ALTECH BATTERIES LTD — Interim / Quarterly Report 2013

Jul 28, 2013

Quarterly Report June 2013

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HIGHLIGHTS

South West HPA (High Purity

Alumina) Project Western Australia

• Successful production of 99.99% (4N) HPA (high purity alumina) using AMMG’s innovative processing technology (three patent applications previously lodged).

• The Company is increasingly confident that higher purity levels of 5N or 6N may be able to be achieved.

• Subsequent to quarter end, the Company appointed process engineers to commence the Definitive Feasibility Study (DFS) on its HPA project; targeted completion end of September quarter, 2013.

• AMMG is now considering funding options for a HPA processing facility.

Corporate

Investor Relations

• The Company participated in the RIU Sydney Resources Round ~~-~~ Up in May 2013.

• The Company participated in the Mines & Money Beijing conference in June 2013, followed by a road show to various Chinese companies.

• AMMG appointed Chinesebased accounting firm to actively market the Company’s projects for outright sale and/or joint venture.

Glenarty Creek Mineral Sands

Project Western Australia

• A JORC inferred resource of 701Mt at 3.8% heavy minerals (HM) containing 2.6% ilmenite was delineated at the Rover Range Mineral Sands Deposit.

• • A further JORC inferred resource of 106Mt at 3.6% HM containing 2.8% ilmenite at nearby Miller’s Mill Mineral Sands Deposit.

• The Company’s 100% owned project is located within a world ~~-~~ class mineral sands region.

• Potential low strip ratio and thickness (up to 50m) a distinct advantage of the Rover Range deposit.

• Project located just 120km from Bunbury port via BHP purposebuilt heavy haulage sealed road.

Corporate

• The Company’s options issue received 21,465,500 options out of a possible 41,987,501 raising $214,655.

• Cost cutting strategy in place; board and senior management fees significantly reduced.

• AMMG’s non-executive director Mr Jamie Coote tendered his resignation; AMMG wishes to thank Mr Coote for his contribution to the Company.

• AMMG remains well funded with $2.8m in the Bank as at 30 June 2013.

information

Australia Minerals & Mining Group Ltd ABN 45 125 301 206

ASX Code: AKA Listed Options: AKAOB

Financial Information (as at 30 June 2013) Share Price: 0.082 Shares: 107.62m Market Cap: 8.83m Cash: $2.8m

3 Bay Road, Claremont, Western Australia, 6010 Tel: +61 (08) 9389 5557 Fax: +61 (08) 9389 5510 Email: info@ammg.com.au Website: www.ammg.com.au

directors

Ric Dawson - Managing Director Luke Atkins - Non-executive Chairman Peter Bailey - Non-executive director Dan Tenardi - Non-executive director Piers Lewis - Company Secretary

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Subsequent to quarter end, AMMG commenced a Definitive Feasibility Study (DFS) at its South West HPA Project

AMMG Quarterly Activities Report June 2013 Quarter

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Quarterly Report June 2013

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South West HPA (High Purity Alumina) Project Western Australia

Successful Production of 99.99% (4N) HPA

During the quarter the Company successfully produced 99.99% (4N) HPA (high purity alumina) using its own innovative aluminous clay (kaolin) to HPA processing technology. AMMG filed three patent applications for the aforementioned processing technology in February 2013 (patent numbers 2013900637, 2013900636, 20139000639).

After previously producing >99.9% HPA, AMMG conducted additional trials to subsequently achieve the 4N HPA purity. The production of higher 5N (99.999%) or 6N purity levels is now a possibility, however, subject to further successful development of the Company’s process.

AMMG produced the 4N HPA from its unique processing technology in collaboration with its consulting processing chemists, TSW Analytical Pty Ltd. TSW Analytical was engaged in mid-2012 to refine and verify AMMG’s process and produce HPA material using that process. Specification work is now being organised.

Definitive Feasibility Study (DFS) Commenced

Subsequent to quarter end the Company appointed a highly experienced Perth-based metallurgist and process engineering company to complete the Definitive Feasibility Study (DFS) for its HPA project. The Company’s DFS is the next stage of development for this project and will provide details on the design, construction, capex and opex costings necessary for pursuing financing options for a pilot or mini-production plant.

The appointment of the metallurgical/process engineering company is based on the consultants’ previous success in the optimisation and management of efficient laboratory and processing plant operations both in Australia and overseas.

Provided the securing of the necessary funding requirements occurs, a tendering process would ordinarily follow, with operations anticipated to commence around mid to later next year. At present, AMMG is targeting potential investors and off-take customers.

The Company’s 100% owned South West HPA Project is within relatively close proximity to existing infrastructure, including Kwinana port.

