Interim report January-March 2016

(This is a translation of the Swedish version. If any differences, Swedish is the valid one.)

The period from January to March

• Operating income totaled -1 077 (-1 467) TSEK
• Profit after tax for the period amounted to -879 (-675) TSEK
• Earnings per share amounted to -0.01 (-0.03) SEK
• Shareholders ' equity per share was 0.09 (0.61) SEK
• The rights issue of November/December 2015 of 5.2 MSEK was registered  in January 2016

Significant events after the end of the reporting period

•          Delta Minerals signed a partnership agreement in April 2016 with Chahaya Shipping & Trading Co. PTE LTD Singapore and is now preparing the deliveries.
•          Delta Minerals was awarded price for best CRS project (Corporate Social Responsibility) in the Nordic group of companies in the Philippines, April 2016
•          Delta Minerals concluded a rights issue of 18.9 MSEK in April and May 2016, which was oversubscribed by 186%
•          The Board pursued a directed equity issue offer of 2.2 MSEK.

Delta Minerals 

Delta Minerals AB is a public Swedish limited company listed on AktieTorget with rights to pursue environmental projects in the Philippines with the support of regional/local authorities. The company's objective is to commence operations in estuaries in the North West/Northern Philippines for the extraction of minerals and sand

The company's operations 

Chahaya Shipping & Trading Co. PTE LTD and Delta Minerals have signed a partnership agreement in April 2016 to increase sand volumes to about 1 million ton annually. Chahaya is a shipping and trading company, handling shipping and sale of reclamation sand to the government of Singapore.

In conjunction to the negotiations, Delta Minerals presented a Master Plan for Chahaya, to ensure the above deliverables. The plan describes how Panamax vessels will be loaded outside the Cagayan River mouth. Delta Minerals will also store the reclamation sand at the mouth close to the anchorage ground.

The expansion to deliver 1 million tons reclamation sand per year now commences. Chahaya is presenting the company plans for purchasers in Singapore. Request for quotation for sand deliveries are made on an ongoing basis, so we are likely to soon face deliveries.

The company has worked intensively in recent months to complete the Master Plan. Gauging the river mouth have been pursued, planning detailed logistics. An island in the river mouth will be used for stockpiling reclamation sand close to anchorage ground for the large Panamax vessels. A large area of sand storage on the eastern side has also been identified. Initially we will have slightly higher costs, but as the logistics is expanding, the business will become more cost efficient.

The cost of commencing the operations have significantly been reduced relative to the company assessment, made in autumn 2015. The initial dredging costs have been reduced, due to favorable bathymetric studies. By starting with modular plants, even the initial costs have been reduced.

Delta Minerals is one of the few companies in the Philippines, having all the necessary permits for reclamation sand and the company is strategically located in the Philippines. Other countries in the region have been interested in Delta Minerals´ products and business concept, and we have great expectations that potential customers project will be further developed.

In conjunction with the Chahaya partner agreement, the company has pursued out a rights issue to ensure that Delta Minerals will be well funded to respond to the Chahaya´s increased demand.

The downward trend of iron ore price now seems to have reversed and the last few months in the spring of 2016, the price has increased sharply to more normal levels. The company has since the fall of 2015 received advances from the main customer SunGlobe.

Social and ecological work

In addition to the works that we have been able to contribute, Delta Minerals is contributing to equip a local school. This has been made with construction materials that the company has been manufacturing and our support. We have also been supporting a hospital in Manila, run by the Catholic order; The Dominican Sisters of the Presentation.

In April 2016, the company was awarded the prize as the best CRS project (Corporate Social Responsibility) among the Nordic Business Council members in the Philippines.

The share

The interest of the company has increased significantly and the number of shareholders has increased to 5800. The large number of shareholders allows for a powerful work in the Philippines.

Delta Minerals´ rights issue was oversubscribed by 13.3 MSEK and was signed to 183 percent. 17.9 MSEK was added to the company through this issue. In total, investors for more than 29 MSEKwere interested to in participate in the share issue. The Board has also pursued a directed equity issue of additional 2.2 MSEK.

Economic outcomes 

Group highlights 

Economic outcomes for the parent company

Profit after tax for the period January-March amounted to -867 (-1 004) TSEK. The balance sheet total amounted at the end of the period to 19 033 (16 789) TSEK.

Economic outcomes group

The group does not have any sales or other sales in the first quarter. Operating income totaled -1 077 (-1 467) TSEK. Cash flow during the period was January to March 943 (-2 070) TSEK from operations 681 (-1 737) TSEK.

The balance sheet total at the end of the period was 15 027 (14 514) TSEK.

Financing
The Group's liquid assets amounted to 1 973 (2 008) TSEK per 31 March.

Financial and other information 

Group structure 

Delta Minerals AB controls 100% of the Delta Environmental Projects, Inc., based in Manila, the Philippines. In the beginning of 2015, a sales company was established in Singapore to support sales efforts.

Investments 

The Group's cash net investment amounts for the quarter to -30 (333) TSEK.

Transactions with related parties 

Milonga Resources AB has during the quarter by Thomas Lundgren invoiced 334 TSEK company regarding consulting and directors ' fees, Thomas Lundgren's CEO of Delta Minerals AB. International Advisory Management AB (IAM) has in the quarter by Hakan Gustafsson invoiced 127 TSEK company regarding consulting and directors ' fees. Hakan Gustafsson is Chairman of the Board in Delta Minerals AB. Consumer Minds in Djursholm AB has by Christian Bönnelyche invoiced 24 TSEK company regarding consulting and directors ' fees, Christian Bönnelyche is a member of the Board of Delta Minerals AB.

Number of shares 

The number of shares outstanding as of March 31, 2016 is 127 185 856. These are divided into 6 284 130 A-shares and 120 901 726 B-shares.

STOCKHOLM on May 19, 2016

This interim report has not been reviewed by the company's Auditors.

For further information, please contact
Thomas Lundgren, CEO, Tel. + 46 (0) 70-397 25 24

Financial information
Quarterly report Q2 30 August 2016

Address

Delta Minerals AB (publ)
Box 26
SE-182 11 Danderyd, Sweden
URL: www.deltaminerals .se