Quantum Resources Limited

ABN 84 006 690 348

31 October 2014
Manager Companies
Australian Securities Exchange
Level 6, 20 Bridge Street
Sydney NSW 2000

By E-Lodgement

REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2014

Quantum Resources Limited

ABN 84 006 690 348

Level 8

580 St Kilda Road

Melbourne, VIC, 3004

PO Box 6315

St Kilda Road Central

Melbourne, VIC, 8008

Telephone:

+61 3 8532 2840

www.qur.com.au

Directors

Mr Joseph Gutnick

Chairman / Managing Director

Dr David S Tyrwhitt

Non-Executive Director

Mordechai Gutnick

Director

Mr Peter Lee

Director, CFO

& Company Secretary

Senior Management

Mr Mike Kammermann

Exploration Manager

OVERVIEW Telfer Project

 Magnetic and electromagnetic targets identified for geochemical drilling program.

 Continuing re-evaluation of the Chicken Ranch prospect.

Tanami Project (Officer Hill)

 Newmont Mining is managing the project to earn 75% by spending $500,000 within three years and $100,000 within Year 1.

 No field work was undertaken during the quarter.

Quantum Resources Limited September 2014 Quarterly Report Page 1

OVERVIEW

Quantum Resources Limited

ABN 84 006 690 348

Quantum Resources Limited ("Quantum" or "the Company") is an Australian explorer with a suite of projects in Western Australia and the Northern Territory (Figure 1 & Table 1). The projects are all located on granted titles and are prospective for gold and base metals.

FIGURE 1 - Project Location Plan

TELFER PROJECT

(Quantum 100%)
The Company's Telfer Project comprises a single exploration licence in a tightly held area
6km from the Telfer Gold Mine within the world class Paterson Province in Western Australia, which is host to significant deposits of various styles of mineralisation including the Telfer Mine, O'Callaghans tungsten and base metals skarn deposit, the Kintyre uranium deposit and the Nifty copper deposit. The Telfer deposit is one of Australia's largest deposits with a reported Ore Reserve of 6.3 million ounces of gold and 0.295 million tonnes of copper within a Mineral Resource of approximately 15 million ounces of gold (December
2013). The O'Callaghan's ore body, 10km south east of Telfer mine, is also owned by
Newcrest and hosts significant resources of tungsten, copper, lead and zinc.

Quantum Resources Limited September 2014 Quarterly Report Page 2

Quantum Resources Limited

ABN 84 006 690 348

Reprocessing and interpretation of historic airborne electromagnetic and magnetic data by an external consultant identified the extension of a dome structure, which hosts the 17 Mile hill deposit, into the tenement area. The consultant identified a new target area associated with the structure and a potential granite intrusion satisfying a number of important exploration criteria in the Telfer region.

A limited amount of wide-spaced geochemical drilling has been undertaken in the target area (see Figure 2). The drill holes are relatively shallow and typically terminated at the base of the transported overburden. Geological logs reveal that anomalous gold values in some holes may be associated with lateritic residuum at the base of the transported overburden and have not been adequately followed up. This is encouraging and represents an opportunity for immediate investigation through either extending the grid or drilling closer spaced holes to test the fresh bedrock.

Chicken Ranch Prospect

17 Mile Hill

Au ppb

> 50

20 to 50

10 to 20

0 to 10

FIGURE 2 - Major Features over E45/2401.

Background image is 1VD Bouger Gravity. GDA94.

Quantum Resources Limited September 2014 Quarterly Report Page 3

Quantum Resources Limited

ABN 84 006 690 348

Magnetic Target Areas

Further review of the drill hole geochemical assay data identified that maximum down-hole gold values are spatially associated with areas of subdued magnetic response such as Area
1 in Figure 3. The subdued magnetic response possibly represents destruction of magnetite due to hydrothermal alteration, which may be associated with mineralisation. Additional
areas with a subdued magnetic response have been identified (eg Area 2 and Area 3), which

have not been adequately drilled and are considered valid targets for reconnaissance geochemical drilling.

Au ppb

> 50

20 to 50

10 to 20

0 to 10

FIGURE 3 - Historical Drilling over Reduced to Pole Magnetics. Areas of subdued magnetic response defined by pink polygons.

Quantum Resources Limited September 2014 Quarterly Report Page 4

Quantum Resources Limited

ABN 84 006 690 348

Electromagnetic Target Areas

Historic airborne electromagnetic data (Time Domain Electromagnetic Survey) was reprocessed to produce a number of images. Figure 4 shows the Channel 10 survey data, which highlights the stratigraphy folding around the interpreted dome structure.
Maximum down-hole gold values appear to be associated with the northern arm of a conductive zone within the Punta Punta Formation. The southern arm has not been drilled and is considered a valid target for reconnaissance geochemical drilling.

