CLARA RESOURCES AUSTRALIA LTD — Interim / Quarterly Report 2012

Oct 29, 2012

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ASX Release: 30 October 2012

Quarterly Activities Report ‐ Period Ended 30 September 2012

ASX CODE: ANW

HIGHLIGHTS

Shares on Issue

144.9 million

• Continued to identify and review opportunities for diversification and growth.

• Advanced negotiations underway with parties having similar synergies.

Unlisted Options

• EL 50/2011 Heazlewood River, Tasmania granted.

22 million

• EPM 17768 Marlborough South, granted subject to native title clearance.

Market Capitalisation A$4.35m (at $0.02)

• EPM 19366 Kildanga granted over advanced projects in the Black Snake plateau.

REVIEW OF EXPLORATION ACTIVITIES

DIRECTORS

Brian Moller (Chairman) John Downie Nick Mather Ben Harrison

COMPANY SECRETARY

Karl Schlobohm

CONTACT DETAILS

Level 27, 111 Eagle Street Brisbane QLD 4000 Tel: +61 7 3303 0650 Fax: +61 7 3303 0681 www.ausnico.com.au

Further Copper‐Gold Intersections at Pembroke Prospect

A new gold (Ag‐Cu) target has been identified at Pembroke in the NW sector near the contact of Mt Mia Serpentinite and Mt Clara Beds metasediments with PEM7 reporting 4m @ 1.3g/t Au, 1.06% Cu & 12.6g/t Ag from 164m and PEM 14 (125m south) reporting 16m @ 1.2g/t Au from 92m including a significant 2m @ 7.64g/t Au.

Historic underground workings at the Peak extended over 200m of strike and high silver values from rock chips (+700g/t Ag) report, intermittently along the same serpentinite/quartz monzonite contact, over 5km south to the Silver Valley prospect.

The Peak is an exciting new Ag‐Cu‐Au prospect that will add to the already identified mineral endowment in the Black Snake Plateau region in close proximity to the non‐operational Shamrock Mill.

AusNiCo Limited – Quarterly Activities Report

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Silver‐Copper Potential Expanded at Silver Valley

New interpretation of the IP data has identified subtle linear chargeability features associated with scattered gossan, old workings and anomalous soil geochemistry to the east of the previously tested anomalies. An opportunistic drill hole (SVG12) partially tested the southern feature with anomalous silver (6m @ 4g/t Ag) encountered at shallow depths (12‐ 18m) with >500m strike extent to be followed up.

IP Techniques Identify New Targets

Geophysics has been successfully applied to support existing geochemistry at (Mt Cobalt. Mt Clara, Mt Coora, The Peak, Silver Valley and Pembroke).

Metallurgical Test‐work Successful

Confirmed low Arsenic in Nickel sulphide concentrate. Simple flotation process will recover Ni sulphides.

SEPT QUARTER 2012 ACTIVITIES

Corporate Strategy

The Board continues to actively pursue corporate opportunities, improve commodity diversity and ensure a pipeline of prospects through to advanced resource classification.

In this current uncertain economic period there are many high value distressed assets being offered. Over the last two quarters the company has aggressively reduced expenditures and is able to leverage off its strong cash reserves.

Tenement Management

All statutory reporting was completed in order to preserve in good standing, the Company’s extensive, highly prospective exploration tenements.

AusNiCo remains focused on the continued exploration and development of its nickel sulphide discoveries in the Black Snake Plateau at Pembroke and Mt. Cobalt Prospects, which has already returned an exploration drilling result of +180m @ 0.25% Ni, including 4m @ 1.1% Ni. At the Pembroke Prospect, AusNiCo has reported Gold‐ Copper intersections of 21m @ 1% Cu and 2.1g/t gold. Silver Valley has also reported intersections of 21m @1% Cu and 99g/t Silver.

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Heazlewood Tenement in Tasmania Granted

Mineral Resources Tasmania advised that AusNiCo has been successful in its competing application for ERA 882 in western Tasmania near Heazlewood River. The ERA area is located about 25km west of Waratah and the Mt Bischoff Tin (Sn) deposit (1.9Mt @0.96% Sn). Past exploration work has reported Nickel sulphide breccia at Fenton’s Knob containing up to 1.4% Ni sulphide (Avebury Style), surface rock chip values at Brassy Hill to 18.3g/t Au, 15%Pb, 8%Cu and 4.7%Ni and costeans at Fenton’s prospect returned up to 6m @ 6.7ppm Pt and 9m @ 4.0ppm Pt. Although there has been considerable exploration in the area several prospective targets remain untested.

