Level 17, 500 Collins Street Melbourne, Vic, 3000 Telephone: (03) 9614 0600 Facsimile: (03) 9614 0550

28th July 2011 ASX : NAE

ASX ANNOUNCEMENT

Quarterly Report for the period ending 30th June 2011

New Age Exploration Limited (“NAE”) is pleased to provide shareholders with its quarterly report to 30th June 2011. This quarter has seen the successful initiation and public announcement of NAE’s Colombian coal strategy.

Highlights

• Entered into exclusive Colombian partnership with Aurora Energy S.A. – “NAE-Aurora Partnership”

• Successful acquisition of the three exploration and mining concessions within the world class Cesar export thermal coal Basin (the Cesar Project)

• Acquisition of an exploration and mining concession application targeting medium volatile coking coal within the Subachoque Syncline (the Subachoque Project) post quarter end

• JORC Exploration target across project portfolio of 250-1,000Mt thermal coal and 20-40Mt coking coal

• Establishment of an office in Bogota and recruitment of three team members

NAE’s Colombian coal strategy has been warmly received by the market, and we continue to remain focused on building our Colombian project portfolio.

To date, NAE has announced a JORC Conceptual Exploration Target of 250 - 1,000Mt of export thermal coal at the Cesar Project and a JORC Conceptual Exploration Target of 20 – 40Mt of medium volatile coking coal at the Subachoque Project.

The Company is currently reviewing a number of other potential opportunities within Colombia to add to its portfolio, with a particular focus on additional coking coal opportunities.

Exclusive Colombian partnership with Aurora Energy S.A.

We are pleased to have concluded an exclusive Colombian partnership with Aurora Energy S.A. (“Aurora”) The partnership was created with the aim to acquire and develop an attractive portfolio of Colombian thermal and coking coal projects.

Aurora has two major shareholders, C.I. Entrelink S.A. (trading as “Polminera”) and FWS Consultants (“FWS”). Polminera was founded in 1989 and is focused on supplying mining, mineral processing, safety and rescue equipment to the Colombian coal mining sector. It is well known in Colombia as a provider of high quality, independent consultancy services, training and technical support.

FWS Consultants is a well established, UK based independent geological and environmental consultancy. FWS Consultants has extensive experience within the Colombian coal industry and has undertaken a number of geological, coal processing, open pit design and underground mine mechanisation studies in Colombia since 2004. More importantly, FWS Consultants draws upon a significant network of expert UK and European coal mining and processing engineers, many of whom are familiar with operating conditions (geological structures and seam thicknesses) similar to those encountered in Colombian coalfields.

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We believe that the partnership with Aurora gives NAE a unique strategic advantage in accessing investment opportunities in the Colombian coal sector, as it allows NAE to access the relationships, contacts and networks that Polminera has built up over the past 25 years as a leading supplier of mining, mineral processing, safety and rescue equipment and consulting services to the Colombian coal mining sector.

Once an investment opportunity has been identified, through FWS, NAE is then able to utilise the network of experienced coal mining and processing engineers to bring the opportunity into production in a timely and cost effective manner.

For further information please refer to the press release: 6th May 2011 – “Colombian coal partnership with Aurora Energy” Cesar Projects During the quarter, NAE acquired three strategically located exploration and mining concessions within the world class Cesar thermal coal basin with a total area of 6,685 hectares. The concessions are highly prospective and initial work to date has delineated a JORC Conceptual Exploration Target of 250 – 1,000Mt of export quality thermal coal.

