ALTECH BATTERIES LTD — Interim / Quarterly Report 2012

Jul 29, 2012

Quarterly Report June 2012 Quarter

EXECUTIVE SUMMARY

Southdown Extension Iron Ore Project, WA

• 100% owned by the Company; AMMG acquired the remaining 20% interest in tenement E70/2650 on similar pro-rata terms to the purchase with Minemakers.

• Davis Tube Recovery (DTR) results indicated an average iron concentrate of 68% and an average mass recovery of 35% ; grind size was -75 microns (coarser than all other reported iron ore projects WA).

• Subsequent to quarter end, AMMG’s stage 1 diamond drilling program commenced.

Constance Range Iron Ore Project, QLD

• AMMG conducted a site reconnaissance to prepare for the upcoming drill program scheduled to commence in August.

• The drill program aims to establish a JORC statement for iron ore resources at BHP’s historical deposits ‘P’, ‘C’ and ‘D’.

• Delegates for the Anhui Bureau of Coal and Geology visited the Constance Range to inspect the project.

• AMMG acquired an additional three tenements, bringing the total project area to ²

• approximately 815km .

Bencubbin Iron Ore Project, WA

• DTR results from stage 1 drilling program indicated an excellent average iron concentrate of above 70% with average mass recovery 42.8% ; grind size was -75 microns.

• The WA state government’s Exploration Incentive Scheme (EIS) co-funded drilling program refunded 50% of the drilling costs.

Yilgarn Iron Ore Projects, WA

• A further two applications were successful in the WA state government’s EIS co-funded drilling program.

Working Capital

• The Company remains well funded with circa $5 million cash at Bank as at 30 June 2012.

New Board Appointments

• Mr Peter Bailey was appointed nonexecutive director of AMMG. He has mining and processing experience and was previously CEO and co-owner of Sherwin Alumina in Texas, USA

• Mr Jamie Coote was appointed nonexecutive independent director of AMMG. Mr Coote is currently the Executive Chair of the Australasian Securities Dealers Association (ASDA), the leading association for non-participant AFSL’s in Australia.

National and International Marketing

• AMMG participated in the following conferences:

  • Gold Coast Resources Showcase

  • • Mines & Money Beijing

AUSTRALIA MINERALS & MINING GROUP LTD (ASX Code: AKA Options: AKAOA) SHARES 100.98 m at 30/06/2012 MARKET CAP $10.6 million at 30/06/2012 CASH $4.95 million at 30/06/2012 DIRECTORS Luke Atkins Non-executive Chairman Ric Dawson Managing Director Peter Bailey Non-executive Director Jamie Coote Non-executive Director (Independent) Daniel Tenardi Non-executive Director Piers Lewis Company Secretary/Chief Financial Officer

AMMG June Quarterly 2012

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Quarterly Report June 2012 Quarter

Project Overview

As at quarter end, the Company had 19 granted tenements and 45 tenement applications totalling approximately 12,885km² .

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Figure 1. Location map showing AMMG’s projects

AMMG June Quarterly 2012

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Quarterly Report June 2012 Quarter

Yilgarn Iron Ore Project, Western Australia

AMMG has 10 granted tenements at Pingaring, Bencubbin, Koolyanobbing, Illaara and Southdown Extension (comprised of 6 tenements). A further 8 exploration licence applications are located at Brontie, Kukerin, Wongan Hills, Goomalling, Dalwallinu and Yuna. The total area granted and under application status is now approximately 3,265km² and is 100% owned by AMMG.

Southdown Extension Iron Ore Project – Positive Metallurgical Results

During the quarter, the Company received positive metallurgical test work results from its first round of reverse circulation (RC) drilling at its 100% owned Southdown Extension Iron Ore Project.

The Davis Tube Recovery (DTR) analysis produced an average concentrate grade of 68% iron with mass recovery of up to 35.6% , with low silica and low alumina. The results are presented in Table 1 below.

Of significance is that the DTR analysis was conducted at both -38 micron and -75 micron, with little difference between the two. 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 Grange Resources’ Southdown Magnetite Project, as well as the majority of published grind sizes for other Yilgarn Craton magnetite projects.

The January drilling program consisted of three (3) RC drill holes for 294 metres to test magnetic anomies identified via ground geophysical work and to further define the magnetite mineralisation.

Subsequent to quarter end, AMMG commenced its stage 1 diamond drilling program to extend the known depth of the mineralisation at the project. The results of the diamond drilling program will be announced as they are made available.

Hole ID	Co-ordinates	From	To	HeadGradeFe(%)	MassRec(%)	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;

Table 1. Significant results from DTR metallurgical analysis from stage 1 drilling program and previously reported drill holes

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Quarterly Report June 2012 Quarter

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

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Figure 3. RC drill rig used at Southdown Extension drill program, WA.

Southdown Extension Project Now 100% Owned by AMMG

During the June quarter, AMMG 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

3. Assignment of relevant Land Access Agreements.

AMMG June Quarterly 2012

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Quarterly Report June 2012 Quarter

Excellent Metallurgical Results at Bencubbin Iron Ore Project

During the quarter, the Company’s first phase of RC drilling at its 100% owned Bencubbin Iron Ore Project (EIS co-funded) produced excellent DTR results from the most promising iron mineralisation zones. The results indicated an average concentrate grade of above 70% iron, an average mass recovery of 42.8% and low contaminants, with a ‘coarser’ grind size of -75 microns. Results of the DTR test work are presented in Table 2 below.

