Monto Minerals - March 2001

REPORT ON ACTIVITY FOR THE QUARTER ENDED 31 MARCH 2001

OVERVIEW

GOONDICUM CRATER ILMENITE AND TITANO-MAGNETITE PROJECT

Monadelphous Group Ltd and Monto Minerals are negotiating terms for the development of the Goondicum Project.
Bulk sample testwork confirms a total yield of 21.6% for ilmenite, titano-magnetite, apatite and feldspar concentrates.
Rehabilitation of pilot plant tailings pit shows good results for germination and growth of grasses.
Feldspar samples are being tested in Asia, Europe and Australia.

METALLURGICAL PROGRAM

A comprehensive metallurgical test program on two half tonne samples of each "ore" type from the Crater Lease has been completed. The "ore" types are termed CS, being the top half and DG, the bottom half of the profile to be mined. This program has confirmed the flowsheet for ilmenite and titano-magnetite production and investigated the recovery of feldspar, apatite and olivine. Olivine was not successfully recovered.

In addition, the program confirmed that the mining and processing of the two "ore" types in separate operations was not an advantage and that the most beneficial technique is to process "ore" as mined with the "ore" types being mixed during the operations.

A summary of the approximate product yield from the bulk samples processed is as follows:

Ilmenite	6.1%
Titano-magnetite	2.0%
Apatite	1.5%
Feldspar	12.0%
Total Minerals Yield %	21.6%

RESTORATION AND REHABILITATION TRIALS

A number of trials measuring germination of grasses on a rehabilitated tailings pit are being monitored regularly. Results to date show good germination and growth on all plots where sand or sand and topsoil cover the tailings.

ADDITIONAL PRODUCTS

Samples of feldspar are being tested in Australia, Taiwan, Spain and the United Kingdom.

A sample of apatite is presently being tested by a second fertilizer company in Australia. A long term sales contract for a substantial quantity of apatite has been drafted at the request of one potential customer.

MARKETING

Ilmenite prices continue to be strong with recent sales of ilmenite from Ukraine up 12.4% from US$105 per tonne in January to US$118.00 per tonne in February 2001.

Marketing of apatite and feldspar is progressing and a preliminary marketing proposal from a marketing consultant specialising in feldspar worldwide is being considered.

MULTIPLEX/MONTO MINERALS HEADS OF AGREEMENT

Following review of the draft Development Heads of Agreement, the Board of Monto Minerals has formed the view that it will not be possible to reach agreement on key terms within an acceptable timeframe.

Accordingly, Monto Minerals, on 10 April 2001, advised Multiplex that it does not intend to continue to negotiations in relation to the Development Heads of Agreement. An ASX announcement to that effect was made on the same date.

MONADELPHOUS GROUP LTD

Monto Minerals is presently negotiating with Monadelphous Group Ltd regarding the development of the Goondicum Crater Ilmenite and Titano-magnetite Project. Monadelphous will take responsibility to complete the feasibility study for the production of ilmenite, titano-magnetite, apatite and feldspar and the subsequent development of the Project.

PLACEMENT

On 8 February a placement of 1,250,000 fully paid ordinary shares with one free option for each two shares raised $100,000. The Directors are considering further placements.

By Order of the Board

L G JOHNSON (F. Aus.I.M.M.)

Managing Director

30 April 2001

Information in this report insofar as it relates to ore or mineralisation is based on information compiled by Mr L G Johnson, a full-time employee of the Company, who is a Corporate Member of the Australasian Institute of Mining and Metallurgy and who has a minimum of five years experience in the field of activity being reported on.

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Name of entity

MONTO MINERALS N.L.

ACN or ARBN

Quarter ended ("current quarter")

063 144 865

31 MARCH 2001

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter $A’000	Year to date (9 months) $A’000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation Payments for (b) development Payments for (c) production Payments for (d) administration	(78) (126)	(959) (380)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	3	37
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)		11
	Net Operating Cash Flows	(201)	(1,291)
a	Cash flows related to investing activities	a	a
1.8	Payment for purchases of: (a) prospects Payment for purchases of: (b)equity investments Payment for purchases of: (c) other fixed assets
1.9	Proceeds from sale of: (a) prospects Proceeds from sale of: (b) equity investments Proceeds from sale of: (c) other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	0	0
1.13	Total operating and investing cash flows (carried forward)	(201)	(1,291)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	100	100
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (provide details if material) - Capital Raising Costs
	Net financing cash flows	100	100
	Net increase (decrease) in cash held	(101)	(1,191)
1.20	Cash at beginning of quarter/year to date	325	1,415
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	224	224

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	73
1.24	Aggregate amount of loans to the parties included in item 1.10	Nil

1.25	Explanation necessary for an understanding of the transactions

Refer attached note

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

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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

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Financing facilities available
Add notes as necessary for an understanding of the position.

		Amount available $A’000	Amount used $A’000
3.1	Loan facilities	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

		$A’000
4.1	Exploration and evaluation	60
4.2	Development
a	Total	60

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.	Current quarter $A’000	Previous quarter $A’000
5.1	Cash on hand and at bank	13	(1)
5.2	Deposits at call	211	326
5.3	Bank overdraft
5.4	Other (provide details)
a	Total: cash at end of quarter (item 1.22)	224	325

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	Nil	Nil	Nil	Nil
6.2	Interests in mining tenements acquired or increased	Nil	Nil	Nil	Nil

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 per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference +securities (description)	Nil	Nil	Nil	Nil
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions	Nil	Nil	Nil	Nil
7.3	+Ordinary securities	108,629,028	108,629,028	a	a
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	1,250,000 Nil	1,250,000 Nil	a	a
7.5	+Convertible debt securities (description)	Nil	Nil	Nil	Nil
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	Nil Nil	Nil Nil	Nil Nil	Nil Nil
7.7	Options (description and conversion factor)	600,000 625,000	Nil Nil	Exercise price 6.7 cents 10 cents	Expiry date 31/12/2001 7/2/2002
7.8	Issued during quarter	625,000	Nil	Exercise price 10 cents	Expiry date 7/2/2002
7.9	Exercised during quarter	Nil	Nil	Nil	Nil
7.10	Expired during quarter	Nil	Nil	Nil	Nil
7.11	Debentures (totals only)	Nil	Nil
7.12	Unsecured notes (totals only)	Nil	Nil	a	a

Compliance statement

1	This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law 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: ............................
(Director/Company secretary)

Print name: .............................................................................

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.

Appendix 5B - Notes