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Figure 1 Cesar Project Concessions

Table 1 Cesar Project JORC Exploration Target Estimates

Concession(s) Area (ha) JORC Conceptual Exploration Target

(Mt)

Coal Quality

GIK-103 / GHN-121 4,141 200 - 800 Export thermal coal GJP-151 2,544 50 - 200 Export thermal coal Total 6,685 250 - 1,000 Export thermal coal

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Post quarter end, NAE has progressed on seismic re-processing and geological interpretation of the Cesar concessions and tender enquires for drilling contractors are expected to be issued by the end of July. For further information please refer to the press releases: 11th May 2011 – “Acquisition of Coal Concessions in the Cesar Basin – Colombia” 8th June 2011 – “ Successful Acquisition of Additional Colombian Coal Project”

Subachoque Coking Coal Project

Post quarter end, NAE announced the acquisition of an exploration and mining concession application (JBI-11091) in the Subachoque Syncline. Historical sampling results from outcropping seams on the concession demonstrate the presence of high quality medium volatile hard coking coal.

Table 2 M2 Seam Coal Quality Analysis - Sample from Eastern side of JBI-11091

As Received Total Moisture % 2.3 Ash % 5.1 Volatile Material % 30.4 Sulphur % 0.6 Gross Calorific Value Kcal/Kg 7,940 Free Swelling Index 6.0

Source: P.D. Flechas Rincon and L.E. Medina Robles (1992). Evaluacion de Reservas de Carbon y su Proyeccion Minera en la Subzona de Subachoque (Cundinamarca)

The target coal seams in the JBI-11091 concession application are hosted in the Tertiary Guaduas Formation. The Terranova hard coking coal mine (

Figure 2), which is located approximately 15km to the north of JBI-11091, currently produces medium volatile hard coking coal from the M3 seam (also hosted in the Guaduas Formation), confirming the prospective nature of the concession application.

Table 3 Subachoque Coking Coal Project JORC Conceptual Exploration Target Estimate

Concession application(s)

Area (ha) JORC Conceptual Exploration Target

(Mt)

Coal Quality

JBI-11091 1,466 20 - 40 Medium volatile coking coal

Planning of exploration activities on the Subachoque concession has been commenced by NAE.

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For further information please refer to the press release: 27th July 2011 – “Successful Acquisition of First Colombian Coking Coal Project”

Figure 2 Subachoque Project Concession Applications

Bogota Office

During the quarter NAE established a Bogota office and has commenced recruiting a Bogota based project execution and development team. To date, the following team members have been recruited:

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Table 4 NAE Bogota Project Team

Role Name Office Manager Zenaida Acosta Cesar Project Manager Wilson Escobar Concession Manager Johny Beltran

Going forward, it is NAE’s intention to expand the Bogota based team in line with the requirements of the project portfolio. NAE’s Bogota team is supported by Aurora.

Competent Persons Statement: Information in this document that relates to Exploration Results is based on information compiled by Dr Frederick Smith, who is a Fellow of the Institute of Materials, Minerals and Mining. Dr Smith is a Director and Shareholder of Aurora Energy S.A and the Managing Director and Principal Consultant of FWS Consultants Ltd. Dr Smith 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”. Dr Smith consents to the inclusion in the documents of the matters based on his information in the form and context in which it appears. The potential quantity and grade of the exploration target is conceptual in nature as there has been insufficient exploration conducted to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The conceptual Exploration Target estimate for the Cesar Project is based mainly upon (a) third party interpretation of legacy seismic profiles (ca. 30 years old) to assess the likely geological structure; (b) legacy boreholes sunk on nearby concessions; and (c) comparisons with the coal-bearing sequences exploited in nearby areas. The project is at an early stage, and so the target tonnages relate to coal in situ, in seams likely to be of workable thickness, but do not include any allowances for mining layout, recovery, support areas, or currently unforseen geological losses. The range in the tonnage estimate reflects chiefly the current uncertainty (without direct borehole evidence) of the total thickness of mineable coal, and on the precise extent of the coal-bearing sequence beneath the licence block. The conceptual Exploration Target estimate for the Subachoque Project is based mainly on a geological model, of the basin structure and coal stratigraphy, created for this review. It is based on outcrop mapping and sampling by others; on interpretation of published Colombian Mining and Geological Institute (Ingeominas), and unpublished, maps; and on reliable data derived from personal experience of underground mining operations (in the same basin and sequence) about 15km from the concession application. There is outcrop evidence of the presence of low ash coal of potentially mineable thickness in the concession application; but the number of seams, and continuity of thickness and quality, need to be proved. The geological structure and mining conditions also need proving. The project is at an early stage, and so the Target tonnages relate to coal in situ, in seams likely to be of workable thickness, but with no allowances or discounts for mining layout, recovery, support areas, or currently unforeseen geological losses. They have

