ALTECH BATTERIES LTD — Capital/Financing Update 2011

Feb 13, 2011

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MEDIA/ASX RELEASE

14 FEBRUARY 2011

SURFACE MINERAL RIGHTS OBTAINED AT ADVANCED KAOLIN PROJECT, MECKERING WESTERN AUSTRALIA

Meckering, WA

• Land access to surface mineral rights with landowners obtained within E70/3923, containing 65Mt of kaolin comprising 16.77Mt indicated and 48.28Mt inferred JORC resource

• Tenement area covers cleared freehold degraded farmland - Native Title extinguished

• Potential for near-term production within close proximity to existing road, rail and ports

• Meckering Project exploration target* potential expanded

Kellerberrin, WA

• Exploration target potential* at Kellerberrin Project expanded

Kerrigan, WA

• Data review provides exploration target potential* at the Kerrigan Project

Combined Exploration Target Potential*

• The three projects combined target potential* has a range of 245Mt to 390Mt of Kaolin

Marketing

• Planned strategic co-operation and technical marketing study for potential customers and joint venture partners – China, South-East Asia and USA

*The term “Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve

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Australia Minerals and Mining Group Limited ( ASX: AKA ) (“AMMG” or “the Company” ) is pleased to announce that it has successfully negotiated land access with the private rural freehold landowners on some 24 properties for the surface mineral rights on all areas contained within the JORC resource area on E70/3923 at its advanced Meckering Kaolin Project in Western Australia.

The properties are relatively large rural cleared farmland currently used for cropping and grazing. The landowners of the area have expressed a strong desire to pursue alternative land use activities and rehabilitation practices. Native Title is extinguished due to the areas being cleared private freehold land, and as the original vegetation has been cleared for cropping over approximately 50 years ago.

The 100% owned tenement is located adjacent to the small Wheatbelt town of Meckering in Western Australia located approximately 130 kilometres from Perth, the capital city of Western Australia. The exploration licence covers known kaolin deposits and carries a JORC mineral resource of 65Mt comprising 16.77Mt of indicated resource and 48.28Mt of inferred resource.

Regional Map

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Figure 1: Map of Meckering Kaolin Project - E70/3923 (Roads marked in red, rail marked in black)

The granted exploration licence E70/3923 is a 63 sub-block licence covering approximately 184 square kilometres, and is located 30 kilometres to the east of the major Wheatbelt service town of Northam. The tenement is bisected by the Great Eastern Highway and the Trans-Australia standard gauge railway, and is in proximity to the major ports of Albany, Fremantle, Kwinana and Bunbury. The licence is also within close proximity to Western Power’s (South-West Interconnected System) SWIS transmission line and traversed by the Goldfields’ water pipeline.

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A trial mine pit is located in the area of the land access agreement, as shown in Figure 2 below. A trial processing plant was also established at the nearby Avon Valley Industrial Park by Swan River Kaolin Pty Ltd.

Test Pit

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Figure 2: Kaolin test pit at Kelly Prospect, Meckering Project located on tenement E70/3923

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Chemical Analysis

The Company continues to assess the quality of the kaolin samples with historical test results below indicating high levels of alumina (AI203) at approximately 38%, being in the upper percentile for known grades globally. Additionally low impurities of iron (Fe203) and titanium (TiO2) add to the attractiveness of the product.

SiO₂	Al203	Fe2O3	TiO2	CaO	MgO	Na2O	K2O	MnO	P2O5	Ig.loss	Total
45.86	38.32	0.43	0.56	0.05	0.17	0.45	0.27	0.00	0.05	13.83	100.00

Exploration Update – Expanding Project Areas

The Company has recently acquired via application a further four tenements adjoining or contiguous to the granted tenement. The Meckering Project tenement area now comprises some 966 square kilometres (see Figure 3 below). In addition, the Company has applied for new tenements at a new area located near Kellerberrin.

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Figure 3: AMMG tenement areas

AMMG has applied for additional exploration licences in the vicinity of its granted Meckering licence, E70/3923, which contains a combined 65Mt indicated and inferred kaolin resource (for full details please see announcement of 13[th] January 2011).

