Front and Back
Sew 2 Black and 2 White rectangles together to form a larger rectangle, like a chequer-board.

Using Soft Cotton, work Running Stitches along the seam lines on the Black felt pieces, 0.5 cm away from the machine-stitching line.

Draw the Template from the diagram onto paper, enlarging to dimensions shown (or enlarge to desired size).

Place Template on felt rectangle so that the intersection of the seams of the rectangle is to one side of the Template as shown in photograph. Cut out from felt, transferring markers. 

Lining
Place Template on lining fabric and cut out 2 pieces.

With right sides together and using 0.5cm seam allowances, sew seam around lower edges of Bag between markers.

Work the Lining to match.

Turn Bag to right side and clip seam allowances to markers.

Place Lining around outside of Bag to enclose it. Pin side edges of Bag and Lining together above markers and machine stitch.

Turn Lining to inside of Bag.  

Machine-sew with a zigzag stitch across the top raw edges of front and Back to neaten raw edges. Thread one side through a handle and pin in place, enclosing handle. Tack then machine stitch in place. 

Using Anchor Soft Cotton, work a small Back Stitch across the hem to finish.  Work other side to match.