ALTECH BATTERIES LTD — Capital/Financing Update 2014

Sep 18, 2014

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19 Septemb e r 2014

AMMG SELECTS MECKERING AS KEY FEED TO HPA CHEMICALS PROJECT

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Highlights

• A M MG selects Meckering a s key feed to HPA chemic a ls project

• M o st advanced aluminous clay deposit w ithin the Co m pany’s portf o lio

• Q u ality of ore; c lose to Pert h ; previous mining; landholder agreem e nts; and proj e ct accessibility

• J O RC-complia n t indicated and inferred r e source of 6 5 Mt

• S m all crushing , drying and s creening op e ration propo s ed at Meck e ring

• D e posit will su p port a HPA p lant operati o n for more than 100 year s

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Australia Minerals and Mining Gr o up Limited (ASX: AK A ) (AMMG/the C ompany) is pleased to a n nounce that i t has selected the Meckeri n g aluminous clay deposit a s the key supply feedsto c k material for its HPA chemicals proj e ct (the Pro j ect). AMM G currently holds pending t e nements ov e r aluminous clay assets a t Gibson (Esp e rance), Kerrigan (Hyden), Bobalong ( T ambellup) and both pendin g and grante d tenements a t Meckering. The Company has now sel e cted the Me c kering depos i t as it is the m ost advanced aluminous cl a y project wit h in the Comp a ny’s portfolio.

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The Meckeri n g deposit gi v es the Company access t o an abundant, low-cost alu m inous clay f e edstock, whi c h has alread y been purified and proces s ed by a nat u ral weatheri n g process o v er millions o f Figure 1 – Location of Meckering Aluminous Clay Pro1 – Location of Meckering Aluminous Clay ProMeckering Aluminous Clay Proinous Clay Project years. As a result, the d i rect ore feed contains ver y low levels o f impurities in c luding iron, ti t anium, sodium, calcium, p o tassium and magnesium. T he main im p urity is insoluble silica, whi c h can be easil y filtered during the proces s ing.

Figure 1 – Location of Meckering Aluminous Clay Pro1 – Location of Meckering Aluminous Clay ProMeckering Aluminous Clay Proinous Clay Project

By contrast, bauxite ore used to pro d uce alumina and alumin u m metal contains around 22% iron c o mpared to t h e aluminous cl a y feedstock a t Meckering, which contai n s 0.7% iron ( See Table 1). Based on t h e informatio n in the recen t ly completed I n tegrated Stu d y, the relativ e ly pure ore f e edstock allo w s AMMG to p roduce a hi g h value, high margin prod u ct at significant l y lower oper a ting and capi t al costs than almost all of its global HP A competitors.

The other m a in advantag e of the depo s it is that it h a s been previ o usly mined and is in relati v e close proximity to Perth at approximate l y 130km and is accessed v ia the 8km L e ming Road t o the Great E a stern Highw a y.

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Australia Minerals and Mining Group Limited ABN 45 125 301 206

Tele p hone: +61 8 9 389 5557 Facsimile: +61 8 9 389 5510 Web s ite: www.am m g.com.au

3 Bay Road Claremont, W estern Australi a 6010 Australia

The Compa n y proposes its HPA plan t to be locat e d in Perth ( 1 30km), whic h keeps trans p ort costs do w n as only rel a tively low an n ual tonnage s of ore will b e required.

The exploration licence covers priva t e freehold c leared farmland with ke y landowner a g reements and surface rights already in p lace.

