GREENWING RESOURCES LTD — Capital/Financing Update 2007

Aug 15, 2007

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ABN 31 109 933 995
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16 August 2007

The Manager Companies Australian Stock Exchange 20 Bridge Street SYDNEY NSW 2000

Dear Sir

UPDATE ON HELLYER EXPLORATION

Bass Metals Ltd (ASX:BSM) is pleased to provide the following update on its Hellyer Exploration Alliance (HEA) activities being jointly funded with Zinifex Australia Limited.

Highlights

• HED12 was drilled to test a new target with no previous drilling, prospective for Hellyer and Que River deposit style mineralisation.

• Geological logging of HED12 has shown:

• Intense footwall and hanging wall alteration

• Presence of major proximal style “feeder” faults

• Conspicuous copper, lead and zinc base metal sulphide mineralisation in the footwall alteration.

• The geological elements observed above indicate Cambrian age hydrothermal activity in the target area associated with base metal mineralisation.

• This is the most prospective target tested to date on the basis that it has all of the indicative geological elements for ore formation including base metal mineralisation in the feeder zone alteration.

• A follow-up drill hole is now underway to test the interpreted target positions and a downhole geophysical survey is planned in late August.

Background

BSM has an exploration alliance with Zinifex covering the Company’s tenements in the Hellyer area. The objective of the alliance is to discover new, large scale high grade massive sulphide deposits such as are found in this immediate area at Que River and Hellyer and owned by BSM. These are attractive targets because of the potential large scale and high grades as exemplified by the world class Hellyer deposit which had a published pre-mining Mineral Resource of 16.9 million tonnes grading 14% zinc, 7% lead 0.4% copper, 5oz./t silver and 2.5 g/t gold. ( Hellyer was mined between 1987 and 2000 ).

Suite 5/2 Richardson Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 9322 8044 Facsimile (08) 9481 2846 www.bassmetals.com.au

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This style of deposit is referred to as volcanic hosted massive sulphide (VHMS) mineralisation and VHMS deposits generally occur within specific geological units or horizons in submarine volcanic settings, and in Tasmania, associated with Cambrian age rocks and structures. A typical schematic geological cross section for Hellyer is presented in Figure 1.

In collaboration with Geoinformatics Exploration Inc (TSX.V:GXL), BSM generated a series of prospective targets utilising new data sets and exploration techniques since Hellyer and Que River exploration times. Over the past 12 months BSM, as manager of the HEA has been systematically testing these targets with diamond drilling and follow-up down-hole geophysics. To date a total of 11 diamond drill holes have been completed comprising 4,926 metres. Two drill rigs are currently on HEA targets, one to follow-up on HED 12 and the second testing a new target to the east of the Hellyer deposit. Of the 9 targets tested to date, 5 warrant further work involving down hole geophysical surveys, based on the results, follow-up drilling.

HEA Update

Diamond drill hole, HED12 was drilled to test a target located within the ore host horizon referred to as the Mixed Sequence approximately 2km south east of the Hellyer ore system and 2km northeast of the Que River system (refer Figure 2 – Location Plan). The target position is at the intersection of an interpreted feeder fault structure with the Mixed Sequence horizon, analogous to the Hellyer ore position.

During refurbishment of an access track a significant fault zone containing fragments of footwall style alteration was observed in approximately the same position as the interpreted fault and this was subsequently mapped and sampled. The observation of minor pyritic fragments within the fault zone with trace amounts of sphalerite and galena ( zinc & lead sulphides ) was considered encouraging as this indicates Cambrian age VHMS related hydrothermal activity in the area. Assay results for a rock chip sample of the alteration zone, whilst not economic, clearly indicates base-metal anomalism; refer Table 1 below.

Table 1: Rock chip assays – HED access track outcrop.

Sample	Cu	Pb	Zn	Ag	As	Fe	Au
	ppm	ppm	ppm	ppm	ppm	%	ppm
ESB001	112	2,746	979	4	41	4.32	0.07

HED12 drilled the Hellyer/Que River sequence as follows (from the top of the hole):

• a. intersected a significant pile of dacite and into a fuchsite-altered basalt (Hanging wall alteration)

• b. This graded into massive basalt with pyrite stringers before intersecting sericite-silicafuchsite-carbonate altered polymict volcaniclastic and epiclastics ( hangingwall alteration ).

