
 
 Nick Elwes       College Hill (in the UK)     +44 20 7457 2020 
 
 RFC Corporate Finance Ltd - Nomad: 
 
 Rob Adamson      Managing Director            +61 2 9250 0000 
 
 Stuart Laing     Executive Director           +61 8 9480 2500 
 
 FinnCap -  Finders' Broker for the AIM market: 
 
 Mathew Robinson  Corporate Finance Director   +44 20 7600 1658 
 
 Joe Lunn         Analyst                      +44 20 7600 1658 
 
 
Competent Person Statements 
 
The information in this report that relates mineral resource estimation is based 
on  work completed by Dr Phillip Hellman who  is a full time employee of Hellman 
and  Schofield Pty Ltd and a member  of the Australasian Institute of Mining and 
Metallurgy.  Dr Hellman has sufficient experience which is relevant to the style 
of  mineralisation and type  of deposit under  consideration and to the activity 
which he is undertaking to qualify as a Competent Person as defined in the 2004 
Edition  of the 'Australasian Code for Reporting of Exploration Results, Mineral 
Resources  and Ore  Reserves' and  as a  Qualified Person  as defined in the AIM 
Rules.  Dr Hellman consents to the inclusion  in the report of the matters based 
on  his information in the  form and context in  which it appears. Estimates for 
Kali  Kuning are based  on a data  set from which  some diamond drill holes have 
been  excluded due  to poor  recovery of  copper mineralisation  as evidenced by 
neighbouring RC holes. 
 
Geological information in this announcement and comments relating to exploration 
potential  and the  project in  general is  based on  information compiled by Dr 
Russell  Fountain, who  also accepts  responsibility for  the data  on which the 
resource  is based.  Dr  Fountain is a  Director of Finders  and a Fellow of the 
Australasian  Institute of Geoscientists. Dr  Fountain has sufficient experience 
that  is relevant to  the styles of  mineralisation and types  of deposits under 
consideration and to the activity that he is undertaking to qualify as Competent 
Person  as  defined  in  the  JORC  Code.  He  consents to the inclusion in this 
announcement  of the matters based on his information in the form and context in 
which they appear. 
 
The  information in this report that relates mineral reserve estimation is based 
on  work completed by  Mr John Wyche  who is a  full time employee of Australian 
Mine  Design and Development Pty Ltd and  a member of the Australasian Institute 
of  Mining and Metallurgy. Mr Wyche  has sufficient experience which is relevant 
to  the style of mineralisation  and type of deposit  under consideration and to 
the activity which he is undertaking to qualify as a Competent Person as defined 
in  the  2004 Edition  of  the  'Australasian  Code for Reporting of Exploration 
Results, Mineral Resources and Ore Reserves'. Mr Wyche consents to the inclusion 
in the report of the matters based on his information in the form and context in 
which it appears. 
 
All  assaying of  drill core  samples was  undertaken by  the ITS  laboratory in 
Jakarta.  ITS  is  one  of  the  world's  largest product and commodity testing, 
inspection and certification organizations. The Jakarta laboratory is ISO 17025 
accredited  and employs  a Laboratory  Information Management  System (LIMS) for 
sample tracking, quality control and reporting. 
 
 
Disclaimer 
 
This  announcement may or may  not contain certain "forward?looking statements". 
All  statements,  other  than  statements  of  historical  fact,  which  address 
activities, events or developments that Finders believes, expects or anticipates 
will or may occur in the future, are forward?looking statements. Forward?looking 
statements  are often, but  not always, identified  by the use  of words such as 
"seek",  "anticipate", "believe", "plan", "estimate", "targeting", "expect", and 
"intend"  and statements that an event or result "may", "will", "can", "should", 
"could",  or "might" occur  or be achieved  and other similar expressions. These 
forward?looking   statements   reflect   the   current   internal   projections, 
expectations  or beliefs of Finders based  on information currently available to 
Finders.  Statements  in  this  document  that  are  forward-looking and involve 
numerous  risks  and  uncertainties  that  could  cause actual results to differ 
materially  from expected results are based on the Company's current beliefs and 
assumptions  regarding a large number of  factors affecting its business. Actual 
results  may differ materially from expected  results. There can be no assurance 
that  (i) the Company  has correctly measured  or identified all  of the factors 
affecting  its business or the extent of  their likely impact, (ii) the publicly 
available  information  with  respect  to  these  factors on which the Company's 
analysis  is  based  is  complete  or  accurate, (iii) the Company's analysis is 
correct or (iv) the Company's strategy, which is based in part on this analysis, 
will  be successful.  Finders expressly  disclaims any  obligation to  update or 
revise any such forward?looking statements. 
 
