European Nickel PLC - Appendix 5B to Quarterly Report

Rule 5.3
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
+---------------------+
| EUROPEAN NICKEL PLC |
+---------------------+

Company Registration Number   Quarter ended ("current quarter")
+-----------------------------+ +-----------------------------------+
| 4013168 |   | 30 September 2010 |
+-----------------------------+ +-----------------------------------+

Consolidated statement of cash flows

+---------------+------------+
  |Current quarter|Year to date|
Cash flows related to operating activities |   |(12 .months)|
  | $USD'000 | $USD'000 |
+---------------+------------+
1.1 Receipts from product sales and related | -| -|
debtors | | |
| | |
1.2 Payments for   (a)  exploration & evaluation | -| -|
                      (b)  development | (3,152)| (3,152)|
                      (c)  production | -| -|
                      (d)  administration | (2,807)| (8,079)|
| | |
1.3 Dividends received | -| -|
| | |
1.4 Interest and other items of a similar nature | 174| 179|
received | | |
| | |
1.5 Interest and other costs of finance paid | (115)| (582)|
| | |
1.6 Income taxes paid | -| -|
| | |
1.7 Other (provide details if material) | -| -|
+---------------+------------+
  Net Operating Cash Flows | (5,900)| (11,634)|
|  | |
--------------------------------------------------+---------------+------------+
  Cash flows related to investing activities |  |  |
| | |
1.8 Payment for purchases of: |  |  |
                      (a)  prospects | -| -|
                      (b)  equity investments| -| (1,542)|
                      (c)  other fixed assets| -| (290)|
| | |
1.9 Proceeds from sale of: |  |  |
                      (a)  prospects | -| -|
                      (b)  equity investments| -| 958|
                      (c)  other fixed assets| 69| 69|
| | |
1.10 Loans to other entities | -| -|
| | |
1.11 Loans repaid by other entities | -| -|
| | |
1.12 Other (cash acquired on merger of Rusina | -| 1,264|
Mining NL) | | |
+---------------+------------+
  Net investing cash flows | 69| 459|
+---------------+------------+
1.13 Total operating and investing cash flows | (5,831)| (11,175)|
(carried forward) | | |
--------------------------------------------------+---------------+------------+

--------------------------------------------------------------+-------+--------+
1.13 Total operating and investing cash flows (brought  |(5,831)|(11,175)|
forward) | | |
--------------------------------------------------------------+-------+--------+
Cash flows related to financing activities |  |  |
| | |
| | |
  | | |
| | |
1.14 Proceeds from issues of shares, options, etc. | 5,088| 22,420|
| | |
1.15 Proceeds from sale of forfeited shares | -| -|
| | |
1.16 Proceeds from borrowings | -| -|
| | |
1.17 Repayment of borrowings | -| (4,000)|
| | |
1.18 Dividends paid | -| -|
| | |
1.19 Other (share issue costs) | (61)| (127)|
+-------+--------+
  Net financing cash flows | 5,027| 18,293|
--------------------------------------------------------------+-------+--------+
  Net increase (decrease) in cash held | (804)| 7,118|
| | |
1.20 Cash at beginning of quarter/year to date | 9,110| 1,530|
| | |
1.21 Exchange rate adjustments to item 1.20 | (778)| (1,120)|
+-------+--------+
1.22 Cash at end of quarter | 7,528| 7,528|
--------------------------------------------------------------+-------+--------+

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 |
| $USD'000 |
+------------------+
1.23 Aggregate amount of payments to the parties included in| 347 |
item 1.2 | |
+------------------+
1.24 Aggregate amount of loans to the parties included in | - |
item 1.10 | |
------------------------------------------------------------+------------------+
1.25 Explanation necessary for an understanding of the transactions
+--------------------------------------------------------------------------+
  |1.23 Salaries, fees and superannuation payments made to directors during |
|the quarter. |
+--------------------------------------------------------------------------+

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
+---------------------------------------------------------------------------+
  |N/A |
+---------------------------------------------------------------------------+

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
+---------------------------------------------------------------------------+
  |N/A |
+---------------------------------------------------------------------------+





Financing facilities available

Add notes as necessary for an understanding of the position.
+------------------+-------------+
    | Amount available | Amount used |
| $USD'000 | $USD'000 |
+------------------+-------------+
3.1 Loan facilities | - | - |
+------------------+-------------+
3.2 Credit standby arrangements | - | - |
-----------------------------------+------------------+-------------+