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Figure 1. AMMG’s 4N (99.99%) high purity alumina sample

AMMG Quarterly Activities Report June 2013 Quarter

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South West HPA (High Purity Alumina) Project Western Australia

HPA (High Purity Alumina)

HPA refers to alumina that has a purity level of more than 99.99% (4N). 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$40/kg to US$300/kg, depending on the level of purity.

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Figure 2. HPA end-uses

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Glenarty Creek Mineral Sands Project Western Australia

During the quarter the Company acquired the 100% owned Glenarty Creek Mineral Sands Project (via its wholly owned subsidiary Australia Mineral Sands Pty Ltd). It is comprised of one 45-block exploration licence application and one granted seven block exploration licence. The total project area is approximately 150km[2] (see Figure 3 below).

The Glenarty Creek Mineral Sands Project is located within a world ~~-~~ class mineral sands region and is approximately 120km from the Bunbury port in the south-west of Western Australia. It is bisected by the Brockman Highway, with a direct route to the port of Bunbury via BHP’s purpose-built heavy haulage Sues Road (see Figure 3). The Glenarty Creek Project is situated over private freehold bush and farmland where Native Title is extinguished.

AMMG delineated a JORC compliant inferred resource of 701 million tonnes (Mt) at 3.8% heavy minerals (HM) containing 2.6% ilmenite at its Rover Range Deposit. To the north-east of the Rover Range Deposit the Company’s Miller’s Mill Deposit is located, with a further JORC compliant inferred resource of 106Mt at 3.6% HM containing 2.8% ilmenite. Both deposits lie within the Company’s 100% owned Glenarty Creek Mineral Sands Project, Western Australia.

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Figure 3. Maps showing AMMG’s Glenarty Creek Mineral Sands Project, south-Western Australia

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Glenarty Creek Mineral Sands Project Western Australia

Rover Range Deposit ~~-~~ Resource

Following a comprehensive review of the data and modelling by AMMG’s competent person the mineralisation at the Rover Range Deposit is categorised as an Inferred Mineral Resource under the JORC code, 2004 edition.

AMMG’s JORC inferred resource estimate at its Rover Range Deposit is 701Mt at 3.8% HM containing 2.6% ilmenite, using a lower cut-off of 2% ilmenite. Within the Rover Range area, the mineralised unit has been shown to extend for 5km north-south and 2.5km east-west (see Table 1).

Material was sectionally interpreted using geological modelling and a lower ilmenite cut-off grade of 2% to develop a wireframe of the mineralisation. A block model of the resource was created using IDW interpolation methods (see Figure 4).

One of the highlights and distinct advantages of the Rover Range Deposit is the potential low strip ratio and thickness of the deposit, which is up to 50m. The shallow water table also makes the deposit amenable to traditional sand mine dredging techniques similar to those used at other nearby deposits.

~~-~~ Rover Range Deposit Previous Exploration

BHP Titanium Minerals Pty Ltd (BHPTM) carried out extensive exploration in the project area from 1987 to 1999 and outlined two areas of HM mineralisation. BHPTM’s exploration included aircore drilling, tonnage-grade estimations, assays, conceptual mine plan feasibility studies and environmental, geotechnical and hydrological studies.

AMAX Mining (Australia) Inc. (AMAX) carried out exploration for HM in the project area in 1969, reporting a dominant ilmenite presence in the widespread HM mineralisation.

enite Cut~~-~~Off grade (%)	Resource (Mt)	Heavy Minerals (%)	Ilmenite (%)	Slimes (%)	Oversize (%) Le	ucoxene (%)
Un-cut	918.7	3.54	2.35	29.21	19.83	0.0368
2.0	701.1	3.75	2.61	28.35	21.83	0.0334
2.2	592.7	3.82	2.70	28.01	22.17	0.0317
2.4	479.8	3.90	2.81	27.64	22.20	0.0298
2.6	409.6	3.95	2.86	27.45	22.12	0.0297
2.8	276.1	4.11	2.96	27.79	22.32	0.0305
3.0	135.6	4.31	3.08	28.94	22.96	0.0294

Table 1. Rover Range Deposit resource estimates for specified ilmenite cut-off grades

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Glenarty Creek Mineral Sands Project Western Australia

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Figure 4. Cross-section of the Rover Range Deposit

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Figure 5. Regional stratigraphical profile
of AMMG’s Glenarty Creek Mineral
Sands Project
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Glenarty Creek Mineral Sands Project Western Australia

Miller’s Mill Deposit ~~-~~ Resource

Based on BHP historical drilling; and updated Continental Resource Management’s independent geologist report (August, 2011), the Company determined a JORC (2004) inferred resource of 106Mt at 3.6% HM containing 2.8% ilmenite, using a lower cut-off of 2.5% ilmenite at Miller’s Mill Deposit over the entire thickness of the resource (refer to Figure 6 below). Please refer to Table 2 below for further resource information on specific cut-off grades.

