ABX GROUP LIMITED — Capital/Financing Update 2013

Feb 13, 2013

==> picture [87 x 62] intentionally omitted <==

ASX ANNOUNCEMENT 14 February 2013

AUSTRALIAN BAUXITE LIMITED ASX: ABZ

Market Update

Australian Bauxite Limited ( ABx ) ( ASX: ABZ ) advises that is undertaking a fundraising in the order of some $2.5 million to sophisticated, eligible and/or professional investors, as defined under Section 708 of the Corporations Act.

In accordance with the requirements of Listing Rule 3.1 we submit the attached material being presented to brokers and investors.

For further information please contact:

Investor Relations, Henry Kinstlinger Australian Bauxite Limited Telephone: +61 2 9251 7177

About Australian Bauxite Limited: ASX Code ABZ

Australian Bauxite Limited (ABx) holds the core of the newly discovered Eastern Australian Bauxite Province. Its 41 bauxite tenements in Queensland, NSW and Tasmania covering 7,537 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. ABx conducts vigorous reviews of the commercial viability of its projects and tenements, resulting in new acquisitions, but also reductions in area as exploration is conducted.

The company’s bauxite is high quality and can be processed into alumina at low temperature – the type that is in short-supply globally. Global resources declared to date total 115.6 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 35% to 40% 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[3] maiden resource was declared at Guyra. A 24.5 million tonnes[4] 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. A 5.7 million tonnes[5] maiden resource has been declared for Tasmania. 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.

1 2 3 4 5 See JORC References on page 2

AUSTRALIAN BAUXITE LIMITED

ACN 139 494 885

Level 2 Hudson House 131 Macquarie Street Sydney NSW 2000 p: +61 2 9251 7177 f: +61 2 9251 7500

w: australianbauxite.com.au e: corporate@australianbauxite.com.au

2

ASX: ABZ

==> picture [423 x 505] intentionally omitted <==

ABx Project Locations

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 29/07/2012 ASX Binjour Maiden Resource, 24.5 Million Tonnes

• 5 08/11/2012 ASX Maiden Tasmania JORC Resource, 5.7 Million Tonnes

• 6 03/12/2012 ASX Maiden QLD Mining Lease JORC Resource, 3.5 Million Tonnes

==> picture [50 x 541] intentionally omitted <==

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

1
----- End of picture text -----

AUSTRALIAN BAUXITE LIMITED February 2013 Developing Eastern Australian Bauxite Projects Bauxite is the ore for aluminium and alumina ASX Code “ABZ”

==> picture [189 x 86] intentionally omitted <==

Level 2 131 Macquarie St Sydney NSW 2000 Australia Phone: +61 2 9251 7177 Facsimile: +61 2 9251 7500 E: corporate@australianbauxite.com.au

Ian Levy, CEO Mob: 0407 189 122 E: ilevy@australianbauxite.com.au

AUSTRALIAN BAUXITE LIMITED

ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

2
----- End of picture text -----

Aluminium: the most modern metal

==> picture [489 x 254] intentionally omitted <==

Figure: Hydro

==> picture [223 x 198] intentionally omitted <==

==> picture [93 x 82] intentionally omitted <==

& most recycled metal

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

3
----- End of picture text -----

==> picture [660 x 374] intentionally omitted <==

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

Aluminium market: 45% construction
45% consumption
Source: LME
Aluminium cost advantage over copper increasing
----- End of picture text -----

Fastest growing metal consumption Bauxite is strongest growing seaborne traded mineral commodity AUSTRALIAN BAUXITE BAUXITE LIMITED

AUSTRALIAN BAUXITE BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

4
----- End of picture text -----

Aluminium grows late in economic cycle - after iron ore, coking coal & copper

==> picture [647 x 175] intentionally omitted <==

==> picture [647 x 174] intentionally omitted <==

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

5
----- End of picture text -----

Market Fundamentals: New Industry Structure

Russia, China, India, Middle East: Modern Giant New Smelters

China, India

Australia, Indonesia

Figure: Alumina Limited

1 tonne

• Aluminium is fastest growing metal consumption • Oversupply as new smelters compete for market share • China’s bauxites declining; Indonesian bans/taxes tightening => Stronger demand Oz bauxite seaborne trade to China

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

6
----- End of picture text -----

China-Australia Trade

==> picture [678 x 419] intentionally omitted <==

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

Russia
Europe North
America
Asia
Country risk &
US supply &
transport limits
transport
Africa Hi limits
Australian low temp bauxite
temp
Lo will replace Indonesian
temp bauxite strongly in 2014
South
variable,
America
looming
bans & Australia
taxes
Australia will supply China’s 38 large refineries
Indonesian reductions, especially from 2014
----- End of picture text -----

ABZ bauxite deposits Other bauxite deposits Alumina Refineries

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

7
----- End of picture text -----

Indonesian bans & 20% taxes began 9 May 2012

Strong Chinese Bauxite Imports

Monthly Iron Ore Imports Into China (million tonnes per month – LHS scale) Monthly Bauxite Imports Into China (million tonnes per month)