Estimated cash outflows for next quarter

+----------+
    | $USD'000 |
+----------+
4.1 Exploration and evaluation | - |
+----------+
4.2 Development | 3,000 |
+----------+
4.3 Production | - |
+----------+
4.4 Administration | 1,800 |
----------------------------------+----------+
  | |
Total | 4,800 |
----------------------------------+----------+

Reconciliation of cash

+---------------+----------------+
Reconciliation of cash at the end of the |Current quarter|Previous quarter|
quarter (as shown in the consolidated | $USD'000 | $USD'000 |
statement of cash flows) to the related items | | |
in the accounts is as follows. | | |
----------------------------------------------+---------------+----------------+
5.1 Cash on hand and at bank | 7,133 | 8,715 |
+---------------+----------------+
5.2 Deposits at call | 395 | 395 |
+---------------+----------------+
5.3 Bank overdraft | - | - |
+---------------+----------------+
5.4 Other (provide details) | - | - |
----------------------------------------------+---------------+----------------+
  Total: cash at end of quarter (item 1.22) | 7,528 | 9,110 |
----------------------------------------------+---------------+----------------+

Changes in interests in mining tenements

+--------------+-------------+--------------+------------+
    |Tenement |Nature of |Interest at |Interest at |
|reference |interest |beginning of |end of |
| |(note (2)) |quarter |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 |Amount paid|
| | |per security|up per |
| | |(see note |security |
| | |3) (cents) |(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 |AIM 192,730,328|AIM 192,730,328| | |
securities | ASX 39,358,675| ASX 39,358,675| -| -|
| 232,089,003| 232,089,003| | |
+---------------+---------------+------------+-----------+
7.4 Changes | | | | |
during quarter | | | | |
(a)  Increases | AIM 10,500,000| AIM 10,500,000| 32 pence| 32 pence|
through issues | | | | |
| | | | |
(b)  Decreases | | | -| -|
through returns | | | | |
 of capital, buy-| | | | |
backs | | | | |
----------------------+---------------+---------------+------------+-----------+
7.5 +Convertible | | | | |
debt | | | | |
securities | -| -| -| -|
(description) | | | | |
+---------------+---------------+------------+-----------+
7.6 Changes | | | | |
during quarter | | | | |
(a)  Increases | | | -| -|
through issues | -| -| | |
(b)  Decreases | | | | |
through | | | | |
securities | | | -| -|
matured, | | | | |
converted | -| -| | |
----------------------+---------------+---------------+------------+-----------+
7.7 Options | | | Exercise| Expiry|
(description and | | | price| date|
conversion | 325,000| -| £1.28| 31/03/14|
factor) | 75,000| -| £1.28| 30/06/14|
| 63,838| -| £0.80| 05/08/14|
| 20,440| -| £0.92| 24/12/14|
| 287,562| -| £1.20| 29/06/15|
| 122,924| -| £1.62| 20/10/15|
| 109,443| -| £1.30| 26/06/16|
| 224,000| -| £2.35| 04/06/17|
| 25,500| -| £2.35| 04/06/17|
| 229,878| -| £2.35| 18/06/17|
| 65,418| -| £1.91| 04/07/17|
| 12,727| -| £1.65| 25/09/17|
| 40,871| -| £1.80| 17/10/17|
| 27,500| -| £2.13| 23/10/17|
| 385,937| -| £1.60| 27/02/18|
| 452,268| -| £1.60| 12/03/18|
| 24,375| -| £1.60| 12/03/18|
| 68,739| -| £1.59| 05/06/18|
| 84,664| -| £1.59| 16/06/18|
| 81,142| -| £0.74| 25/07/18|
| 125,000| -| £0.10| 16/12/18|
| 125,000| -| £0.50| 16/12/18|
| 125,000| -| £0.50| 16/12/08|
| 2,451,051| -| £0.40| 15/04/19|
| | | | |
Warrants | 200,000| -| £0.256| 08/07/12|
| 800,000| -| £0.2768| 21/07/12|
| 625,000| -| £0.36| 08/12/12|
| 1,500,000| -| £0.36| 08/12/12|
| 1,000,000| -| £0.32| 08/12/12|
| 763,000| -| £0.28| 29/03/13|
+---------------+---------------+------------+-----------+
7.8 Issued during | -| -| -| -|
quarter | | | | |
+---------------+---------------+------------+-----------+
7.9 Exercised during | -| -| -| -|
quarter | | | | |
+---------------+---------------+------------+-----------+
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: 29
October 2010
                      (Finance Director)

Print name:    Mark Hanlon

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.


== == == == ==


[HUG#1457316]








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Source: European Nickel PLC via Thomson Reuters ONE


Unternehmen: European Nickel PLC - ISIN: GB00B3XPFJ68