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Figure 6. BHP purpose-built heavy haulage road with direct route to Bunbury port

~~-~~ Miller’s Mill Deposit Previous Exploration

At the Miller’s Mill (formerly named the Warner Glen Deposit) deposit, BHPTM intersected between 30 and 51m of sediments averaging more than 2% ilmenite. The resource was estimated by BHPTM over the entire thickness of the deposit.

nite Cut~~-~~Off rade (%)	Resource (Mt)	Heavy Minerals (%)	Ilmenite (%)	Slimes (%)	Oversize (%)	Leucoxene (%)
2.0	NRC*	3.13	1.81	21	21.6	0.03
2.5	105.9	3.66	2.82	27.5	19.2	0.06
3.0	13.9	4.4	3.26	26	16.3	0.07

Table 2. Miller’s Mill Deposit resource estimates for specified ilmenite cut-off grades

*NRC – No Resource Calculated

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Figure 6. Contour map of ilmenite percentage for Miller’s Mill Deposit (formerly Warner Glen Deposit)

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Corporate ~~-~~ Investor Relations

~~-~~ RIU Sydney Resources Round Up

During the quarter AMMG participated in the three-day RIU Sydney Resources Round-up from May 14. The conference attracted investors, brokers, mining and exploration companies to discuss potential investment opportunities.

The conference was a significant opportunity for the Company to promote its diversified suite of mineral projects and latest developments with the South West HPA project. Various contacts sought opportunities for further involvement and investment opportunities.

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Figure 7. AMMG’s booth at the RIU Resources Round-Up, Sydney

Mines & Money Beijing

During the quarter the Company exhibited at the Mines and Money Beijing conference from June 17.

The conference attracted over 1,000 Chinese and international delegates; it is reportedly China’s leading exhibition focusing on Chinese outbound investment into international mining projects.

China Investor Road Show

Following the conference, a delegation from AMMG travelled to other parts of China to meet with and progress its existing Chinese relationships, follow up on expressions of interest for investment opportunities, as well as meet with some newly established Chinese networks.

The Company appointed a Chinese-based accountacy firm, that has a Mandarin speaking Australian-educated Chinese national representative, on a non-exclusive success-based arrangement to actively market for outright sale and joint venture a suite of the Company’s advanced mineral projects. This appointment will compliment the other success-based consultants AMMG already has in China.

During the trip particularly strong interest was expressed for a number of the lower cost non-ferrous bulk mineral commodities where a JORC resource has been delineated and where there is potential for access to existing infrastructure.

The Company continues to engage with interested Chinese parties through its in-house Mandarin speaking technical marketing personnel. AMMG also continues to receive delegations of Chinese parties; data and technical information continues to be furnished to suitably qualified interested foreign parties from China, Japan, Korea and India.

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Corporate

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As part of its cost reduction strategy, AMMG has made considerable efforts to reduce costs with the AMMG board and senior management taking significant reductions in their remunerations.

Furthermore, a number of administrative and exploration costcutting initiatives have been made by the Company in response to recent market activity.

Figure 8. Meeting a Chinese company in Beijing during the Chinese investor road show in June

Mr Jamie Coote resigned as director of the Company on June 10, 2013. The board wishes to thank Mr Coote for his input into the Company over the past twelve months.

Options Issue

AMMG previously announced a non-renounceable offer of one new option for every one listed option held by option holders registered at 5.00pm on 30 November 2012 at an issue price of 1 cent per Option to raise approximately $420,000. Each Option has an exercise price of $0.20 each on or before 5.00pm (WST) on 31 March 2014.

The supplementary prospectus lodged with the ASX on 22 March 2013 closed at 5pm on 24 May 2013. The Company received acceptances for 21,465,500 options out of a possible 41,987,501 options. A total of $214,655 was received.

Working Capital

The Company remains well funded with circa $2.8 million cash at Bank as at 30 June 2013.

Contact

AMMG

MEDIA CONTACT

Mr 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

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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About AMMG

AMMG was established in 2007 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 and is focused on advancing a diversified suite of mineral project areas located in Western Australia and Queensland.

The directors believe these projects have the potential for the realisation of economic resources of these commodities currently targeted: aluminous clay (kaolin), iron ore, coal, gypsum and mineral sands.

As at quarter end, the Company had 21 granted tenements and 31 tenement applications totalling approximately 9,140km².

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Fig 9. AMMG’s 100% owned mineral projects

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