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Figure 2 – Typical Meckering Aluminous Clay

Table 1 – Typical Analysis of Ore Feed Stock

	Baux ite	Canadian H (typ PA Project ical)	AMMG Alum **(typ inous Clay** ical)
	Darling Rang e(typical)*
Al2 O3 (%)	34. 5	22. 77	30 .5
Si O2 (%)	21. 5	53. 29	56 .3
Fe 2O3 (%)	21. 2	8.3 6	0.7
Ti O2 (%)	2.0 0	0.9 8	0.7
K 2O (%)	0.2 4	3.4 1	0.2
Ca O (%)	0.01 5	0.6 5	0. 1
Na O (%)	0.00 5	1.4 2	0. 1
Mg O (%)	0.0 1	1.6 7	0. 1
L OI (%)	18. 1	-	-

Geochemical and min e ralogical characte r istics of bauxites, D arling Range, W e stern Australia, Applied Geochemist ry ** H P* A Plant Feed

Background and JORC Resource

The Compa n y’s 100%-o w ned Meckeri n g project wa s subject to e x tensive historical explorat i on activities b y CRAE in t h e early 1990’s and Swan Ri v er Kaolin (S R K) in 2005.

The explora t ion was foc u sed on a l a rge tonnag e deposit in o rder to pro v ide high bri g htness kaolin for industr i al applications such as cera m ics and pa p er coatings. F rom SRK’s e xploration a JORC compliant indicated and inferred resource of 65Mt @ 83 . 4% brightne s s was devel o ped with co n sultants Ge o s Mining. S R K mined th e deposit, usi n g conventional open pit met h ods, to obtai n a bulk sam p le for test work. In total 48 tonnes of ra w kaolin was p rocessed in t h e SRK pilot pl a nt near Northam. Approxi m ately 19 ton n es of kaolin p roduct was s u ccessfully pr o duced to co m mercial qual i ty (40% recovery) and samp l es were sent to potential e n d-users.

Figure 3 – View of current open pit and access road

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Proposed Mining Operation AMMG’s HP A mining ope r ation will co m prise of a sm a ll crushing, d rying and scr e ening plant l o cated at the Meckering sit e .

The mining o f approximately 26,000tp a is proposed to be campa i gn-mined on c e every two t o three year s . The crushi n g and screeni n g process is e nergy efficient as it is ba s ed on the aluminous clay m aterial, whic h contains a large proporti o n of natural fi n es and is s o ft and friabl e . The operation is suppo r ted by the n e ar-surface n ature of the aluminous cl a y material, wh i ch is found a t surface under a shallow overburden of clays. The n atural fines o f less than 0.5mm with hi g h alumina and low silica content is an ide a l feed size fo r the HPA op e ration.

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Figure 4 – Meckering aluminous clay deposit has excellent transport infrastructure

The crushed clay will be d ried to remo v e any moist u re and to all o w efficient d r y screening. The dried al u minous clay screened to remove the o versize (>0. 5 mm) which i s predominan t ly quartz an d silica. Th e less than 0. 5 mm product transferred t o site storage bins where it will be transp o rted to Perth for processing at the HPA plant.

The simple s creening pro c ess is expe c ted to upgra d e the alumin o us clay from around 19% Al2O3 to aro u nd 30% Al2 O 3. Due to the very low tonn a ge of ore required, the M e ckering oper a tion will likel y operate on a five-day pe r week day s h ift basis emplo y ing 2-3 operators. The a nnual mined tonnage is a round 26,000tpa and th e HPA plant feed is arou n d 12,500tpa. A t a JORC re s ource of 65 m t, the deposi t will support a HPA plant o p eration for m ore than 100 years.

Figure 5 – Proposed Operation at Meckering Aluminous Clay Deposit

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Figure 6 – Proposed Operation Layout at Meckering Aluminous Clay Deposit

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Figure 7 – AMMG aluminous clay stockpile used for pilot plant work

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Managing director, Mr Ig g y Tan said that Meckeri n g deposit w a s chosen d u e to the or e ’s exception a l quality; clo s e proximity to capital city P erth; the Yil g arn Craton w eathering process natur a lly removing impurities i n this resour c e; substantial previous minin g ; establishe d key landhol d er agreemen t s; and good t r ansport acce s s.

