ALTECH BATTERIES LTD — Capital/Financing Update 2012

Jun 6, 2012

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MEDIA/ASX RELEASE 7 JUNE 2012

POSITIVE RESULTS AT SOUTHDOWN EXTENSION IRON ORE PROJECT, ALBANY

HIGHLIGHTS

• Davis Tube Recovery (DTR) results produce a beneficiated concentrate with an average 68% iron at a ‘coarse’ grind size of -75 microns.

• Stage 1 drilling program expands our knowledge of the magnetic anomaly as mineralised and provides the metallurgical understanding of the iron mineralisation.

• The positive metallurgical results have given AMMG the confidence to continue with the remainder of stage 1 diamond drilling to complete the exploration hole.

• AMMG has acquired the outstanding 20% interest in tenement E70/2640 on similar pro-rata terms to the initial purchase.

• Southdown Extension project is located approximately 80kms from the port and town of Albany.

• Port of Albany is proposing to upgrade its capacity to handle cape-sized vessels.

Australia Minerals and Mining Group Limited ( ASX: AKA ) (“AMMG” or “the Company”) is pleased to announce that the first round of reverse circulation (RC) drilling at its 100% owned Southdown Extension Iron Ore Project (“Southdown Extension”) has produced positive metallurgical test work results, with Davis Tube Recovery (DTR) analysis producing an average concentrate grade of 68% iron with mass recovery of up to 35.6% , low silica and low alumina. Results are presented in Table 1 below.

The first phase drilling program consisted of 294 metres of RC drilling with three (3) drill holes averaging 100 metres to test magnetic anomalies identified via ground geophysical work and further define the magnetite mineralisation (see Figure 1 below).

AMMG’s Managing Director, Mr Ric Dawson, said “The results are highly encouraging for the Company to pursue further exploration at the Southdown Extension project. The iron concentrate has recorded a 68% result and a mass recovery of over 35%. With a coarser grind size than has previously been reported in the area, this has the benefit of lower energy input in a processing plant”.

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Hole ID	Co-ordinates	From	To	Head Grade Fe(%)	Mass Rec (%)	Fe (%)	Al2O3 (%)	P (%)	S (%)	SiO2 (%)	lg.loss (%)
SDRC002	629,116E 6,177,443N	52	56	24.6	21.1	68.9	1.52	0.002	0.074	1.00	-3.19
SDRC002	629,133E 6,177,253N	71	76	19.9	11.8	68.6	1.29	0.003	4.8	1.28	-1.50
SDRC003	629,133E 6,177,253N	76	80	32.6	35.6	68.1	1.58	0.002	0.863	1.10	-3.17
WSD001*	630,300E 6,177,812N	149	161	33.9	38.8	65.5	1.37	0.02	0.18	2.68	N/A
WSD002*	625,770E 6,144,470N	121	127	31.4	36.0	64.8	1.72	0.02	0.52	3.19	N/A
WSD003*	621,540E 6,178,219N	101	110	29.4	41.0	68.9	1.32	0.01	0.05	2.39	-2.91

Notes: The grind size was -75 micron; lg.loss: Loss of ignition (chemically bound water); Co-ordinates are GDA94 Zone 50; DTR results from 2007 diamond drill program; Grind size was -20 micron; Refer to Appendix 2 for detailed results.

Table 1. Significant results from Davis Tube Recovery (DTR) metallurgical analysis from stage 1 drilling program and previously reported drill holes

The ‘sighter’ DTR results above give a clear understanding that the magnetite material is suitable to beneficiate to a market accepted iron concentrate of approximately 68% with low silica and low alumina impurities. The mass recovery percentage is acceptable for industry norms when beneficiating a magnetite.

Of significance is that these DTR analyses were conducted at both -38 micron and -75 micron indicating little difference in the mass recoveries and iron concentrate percentages between the differing grind sizes. This allows for a coarser grind size to be planned in the Company’s potential future plant configuration when compared to the published grind size at the adjacent Southdown Magnetite Project, as well as the majority of published grind sizes for other Yilgarn Craton magnetite projects.

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SILSTONE
SANDSTONE
CLAY
BASEMENT
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Figure 1. Geological cross section showing AMMG drill hole locations and proposed diamond drill hole

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Figure 2. Map showing total magnetic intensity (TMI) within tenement E70/2640 with AMMG stage 1 RC drill holes and Minemakers’ diamond drill hole locations

Previous holders, Minemakers (ASX: MAK), announced in 2007 that strong magnetite mineralisation had been intersected during a successful diamond drill hole program (see Figure 3 below). The DTR analysis indicated a coarse grind magnetite using over 20 micron grind size with an average iron concentrate at 66%. Three targets over 9.4km strike length were targeted (ASX: MAK, 25/03/07), with results in Table 1 above.

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Target Length 9.4km
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Figure 3. Map showing previous drill hole locations and target areas along 9.4km strike length

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Stage 1 Ongoing Drill Program

Based on the metallurgical test work results, the Company is currently planning a follow-up diamond drilling ‘tail’ to extend the known depth of the expected mineralisation (refer to Figure 1 above). The diamond drilling program is anticipated to commence in July 2012. Due to the unexpected depth of overburden and the rig capacity, SDRC001 did not reach the geophysics target.

