BARYS RESOURCES LIMITED — Capital/Financing Update 2012

Jul 8, 2012

ANNOUNCEMENT

9 JULY 2012

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PORPHYRY POTENTIAL AT COMVAL EXPLORATION UPDATE

Highlights

• Further economic skarn style copper drill intercepts encountered at Bayag Bayag including BCPDH00002, 32.00m @ 0.61% Cu and 0.18g/t Au from 32.00m, including 11.30m @ 1.11% Cu and 0.16g/t Au from 50.70m

• Significant porphyry style mineralisation intersected at Bayag Bayag including 5.00m @ 0.44% Cu and 0.15 g/t Au from 45.00m and 2.00m @ 1.38% Cu and 0.64g/t Au from 104.00m within a broader low grade mineralised porphyry feeder zone

• Detailed ground magnetic work highlights further untested skarn targets

• Recent results and ongoing exploration indicate porphyry potential

Overview

Mining Group Limited (ASX: MNE) is pleased to provide a drilling and exploration update on ongoing drilling results from the new Bayag Bayag target on its Comval copper-gold project in the Philippines.

Recently received assays from drilling at the Bayag Bayag target, and in particular the extensive skarn alteration that extends for more than 700 metres along strike, provide further indications that the Tagpura/Bayag Bayag prospects have the potential to host a significant copper orebody.

Furthermore significantly mineralised porphyry feeder zones have been intersected in hole BCPDH00006 (see Figure 3) further enhancing the Comval Project’s porphyry copper prospectivity and confirming the Company’s exploration model.

Hole BCPDH00006 intercepted over 100m of highly altered granodiorite, consisting of distinctive sheeted vein structures containing chalcopyrite copper mineralisation and intense magnetite alteration. Locally high grade copper intercepts of 5.00m @ 0.44% Cu and 0.15 g/t Au from 45.00m and 2.00m @ 1.38% Cu and 0.64g/t Au from 104.00m were encountered within broader zones of 51.00m @ 0.14% Cu from surface and 50.00m @ 0.21% Cu from 104.00m.

Geological mapping and interpretation by consultant Dr Nick Oliver has also refined the exploration model and provided further skarn and porphyry targets for drill testing within a 2km radius of the historic Tagpura open pit mine. Dr Oliver is a former Professor of Economic Geology and Director of the Economic Geology Research Unit at James Cook

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University and an expert in hydrothermal systems and utilising multi discipline datasets to develop mineralising models in a variety of settings.

A total of 9 holes have been drilled at the Bayag Bayag target and results have been received for the first 6 of these holes.

The Company’s onsite exploration team, with the input of Dr Oliver, have further refined the exploration model with the integration of ongoing detailed ground magnetic work and have identified numerous skarn targets which remain untested.

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Tagpura
Bayag Bayag
A'
A
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Figure 1- Geological Map of Tagpura to Bayag Bayag. Section position yellow line A-A' at Bayag Bayag shown. Bounding north west faults delineate tract of prospective geology for skarn minerlisation within downthrown fault blocks. Yellow dots denote holes drilled by Mining Group Limited.

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Mining Group Managing Director, Mr Andrew Maurice, said that the Bayag Bayag target’s latest assay results and the discovery of a porphyry style feeder zone further confirm the Comval Project’s prospectivity to host a significant copper deposit.

“These latest assays are a great result for our team, all of whom have done a terrific job in unravelling the geological picture at Comval, confirming our exploration model and providing further encouragement that the Comval Project has the potential to host an economic skarn hosted copper deposit."

"Perhaps the most exciting feature of the recent drilling is the discovery of a porphyry style feeder zone at Bayag Bayag, further upgrading the potential of the project to also host a porphyry style deposit" added Mr Maurice.

Porphyry potential at Bayag Bayag

Drill hole BCPDH00006 encountered two zones of mineralised porphyry style feeders (see Figures 2 and 3). Logging and multi-element geochemistry indicate these feeders are highly altered intrusive granodiorites, anomalous in Cu, Au, Ag, Mo and Co. The feeders are comprised of distinctive vertical dipping sheeted veins of pyrite, chalcopyrite, quartz and epidote with alteration haloes of magnetite, similar to the high temperature zone of a porphyry style deposit.

Recent detailed ground magnetics combined with historical induced polarisation data and the recent updated geological model have identified circular kilometre scale targets which are prospective for large scale porphyry mineralisation. These results will be followed up with further drilling as a priority.

