AUSTIN METALS LIMITED — Interim / Quarterly Report 2012

Jul 23, 2012

SILVER CITY MINERALS LIMITED

June 2012 Quarterly Report

ASX Code: SCI Highlights HIGHLIGHTS

Drilling

Issued Shares: 98M Listed Options: 29.2M Unlisted Options: 18.3M Figure 1. Silver City Minerals Cash Balance: $7.1M ABN: 68 130 933 309

Over 4000 metres of drilling completed in four project including Allendale, Umberumberka, Champion and Razorback West. This brings the total drilling for the year since completion of the IPO to approximately 16,000 metres evaluating nine projects.

Allendale

DIRECTORS

Bob Besley Chris Torrey Ian Plimer

Greg Jones Ian Hume

A second phase of drilling has continued to intersect base metals and silver in massive sulphide mineralisation including a new zone of mineralisation:

• 10 metres at 6.2% zinc. 3.4% lead and 26 g/t silver from 73 metres in hole 12AN035. This includes a 3 metre zone from 79 metres at 11.4% zinc, 8.9% lead and 67 g/t silver.

• Results for 10 holes are pending.

Umberumberka

TOP SHAREHOLDERS

(At 10 July 2012)

Sentient Group 17.45% PlatSearch NL 14.58% Fitel Nominees 6.63%

TOP 20 SHAREHOLDERS Hold 69.65%

First pass drilling near the old Umberumberka silver mine returned 2 metres at 254 g/t silver and 6.3% lead from 39 metres in hole 12UM002.

Champion

First pass drilling near the old Champion mine showed that there are broad 20 metre widths of 1 to 2% zinc in which a number of high grade zone were located. Results included:

• 4 metres at 9.0% zinc from 33 metres in hole 12CH001.

• 3 metres at 6.7% zinc from 26 metres in hole 12CH002.

• 2 metres at 1.7% zinc from 48 metres in hole 12CH003 .

Head Office

80 Chandos Street St Leonards NSW 2065 T: +61 (2) 9437 1737 F: +61 (2) 9906 5233

Razorback West

Anomalous lead, zinc, manganese and silver confirmed to occur within metamorphosed sediments beneath thin alluvial and soil cover.

• Zones 50 metres wide with 1 to 2% zinc and 1 to 3% manganese occur at Razorback West and are typical of anomalous sequences which host massive sulphide deposits at Broken Hill.

E: info@silvercityminerals.com.au www.silvercityminerals.com.au

SILVER CITY MINERALS LIMITED

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Figure 1. Silver City tenements and projects.

SILVER CITY MINERALS LIMITED

OPERATIONS

During the period SCI has focussed on drilling. A total of 4364 metres have been completed in forty three holes on four projects.

Yanco Glen (EL 5764)

Allendale

This project remains a strong candidate for near-term resource delineation. A second program of fourteen reverse circulation (RC) drill holes was completed during the Quarter. In addition, a diamond tail extension on one RC hole (12AN034) was completed and one diamond hole was drilled from surface (Figure 2). A total of 1795 metres of drilling were completed. Results for first five holes of this second phase of drilling were recently released (ASX Release 17 July 2012). They include the following significant results:

• 10 metres at 6.2% zinc. 3.4% lead and 26 g/t silver from 73 metres in hole 12AN035 including 3 metres from 79 metres at 11.4% zinc, 8.9% lead and 67 g/t silver.

• 6 metres at 2.4% zinc, 2.6% lead and 23 g/t silver from 93 metres in hole 12AN030.

Results from the remaining holes and subsequent geological interpretation are pending.

Aragon (EL 7300)

Umberumberka

This tenement hosts the historic Umberumberka silver mine. Geological survey records indicate that historic production was in the order of 39,000 tonnes at grade of approximately 10% lead and 800 g/t silver. The Main Umberumberka Lode has been interpreted to extend for 1.5 kilometres in strike.

During the March Quarter the Company initiated a drilling program and completed five RC holes for a total of 489 metres. Results from this work were announced during this Quarter (ASX Release 14 May 2012) and highlighted a silver intersection in hole 12UM002 which returned 2 metres at 254 g/t silver and 6.3% lead from 39 metres. The drilling program undertaken in the March Quarter did not fully test the mineralised structure at Umberumberka due to rig limitations and ground conditions. A larger drill rig was moved to the site in June and a deeper hole was completed in order to test beneath the old workings. Results from this last hole are pending.

