ALTECH BATTERIES LTD — Interim / Quarterly Report 2012

Apr 29, 2012

Quarterly Report March 2012 Quarter

EXECUTIVE SUMMARY

Southdown Extension Iron Ore Project, WA

• RC drilling commenced at the Southdown Iron Ore Extension Project in January.

• Davis Tube Recovery (DTR) results are pending and will be announced once they are available.

• Follow up diamond drilling ‘tails’ will also be required to determine the mineralisation depth.

Yilgarn Iron Ore Project, WA

• RC drilling commenced in February at Bencubbin (EIS co-funded project).

• • DTR results are pending and will be announced once they are available.

• AMMG applied for two 200-block exploration licence applications at Yuna (E70/4303, 4305), north-east of Geraldton ~50kms from the proposed Oakajee port and ~5kms from existing rail.

• Total project area is approximately 4,339km² .

USA/Canada Investor Road Shows

South West Kaolin/Aluminous Clay Projects, WA

• Further work continues on filler market applications.

• MOU signed for potential project development with Kalamazon Geologicos Ltda ., a wholly owned subsidiary of Kalamazon Minerals Corporation.

• Appointed analytical chemistry consultants, TSW Analytical, to validate AMMG’s acidbased process technology .

• AMMG plans to test more aluminous clay through a continuous acid-based process.

Constance Range Iron Ore Project, QLD

• Drill program scheduled to recommence in May 2012 .

• The scheduled drill program aims to establish a JORC statement for iron ore resources at deposit ‘P’, ‘C’ and ‘D’.

•  Subsequent to quarter end, AMMG’s 100% owned tenement EPM18375 was granted. This tenement is host to BHP’s historical deposits ‘C’ and ‘D’.

• AMMG attended the:

• Viriathus Summit in New York and presented to various New York institutions and brokers.

• Annual PDAC conference in Canada.

Working Capital

• The Company remains well funded with $5.17 million cash at Bank as at 31 March 2012.

• A number of significant networks were established overseas; discussions are continuing with interested parties.

==> picture [496 x 169] intentionally omitted <==

----- Start of picture text -----

AUSTRALIA MINERALS & MINING GROUP LTD
(ASX Code: AKA Options: AKAOA)
Shares
100.98M at 31/03/2012
Market Cap
$14.14 million at 31/03/2012
Cash
$5.17 million at 31/03/2012
DIRECTORS
Luke Atkins Non-executive Chairman
Ric Dawson Managing Director
David Brook Non-executive Director
Chris Forrester Non-executive Director
Daniel Tenardi Non-executive Director
Piers Lewis Company Secretary/Chief Financial Officer
----- End of picture text -----

AMMG March Quarterly 2012

1

Quarterly Report March 2012 Quarter

Project Overview

As at quarter end, the Company had 17 granted tenements and 45 tenement applications totalling approximately 12,719km² . During the quarter, AMMG applied for an additional 11 tenements, totalling approximately 3,713km² .

==> picture [522 x 397] intentionally omitted <==

Figure 1. Location map showing AMMG’s projects

AMMG March Quarterly 2012

2

Quarterly Report March 2012 Quarter

Yilgarn Iron Ore Project, Western Australia

AMMG has nine (9) granted tenements at Bencubbin, Koolyanobbing, Illaara and Southdown Extension (comprised of 6 tenements). A further 10 exploration licence applications are located at Brontie, Pingaring, Kukerin, Ularring, Wongan Hills, Goomalling, Dalwallinu, Balladonia and Yuna. The total area granted and under application status is now approximately 3,599km² .

Drilling at Southdown Extension Iron Ore Project

During the quarter, the Company commenced the first phase of stage 1 drilling at its 80% owned Southdown Extension Iron Ore Project in south-Western Australia.

The January drilling program consisted of three (3) reverse circulation (RC) drill holes for 294 metres. AMMG is currently preparing the second phase of diamond drilling ‘tails’, which are required to extend the known depth of the expected mineralisation.

Davis Tube Recovery (DTR) results are anticipated in the coming weeks, which will determine the optimum grind size for the Company’s samples. Grange Resources, holders of the adjacent Southdown Magnetite Deposit, have quoted a grind size at -34 microns, and AMMG anticipates similar results.

