ALTECH BATTERIES LTD — Capital/Financing Update 2012

Oct 18, 2012

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19 October 2012

Dear Optionholder

The Directors of Australia Minerals & Mining Group Ltd (“ AMMG ”) are pleased to announce a pro rata Offer (“ Offer ”) of one (1) new option (exercisable on or before 31 March 2014 at an exercise price of $0.20) (“New Option”) for every one (1) option (exercisable on or before 30 November 2012 at an exercise price of $0.20) (“ Listed Option ”) held by optionholders registered at 5.00pm (WST) on 30 November 2012 at an issue price of 1.0 cents per New Option to raise approximately $420,000.

All optionholders registered at 5.00pm WST on 30 November 2012 will be entitled to participate in the Offer. Generally, options purchased on market after 23 November 2012 will NOT be entitled to participate in the Offer. If you have any doubt, please consult your sponsoring broker.

The New Options will be issued at a cost of 1.0 cents per New Option. The latest trading price on ASX of the Listed Options prior to the date of this letter was 0.1 cents on 18 October 2012. After expenses of the Offer, any residual funds will be allocated to the general working capital of the Company.

All optionholders whose registered address is in Australia will be eligible to participate. Optionholders whose registered address is outside of Australia will not entitled to participate in the Offer.

As the Offer is an offer to holders of Listed Options, it does not meet the definition of a pro-rata issue under the Listing Rules. Accordingly, the Company will be seeking shareholder approval for the Offer and as such a notice of meeting will be sent to shareholders shortly.

Full details of the Offer will be contained in the Prospectus which will be lodged with the Australian Securities and Investment Commission and ASX Limited on or about Friday, 20 November 2012. The Prospectus will be available on ASX’s website and the Company’s website at www.ammg.com.au.

The Prospectus together with an Entitlement and Acceptance Form will be mailed to all eligible optionholders on or about 3 December 2012. Other key dates which optionholders should note are as follows:

26 November 2012 Listed Options trade ex-Entitlements on ASX 30 November 2012 Record date for determining Entitlements 3 December 2012 Opening Date and Prospectus dispatched to option holders 14 December 2012 Closing date for acceptances 21 December 2012 Expected date for allotment of New Options

Applications for New Options under the Offer may only be made by completing the Entitlement and Acceptance Form which accompanies the Prospectus. Optionholders eligible to participate in the Offer should read the Prospectus carefully. For further information on the AMMG Offer you should contact your professional adviser.

Yours faithfully

Piers Lewis Company Secretary

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