CPN Caspin Resources Limited

Carpathian Resources Limited (AIM: CPNR, ASX: CPN) sets out below its quarterly cash flow report. Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entity Carpathian Resources Limited ABN � Quarter ended (�current quarter�) 30 080 273 703 30 June 2008 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 gas sales 399 1,446 � 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration (101) - - (575) (561) - - (1,626) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 144 510 1.5 Interest and other costs of finance paid (25) (100) 1.6 Income taxes paid (85) (242) 1.7 Other Income Abandonment costs for Krasna Foreign office expenses - - (85) - (466) (220) � Net Operating Cash Flows (328) (1,259) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets - - - - - (82) 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets - - - - - 51 1.10 Loans to other entities (200) (200) 1.11 Loans repaid by other entities - - 1.12 Other - - Net investing cash flows (200) (231) 1.13 Total operating and investing cash flows (carried forward) (528) (1,490) 1.13 � Total operating and investing cash flows (brought forward) � (528) � (1,490) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. (net) - 8,900 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 - (60) � Net financing cash flows - 8,840 Net increase (decrease) in cash held (528) 7,350 1.20 Cash at beginning of quarter/year to date 10,146 2,715 1.21 Exchange rate adjustments to item 1.20 7 (440) 1.22 Cash at end of quarter 9,625 9,625 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 1.2 188 1.24 Aggregate amount of loans to the parties included in item 1.10 - 1.25 Explanation necessary for an understanding of the transactions � All transactions involving Directors and Associates were on normal commercial terms. 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 $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 100 4.2 Development 0 � Total 100 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 2,396 10,146 5.2 Deposits at call - - 5.3 Bank overdraft - - 5.4 Other (provide details)- Term Deposits- Promissory Notes 6,445784 - � Total: cash at end of quarter (item 1.22) 9,625 10,146 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 � N/A � � 6.2 Interests in mining tenements acquired or increased � N/A � � 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 265,533,501 265,533,501 - - 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs � - � - � - � - � - � - � - � - 7.5 +Convertible debt securities (description) 10 notes (10% coupon rate) June 16, 2008 - $100,000 face value $100,000 face value 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted � - � - � - � - � - � - � - � - 7.7 Options (description and conversion factor) � 15,000,000 2,725,335 � - Exercise price � $0.10 $0.29 Expiry date30 June 20123 September 2012 � 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: 31 July 2008 (Director/Company Secretary) Print name: J P Arbuckle 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. == == == == ==