ALTECH BATTERIES LTD — Capital/Financing Update 2014

Jan 22, 2014

MEDIA/ASX RELEASE

==> picture [364 x 88] intentionally omitted <==

23 JANUARY 2014

AMMG APPOINTS SPECIALIST CONSULTANTS TO PRODUCE HIGH PURITY ALUMINA SAMPLES AND OPTIMISE PROCESS FLOW

HIGHLIGHTS

• AMMG appoints specialist third party consultants to:

  • produce commercial samples of its high purity alumina (HPA) product; and

  • conduct process flow optimisation tests.

• Production of bulk 99.99% (4N) HPA sample will commence upon completion of batch optimisation test work.

• AMMG has received sample requests from a number of HPA end-users from the Middle East, Asia and Europe.

• Specialist consultants are industry leaders in process plant implementation, project management and financial analysis.

Australia Minerals and Mining Group Limited ( ASX: AKA ) (“AMMG” or “the Company”) is pleased to announce that it has appointed specialist process consultants to produce commercial samples of its high purity alumina (HPA) product and to conduct test work to optimise AMMG’s process flow sheet.

Batch test work will initially be required in order to confirm specific process conditions and identify areas of possible economic optimisation. Upon the successful batch optimisation test results, AMMG and its consultants will embark on a larger bulk program producing commercial HPA samples with 99.99% (4N) purity for international despatch.

AMMG’s consultants are highly qualified process operators with substantial experience in process plant implementation and optimisation; project management and financial analysis. Their Perth-based processing facility is well-equipped and capable to facilitate AMMG’s objectives.

AMMG managing director, Mr Ric Dawson, said “We are confident that, upon successful testing of our HPA sample, customers will be satisfied with the quality and characteristics of our unique 4N product, which may lead to the successful negotiation of a potential off-take contract”.

==> picture [41 x 43] intentionally omitted <==

==> picture [377 x 48] intentionally omitted <==

==> picture [364 x 88] intentionally omitted <==

The Company is working with its recently appointed specialist consultants to review AMMG’s flow sheet and laboratory test work to date with the view to identifying and developing areas of possible economic optimisation. This test work will focus on optimising the capital and operating costs of a proposed HPA pilot plant as well as enabling a high level review of smelter grade alumina (SGA) production using AMMG’s kaolin to alumina process.

Discussions have also commenced with regards to a potential continuous trial process testing program, which may involve the production of greater quantities of HPA and demonstrate and de-risk the continuous nature of AMMG’s process as the Company moves forward with the design and funding of the processing plant.

AMMG is reviewing and pursuing a number of funding proposals containing varying finance structures for its proposed HPA commercialisation project.

Project Background

The Company’s 100% owned South West HPA Project area is located within relatively close proximity to existing infrastructure, including Kwinana, Esperance and Albany ports.

AMMG developed its innovative acid-based processing technology in collaboration with consulting processing chemists TSW Analytical Pty Ltd. The processing technology is a low energy intensive process that uses low temperatures at atmospheric pressures; it produces saleable by-products and the key reagents are recyclable. The aluminous clay (kaolin) feedstock is unique in that it contains extremely low levels of impurities such as iron and titanium. The final HPA product is a premium high-value product that is used in high-performance electronic applications, such as tablet screens and LED’s.

AMMG previously announced the successful production of 99.99% (4N) HPA (please click here to view the announcement dated 21 May 2013) using its processing technology. AMMG is confident that it will be able to produce higher 5N or 6N purity levels, subject to further successful development of the process.

The Company lodged three patent applications in February 2013 to protect the intellectual property of its processing technology (patent numbers 2013900637, 2013900636, 20139000639).

AMMG’s process is favoured by the unique mineralogy of its aluminous clay material, which contains extremely low levels of impurities, such as iron and titanium. The Company’s aluminous clay deposits are hosted by the Yilgarn Craton, which is one of the oldest weathered cratons on earth. The ancient weathering has left the aluminous clay as a primary or in-situ resource; it is whitish in colour and extends from the surface to a reported depth of 42 metres.

==> picture [377 x 48] intentionally omitted <==

==> picture [364 x 88] intentionally omitted <==

High Purity Alumina (HPA)

HPA refers to alumina that has a purity level of more than 99.9% (3N). It is a premium high end product that is used in a number of applications such as high-performance electronics; tablet, smartphone and computer screen backlighting; LED’s; and hybrid cars.

HPA is a specialised alumina that is used for its superior hardness, high brightness, inertness (non-conductive), superior corrosion resistance and its ability to withstand extreme temperatures.

It is utilised in automotive sensor applications as an alumina substrate, and is used for its excellent electrical insulating properties and high heat conductivity. Due to the high level of plasma corrosion resistance, HPA is also used in semiconductor applications.

While HPA is used in a variety of markets, it is reported that about 60% of HPA is designated to the LED industry. Reported worldwide production of HPA is estimated at 15,000tpa, which is expected to increase at 7% CAGR, predominantly driven by the rising LED market. Prices for HPA range from approximately US$30/kg to US$300/kg , depending on a number of variables such as level of purity, particle size and structure.

==> picture [488 x 118] intentionally omitted <==

----- Start of picture text ----- Figure 1. HPA is used in the LED industry; computer, tablet and smartphone backlighting; andsemiconductors.----- End of picture text -----

ENDS

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

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

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 - alumina, aluminous clay (kaolin), iron ore, coal, mineral sands, salt, gypsum and gold.

The Company itself or under joint venture now has 20 granted tenements and 22 applications for tenements covering approximately 7,450km[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.

==> picture [377 x 48] intentionally omitted <==