GREENWING RESOURCES LTD — Capital/Financing Update 2006

Jul 4, 2006

BASS METALS CONSOLIDATES REGIONAL POSITION. EXPANDS RESOURCES WITH KEY ACQUISITION

• Agreement with ASX-listed Saracen Mineral Holdings Limited to acquire its Tasmanian $\bullet$ exploration portfolio for 6.4M shares and \$300,000 in cash.
• 138km² ground package lies adjacent to Bass Metals' Hellyer Project and includes advanced drill $\bullet$ targets and Farrel lead-zinc-silver resource.
• Acquisition increases Bass Metals' resource inventory and consolidates its regional position within $\bullet$ the highly prospective Mt Read Volcanic (MRV) belt, host to numerous world-class deposits.

Gold and base metals company Bass Metals Ltd (ASX: BSM) has cemented its dominant position in northwest Tasmania after signing an agreement with ASX-listed Saracen Mineral Holdings Limited to acquire its 138km² Tasmanian exploration portfolio – generating significant new exploration targets for Bass as well as an increase in its resource inventory.

The acquisition will result in a strategic consolidation of the two companies' ground holdings in the Mt Read Volcanic Belt (MRV), one of Australia's most prospective mineralised belts, combining Saracen's tenements with Bass Metals' Hellyer Project and regional tenements. The combined ground package contains extensions of major mineralised units and lies adiacent to the major Henty and Rosebery mining centres.

Bass Metals' Managing Director, Mr Mike Rosenstreich, said the Saracen ground package included two advanced targets prospective for high-grade base metal and gold mineralisation as well as a lead-zinc-silver resource at the Farrell Mine complex.

"In addition, it includes several drill targets prospective for Hellyer-style, high-grade zinc-lead-copper-silvergold mineralisation which will be drilled as part of our current drilling program in alliance with Zinifex," he added. "There are also significant emerging mineralisation targets resulting from regional geological modelling and target generation."

The acquisition includes a Mineral Resource of 180,000 tonnes at 11% lead, 11 ounces/tonne of silver and 4% zinc at the Mt Farrell Mine complex. The Mt Farrell-Murchison line had significant historic lead-silver production of approximately 700,000 tonnes at 13% lead and 14 ounces/tonne of silver.

Mr Rosenstreich said Bass Metals intended to focus its initial exploration efforts on testing the entire 2km strike extent of the Farrell-Murchison structure, which has the potential to generate new ore shoots of similar style to those mined previously which could support a small-scale underground mine.

With the inclusion of the Farrell resource, the Saracen acquisition increases Bass Metals' mineral resource inventory to 652,000 tonnes at 4.8% zinc, 4.6% lead, 1.1% copper, $145g/t$ silver and 0.3g/t gold across three deposits (the Nico resource, S-Lens resource and North Farrell resource).

The Company recently announced positive preliminary results from its mining scoping study for the shallow S-Lens and Nico Lens resources at the historic Que River mine, as part of a strategy to fast-track production and achieve early cash flow. Bass Metals has established a mining alliance with specialist mining group Mancala Pty Ltd to facilitate this strategy.

"With the prospect of early cash flow from Que River, and our strong technical partnerships with Zinifex and Geoinformatics, Bass Metals has the ability to achieve exploration success within this consolidated ground package, which lies in close proximity to world-class deposits such as Rosebery, Hellyer, Henty and Mt Lyell," Mr Rosenstreich commented.

Released by: Jan Hope/Nicholas Read Jan Hope & Partners Telephone: (08) 9388-1474

On behalf of: Mr Mike Rosenstreich Managing Director Bass Metals Ltd Telephone: (0410) 576 062 Website: www.bassmetals.com

Profile - Bass Metals Ltd

Bass Metals Ltd (ASX: BSM) is an Australian resources company focused on the exploration, evaluation and rapid development of a quality portfolio of mineral assets in north-west Tasmania, including gold-silver and base metal projects with near-term production potential.

Underpinned by alliances with zinc producer Zinifex Limited, TSX-V listed Geoinformatics Exploration Inc and Intec Ltd, owner of the Hellyer treatment facility in Tasmania, Bass Metals has intensive work programs underway on its two most advanced projects, the Mt Charter Gold Project and Que River base metals project.

At Mt Charter, Bass Metals's maiden drilling program in late 2005 returned broad intersections including 80m $(a)$ 1.6g/t gold and 61g/t silver and 52.5m @ 2.0g/t gold and 39g/t silver. Intensive follow-up drilling is underway during 2006, with the Company targeting the potential for a large-scale, moderate grade gold deposit.

At Que River, where Bass Metals has delineated an initial resource at the S-Lens in addition to historic high-grade zinc-lead-silver-gold resources previously mined by Aberfoyle in the 1980s, evaluation of mining and treatment options is underway with a view to commencing production as rapidly as possible. The key advantages of this project are its close proximity to processing facilities, road and rail access and extensive underground mining infrastructure.

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