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Figure 2 - Mineralised porphyry interval in hole BCPDH00006 45.00m-47.00m downhole direction to the right, 2.00m @ 0.48% Cu, 0.19g/t Au, 1.6g/t Ag; shows steep sheeted py-cpy-mt veins (centre) with surrounding magnetite (bottom) and quartz-magnetite (top) alteration of host granodiorite.

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Drilling progress at Bayag Bayag

Mining Group commenced drilling at the new Bayag Bayag target on 4 April 2012 and has since completed 9 diamond drill holes on the target. To date, assay results have been received for the first 6 holes and are summarised in Table 1.

All drill holes have been drilled with HQ size core, geologically logged and half core samples were sent to Macphar Laboratories, Manila for analysis. Au was assayed using fire assay and an atomic absorption finish and Cu, Ag and Mo were assayed using a 4 acid digest and an ICPOES finish. Standard reference material check samples were submitted every 20 samples and a blank check submitted every 50 samples for QA/QC purposes.

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A'
A
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Figure 3 - Section through A-A' at Bayag Bayag showing recently drilled skarns and porphyry feeders.

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Detailed Ground Magnetics

In recent months, Mining Group has utilised the expertise of geophysics company Resource Potentials Pty Ltd to conduct high resolution ground magnetic work between Tagpura and Bayag Bayag.

The survey was conducted on east-west lines spaced at 25m to provide maximum resolution. A Geometrics G859 magnetometer with inbuilt GPS was used to collect 1 second readings along lines which were walked by survey personnel. The results of this work have been outstanding with the near surface skarns being clearly identified on the ground magnetic images (Figure 4). This data has identified a number of near surface anomalies which remain untested and provide encouragement that further skarn mineralisation exists within a 2km radius of Tagpura.

This detailed work has also demonstrated that drilling at Bayag Bayag in particular has missed the main magnetic anomalies and also delineated previously untested potential at Tagpura, providing further encouragement for economic skarn mineralisation.

The Company intends to continue this ground magnetic survey work to delineate further targets within the Project area.

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Figure 4 - Ground magnetics image of total magnetic intensity, analytical signal between Tagpura and Bayag Bayag. Yellow dots diamond drill holes drilled by Mining Group Ltd.

		LOCATION			ORIENT	ATION	Int	ersection(m)					COMMENT
					AZIM UTH				Interv al		Au g/t
HOLEID	EAST	NORTH	RL	DEPTH		DIP	From	To		Cu%		Ag g/t
BCPDH00002	845542.25	826459.24	475.00	237.50	270	-60	32.00	64.00	32.00	0.61	0.18	2.51
BCPDH00002	845542.25	826459.24	475.00	237.50	270	-60	50.70	62.00	11.30	1.11	0.16	3.80	incl
BCPDH00003	845464.86	826414.58	490.00	217.20	270	-60	135.60	146.00	10.40	0.87	0.53	2.78
BCPDH00003	845464.86	826414.58	490.00	217.20	270	-60	158.30	166.00	7.70	0.83	0.14	2.67
BCPDH00004	845521.46	826549.49	496.00	246.80	270	-60							NSI
BCPDH00005	845466.00	826457.00	468.00	124.00	90	-70	33.00	34.70	1.70	1.45	0.42	6.96
BCPDH00005	845466.00	826457.00	468.00	124.00	90	-70	55.00	65.00	10.00	1.02	0.18	3.77
BCPDH00006	845599.83	826443	480.00	195.10	0	-90	45.00	50.00	5.00	0.44	0.15	1.34
BCPDH00006	845599.83	826443	480.00	195.10	0	-90	104.00	106.00	2.00	1.38	0.64	2.50

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Table 1- Significant intercept table for drilling by Mining Group, results received to since last announcement16th May 2012. Significant intercepts calculated on a length weighted average using a 0.25% Cu cut off and 4m internal dilution.

For further information please contact: Andrew Maurice Managing Director amaurice@mininggroup.net.au P: + 61 8 9322 6424

Media	Investors
Carrie Parsons	Ronn Bechler
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About Mining Group Limited

Mining Group Limited (ASX: MNE) is an ASX listed, Australian based exploration company established to explore, evaluate and acquire commercially significant resource projects in Australia and overseas.

Mining Group seeks to develop the Comval Copper Gold Project in the Philippines along with exploring the prospective Western Australian based Boorara, Teutonic and Lake Christopher Projects.

Mining Group has a strong Board and management team with considerable technical, commercial and corporate experience in the resources sector.

For more information visit the Mining Group website at www.mininggroup.net.au

The information in this report that relates to Exploration Results is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) (Applied Geology) MBA, MAIG), a consultant to the Company. Mr Reeves has sufficient experience that is relevant to the style of mineralisation and type 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. Mr Reeves consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

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