31 July 2015

Quarterly Report June 2015

Leyshon Resources Limited (AIM/ASX: LRL) ("Leyshon" or the "Company") activities during the quarter focused on identifying a new project opportunity for the Company. The board has also continued its focus on simplifying the Company's corporate structure and reducing costs.
New Project Opportunities
The Company continues to pursue investment opportunities in the resources sector which are in line with the Company's stated investing policy. The Company's strategic objective is to identify projects that have a clear pathway to production or monetization and can generate high returns to shareholders. This will be achieved by leveraging the in-house expertise and track-record in identifying, acquiring, financing, developing and operating resource projects, and un-locking value. The Company's plan is to identify advanced or brown-field assets which have a high probability of being re-rated in the listed market.
Whilst the overall investment climate in the resources sector continues to be very difficult, asset valuations are currently substantially discounted, which we believe will provide an attractive investing opportunity at the bottom of the investment cycle. However structuring a transaction, at these low commodity prices, that meets the Company's requirements for return to shareholders has proved to be difficult. A number of opportunities are currently being studied, although none are at an advanced stage and management do not currently have an expectation of completing a transaction in the next few months.
Board Changes and Cost Reduction Measures
The Company retains a strong cash position with working capital of more than AUD$1 million. Management continued its efforts to reduce corporate overheads to preserve cash during this protracted period while the Company identifies a new opportunity. On 8 May 2015, the Company announced that the position of Managing Director had been made redundant, with Corey Nolan moving to a position as Non-Executive Director. All directors' fees were also reduced by 50 per cent.
After receiving shareholder approval at the AGM, admission to trading of Leyshon's shares on AIM was cancelled from 8 June 2015, with estimated cost savings of more than AUD$140k per annum as well as reducing the costs of implementing a new transaction when one is eventually identified and implemented.
Management continue to review any strategies or opportunities which would further reduce the
Company's operating costs and/or make the Company more attractive to potential new projects.
ASX Suspension Update
The shares of Leyshon Resources have been suspended from trading on the Australian Securities
Exchange ("ASX") since 14 July 2014 and will remain suspended. ASX policy, in accordance with Chapter
12 of the Listing Rules, is to allow companies that have disposed of their main undertakings a six-month

Leyshon Resources Limited ABN 75 010 482 274

Level 3 / Suite 3, 1292 Hay Street, West Perth 6005, Western Australia

Tel: + 61 8 9321 0077 Fax: + 61 8 9322 4073

period within which to satisfy ASX that the company has a sufficient level of operations to justify continued quotation of the Company's securities on the ASX. The Company was not able to satisfy the ASX that it was in compliance with Chapter 12 and was suspended from trading on 14 July 2014.
Cancellation of the AIM admission does not affect the ASX listing. The Company envisages that its shares will remain suspended on the ASX until such time as the Company completes a transaction and seeks re- compliance for listing on the ASX.
With our available cash reserves, Leyshon is well positioned to pursue quality projects in accordance with its investment strategy. Every effort will be made to ensure we secure assets that are most likely to achieve the corporate objectives and strategic aims of the Company.
In the interim, the Company will continue to evaluate suitable investment opportunities and will keep the market informed of any material developments as they occur.
For further information please contact: Leyshon Resources Limited
Corey Nolan - Non-Executive Director Tel: +61 7 3221 7770 [email protected]

Tenement Interests

Leyshon Resources Limited held the following interests in exploration tenements at the end of the quarter. There were no tenements acquired or disposed of during the quarter and no changes in the beneficial interests held by the Company.

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