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Figure 4: Meckering resource and exploration target* location

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Exploration Target* Potential Upgrade

There are numerous areas prospective for extensions to the kaolin resource around the defined Meckering resource. AMMG requested Geos Mining, minerals consultants, to evaluate these areas to determine potential exploration target* tonnages as detailed below.

Meckering Project

Kaolin in this region is related to lateritic weathering of predominantly granitic source rocks, with kaolin developed in the pallid zone below a laterite and usually overlying weathered granites. There are widespread areas prospective for high quality kaolin resources within the project area as indicated by geomorphology, geology, presence of laterite and topography. There are two main areas where previous drilling has intersected kaolin: in and around the Meckering resource area, and southeast of Tammin within E70/4035.

The Meckering exploration target areas are shown in Figure 4. Expected thicknesses have been derived for each area and range between 4 to 12m of kaolin. Using a bulk density of 1.6, the estimated exploration target tonnages range from 75Mt to 130Mt , potentially of similar quality to the current Meckering resource (80 to 83% raw ISO brightness from minus 45 micron kaolin).

The Company is in the process of determining potential exploration target tonnages the extensions to the Meckering based on historical drill hole data and outcrop geology.

Kellerberrin Project

At Kellerberrin/Tammin, previous drilling has produced some very good intersections of thick bright kaolin, but results have been patchy, and the drilling was too limited to permit estimation of a resource. Extrapolation of areas from the better drilling results has permitted estimation of an exploration target of 70Mt to 110Mt* of thick kaolin (expected 10 – 14m thick). Target areas are shown in Figure 5.

Note that in both cases, the Meckering and Kellerberrin Projects, the tonnages and quality for exploration targets are conceptual in nature, as there has been insufficient drilling to define a mineral resource, and that it is uncertain if further drilling will result in the determination of a resource.

Elsewhere, although kaolin prospectivity is good over significant areas of the tenements, scout drill testing will be required before any potential tonnage targets can be estimated.

*The term “Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve

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Figure 5: AMMG potential target* areas

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Kerrigan Project

The Company has determined an exploration target* for the Kerrigan Project based on historical drill hole data and outcrop geology.

At the Kerrigan Project (Figure 6 below), previous drilling by CRA Exploration (now Rio Tinto) during 1997 has produced some very good intersections of thick bright kaolin, but results have been patchy. Extrapolation of areas from the better drilling results has permitted estimation of an exploration target of 100Mt to 150Mt* of thick kaolin (expected 10 – 14m thick).

Graphite Holdings Pty Limited and CRA Limited (The CRA JV) previously worked the project area between 1993 and 1995, drilling a combined total of 247 RC, aircore and PQ3-core holes. Most holes were drilled to around 30m, although one was drilled to 116m with no water being intersected.

The CRA JV worked up an area called the Bradley Deposit (Figure 6 below) which contains crude kaolin to a maximum depth of 30metres: (<10 micron kaolin clay at a grade of 45% kaolin).

More widely, the Kerrigan Project of CRA Exploration contained crude kaolin, with some portion being contained within nature reserves (Class A & C). CRA withdrew from the project around 1997. The project was then held by Blackjade Holdings Pty Limited (Dec. 1998 to 2008). They entered into a JV with Minerals Corporation Limited as manager in 2000 (“Min Corp JV”). Work carried out by the Min Corp JV included:

Two sample pits were excavated in 2000 and a sample was analysed by Sam Pickering Labs, Georgia, USA. Six tonnes of ore was also processed through a Minerals Corporation pilot plant with the kaolin being superior to ECC International filler (a supplier of china clay) it was trialled against. A processed fines product had exceptional brightness of ISO 91.6% and superior glossing and blending properties. A 500kg sample of kaolin was tested by Balpa Investments, Finland for potassium chloride filler tests and paper printing tests in 2001 and gave ‘excellent results’ according to their report.

In 2000 the JV commissioned two feasibility studies for a 100,000tpa kaolin paper filler grade operation, which gave widely different sets of numbers.