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For m ore information, please contact:

Corporate Media Contact Ig g y Tan Tony Da w e M a naging Director Consulta n t Au s tralia Minerals & Mining Group L td Professional Public Relati o ns Te l : +61 8 9389 55 5 7 Tel (offic e ): +61 8 9388 0 9 44 E m ail: info@ammg . com.au Email: to n y.dawe@ppr.c o m.au

About AMMG (ASX: AKA)

AMMG is a i ming to becom e the world’s le a ding supplier of 99.99% (4N) h i gh purity alumi n a (HPA) (Al2O3) whi c h is the major source material for scratch-resi s tant artificial sa p phire glass, us e d in the next generation o f smartphones a nd portable tab l et devices. HP A is also used i n the production of LED’s, abrasives, c eramics and a g rowing range o f high-performance electronic applications. The global HPA market is approximatel y 20,000tpa and i s expected to d o uble over the coming decade.

Current HP A producers use a n expensive an d highly process e d feedstock ma t erial such as alu m inum metal to p roduce HPA qu a lity product. A M MG is one of o n ly two compani e s in the world th a t report the ability to produce 4 N HPA directl y from an ore fe e dstock, such as aluminous clay. AMMG emplo y s a well-established processing t echnology to e x tract HPA from a low-impurity aluminous clay f eedstock sourc e d from the Com p any’s 100%-ow n ed Meckering p r oject in Wester n Australia.

AMMG has produced test q uantities of 4N HPA product a n d is now adva n cing a Bankabl e Feasibility St u dy (BFS) to de v elop a full-scal e 3,000tpa pr o duction facility. AMMG is a c h emical process i ng group focus e d on creating a high-margin pr o duct to meet the growing glob a l demand for t he next generat i on of high-perfo r mance electroni c applications.

Forward-looking Statements

This announcement contains for w ard-looking state m ents which are id e ntified by words s uch as ‘anticipate s ’, ‘forecasts’, ‘ma y ’, ‘will’, ‘could’, ‘b e lieves’, ‘estimates’, ‘targets’, ‘expe c ts’, ‘plan’ or ‘inte n ds’ and other si m ilar words that in v olve risks and u n certainties. Indica t ions of, and guid e lines or outlook o n, future earning s , distributions o r financial positio n or performance and targets, esti m ates and assum p tions in respect of production, pri c es, operating co s ts, results, capit a l expenditures, r eserves and reso u rces are also for w ard looking state m ents. These stat e ments are based on an assessme n t of present econ o mic and operatin g conditions, an d on a number o f assumptions an d estimates regar d ing future event s and actions tha t , while considere d reasonable as at the date of this announcement and are expected to take place, are inherently subject t o significant technical, business, economic, competitiv e , political and social uncertainties an d contingencies. Such forward-loo k ing statements ar e not guarantees o f future performance and involve kn o wn and unknown risks, uncertaintie s , assumptions an d other importan t factors, many of w hich are beyond the control of our C ompany, the Dire c tors and manage m ent. We cannot a n d do not give an y assurance that th e results, perfor m ance or achieve m ents expressed o r implied by the fo r ward-looking statements contained i n this announcem e nt will actually oc c ur and readers ar e cautioned not t o place undue reli a nce on these for w ard-looking state m ents. These forw a rd looking statements are subject t o various risk fact o rs that could caus e actual events o r results to differ m aterially from the e vents or results e s timated, expresse d or anticipated in these statements.

Competent Person Statement

Technical infor m ation in this repo r t is based on infor m ation compiled b y B.Sc. Geology, AMMG Chief Geolo g ist and a member of the Australasia n Institute of Geoscientists. M r O’Mara has suf f icient exploration e xperience which i s relevant to the st y les of mineralisati o n and types of de p osit under consid e ration and to the activity which he is undertaking to qualify as a Com p etent Person as d e fined in the 2012 E dition of the ‘Aust r alasian Code for R eporting of Exploration Results, Mineral Resou r ces and Ore Reserves’ (“JORC 2012”). Mr O’Mara con s ents to the inclusi o n in this release o f the matters base d on his informatio n in the form and context in whic h it appears.

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