ALTECH BATTERIES LTD — Interim / Quarterly Report 2012

Oct 24, 2012

Quarterly Report September 2012 Quarter

EXECUTIVE SUMMARY

Green Range Coal Project, WA

• AMMG secured the Green Range Coal Project in the Great Southern region of Western Australia, near Albany.

• Based on exploration work by BHP and Rio Tinto (CRA) in the 1980s, AMMG has set an exploration target* of 400-500Mt of subbituminous or thermal grade coal .

• The project was a successful applicant in the WA state government’s Exploration Incentive Scheme (EIS) co-funded drilling program. Drilling is scheduled to commence in 2013.

Constance Range Iron Ore Project, QLD

• Stage 1 RC drill program commenced at Constance Range in September.

• Approximately nine RC drill holes were completed for a total of ~1000m.

• The drill program is targeting BHP’s previously identified ironstone Deposit “D” along the prospective Train Range Ironstone Member (EPM18375).

• AMMG’s project is made up of four granted EPM’s and five in application status totalling approximately 815km[2] .

South West Mineral Sands Project, WA

Southdown Extension Iron Ore Project, WA

• Stage 1 diamond drilling program commenced in early July, to extend the known width of the iron mineralisation. Results will be announced in due course.

South West High Purity Alumina (HPA) Project, WA

• AMMG’s unique aluminous clay to alumina processing technology is currently being developed, with two out of four milestones achieved during the quarter.

• Based on historical work conducted by Eucla Mining at the Gairdner tenement, AMMG estimates an exploration target* of approximately 25-30Mt at 2.5% heavy mineral within tenement E70/3902.

• AMMG is currently planning a drill program scheduled to commence in 2013 to obtain a JORC statement of resources.

National and International Marketing

• AMMG participated in the 20[th] Diggers & Dealers conference, held at the Kalgoorlie Goldfields Art Centre over three days.

Working Capital

• The Company remains well funded with circa $4.22m at Bank as at 30 September 2012.

*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.

AUSTRALIA MINERALS & MINING GROUP LTD (ASX Code: AKA Options: AKAOA) SHARES 107.62m at 30/09/2012 MARKET CAP $8.61 million at 30/09/2012 CASH $4.22 million at 30/09/2012 DIRECTORS Luke Atkins Non-executive Chairman Ric Dawson Managing Director Peter Bailey Non-executive Director (Independent) Jamie Coote Non-executive Director (Independent) Daniel Tenardi Non-executive Director Piers Lewis Company Secretary/Chief Financial Officer

AMMG September Quarterly 2012

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Quarterly Report September 2012 Quarter

Project Overview

As at quarter end, the Company had 20 granted tenements and 44 tenement applications totalling approximately 12,885km² .

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Figure 1. Location map showing AMMG’s projects

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Green Range Coal Project, Western Australia

During the quarter the Company secured the Green Range Coal Project, targeting the potential coal seams of the Green Range sub-basin. The 100% owned coal project is strategically located just 40-70 kilometres from the town and port of Albany. The three (3) exploration licences (one granted, two in application status) straddle the mid-late Proterozoic Boranup complex of the Albany-Fraser Orogen and are prospective for thermal or sub-bituminous coal.

AMMG is estimating an exploration target* of 400-500 million tonnes of thermal coal grade, based on historical drill hole data. The Company is currently preparing the stage 1 drilling program, which will be co-funded by the state government’s Exploration Incentive Scheme (EIS). The EIS co-funded program will refund direct costs associated with the drilling at the Green Range Coal Project, targeting glauconite and coal. The stage 1 drilling program is scheduled to commence in early 2013.

Historical Exploration

Both BHP Minerals Exploration (BHP) and Rio Tinto/CRA Exploration (CRA) carried out coal exploration in the Green Range basin area in the 1980s. CRA’s analytical results for its 1981 drill program reported lignite with a high moisture content, a medium ash content and a fairly low specific energy. With this analytical testing, CRA concluded an estimated exploration target* of up to 500Mt of lignite.

Later in 2001, Phanerozoic Energy Pty Ltd carried out coal seam gas exploration in the Green Range basin area, intersecting coal seams up to approximately five metres. Although concluding further drilling would be required to test the area for coal bed methane, Phanerozoic Energy acknowledged the existence of coal as a permanent feature in the Green Range basin area. Additionally, recorded within historical drill logs is the presence of glauconite (an iron potassium phyllosilicate) and limestone. Glauconite is currently being tested as the potential feedstock for potash production.

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Figure 2. AMMG geologist visiting the Perth DMP Core Library to inspect the intersected coal seam core from Phanerozoic Energy Pty Ltd’s exploration in 2001

• *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 3. Location map of AMMG’s Green Range Coal Project located approximately 40 – 70km to Albany Port

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Southdown Extension Iron Ore Project, Western Australia

AMMG’s 100% owned Southdown Extension Iron Ore Project is situated approximately 80 kilometres from the town and port of Albany on the south coast of Western Australia. It is made up of six (6) granted tenements totalling approximately 105 square kilometres.

During the quarter AMMG commenced its stage 1 diamond drilling program to extend the known depth of the mineralisation at the project.

One (1) 360-metre deep angled hole was drilled through the mineralised sequence. Samples were taken and are currently undergoing metallurgical test work to determine the optimum grind size to liberate the magnetite. The results of the diamond drilling program will be announced as they are made available.