Last year, AMMG reached agreement with Minemakers (Iron) Pty Ltd (ASX/TSX:MAK) to acquire their 80% interest in the project. Currently, the Company is negotiating similar acquisition terms with the existing holders for the remaining 20% of the tenement E70/2640.

==> picture [183 x 223] intentionally omitted <==

Figure 2. RC drill rig used at Southdown Extension drill program, WA.

AMMG March Quarterly 2012

3

Quarterly Report March 2012 Quarter

Drilling at Bencubbin Iron Ore Project

In February, AMMG commenced drilling at its 100% owned Bencubbin Iron Ore Project, comprised of one (1) 64-block tenement E70/4087. The project was a successful candidate in the state government’s Exploration Incentive Scheme (EIS) co-funded drilling program, with a refund of up to $66,000 towards drilling costs.

The February drilling program consisted of nine (9) holes for 574 metres, aimed at testing a portion of the eastern structure of the two identified magnetic anomalies within the tenement. Drilling data is currently being processed, with DTR results to be announced as they become available.

==> picture [354 x 306] intentionally omitted <==

Figure 3. Drill rig used at drilling program, Bencubbin, WA.

AMMG March Quarterly 2012

4

Quarterly Report March 2012 Quarter

South West Kaolin/Aluminous Clay Project, Western Australia

AMMG has one (1) granted exploration licence and 11 application s targeting aluminous clay (kaolin) in the Yilgarn, South West, Western Australia. The aluminous clay project extends across four of its 100% owned project areas: Meckering, Kerrigan, Kellerberrin and Bobalong. The total project area covers approximately 2,934km² .

==> picture [382 x 334] intentionally omitted <==

Figure 4. Tenement location of the South West Aluminous Clay projects, WA.

MOU with Kalamazon Minerals Corporation

During the quarter, the Company (through its 100% owned subsidiary Kaolin Resources Pty Ltd) signed a Memorandum of Understanding (MOU) with Kalamazon Estudos Geologicos Ltda (KEG), a wholly owned subsidiary of Kalamazon Minerals Corporation (Kalamazon) for a potential joint venture aimed at project development of one or more of Kalamazon or AMMG’s aluminous clay projects in Australia and Brazil.

AMMG March Quarterly 2012

5

Quarterly Report March 2012 Quarter

The MOU with Kalamazon will also target a potential licence agreement for any acid-based aluminous clay (kaolin) to alumina process that AMMG may develop. Kalamazon is a Canadian exploration company that is developing the Manaus kaolin deposits in Brazil.

The area totals approximately 1,519m ² and hosts a proven 29Mt aluminous clay resource. Guangdong Highsun Yongye Group Ltd has a 35% interest in Kalamazon.

Kaolin to Non-Paper Filler Applications

The Company is pursuing other non-paper filler applications for its kaolin. A number of overseas parties have expressed an interest in potential aluminous clay-based products. Several overseas delegations have visited the bulk trial test pit located at the Company’s Meckering project, and were provided with samples of kaolin for their own analysis and review.

AMMG believes that its aluminous clay resource may be able to accommodate a number of different product applications simultaneously, and is not confining itself to a sole focus on paper filler applications.

Aluminous Clay (Kaolin) to Alumina Process Development

The Company is moving ahead with developing its own unique acid-based technology process. Technical specifications of AMMG’s smelter grade alumina (SGA) sample have been requested from a number of significant aluminium companies, and discussions with these interested parties are progressing (see Table 1 below).

Property	Test Result
+100 Mesh (+150 microns) %	4.43%
+200 Mesh (+75 microns) %	23.66%
+325 Mesh (+45 microns) %	21.28%
+635 Mesh (+20microns) %	22.99%
Superfines (<20 microns) %	27.64%
Attrition Index %	0.2%
Loose Bulk Density	1.29g/cm~~3~~
BETSurface Area	5.357m~~2~~/g

Table 1. Summary of results for submitted AMMG alumina sample.

In conjunction with the existing option agreement to purchase the acid-based technology process with the Chinese technology holder, AMMG is embarking on its own technology.

