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ABX GROUP LIMITED Capital/Financing Update 2012

Jun 12, 2012

64283_rns_2012-06-12_c26ca957-4e65-4c12-80f3-30736ea20763.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT 13 June 2012

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AUSTRALIAN BAUXITE LIMITED ASX: ABZ

High Grade “Brown Sugar” Bauxite Extended at Binjour Bauxite Project Resource Upgrade Commenced South Binjour Bauxite Plateau Discovered

  • 133 new holes intersected high quality, thick bauxite at Binjour, Central QLD

  • Surface exposures of bauxite have been discovered in a new area in the southeast

  • Surface exploration further to the south and southeast has discovered the southern half of the Binjour Bauxite Plateau on the southern side of the Burnett River

  • This South Binjour Bauxite Plateau discovery with bauxite exposed at surface has been secured by a large Exploration Permit application EPMA 19742

  • Laboratory results from recent drillholes are being received and a resource upgrade for Binjour is underway

Emerging bauxite exploration and development company, Australian Bauxite Limited (ABx, ASX Code ABZ) has received laboratory and exploration results from drilling and surface exploration at its Binjour Bauxite Project in central QLD (see Figure 1).

133 holes drilled in 2012 have intersected a thick layer of bauxite located beneath a surface clay horizon, including some exceptionally high grade, thick gibbsite bauxite, ideal as a “sweetener” to any bauxite refinery. Complete results are listed in the Appendix and averaged in Table 1 as follows:

Table 1: Summary of 133 Drill Intercepts at Binjour, Central QLD

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86 holes +40% Al2O3
Strip Ratio
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Leach conditions to measure available alumina "Al2O3 Avl" & reactive silica "Rx SiO2" is 1g leached in 10ml of 90gpl NaOH at 143 degrees C for 30 mins. "A/S" ratio is Al 20 3/SiO 2. Values above 10 are excellent.

Australian Bauxite CEO Ian Levy said; “Binjour hosts a fine bauxite deposit, containing premium grade bauxite. It is very exciting to discover the southern half of the large Binjour plateau with bauxite lying right at surface.

“The Binjour Bauxite Project is destined to sell large tonnages of bauxite to alumina refineries needing “sweetener” bauxite that processes at low temperature and with low reactive silica contents.

“We call this “Brown Sugar” bauxite – sweet and greatly sort after. It will become a brand name.”

AUSTRALIAN BAUXITE LIMITED

ACN 139 494 885

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----- Start of picture text -----

Figure 1: Location
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Level 2 Hudson House 131 Macquarie Street Sydney NSW 2000 P: +61 2 9251 7177 F: +61 2 9251 7500 E: [email protected]

ASX Announcement 13 June 2011 Page 2

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South Binjour Bauxite Plateau Discovered

The South Binjour Bauxite Plateau has been secured by exploration permit application EPMA 19742 as shown in Figure 2 below. This prospect lies immediately south of the Binjour Bauxite Plateau across the Burnett River and contains bauxite at surface.

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Figure 2: ABx Binjour Bauxite Project with sample locations

ASX Announcement 13 June 2011 Page 3

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Bauxite at Surface on South Binjour Plateau

ABx has developed non-invasive sampling methods using a hand held XRF device, based on proprietary protocols developed by ABx. The following results come from analyses based on this method, which correlates laboratory obtained bauxite assays with the XRF field results. (Sample locations are shown on Figure 2).

Table 2: Surface Samples of Bauxite from South Binjour Bauxite Plateau Road Cuttings

Sample Al2O3
%

SiO2
%
A/S
Ratio
Fe2O3
%

TiO2
%

LOI
%
SB 2
SB 3
SB 4
47.9
3.9
12.4
16.6
2.8
25.3
43.4
8.1
5.4
23.7
4.0
18.7
45.3
7.3
6.2
24.2
4.0
18.2

Leach conditions to measure available alumina "Al2O3 Avl" & reactive silica "Rx SiO2" is 1g leached in 10ml of 90gpl NaOH at 143 degrees C for 30 mins. "A/S" ratio is Al203/SiO2. Values above 10 are excellent.