The Brassey North area has not been adequately tested, and several areas of soil geochemistry >3000ppm and up to 5600ppm Ni (Figure 1), remain untested. Several Pt and Os‐Ir anomalies also require further investigation Fentons and north of Fentons. The copper and Pb‐Zn prospects in the south of the tenement have received little attention and have not been tested for Ni or PGE mineralisation, and the north‐western part of the tenement remains largely unexplored.

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Marlborough Tenement Granted

The Marlborough South (EPMA 17768) project will target the nickel sulphide potential of the Princhester Serpentinite. AusNiCo believes the geology of Marlborough South to be similar to its own Pembroke discovery, with a well‐defined quartz‐serpentinite contact along the northern boundary. Historic geochemical sampling has delineated a nickel anomalous area in the center of the tenement (including samples greater than 3,000 ppm Ni) providing the basis for further exploration activity.

Once AusNiCo has met its native title notification requirements, it intends to conduct preliminary field work with a view to developing a comprehensive work program to be undertaken in due course.

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AusNiCo Marlborough South EPM 17768 adjacent to the large Marlborough Mines “MNPL” Laterite formation

Strategic Kildanga Tenement

AusNiCo has been granted the new contiguous Kildanga EPMA 19366 which will encompass the remaining sub‐blocks of Kilkivan North (EPM13359), East Kilkivan (EPM13360), Tableland (EPM 14372), Mount Kandanga (EPM 14560), Green Rock (EPM 17611) and Kandanga Gap (EPM 18107). This approval provides for the retention of the companies advanced projects at Pembroke, Silver Valley, Mt Cobalt, Ridleys, The Peak, Gap, Kandanga‐ Tewoo and Widgee.

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The Black Snake Region Continues to be a High Priority Area for Further Exploration

The drill programs at the Black Snake Plateau region have been successful and moved AusNiCo closer to understanding the controls of mineralisation and upgrading the tonnage potential at Pembroke, Silver Valley and the nearby Mt. Clara/Mt. Coora/Peak prospects. Broad nickel intersections of 116m @ 0.29% Ni (PEMD 1 previously reported) at Pembroke has established the potential for a large open cut mineable region of mineralisation.

A new gold (Ag‐Cu) target has been identified at Pembroke in the NW sector near the contact of Mt Mia Serpentinite and Mt Clara Beds metasediments with PEM7 reporting 4m @ 1.3g/t Au, 1.06% Cu & 12.6g/t Ag from 164m and PEM 14 (125m south) reporting 16m @ 1.2g/t Au from 92m including a significant 2m @ 7.64g/t Au.

Historic underground workings at the Peak extended over 200m of strike and high silver values from rock chips (+700g/t Ag) report, intermittently along the same serpentinite/quartz monzonite contact, over 5km south to the Silver Valley prospect.

The Peak is an exciting new Ag‐Cu‐Au prospect that will add to the already identified mineral endowment in the Black Snake Plateau region in close proximity to the non‐operational Shamrock Mill.

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On behalf of the Board KM Schlobohm Company Secretary

Competent Persons Statement

The information herein that relates to Exploration Results is based on information compiled by Nicholas Mather B.Sc (Hons) Geol., who is a Member of The Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Holdings Pty Ltd which provides certain consultancy services including the provision of Mr Mather as a Non‐Executive Director of AusNiCo Ltd.

Mr Mather has more than five years’ experience which is relevant to the style of mineralisation and type of deposit being reported 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, Minerals Resources and Ore Reserves’ (the JORC Code). This public report is issued with the prior written consent of the Competent Person(s) as to the form and context in which it appears.

Email: info@ausnico.com.au

Electronic copies and more information are available on the Company website: www.ausnico.com.au

For further information contact: Mr John Downie Karl Schlobohm CEO, AusNiCo Limited Company Secretary, AusNiCo Limited Ph: 07 3303 0611 Ph: 07 3303 0661

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