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however, been reduced by 30%; which represents a notional allowance for possible fault disturbance. The range of quoted Target tonnages reflects the uncertainty as to whether one workable seam or two is likely to be present and can be readily mined by modern methods.

ENDS For further information please contact:

Victoria Thomas Gary Fietz Six Degrees Investor Relations Managing Director victoria@sixdegreesmedia.com.au New Age Exploration Limited +61 3 9674 0347 info@nae.net.au

+61 3 9614 0600 .

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Level 17, 500 Collins Street Melbourne, Vic, 3000 Telephone: (03) 9614 0600 Facsimile: (03) 9614 0550

Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

New Age Exploration Ltd

ABN Quarter ended (“current quarter”)

65 004 749 508 June 2011

Consolidated statement of cash flows Cash flows related to operating activities

Current quarter $A’000

Year to date (12 months)

$A’000 1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration(including

costs associated with new project/opportunity assessment and due diligence)

(408)

(14)

(2,166)

1.3 Dividends received 1.4 Interest and other items of a similar nature

received 32 173

1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material)

Net Operating Cash Flows (376) (2007)

Cash flows related to investing activities

1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets

(535) (621)

1.9 Proceeds from sale of: (a) prospects (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) – Joint venture

arrangement with Jervois (per royalty), whereby Jervois disposed on mining assets.

- 230

Net investing cash flows

(535) (391)

1.13 Total operating and investing cash flows (carried forward)

(911) (2398)

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1.13 Total operating and investing cash flows (brought forward)

(911) (2,398)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 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 - Capital raising costs Net financing cash flows

Net increase (decrease) in cash held

(911) (2,398)

1.20 Cash at beginning of quarter/year to date 3,581 5,068 1.21 Exchange rate adjustments to item 1.20

1.22 Cash at end of quarter 2,670 2,670

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

107

1.24

Aggregate amount of loans to the parties included in item 1.10

1.25

Explanation necessary for an understanding of the transactions

Fees paid to Directors or their related entities

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

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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

3.2 Credit standby arrangements

60 60

Estimated cash outflows for next quarter $A’000 4.1 Exploration and evaluation

4.2 Development

850

4.3 Production

4.4 Administration (including costs associated with new project/opportunity assessment and due diligence)

520

Total

1,370

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 108 49

5.2 Deposits at call 2,562 3,532

5.3 Bank overdraft

5.4 Other (provide details)

Total: cash at end of quarter (item 1.22) 2,670 3,581

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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

6.2 Interests in 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 per

security (see note 3) (cents)

Amount paid up per security (see note 3) (cents)

7.1 Preference +securities (description)

7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

7.3 +Ordinary securities

97,117,638 97,117,638

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs

50,000 667,638

50,000 667,638

10 13.98

10 13.98

7.5 +Convertible debt securities (description)

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7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

7.7 Options (description and conversion factor)

23,296,667 16,450,000 600,000

23,296,667 - -

Exercise price 10 10 19

Expiry date 31/3/2012 31/3/2013 21/7/2014

7.8 Issued during quarter

600,000 600,000 19 21/7/2014

7.9 Exercised during quarter

50,000 50,000 10 31/3/2013

7.10 Expired during 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 give a true and fair view of the matters disclosed.

Sign here: ..... Date: 28 July 2011 (Director/Company secretary) Print name: .Adrien Wing...........

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

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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.

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