GREENWING RESOURCES LTD — Capital/Financing Update 2006

Jun 15, 2006

BASS METALS TO FAST-TRACK QUE RIVER MINING DEVELOPMENT

• Positive preliminary results from mining scoping study indicate a positive cash surplus of up to \$9 million from initial open pit mining operations.
• Letter of Intent signed to form a mining alliance with specialist mining group, Mancala Pty Ltd, to $\bullet$ fast-track mine development.
• Targeting completion of mining study in July and, subject to a positive outcome, commencement of mining during the second half of 2006.

Gold and base metals company Bass Metals Ltd (ASX: BSM) is aiming to commence mining later this vear at its 100%-owned Oue River base metal project in north-west Tasmania after today announcing positive preliminary results from its mining scoping study and forging a mining alliance with specialist mining group Mancala Pty Ltd.

Bass Metals said it was planning to fast-track production by mining the shallow S-Lens and Nico Lens mineral resources at the historic Que River mine, representing an opportunity to achieve early cash flow as part of a staged development strategy to explore and develop the broader opportunities within the Company's tenement holdings.

Que River, was mined by Aberfoyle in the 1980s and had a pre-mining metal endowment of some 3.3 million tonnes at 13.3% zinc, 195g/t silver, 3.3g/t gold and 7.4% lead. It represents a cornerstone of Bass Metal's strategy to accelerate production from its extensive tenement position in north-west Tasmania.

Bass Metals' Managing Director, Mr Mike Rosenstreich, said preliminary results from the mining study indicated that a positive cash surplus of up to \$9 million, using current metal price assumptions, could be generated from open pit mining of the S-Lens and Nico Lens resources, with significant potential to add to the proposed mine life.

Bass Metals recently announced the identification of a further shallow resource target, OR32 Lens, at Que River and is confident of the potential to add further shallow open pitable and underground resources as it continues to reassess in detail the Que River lens system.

"Based on these results, we are now looking to complete the mining study to a feasibility standard, in conjunction with some additional in-fill drilling to upgrade the upper levels of the resources to Measured and Indicated standard," he said. "We are also in discussions with both Intec Ltd and Zinifex Limited to utilise their processing facilities at Hellyer and Rosebery respectively to treat the ore, and we are aiming to finalise an off-take agreement before the end of July."

"Based on the results to date, we are confident that we can fast-track the process to position us, subject to a positive outcome from the mining study, to commence mining before the end of 2006, underpinned by the mining alliance with Mancala," he added.

Mancala is a specialist underground mining contractor whose principals were involved in senior technical roles at both the former Hellyer and Que River mining operations. The group has been involved in four similar-style mining operations (both open cut and underground) in western Tasmania.

Bass Metals has signed a Letter of Intent with Mancala which contemplates the contractor taking a 20% equity stake in a sub-lease around the Mineral Resources and Oue River mining infrastructure, undertaking all mine geology, environmental, mining, haulage, off-take management and OH & S functions on site, and earning a fee to cover its costs with the incentive to maximise profit from its equity stake.

"The alliance will be structured to provide a strong incentive component that will add tremendous value in optimising the current mine plans and drawing on Mancala's underground mining skills to evaluate the remainder of the Oue River system," Mr Rosenstreich said.

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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: (+61-8) 9322 8044 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 Oue River base metals project.

At Mt Charter, Bass Metals's maiden drilling program in late 2005 returned broad intersections including 80m $\omega$ 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. $-$ ENDS $-$