Queensland Bauxite Limited quarterly activities and cashflow report

During the recent quarter Queensland Bauxite signed a Heads of Agreement (HOA) with Far North Queensland Ports Corporation Limited (Ports North).

Other Highlights:
- Heads of Agreement signed with Ports North for Mourilyan Port
- Environmental consultants progressing approvals
- Investment by China Bauxite Trading & Investments Company in Queensland Bauxite
- Rights Issue fully subscribed
- Drilling
- Optimising throughput of bauxite from Mine-to-Port
- Continuing discussions and negotiations with potential off takers
- Sea Transport Commodities Pty Ltd
- Well funded to continue development and drilling: $6.503M cash

The HOA gives a non-binding commitment of port capacity for product that is expected to be produced and exported from the South Johnstone Project ("South Johnstone" or "the Project") and confirms the availability of significant port capacity.

The Port of Mourilyan is located 15-24 kilometres west, by road, of the South Johnston mine site and has excellent road connections.

The Heads of Agreement confirms the parties will work together to finalise a commercial agreement for the utilisation of port infrastructure and the development of the designated Stock pile Facility and associated tenure over the site and a Port Operations and Access Agreement Lease Agreement to commence on completion of development of the Facility and prior to commencement of operations at the port.

Importantly, the facilities will initially allow for the shipment of up to 1.0m tonnes of product each year from 2015, with future potential to greatly expand that capacity as the project develops.