1. One study was based on: mine at Kerrigan, transport of ore to plant at Narrogin, transport of product to port of Bunbury and included port facilities (CAPEX). Narrogin was chosen for the plant due to lack of infrastructure at Kerrigan. Project returns were severely curtailed by the low product yields, but would be increased if a market for the reject kaolin could be found.

2. The other study was based on: mine at Kerrigan, transport of partially screened ore to plant at Narrogin, annual production of 100,000 t of filler product and 65,000 t of ultra high brightness product, production of a washed sand product, transport of product to port of Bunbury and included port facilities (CAPEX), and state government incentives available at the time.

*The term “Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.

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The production of further material for trials in Finland was planned and approved in 2002, however, it was curtailed by a long term legal dispute with Rio Tinto.

During 2007, further bulk sampling was undertaken for process evaluation, new sample product manufacture and eventual performance appraisal in specific industrial applications. Work completed on the samples involved:

• Process studies, large sample preparation and property measurements: USA - Bloodworth Laboratories, Macon, Georgia, USA.

• Performance evaluations: Japan – Paper industry client, Tokyo, Japan

• Performance evaluations: USA – Paint industry consultant, Georgia, USA

• Performance evaluations: Japan – Paint industry client, Tokyo, Japan

Subsequent assessment showed the Bradley Deposit kaolin processed extremely well to give one hydrous product with exceptional pigment brightness and whiteness. The resulting hydrous pigment has been compared with current commercial kaolin grades from USA and Brazil and has been shown to be very similar in physical and rheological properties but noticeably superior in optical properties.

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Figure 6: Kerrigan Project outlining the Bradley deposits

The Company is confident to advance to the next stage of exploration, based on the information above; a database is being developed by AMMG to collate historical drill holes into digital form that will allow for a JORC resource to be defined by mid-2011. From this new database a process for determining the next round of infill drilling can occur.

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Table: Project Areas

Project	Indicated (Mt)	Inferred (Mt)	Exploration Target (Mt)*	Tenement Licences (km2)
Meckering (Granted EL)	16.77	48.28	75 to 130	184
Meckering (Application EL)	-	-	To be assessed	782
Kellerberrin	-	-	70 to 110	459
Kerrigan	-	-	100 to 150	408
Total	16.77	48.28	245 to 390	1833

*The term “Target” should not be misunderstood nor misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the term has not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve

Marketing

The Company plans to undertake a Strategic Co-operation road show to China later this month to showcase the advanced Meckering and other projects.

Competent Persons Statement

Information in this report relating to kaolin resources and conceptual target potential for Meckering and Kellerberrin Projects is based on information compiled by Sue Border, who is a Fellow of the AusIMM and of AIG and is a consultant employed by Geos Mining. She has sufficient relevant experience to qualify as a competent person as defined in the 2004 edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC code). Sue Border consents to the inclusion in this report of this information in the form and context in which it appears.

Information in this report relating to kaolin potential target potential for Kerrigan Project is based on information compiled by Derek Judkins, who is a Member of the AusIMM and is an employee of AMMG. He has sufficient relevant experience to qualify as a competent person as defined in the 2004 edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC code). Derek Judkins consents to the inclusion in this report of this information in the form and context in which it appears.

ENDS

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For more information on Australia Minerals and Mining Group please see below or contact:

Ric Dawson Managing Director T: +61 8 9389 5557 ric@ammgcom.au

Karen Oswald

Professional Public Relations Pty Ltd T : +61 8 9388 0944 karen.oswald@ppr.com.au

About AMMG

Australian diversified resources company, AMMG, listed on the ASX in January 2010. The Company was established for the purpose of securing exploration ground over areas that have typically been subject to historical exploration and where significant geological data was available and/or the land was considered sufficiently prospective. Areas with existing or potential access to infrastructure were also targeted.

To date, the Company has identified project areas located in Western Australia and Queensland, which the Board believes may have the potential for the realisation of economic resources of these commodities currently targeted - iron ore, kaolin, gypsum, mineral sands, salt and bentonite.

The Company has nine granted tenements and 35 applications for tenements covering approximately 7,440 km² over the project areas.

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