 Appendix 5B 
Mining exploration entity quarterly report 
 
 
 
 
 
                   Mining exploration entity quarterly report 
 
 
 
  Name of entity 
+---------------------------+ 
| FINDERS RESOURCES LIMITED | 
+---------------------------+ 
 
 
  ABN                  Quarter ended ("current quarter") 
+----------------+   +-----------------------------------+ 
| 82 108 547 413 |   |         31 DECEMBER 2009          | 
+----------------+   +-----------------------------------+ 
 
 
 
Consolidated statement of cash flows 
 
 
 
                                                          +----------+---------+ 
                                                          |          | Year to | 
                                                          | Current  |  date   | 
 Cash flows related to operating activities               | quarter  |   (6    | 
                                                          |  $A'000  | months) | 
                                                          |          | $A'000  | 
                                                          +----------+---------+ 
                                                          |          |         | 
                                                          |          |         | 
 1.1  Receipts from product sales and related debtors     |  1,847   |  4,050  | 
                                                          |          |         | 
      Payments for (a) exploration and evaluation         | (1,024)  | (2,246) | 
 1.2                           (b) development            |  (141)   |  (221)  | 
                               (c) production             | (1,959)  | (5,144) | 
                               (d) administration         | (1,449)  | (2,574) | 
                                                          |          |         | 
 1.3  Dividends received                                  |          |         | 
                                                          |          |         | 
 1.4  Interest and other items of a similar nature        |    88    |   91    | 
      received                                            |          |         | 
                                                          |          |         | 
 1.5  Interest and other costs of finance paid            |   (65)   |  (203)  | 
                                                          |          |         | 
 1.6  Taxes and value added tax paid                      |  (793)   | (1,018) | 
                                                          |          |         | 
 1.7  Other (provide details if material)                 |          |         | 
                                                          +----------+---------+ 
      Net Operating Cash Flows                            | (3,496)  | (7,265) | 
=---------------------------------------------------------+----------+---------+ 
                                                          |          |         | 
      Cash flows related to investing activities          |          |         | 
                                                          |          |         | 
      Payment for purchases of:   (a) prospects           |          |         | 
                                                          |          |         | 
 1.8  (b) equity investments                              |   (58)   |  (226)  | 
                                                          |          |         | 
      (c) other fixed assets                              |          |         | 
                                                          |          |         | 
      Proceeds from sale of:          (a) prospects       |          |         | 
                                                          |          |         | 
 1.9  (b) equity investments                              |    -     |    -    | 
                                                          |          |         | 
      (c) other fixed assets                              |          |         | 
                                                          |          |         | 
 1.10 Loans to other entities                             |          |         | 
                                                          |          |         | 
 1.11 Loans repaid by other entities                      |          |         | 
                                                          |          |         | 
 1.12 Other (provide details if material)                 |    98    |   172   | 
                                                          +----------+---------+ 
      Net investing cash flows                            |    40    |  (54)   | 
                                                          +----------+---------+ 
 1.13 Total operating and investing cash flows (carried   | (3,456)  | (7,319) | 
      forward)                                            |          |         | 
=---------------------------------------------------------+----------+---------+ 
 
 
 