==> picture [5 x 4] intentionally omitted <==

==> picture [4 x 4] intentionally omitted <==

==> picture [5 x 4] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

==> picture [4 x 5] intentionally omitted <==

==> picture [5 x 5] intentionally omitted <==

Sources: C&M, MBC & China Customs

Indonesian supply will reduce & prices increase a further 30% after 2014 AUSTRALIA’S & ABZ’S OPPORTUNITY IS NOW

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

8
----- End of picture text -----

22% Bauxite Price Rise after May 2012

==> picture [626 x 403] intentionally omitted <==

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

Prices
SPOT PRICES
US$/t CIF China
Indonesian bans & 20%
taxes began 9 May 2012
Sources: C&M, MBC & China Customs
----- End of picture text -----

Indonesian supply will reduce & prices increase a further 30% after 2014 AUSTRALIA’S & ABZ’S OPPORTUNITY IS NOW

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

9
----- End of picture text -----

Australia Bauxite Limited Exploration

2006 - 2009

• Chief Geologist Jacob Rebek discovered 80 bauxite deposits

• • Applied 3 selection principles:

1. good quality bauxite

1. proximity to infrastructure connected to export ports, &

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

• Only 17 deposits were selected for drilling Today

• 7 Deposits appear to be economically viable

• 3 Deposits targeted for early-development

• ABZ now controls the Eastern Australian Bauxite Province:

• 41 bauxite leases in QLD, NSW & Tasmania covering 7,537 km[2] 2. All leases 100% owned & free of processing obligations & free of 3[rd ] party royalties

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

10
----- End of picture text -----

==> picture [607 x 413] intentionally omitted <==

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

Australia Increasing Bauxite Exports
Forecast 30Mtpa Rio Investing $1.5 Billion: Hi-Temp Bauxite
Gove
Weipa 5 to 10 Mtpa by ABZ
Mitchell
Plateau
Lo-Temp Bauxite sold to
(Dormant)
Lo-Temp Refineries
World’s largest
alumina refineries
3 Binjour Project
Eastern
World’s largest bauxite &
Australian
alumina production
Mainly too Bauxite
Darling
low grade Ranges Province 2 Goulburn Projects
to export.
ABZ bauxite deposits (36)
Others’ Bauxite Projects (6)
Aluminium Smelters (6) 1 Tasmanian Project
Alumina Refineries (8)
----- End of picture text -----

Rio will export high temperature bauxite to China. ABZ will supply sweetener, low temperature bauxite

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

Costs & Timetable For Initial Projects

	Project	Date Tonnes pa
	▪Tasmania	2014 @0.7-1.5Mtpa
	Capex	A$10 million
	Opex	A$27 / t FOB
	▪Goulburn Sth	2015 @ 1-2Mtpa
	Capex	A$20 million
	Opex	A$30 / t FOB
	▪Goulburn Nth	2017 @ 2-3Mtpa
	Capex	A$90 million
	Opex	A$37 / t FOB
	▪Binjour QLD	2018 @ 1-5Mtpa
	Also:Toondoon granted, 25 year
11	Mining	Lease near Binjour

==> picture [347 x 207] intentionally omitted <==

==> picture [347 x 206] intentionally omitted <==

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

12
----- End of picture text -----

Corporate Details

ASX Code : ABZ Listed 24 Dec'09 at $0.20 Shares 107.2 million Options 3.7 million Market Cap ($0.30) $32.2 million Cash (31 Dec'12) $2.02 million = 1yr budget Share range $0.26 to $0.84 Avg Daily Volume 62,000

ABZ Shares Monthly Since 24Dec'09 A$

==> picture [355 x 164] intentionally omitted <==

2010 2011 2012

Major Shareholders Shares % Hudson Resources 47.7 million 44.5% State One Capital 7.2 million 6.7% Soul Pattinson 3.7 million 3.5% Top 20 Holders 74.9 million 69.9% Shareholders 993

Board of Directors John Dawkins[1] Non-executive Chairman Peter Meers Exec Dir & Vice Chairman Ian Levy CEO & Managing Director Jacob Rebek[2] Executive Director & CG Ken Boundy[3] Non-executive Director Wei Huang Non-executive Director Henry Kinstlinger Company Secretary

1. Past Australian Treasurer and Finance Minister 2. Chief Geologist Rebek is ex CRA (Rio) Chief Geo. Led the

. discovery teams at Century Zinc '93 & Eastern Australian Bauxite '06-09

1. Investor in Tasmanian tourism. Holds senior public positions

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

13
----- End of picture text -----

==> picture [263 x 302] intentionally omitted <==

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

Penrose NSW – old quarry. 14 December 2011
----- End of picture text -----

Section

Australia’s Thickest Bauxite

OUR BAUXITE: Low temperature type

• 116 Million tonnes now. +200Mt target

• Surface, easy mined, thickest bauxite in Australia

• Low-temperature, gibbsite bauxite, low silica, boehmite-free + 42% Al O 2 3 3% SiO2 & 23% LOI