Logistical Setting

In addition to the sealed Burnett Highway, a disused rail line sits at the southern end of the Binjour lease which requires significant upgrading. Engineering studies and government discussions have been underway for several months to find a cost-effective solution. The Binjour Bauxite Project is near regional cities, power, water and a pro-development workforce.

Resource Estimation Underway

Good continuity of bauxite qualities and thickness on Swains Plateau led to a maiden resource estimation of 16.8 million tonnes in October 2011[4] . The extent of bauxite has been extended by drilling during 2012 and, subject to further laboratory results, a resource upgrade has commenced.

------oooo------

For further information please contact:

Investor Relations, Henry Kinstlinger, Australian Bauxite Limited

Telephone: +61 2 9251 7177 Fax: +61 2 9251 7500 www.australianbauxite.com.au Email: [email protected]

Qualifying statement

The information in this announcement that relate to Exploration Information are based on information compiled by Jacob Rebek and Ian Levy who are members of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Rebek and Mr Levy are qualified geologists and are directors of Australian Bauxite Limited.

Mr Rebek and Mr Levy have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 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 Resources. Mr Rebek and Mr Levy have consented to the inclusion in this announcement of the Exploration Information in the form and context in which it appears.

JORC Compliant Resource Statements

The following are Joint Ore Reserve Code (“JORC”)-compliant Public Reports released to the ASX declaring the JORC resources referred to. These can be viewed on the ASX website and the Company will provide these reports, free of charge on request.

1 08/05/2012 ASX Inverell JORC Resource Update, 38.0 Million Tonnes

  • 2 30/05/2012 ASX Taralga Bauxite Resource Increased 50% to 37.9 Million Tonnes

  • 3 15/08/2011 ASX Maiden Guyra Resource, 6.0 Million Tonnes

4 12/10/2011 ASX Binjour Maiden Resource, 16.8 Million Tonnes

ASX Announcement 13 June 2011 Page 4

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APPENDIX: BAUXITE INTERCEPTS AT BINJOUR

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ASX Announcement 13 June 2011 Page 5

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ASX Announcement 13 June 2011 Page 6

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86 holes +40% Al2O3
Strip Ratio
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Leach conditions to measure available alumina "Al2O3 Avl" & reactive silica "Rx SiO2" is 1g leached in 10ml of 90gpl NaOH at 143 degrees C for 30 mins. "A/S" ratio is Al203/SiO2. Values above 10 are excellent.

ASX Announcement 13 June 2011 Page 7

==> picture [87 x 76] intentionally omitted <==

Figure 3: Project Tenements and Major Infrastructure – 2Qtr 2012

==> picture [294 x 439] intentionally omitted <==

About Australian Bauxite Limited: ASX Code ABZ

Australian Bauxite Limited (ABx) holds the core of the newly discovered Eastern Australian Bauxite Province. Its 38 bauxite tenements in Queensland, NSW and Tasmania covering 8,250 km[2] were rigorously selected on 3 principles:

  1. good quality bauxite;

  2. proximity to infrastructure connected to export ports; and,

  3. free of socio-environmental or native title land constraints.

All tenements are 100% owned and free of obligations for processing and third-party royalties. ABx has already discovered many bauxite deposits and new discoveries are still being made as knowledge and expertise grows.

The company’s bauxite is high quality and can be processed into alumina at low temperature – the type that is in shortsupply globally. Global resources declared to date total 98.7 million tonnes. At the company’s first drilling prospect in Inverell, northern NSW, a resource of 38.0 million tonnes[1] has been reported from drilling 15% to 20% of the area prospective for bauxite and a resource of 37.9 million tonnes[2] of bauxite has been reported at the Taralga project in southern NSW. A 6.0 million tonnes maiden resource was declared at Guyra[3] . A 16.8 million tonnes[4] maiden resource has been declared at the Binjour Plateau in central QLD, confirming that ABx has discovered a significant bauxite deposit including some bauxite of outstandingly high quality. Australian Bauxite Limited aspires to identify large bauxite resources in the Eastern Australian Bauxite Province, which is emerging as one of the world’s best bauxite provinces.

ABx has the potential to create significant bauxite developments in three states - Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.

ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.