=------------------------------------------+-------------+---------------------+ 
 1.13 Total operating and investing cash   |   (3,456)   |       (7,319)       | 
      flows (brought  forward)             |             |                     | 
=------------------------------------------+-------------+---------------------+ 
                                           |             |                     | 
      Cash flows related to financing      |             |                     | 
      activities                           |             |                     | 
                                           |             |                     | 
                                           |             |                     | 
 1.14 Proceeds from issues of shares,      |      -      |       20,648        | 
      options, etc.                        |             |                     | 
                                           |             |                     | 
 1.15 Proceeds from sale of forfeited      |             |                     | 
      shares                               |             |                     | 
                                           |             |                     | 
 1.16 Proceeds from borrowings             |      -      |         622         | 
                                           |             |                     | 
 1.17 Repayment of borrowings              |    (189)    |       (8,050)       | 
                                           |             |                     | 
 1.18 Dividends paid                       |             |                     | 
                                           |             |                     | 
 1.19 Other (provide details if material)  |             |                     | 
                                           +-------------+---------------------+ 
      Net financing cash flows             |    (189)    |       13,220        | 
=------------------------------------------+-------------+---------------------+ 
                                           |             |                     | 
      Net increase (decrease) in cash held |   (3,645)   |        5,901        | 
                                           |             |                     | 
                                           |             |                     | 
 1.20 Cash at beginning of quarter/year to |   11,246    |        1,706        | 
      date                                 |             |                     | 
                                           |             |                     | 
 1.21 Exchange rate adjustments to item    |      4      |         (2)         | 
      1.20                                 |             |                     | 
                                           +-------------+---------------------+ 
 1.22 Cash at end of quarter               |    7,605    |        7,605        | 
     --------------------------------------+-------------+---------------------+ 
 
 
 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       |         434         | 
        parties included in item 1.2              |                     | 
                                                  +---------------------+ 
   1.24 Aggregate amount of loans to the parties  |          -          | 
        included in item 1.10                     |                     | 
  ------------------------------------------------+---------------------+ 
   1.25 Explanation necessary for an understanding of the transactions 
       +----------------------------------------------------------------+ 
       |Payments for salaries, directors fees and consulting fees.      | 
       |                                                                | 
       +----------------------------------------------------------------+ 
 
 
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 
    +--------------------------------------------------------------------------+ 
    |The Company issued 13,421,439 fully paid ordinary shares to a subsidiary  | 
    |of Straits Resources Limited as consideration for the acquisition of the  | 
    |Whim Creek solvent extraction electro-winning plant.  These shares        | 
    |represent a total consideration of $5.25 million, being $5.0 million for  | 
    |the plant plus $0.25 million for a plant purchase option fee payable under| 
    |an option agreed during June 2009 with Straits.                           | 
    +--------------------------------------------------------------------------+ 
 
 
 
 
 
 
 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 
    +--------------------------------------------------------------------------+ 
    |NONE                                                                      | 
    |                                                                          | 
    +--------------------------------------------------------------------------+ 
 
 
 
Financing facilities available 
 
Add notes as necessary for an understanding of the position 
 
 
 
 
 
                                              +----------------+-----------+ 
                                              |Amount available|Amount used| 
                                              |     $A'000     |  $A'000   | 
                                              +----------------+-----------+ 
                                              |                |           | 
 3.1 Convertible note facility (USD 1,500,000)|     2,324      |   2,324   | 
                                              +----------------+-----------+ 
 3.2 Credit standby arrangements              |      NIL       |    NIL    | 
=---------------------------------------------+----------------+-----------+ 
 
 
 
Estimated cash outflows for next quarter 
 
 
 
                                   +--------+ 
                                   | $A'000 | 
                                   +--------+ 
                                   |  300   | 
  4.1   Exploration and evaluation |        | 
                                   +--------+ 
                                   |        | 
  4.2   Development                | 2,100  | 
                                   |        | 
=----------------------------------+--------+ 
                                   |        | 
        Total                      | 2,400  | 
                                   |        | 
=----------------------------------+--------+ 
 
 
 