Au ppb

> 50

20 to 50

10 to 20

0 to 10

FIGURE 4 - Historical Drilling over Electromagnetics

Background image is Channel 10 TDEM Survey Data. GDA94.

Quantum Resources Limited September 2014 Quarterly Report Page 5

Quantum Resources Limited

ABN 84 006 690 348

Re-evaluation of Chicken Ranch Prospect

Gold mineralisation at the Chicken Ranch prospect (Figure 2) is associated with deeply oxidised sediments of the Punta Punta Formation and includes mineralised intercepts of up to 7m @ 13 grams per tonne including a maximum of 1m @ 52 grams per tonne. The potential for the Punta Punta Formation to host economic mineralisation is considered high as shown by the Fallows Field deposit southwest of Telfer Mine. The Fallows Field deposit is hosted by Punta Punta Formation and in the 1990's Newcrest defined a mineral resource and mined approximately 50,000 ounces of gold.
Quantum considers a re-evaluation of the potential of the Chicken Ranch prospect to host economic mineralisation is warranted. This work continued during the quarter with compilation and validation of existing drilling data.

TANAMI (OFFICER HILLS JV) PROJECT

(Quantum 100%, Newmont Option to earn up to 75%)
The Officer Hill JV Project is located within the Tanami geological province, which hosts world class orogenic gold deposits including the Granites gold deposits and the operating Callie Gold Mine owned by Newmont Mining (Figure 1). The Company holds a single Exploration Licence located 34 kilometres southwest of the Callie Gold Mine, which at the end of 2013 had 3.01 million ounces of gold reserves. The licence was granted on 29th July
2013 for a period of six years.
The project is prospective for gold mineralisation with historical drilling intercepts of 4 metres
@ 4.64 g/t, multiple intervals of 1-4 g/t, and several wide intercepts of 0.1-1 g/t.
The project is being managed by Newmont under joint venture with the Company. Newmont are earning a 75% interest by spending $500,000 within three years. Under the terms of the agreement Newmont must spend $100,000 within the first 12 months.
Newmont advised that no field work was completed during the quarter.

J I GUTNICK
Chairman & Managing Director
31 October 2014

The information in this report that relates to exploration results is based on information compiled by Dr DS Tyrwhitt who is a

Fellow of the Australasian Institute of Mining and Metallurgy. Dr DS Tyrwhitt is a consulting geologist employed by DS Tyrwhitt

& Associates Pty Ltd. Dr DS Tyrwhitt has 50 years experience in the industry and has more than 5 years experience which is relevant to the style of mineralisation being reported upon to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves". Dr Tyrwhitt consents to the inclusion in the report of the matters based on the information in the form and context to which it appears. Attached is a copy of the Company's Mining Exploration Entity Quarterly Report in accordance with Listing Rule 5.3.

Quantum Resources Limited September 2014 Quarterly Report Page 6

Quantum Resources Limited

ABN 84 006 690 348

Table 1. Quantum Resources Limited Tenement Holdings

* Farm out of 75% interest

Quantum Resources Limited September 2014 Quarterly Report Page 7

Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

QUANTUM RESOURCES LIMITED

Rule 5.3

ABN Quarter ended ("current quarter")

84 006 690 348 30 SEPTEMBER 2014

Consolidated statement of cash flows

Cash flows related to operating activities

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation

(b) development

(c) production

(d) administration

1.3 Dividends received

1.4 Interest and other items of a similar nature received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Other (GST credits)

Net Operating Cash Flows

+ See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B

Mining exploration entity quarterly report

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 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

-

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

-

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

-

+ See chapter 19 for defined terms.

Appendix 5B Page 2 17/12/2010

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities

3.2 Credit standby arrangements

The Company is planning an equity raising to raise funds for its operational needs.

Estimated cash outflows for next quarter

4.1 Exploration and evaluation

4.2 Development

4.3 Production

4.4 Administration

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed

6.2 Interests in mining tenements acquired or increased

+ See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

Appendix 5B

Mining exploration entity quarterly report

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.

7.12 Unsecured notes (totals only)

+ See chapter 19 for defined terms.

Appendix 5B Page 4 17/12/2010

Compliance statement

Appendix 5B Mining exploration entity quarterly report

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 5).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 31 OCTOBER 2014

Company Secretary

Print name: PETER LEE

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 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

== == == == ==

+ See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 5