==> picture [394 x 165] intentionally omitted <==

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

14
----- End of picture text -----

Good Logistics

==> picture [331 x 203] intentionally omitted <==

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

Goulburn NSW
----- End of picture text -----

==> picture [300 x 197] intentionally omitted <==

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

Bell Bay Tasmania
----- End of picture text -----

==> picture [410 x 237] intentionally omitted <==

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

Port Kembla NSW
----- End of picture text -----

Railways & highways deliver to export ports, all with large spare capacity

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

15
----- End of picture text -----

Simple Start-Up Projects in Tasmania & Goulburn South

==> picture [249 x 294] intentionally omitted <==

Potential Barge Port

==> picture [408 x 182] intentionally omitted <==

==> picture [408 x 181] intentionally omitted <==

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

16
----- End of picture text -----

Simple Start-Up Projects in Tasmania & Goulburn South

==> picture [202 x 234] intentionally omitted <==

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

Jacob Rebek in replanted blue gums
----- End of picture text -----

==> picture [302 x 234] intentionally omitted <==

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

High Grade Bauxite at surface
----- End of picture text -----

Drilling in scrub

==> picture [220 x 292] intentionally omitted <==

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

Bauxite at surface
----- End of picture text -----

==> picture [187 x 211] intentionally omitted <==

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

Drilling in plantation trees
----- End of picture text -----

Bauxite at surface AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

17
----- End of picture text -----

Forward Looking Statement

Whilst based on information from sources considered reliable, Australian Bauxite Limited ( ABx ), its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. Tothe maximum extent permitted by law, ABx disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequent ly comes to its notice, which may affect any of the information contained in this document and presentation.

JORC and Competent Person Statement

Information herein relating to Exploration Results, Resources and Resource Targets is based on information compiled by Ian Levy BSc MSc who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Levy is employed by ABx as Chief Executive Officer.

Mr Levy has more than five years experience relevant to the style of mineralisation and type of deposit being reported and to the activity which he is 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 Reserves’ (the JORC Code). This report is issued with the prior written consent of the Competent Person as to the form and context in which it appears.

Exploration Target Statement

ABx has an exploration target of 200 to 300 million tonnes of bauxite, based on Mineral Resources announced in mid 2010 of 35 million tonnes of bauxite at Inverell[4,5] from 15% to 20% of the known bauxite deposits on Exploration Lea se EL 6997 in northern NSW and 25 million tonnes of bauxite at Taralga[1,2,3 ] from approximately 50% of the bauxite targets on Exploration Lease EL 7357 in southern NSW . In accordance with the JORC Code, readers are advised that “ the potential quality and grade is conceptual in nature, that there has been insufficient exploration to define full Mineral Resources and that it is uncertain if further exploration will result in the determination of a Mineral Resource”. As first- pass drilling has proceeded across most of its tenements, ABx has seen no reason to vary its exploration target.

JORC Code Compliant Public Reports

The Company advises that this presentation contains summaries of Exploration Results and Mineral Resources as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). The following table references the location of the Code -compliant Public Reports or Public Reporting on which the summaries are based. These references can be viewed on the ASX website and the Company will provide these reports, free of charge, to any person who requests it.

Reference Reference	Issue Date Issue Date	Title of Notice as lodged with ASX
1	12/10/2011 28 07 2	BinjourMaiden JORC Resource JORC Resource Upgrade to 24.5 Million Tonnes
2	15/08/2011	Guyra Maiden JORC Resource 6.0 Million Tonnes
3	12/05/2011 30 2	Taralga Bauxite ResourceDoubled to 25 Million Tonnes Increased 50% to 37.8 Million Tonnes
4	06/12/2010 8 05 2	Taralga JORC Resource Update Inverell 38.0 Million Tonnes
5	02/09/2010 8 11 2	Inverell JORC Resource Update Tasmania Maid n JORC Resource 5.7 Million Tonnes
~~Maiden QLD Mining Lease JORC Resource 3.5 Million Tonnes~~ ~~6~~ ~~15/11/2011~~

Direct Shipping Ore

In this presentation all references to direct shipping ore ( DSO ) refers to the company ’s exploration objective of defining DSO grade mineralisation. The potential quantity and grade of exploration targets is conce ptual in nature, there has been insufficient exploration to defi ne a Mineral Resource and it is uncertain if further exploration will result in the de termination of a Mineral Resource.

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ

==> picture [50 x 541] intentionally omitted <==

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

18
----- End of picture text -----

Good Landholder Relations

==> picture [546 x 175] intentionally omitted <==

==> picture [546 x 176] intentionally omitted <==

ABZ endorses best practices on agricultural land to leave land & environment better than we find it.

We only operate where welcomed.

==> picture [44 x 39] intentionally omitted <==

AUSTRALIAN BAUXITE LIMITED ASX Code ABZ