 
Reconciliation of cash 
 
                                              +---------------+----------------+ 
 Reconciliation of cash at the end of the     |Current quarter|Previous quarter| 
 quarter (as shown in the consolidated        |    $A'000     |     $A'000     | 
 statement of cash flows) to the related items|               |                | 
 in the accounts is as follows.               |               |                | 
=---------------------------------------------+---------------+----------------+ 
 5.1 Cash on hand and at bank                 |     1,573     |     11,246     | 
                                              +---------------+----------------+ 
 5.2 Deposits at call                         |     6,032     |       -        | 
                                              +---------------+----------------+ 
 5.3 Bank overdraft                           |       -       |       -        | 
                                              +---------------+----------------+ 
 5.4 Other (provide details)                  |       -       |       -        | 
=---------------------------------------------+---------------+----------------+ 
     Total: cash at end of quarter (item 1.22)|     7,605     |     11,246     | 
=---------------------------------------------+---------------+----------------+ 
 
 
 
 
Changes in interests in mining tenements 
 
 
 
                       +--------------+-------------+-------------+------------+ 
                       |   Tenement   |  Nature of  | Interest at |Interest at | 
                       |  reference   |  interest   |beginning of |   end of   | 
                       |              | (note (2))  |   quarter   |  quarter   | 
                       +--------------+-------------+-------------+------------+ 
 6.1 Interests in      |              |             |             |            | 
     mining tenements  |              |             |             |            | 
     relinquished,     |     NIL      |             |             |            | 
     reduced or lapsed |              |             |             |            | 
                       |              |             |             |            | 
                       |              |             |             |            | 
                       +--------------+-------------+-------------+------------+ 
 6.2 Interests in      |     NIL      |             |             |            | 
     mining tenements  |              |             |             |            | 
     acquired or       |              |             |             |            | 
     increased         |              |             |             |            | 
                       |              |             |             |            | 
                       |              |             |             |            | 
                       +--------------+-------------+-------------+------------+ 
 
 
 
 
 