Hole ID	Co-ordinates	DepthFrom	DepthTo	HeadGradeFe(%)	MassRec (%)	Fe(%)	Al2O3(%)	P(%)	S(%)	SiO2(%)	lg.loss(%)
BNRC003	580033E 6582555N	24	34	29.5	38.3	71.5	0.2	0.002	0.018	0.49	-3.32
BNRC004	579998E 6582555N	33	40	33.5	45.2	71.6	0.3	0.002	0.011	0.47	-3.35
BNRC005	579626E 6583078N	21	32	29.6	39.8	71.5	0.3	0.002	0.015	0.41	-3.28
BNRC008	579599E 6583107N	37	42	36.5	47.8	71.0	0.3	0.002	0.142	0.55	-3.03

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

Table 2. Significant results from DTR metallurgical analysis from first phase drilling program

Like the Company’s Southdown Extension Iron Ore Project, the DTR analysis that was conducted at Bencubbin used a grind size of both -38 and -75 microns, which indicated little difference in the mass recovery and iron concentrate levels. A ‘coarser’ grind size will be used in any potential future plant configuration for the Bencubbin project.

The stage 1 drilling program consisted of 585 metres of RC drilling with nine (9) drill holes averaging 65 metres. The drilling program was designed to confirm the presence of magnetite mineralisation of the project’s greenstone belt that is westerly dipping and is continuous for a length of some 14kms.

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Figure 4. RC drill hole locations from AMMG’s first phase drill program on new EIS aeromagnetic image

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Stage 2 Drill Program at Bencubbin Iron Ore Project

Based on the encouraging metallurgical test work results, and the new enhanced state government’s EIS aeromagnetic imagery, the Company now has the confidence to pursue plans for a follow-up stage 2 RC drill program over the strike length of the Bencubbin project. The Company will announce further exploration updates as they occur.

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Figure 5. Drill rig used at drilling program, Bencubbin, WA.

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Quarterly Report June 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 at its 100% owned Constance Range project. The total area under application and granted status is now over 815km² . During the quarter, AMMG acquired an additional three tenement applications, which cover historical BHP defined deposits ‘A’, ‘B’ ‘H’, ‘N’ and ‘P’ (see Figure 6 below).

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Figure 6. AMMG’s Constance Range tenure Figure 7. Anhui Bureau inspecting Constance Range

In June the Company conducted a site reconnaissance at the Constance Range project in north-western Queensland in order to confirm access, logistics and drill hole targets for the upcoming drill program, scheduled to commence in September. The program aims to establish a JORC statement of resources from previous BHP defined deposits ‘P’, ‘C’ and ‘D’. The 13 proposed drill holes averaging 100m will test the historic BHP data and add to the database in order to prove up a JORC compliant resource.

Delegates from the Anhui Bureau of Coal and Geology visited the Constance Range project during the quarter to inspect the area and the available infrastructure. Having entered into a Memorandum of Understanding (MOU) with the Anhui Bureau on both the Canning Coal and Yilgarn Iron projects, the Company is continuing to develop its mutual relationship with this significant Chinese company.

AMMG June Quarterly 2012

Quarterly Report June 2012 Quarter

Investor Relations/Corporate Marketing

On June 13 AMMG attended the Gold Coast Resources Showcase, a two-day resources investment forum and exhibition for investors. Mr Ric Dawson, AMMG Managing Director, presented to a large audience of private investors, investment bankers and stockbrokers from around Australia.

The Company travelled to China in late June to attend the Mines & Money Beijing conference, which is the largest dedicated mining investment and capital raising event held in China. At its booth, AMMG met with many Chinese and international investors, establishing some key networks, with a number of discussions progressing.

Corporate – Appointments

Mr Peter Bailey (Non-Executive Director)

During the quarter the Company appointed Mr Peter Bailey as non-executive director. Mr Bailey is a highly experienced and qualified engineer with over 40 years experience in the mining and industrial mineral production industry. He spent the majority of his career in the iron ore mining, bauxite mining, zinc-lead-copper mining, alumina refining and alumina chemicals industries respectively.

Mr Bailey is the former CEO and co-owner of Sherwin Alumina, an alumina refinery based in Texas, USA. Prior to Sherwin, Mr Bailey was President of Alcoa Worldwide Chemicals and prior to this he was President of Alcoa Bauxite and Alumina. He has since returned to WA to his Margaret River winery business and will continue to maintain his businesses in Australia and overseas.

Mr Jamie Coote (Non-Executive Independent Director)

Mr Jamie Coote was appointed non-executive independent director during the quarter. Mr Coote has over 20 years experience in strategic marketing, management, sustainability and financial services, with a highly developed understanding of state and federal government imperatives and processes.

He is currently the Executive Chair of the Australasian Securities Dealers Association (ASDA), the leading industry association for non-participant AFSL’s in Australia. Mr Coote has extensive experience in developing project delivery strategies around resources and energy projects.

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Quarterly Report June 2012 Quarter

Working Capital

The Company remains well funded with $4.95 million cash at Bank as at 30 June 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 on his information in the form and context in which it appears.

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