The stage 1 RC drilling program was completed in February 2012, with metallurgical test work showing an iron concentration averaging 68% and mass recovery averaging 35%. A ‘coarse-grained’ grind size of -75 microns was used, which is coarser than what has previously been reported at other WA iron ore projects.

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Figure 4. Stage 1 diamond drill program at the Southdown Extension Iron Ore Project, Western Australia

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Quarterly Report September 2012 Quarter

Constance Range Iron Ore Project, Queensland

AMMG has three (3) granted tenements, and anticipates the granting of the remaining six (6) tenement applications to occur in due course. The total area under application and granted status at the Company’s 100% owned Constance Range project is now over 815km² .

Deposit D

The stage 1 reverse circulation (RC) drill program commenced during the quarter. Nine (9) drill holes were completed over a total of approximately 1,006 metres.

The drilling intersected three discrete continuous oolitic ironstone horizons within a series of micaceous shales of the Mullera Formation. The mineralised zones have an approximate dip of 15 degrees and two of the horizons could be traced over a distance of approximately 1 kilometre.

The objective of the drill program was to target BHP’s previously identified ironstone Deposit “D” along the prospective Train Range Ironstone Member, over granted tenement EPM18375. Samples taken have been submitted for metallurgical testing and results are pending. It is anticipated that an inferred resource estimate may be modelled on the basis of these results.

Deposit I, J & L

The Company commenced its due diligence phase for the potential acquisition of BHP historical deposits “I”, “J” and “L”. The purchase is subject to the aforementioned due diligence and further updates will be announced as they progress.

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Figure 5. Stage 1 RC drill program at the Constance Range Iron Ore Project, Queensland

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Quarterly Report September 2012 Quarter

South West High Purity Alumina (HPA) Project, Western Australia

During the quarter the Company’s development of its innovative aluminous clay to alumina process technology moved forward due to the achievement of some significant milestones.

AMMG’s chemical consultants, TSW Analytical, achieved two of four milestones, which involved determining the size fraction and other variables in order to produce an alumina end-product.

The acid-based processing technology aims at producing high purity alumina (HPA) (99.99%). The processing technology is based on and suited to the Company’s unique aluminous clay material. AMMG’s aluminous clay material is in-situ, formed through an ancient weathering process resulting in low impurities (such as iron and titanium) with silica and alumina remaining in a whitish surface with historically reported thicknesses of up to 42m.

The Company anticipates the remaining two milestones will be achieved soon, and will announce further advancements on the processing technology as they occur.

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Figure 6. AMMG personnel with chemistry consultants, TSW Analytical, during a shakeout test demonstration at TSW’s laboratory at the University of Western Australia

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South West Mineral Sands Project, Western Australia

During the quarter AMMG conducted a site reconnaissance at its 100% owned mineral sands project at Gairdner. The project is located about 35 kilometres north-west of Bremer Bay and about 484 kilometres south-east of Perth.

The tenement E70/3902 covers an area with known heavy mineral sand deposits in Eocene paleo-coastline. Between the 1980’s and 1990’s, Eucla Mining NL conducted heavy mineral and gold analysis in the area. Eucla Mining NL outlined a resource calculation for three heavy mineral deposits.

Based on this historical exploration, AMMG currently estimates an exploration target* of approximately 25-30 million tonnes at 2.5% heavy mineral within tenement E70/3902.

AMMG is currently planning a drill program to obtain a JORC statement of resources in March 2013.

• *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 7. Map showing AMMG’s Gairdner Mineral Sands Project, strategically located in close proximity to AMMG’s Southdown Extension Iron Ore Project and Green Range Coal Project, Western Australia.

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Investor Relations/Corporate Marketing

The 20[th] Diggers & Dealers conference was held at the Kalgoorlie Goldfields Art Centre in August. The conference attracted over 2,300 delegates from around Australia and overseas. The event was a significant marketing and networking opportunity for AMMG. A number of key networks were established at the Company’s booth and follow-up discussions are progressing.

The Company will be participating in some significant upcoming investment conferences over the remainder of the year. In October AMMG will be attending the 2[nd] Asia Bauxite & Alumina conference in Singapore, followed by the China Mining Congress & Expo in Tianjin, China. In addition, marketing its projects to corporate and industrial companies the Company will be concluding the trip with a road show in Beijing.

Corporate

During the quarter the Company issued 6,250,000 fully paid ordinary shares and 2,500,000 unlisted 20 cent options on 15 August 2012 in consideration for the acquisition of 100% of a Western Australian iron-ore tenement E70/2640 as part of the Southdown Extension project, pursuant to two agreements for the sale of mining assets.

The Company issued 390,000 AKA shares as a component of the consideration for one of the Green Range Coal Project tenements.

Working Capital

The Company remains well funded with $4.22 million cash at Bank as at 30 September 2012.

Contact

AMMG MEDIA CONTACT Ric Dawson Tony Dawe Managing Director Professional Public Relations Pty Ltd Tel: +61 (08) 9389 5557 Tel: +61 (08) 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 - iron ore, aluminous clay (kaolin), gypsum, mineral sands, salt and coal.

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 Australian Institute of Geologists. 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 AMMG September Quarterly 2012 9 on his information in the form and context in which it appears.