Champion

The Champion Prospect contains BHT style, folded gahnite-quartz lode rocks which outcrop over a distance of 500 metres. Three shallow holes for a total of 231 metres were completed by SCI in order to test for lode repetitions, or the presence of thicker zones in fold hinges. Results from these holes have previously been released (ASX Release 4 July 2012). Significant results are as follows:

• 4 metres at 9.0% zinc from 33 metres in hole 12CH001.

• 3 metres at 6.7% zinc from 26 metres in hole 12CH002.

• 2 metres at 1.7% zinc from 48 metres in hole 12CH003.

SILVER CITY MINERALS LIMITED

The drilling shows that higher grade intersections are hosted within a broader halo of zinc mineralisation (in the order of 2% zinc) up to 20 metres wide.

Ironbar (EL 7203)

Razorback West

During the Quarter a total of 1535 metres of RC drilling were completed in sixteen drill holes over a wide area. These were designed to test a large lead, zinc, manganese geochemical anomaly previously identified by a variety of auger and rotary airblast (RAB) shallow drilling programs. While the anomaly extends for over 4 kilometres along strike, recent drilling focussed on a zone some 2 kilometres long where best geochemistry in RAB results were located. This geochemical anomaly, largely hidden beneath a thin veneer of soil and alluvium, has the potential to represent the same geological horizon at that which hosts the large Broken Hill deposit which lies 15 kilometres to the south.

Results of the drilling were recently reported (ASX Release 12 July 2012). Drilling shows that there are zones comprising a steeply dipping sequence of metamorphosed sandstones and siltstones which are highly anomalous in zinc, manganese, lead and locally silver (Figures 3 and 4). In the southern part of the anomaly this corridor is approximately 50 metres wide. Sulphide minerals identified within this anomalous rock package include pyrite, galena, chalcopyrite and pyrrhotite. If massive sulphide deposits are present in the area, the Company would expect them to be located within corridors of anomalous rocks such as those identified here. This style of geochemical anomalism is characteristic of the rocks which host the Broken Hill deposit. Applying the knowledge gained from recent drilling, the use of ground geophysical techniques such as induced polarisation and electromagnetics may be effective in targeting enriched sulphide zones.

Exploration Schedule

It is anticipated that the current phase of drilling will be finalised in late July 2012. This will include diamond drilling at Stephens Trig. At the time of writing a significant number of analyses of drill samples were pending and further drilling will be dependent on these. Compilation and interpretation of the geological and analytical data is ongoing. The Company anticipates drilling two new projects; Mount Brown and Ziggys during the September Quarter. Evaluation and planning of other programmes are also progressing.

CORPORATE

Net operating expenditure for the Quarter was $654k. This included $593k on projects and $166k on administration, offset by $105k in interest income. Cash on hand at the end of the Quarter was approximately $7.1 million.

Western Cape Resources Joint Venture

After evaluation of historic data from the Gum Park tenement the Company chose to withdraw from this farm-in and joint venture agreement.

SILVER CITY MINERALS LIMITED

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Figure 2 Allendale Drill hole locality plan showing holes with mineralised intersections and the most recent result from hole 12AN035. Note that holes 12AN037 and 12AN038 are located to the north of this figure.

SILVER CITY MINERALS LIMITED

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Figure 3 Razorback West zinc geochemical anomaly and Silver City drill hole locations.

SILVER CITY MINERALS LIMITED

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Figure 4 Cross-section showing extent of zinc, manganese and lead anomalism.

SILVER CITY MINERALS LIMITED

SILVER CITY MINERALS LIMITED

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Christopher Torrey Managing Director

The information in this report that relates to Exploration Results is based on information compiled by Christopher Torrey (BSc, MSc, RPGeo.) who is a member of the Australian Institute of Geoscientists. Mr Torrey is the Managing Director and full-time employee of Silver City Minerals Limited. Mr Torrey has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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”. Christopher consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

ABOUT Silver City Minerals Limited

Silver City Minerals Limited (SCI) is a base and precious metal explorer focused on the Broken Hill District of western New South Wales, Australia. It takes its name from the famous Silver City of Broken Hill, home of one of the world’s largest accumulations of silver, lead and zinc; the Broken Hill Deposit. SCI was established in May 2008 to explore specifically in the District where it rights to Exploration Licences and Mineral Claims through 100% ownership and various Sale and Joint Venture agreements. It has a portfolio of highly prospective ground with drill-ready targets focused on high grade silver, gold and base-metals, and a pipeline of prospects moving toward the drill assessment stage.