Subsequent to quarter end, the Company engaged TSW Analytical as consultants for refining laboratory testing criteria and validating AMMG’s own unique acid-based process . TSW Analytical previously verified the quality of the 1.06kg of 99.5% SGA sample, and the 85gm of 99.99% high purity alumina (HPA) sample. TSW is an Australian-based

AMMG March Quarterly 2012

6

Quarterly Report March 2012 Quarter

company headed by experienced analytical chemistry professionals who specialise in scientific problem solving.

The Company and TSW Analytical are currently preparing for a bench testing of AMMG’s aluminous clay, which will determine and refine the process methods suitable to the Company’s unique aluminous clay.

Furthermore, the Company and the Chinese technology holder, Professor Shang, are planning to conduct a continuous acid-based process on AMMG’s aluminous clay. The testing will allow the Company to determine cost benefits and attributes of the technology process that are specific to its particular aluminous clay material, which is very low in iron and other impurities.

==> picture [354 x 211] intentionally omitted <==

Figure 6. AMMG’s Managing Director, Ric Dawson, with the acid-based technology holder, Professor Shang, China.

AMMG March Quarterly 2012

7

Quarterly Report March 2012 Quarter

Constance Range Iron Ore Project, Queensland

Subsequent to quarter end, the Company’s tenement EPM18375 was granted. The tenement is host to previously BHP defined deposits ‘D’, ‘C1’ and ‘C2’ (refer Figure 7). In total, AMMG has three (3) granted tenements, and anticipates the granting of the remaining three (3) tenement applications in due course. The total area under application and granted status is now over 690km² .

After the first phase drilling program was unfortunately delayed in late October/early November 2011 due to poor weather conditions and safety concerns, the Company has scheduled drilling to recommence in May 2012. AMMG’s geology team are currently preparing drill program logistics, field mapping and drill target generation.

The upcoming drilling at AMMG’s 100% owned Constance Range project aims to establish a JORC statement of resources from previous BHP defined deposits ‘P’, ‘C’ and ‘D’. The proposed drill holes will test the veracity of the historic BHP data and add to the database in order to prove up a JORC compliant resource.

Proposed drill holes have been designed to test the northern portion of deposit ‘D’ within AMMG’s granted tenements EPM17919 and EPM18375 (Figure 7). BHP previously drilled two holes into deposit ‘D’: DDC25A (4.6m at 36.16% iron from 7.9m) and OCC25 (6.6m at 38.42% iron from 3.3m). BHP drilled on the outcrop and not within the prospective basinal structure; mapping conducted in the area indicates a bowl-like deposit within the correct stratigraphic horizon to potentially host iron mineralisation.

==> picture [352 x 237] intentionally omitted <==

Figure 7. AMMG’s EPM18375 and EPM17919 is host to BHP’s historical deposits ‘C’ and ‘D’.

AMMG March Quarterly 2012

Quarterly Report March 2012 Quarter

Investor Relations/Corporate Marketing

During the quarter, AMMG’s Managing Director, Mr Ric Dawson, travelled to New York to attend the Viriathus New York Investment Summit. At the summit, Mr Dawson presented to various New York-based institutions, investors and brokers.

Subsequently, Mr Dawson travelled to Canada to attend the Prospector and Developers Association of Canada (PDAC) in Toronto. Mr Dawson met with Canadian-based investors, fund managers, independent brokers and financial specialists interested in investing in the resources sector. Mr Dawson established a number of key networks in the US and Canada. AMMG is progressing with potential future co-operation and investment opportunities with these organisations.

The PDAC conference was a significant marketing venture, and the Company plans to attend again in 2013.

Corporate

The Company issued 11,482,204 shortfall options from the October 2011 entitlement issue offer as provided in the terms and conditions of the prospectus. The issue price of any shortfall options was $0.001 per shortfall option being the price at which the entitlement was offered to optionholders. Similarly, the exercise price for the listed options is $0.20, and expires 30 November 2012.

Working Capital

The Company remains well funded with $5.17 million cash at Bank as at 31 March 2012.

CONTACT 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 AMMG March Quarterly 2012 9 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.