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 |Amount paid up| 
                       |            |             |per security | per security | 
                       |            |             |(see note 3) | (see note 3) | 
=----------------------+------------+-------------+-------------+--------------+ 
 7.1  Preference       |            |             |             |              | 
      +securities      |    N/A     |             |             |              | 
      (description)    |            |             |             |              | 
                       +------------+-------------+-------------+--------------+ 
 7.2  Changes during   |            |             |             |              | 
      quarter          |            |             |             |              | 
      (a)  Increases   |            |             |             |              | 
      through issues   |            |             |             |              | 
      (b)  Decreases   |    N/A     |             |             |              | 
      through returns  |            |             |             |              | 
      of capital,      |            |             |             |              | 
      buy-backs,       |            |             |             |              | 
      redemptions      |            |             |             |              | 
=----------------------+------------+-------------+-------------+--------------+ 
 7.3  +Ordinary        |193,728,009 | 193,728,009 |             |              | 
      securities       |            |             |             |              | 
                       +------------+-------------+-------------+--------------+ 
 7.4  Changes during   |            |             |             |              | 
      quarter          |            |             |             |              | 
      (a)   Increases  |            |             |             |              | 
      through issues   |            |             |             |              | 
                       |            |             |             |              | 
      -                |  146,837   |   146,837   |   35cents   |   35cents    | 
      Conversion of    |            |             |             |              | 
      interest payable |            |             |             |              | 
      under convertible| 12,696,801 | 12,696,801  | 39.38cents  | 39.38cents   | 
      note             |            |             |             |              | 
      -        Shares  |            |             |             |              | 
      issued as        |            |             |             |              | 
      consideration for|  724,638   |   724,638   | 34.50cents  |  34.50cents  | 
      Whim Creek plant |            |             |             |              | 
      -        Shares  |    NIL     |     NIL     |             |              | 
      issued as        |            |             |             |              | 
      consideration for|            |             |             |              | 
      option over Whim |            |             |             |              | 
      Creek plant      |            |             |             |              | 
                       |            |             |             |              | 
      (b)  Decreases   |            |             |             |              | 
      through returns  |            |             |             |              | 
      of capital,      |            |             |             |              | 
      buy-backs        |            |             |             |              | 
=----------------------+------------+-------------+-------------+--------------+ 
 7.5  +Convertible debt|            |             |             |              | 
      securities       | 6,455,477  |     NIL     |   36cents   |   36cents    | 
      (description)    |            |             |             |              | 
                       +------------+-------------+-------------+--------------+ 
 7.6  Changes during   |            |             |             |              | 
      quarter          |            |             |             |              | 
      (a)  Increases   |            |             |             |              | 
      through issues   |            |             |             |              | 
      (b)  Decreases   |    NIL     |             |             |              | 
      through          |            |             |             |              | 
      securities       |            |             |             |              | 
      matured,         |            |             |             |              | 
      converted        |            |             |             |              | 
=----------------------+------------+-------------+-------------+--------------+ 
 7.7  Options          |            |             |  Exercise   | Expiry date  | 
      (description and |            |             |    price    |              | 
      conversion       |  500,000   |     NIL     |             |  13.06.2010  | 
      factor)          |            |             | 68.75cents  |              | 
                       |  500,000   |     NIL     |             |  16.04.2012  | 
                       |            |             |   30cents   |              | 
                       |  500,000   |     NIL     |             |  16.04.2014  | 
                       |            |             |   30cents   |              | 
                       | 2,000,000  |     NIL     |             |  08.05.2014  | 
                       |            |             |   30cents   |              | 
                       |  250,000   |     NIL     |             |  23.06.2014  | 
                       |            |             |   37cents   |              | 
                       |  625,000   |     NIL     |             |  28.06.2014  | 
                       |            |             |   37cents   |              | 
                       |  500,000   |     NIL     |             |  29.06.2014  | 
                       |            |             |   37cents   |              | 
                       |  250,000   |     NIL     |             |  31.08.2014  | 
                       |            |             |   37cents   |              | 
                       | 1,000,000  |     NIL     |             |  14.09.2014  | 
                       |            |             |   37cents   |              | 
                       |            |             |             |              | 
                       +------------+-------------+-------------+--------------+ 
 7.8  Issued during    |    NIL     |     NIL     |             |              | 
      quarter          |            |             |             |              | 
                       |            |             |             |              | 
                       +------------+-------------+-------------+--------------+ 
 7.9  Exercised during |    NIL     |     NIL     |             |              | 
      quarter          |            |             |             |              | 
                       +------------+-------------+-------------+--------------+ 
 7.10 Expired during   |    NIL     |     NIL     |             |              | 
      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 /does not* (delete one) give a true and fair 
view of the matters disclosed. 
 
 
 
Sign                               here: 
............................................................ 
Date: . 29 January 2010 
(Director) 
 
 
 
Print name:        ....Christopher Ben Farmer........................... 
 
 
 
 
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. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[HUG#1378510] 
 
 
 
 
 
    Figure 3 Whim Creek removal of anodes.docx: http://hugin.info/138746/R/1378510/339020.docx 
    Figure 7 Projected mineralised envelopes at Jambi and drilling plan.docx: http://hugin.info/138746/R/1378510/339024.docx 
    Figure 4 Equipment removal at Whim Creek.docx: http://hugin.info/138746/R/1378510/339021.docx 
    Photo C Way Neki Drilling.docx: http://hugin.info/138746/R/1378510/339017.docx 
    Photo A: Loading Cathode at Wetar.docx: http://hugin.info/138746/R/1378510/339015.docx 
    Figure 2L Process Ponds: http://hugin.info/138746/R/1378510/339019.docx 
    Figure 5 Stage 1 Project Development ? EDP (orange area).docx: http://hugin.info/138746/R/1378510/339022.docx 
    Figure 1 Demo Pads after rain with new Irrigation.docx: http://hugin.info/138746/R/1378510/339018.docx 
    Photo B  Removing pumps at Whim Creek.docx: http://hugin.info/138746/R/1378510/339016.docx 
    Figure 6 Way Neki Drill locations.docx: http://hugin.info/138746/R/1378510/339023.docx 
 

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