Top Up to Own 100% Equity

In October last year, AMMG announced that it had acquired Minemakers’ 80% interest in the West Southdown Project.

AMMG has recently entered into a purchase agreement for the remaining 20% interest with the holders of tenement E70/2640. The terms are pro-rata to the sales agreement with Minemakers Limited, and are:

1. AMMG issuing 1,250,000 ordinary fully paid shares to Vendors 2. AMMG granting 500,000 20 cent options to Vendors; and

2. Assignment of relevant Land Access Agreements.

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Figure 4. Drilling rig used for stage 1 drilling program at Southdown Extension Project

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Figure 5. AMMG’s 100% owned Southdown Extension Project lies along strike from Grange Resources’ Southdown Magnetite Project

ENDS

For more information on AMMG please see below or contact:

Ric Dawson Tony Dawe Managing Director Professional Public Relations Pty Ltd T: +61 8 9389 5557 T : +61 8 9388 0944 ric@ammg.com.au tony.dawe@ppr.com.au

Competent Persons Statement

Technical information in this report is based on information compiled by Mr Michael O’Mara, B.Sc. Geology, AMMG Chief Geologist and a member of the Australasian Institute of Geoscientists. Mr O’Mara has sufficient exploration experience, which is relevant to the styles of mineralisation and types of deposit under consideration 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’ (“JORC 2004”). Mr O’Mara consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

About AMMG

AMMG 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 directors believe may have the potential for the realisation of economic resources of these commodities currently targeted, being - iron ore, gypsum, kaolin/aluminous clay, mineral sands, salt and coal.

The Company itself or under joint venture now has 18 granted tenements and 43 applications for tenements covering approximately 12,383km[2] over the project areas. AMMG is pursuing a diversification strategy at this stage of the Company’s development in order to provide additional development options and potential production opportunities.

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Appendix 1

Stage 1 Drill Program – Drill Locations

Hole_Id	East	**North **	Casing (m)	Type	Dip	Azi	**Depth **	Grid
SDRC001	629048	6177443	75	RC4.5	-90	360	102	GDA_94_50
SDRC002	629116	6177302	50	RC4.5	-90	360	96	GDA_94_50
SDRC003	629133	6177253	13	RC4.5	-60	335	96	GDA_94_50

Appendix 2

Stage 1 Drill Program – Results of DTR Metallurgic Test Work

						HEAD GRADE							DTR CONCENTRATE
				Al2O3 %	Fe %	P %	S %	SiO2 %	Total %	LOI %	Mass Rec %	Al2O3 DTR%	Fe DTR%	P DTR%	S DTR%	SiO2 DTR%	Total DTR%	LOI DTR%
Hole ID	From	To	SAMPLE
SDRC002	52	56	SD001 +38um
				7.93	24.91	0.086	0.879	41.8	102.20	1.86	20.10	1.52	68.78	0.002	0.063	1.08	99.99	-3.01
SDRC002	75	80	SD002 +38um
				11.70	13.29	0.106	0.152	47.6	100.00	-0.48	3.17	IS	IS	IS	IS	IS	IS	IS
SDRC002	80	85	SD003 +38um
				11.35	16.06	0.157	0.190	44.9	99.99	-0.86	4.71	IS	IS	IS	IS	IS	IS	IS
SDRC003	59	64	SD004 +38um
				11.75	15.45	0.166	0.184	46.1	99.98	0.02	6.41	IS	IS	IS	IS	IS	IS	IS
SDRC003	71	76	SD005 +38um
				9.24	20.82	0.044	3.290	48.8	109.50	1.63	10.75	1.19	68.30	0.004	4.720	1.23	0.00	-0.94
SDRC003	76	80	SD006 +38um
				4.26	32.00	0.059	0.636	41.5	99.98	-0.96	34.20	1.46	67.68	0.003	0.861	1.28	100.00	-2.67
SDRC002	52	56	SD001 +75um
				7.91	24.58	0.090	0.860	40.5	99.99	1.69	21.10	1.52	68.93	0.002	0.074	1.00	99.99	-3.19
SDRC002	75	80	SD002 +75um	11.80	13.19	0.110	0.150	47.4	99.99	-0.30	3.34	IS	IS	IS	IS	IS	IS	IS
SDRC002	80	85	SD003 +75um
				11.45	15.87	0.161	0.185	44.8	100.05	-0.70	4.63	IS	IS	IS	IS	IS	IS	IS
SDRC003	59	64	SD004 +75um
				11.60	15.84	0.156	0.186	45.6	100.00	0.05	8.25	1.54	67.36	0.004	0.032	1.44	99.99	-3.76
SDRC003	71	76	SD005 +75um
				9.16	19.99	0.043	2.330	48.6	104.90	1.12	11.80	1.29	68.64	0.003	4.800	1.28	0.00	-1.50
SDRC003	76	80	SD006 +75um
				4.10	32.60	0.056	0.667	41.0	99.96	-0.88	35.60	1.58	68.11	0.002	0.863	1.10	99.99	-3.17

IS: Insufficient Sample