• c. The altered polymict unit coarsened before the hole passed into intense silicapyrite+sphalerite/galena/chalcopyrite altered rock ( footwall alteration ).

• [Refer Figure 3-Schematic drill cross section & Figure 4 Core photos]

Both the hangingwall and footwall alteration types intersected are consistent with that observed in close proximity to the Hellyer and Que River deposits. The ore position in HED 12 is distinct but lacks any stratiform sulphides. Sphalerite, galena and chalcopyrite mineralisation occurs in a blebby and stringer style form within the footwall alteration and is visually estimated at 1 to 2% zinc, 1% lead and 0.25 to 0.5% copper. Whilst another target position occurs in the down faulted block the drill rig on this hole did not have the capability to drill any deeper.

Suite 5/2 Richardson Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 9322 8044 Facsimile (08) 9481 2846 www.bassmetals.com.au

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The HED12 target is regarded by the Company as the most promising new VHMS deposit target tested to date on the basis that HED 12 has intersected:

• the ore host horizon;

• in close proximity to faults(s) which have alteration/mineralisation associated with them suggesting they are reactivated VHMS feeder type structures from Cambrian times;

• strong hanging wall and footwall alteration – confirming significant hydrothermal fluid flow; and,

• the occurrence of base metal sulphides highlighting the presence of metal rich fluids in the area.

Massive sulphide clasts which have been observed in epiclastic units in the vicinity of this target (refer Figure 2) have Pb-isotope signatures which are distinctive to that of the lead within both the Hellyer and Que River massive sulphide lenses. Therefore a source of the clasts has not yet been located but it is possible that an undiscovered mineralised massive sulphide lens may occur close by the alteration intersected in HED12 and could be the source of the mineralised massive sulphide clasts. Pb isotope work will be conducted on the footwall alteration to establish whether the clasts are more closely associated with the newly discovered VHMS alteration system.

Summary

HED 12 is part of a systematic exploration programme testing a series of targets looking for large scale, high grade polymetallic VHMS type deposits such as the now mined out Hellyer deposit and the soon to be re-opened Que River deposit. The process involves modern expert exploration techniques and persistent drilling to test the geological models and create “openings” into the target areas to be surveyed by down-hole geophysical techniques which can “see”: into the country rocks for several hundreds of metres and detect massive sulphide lenses.

The geology intersected in HED12 supports the discovery of a “fertile” VHMS alteration system; that is, one which also has base metal mineralisation. Faults acting as fluid pathways, intense alteration indicating that fluid flow was active and the association of minor base metal sulphides suggest that this is a fertile and hence highly prospective target.

The Company has a core objective firmly focused on generating shareholder value through execution of a twin strategy of production and discovery. The discovery process, looking for the very large mineral deposits which characterise NW Tasmania has been termed the “Great Tasmanian Elephant Hunt” in some recent press articles and our site geologists have raised the possibility that HED12 might represent the elephant’s tail . To determine whether that is the case a 2[nd] follow-up drill hole has started and further downhole geophysical surveys are planned for late August. This is an exciting exploration development and I look forward to providing further updates on HEA activities as results come in.

Yours Sincerely

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Mike Rosenstreich Managing Director

The information within this report that relates to exploration results is based on information compiled by Mr Mike Rosenstreich who is a full time employee of the Company and is a Member of The Australasian Institute of Mining and Metallurgy. He has sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activities currently being undertaken 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 and consents to the inclusion of this information in the form and context in which it appears in this report.

Suite 5/2 Richardson Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 9322 8044 Facsimile (08) 9481 2846 www.bassmetals.com.au

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Bass Metals Profile

Bass Metals Ltd (ASX: BSM) is a “Discovery” company focused on the exploration and rapid development of a quality portfolio of mineral assets in north-west Tasmania. It is supported by key alliances with zinc producer Zinifex Limited and mining group, Mancala.

Bass Metals is set to become a new Australian zinc producer through the imminent commencement of production from the Que River project. Ongoing drilling has indicated substantial potential to define further high-grade reserves, from the current resource of 736,000 tonnes grading 6% Zn, 3% Pb, 1% Cu, 84g/t Ag and 0.9g/t Au. The Company is finalising an ore sales agreement with Zinifex’s Rosebery operations prior to commencing mining at the Que River project.

A vigorous exploration programme is being maintained with three drill rigs currently on its tenements to execute its twin strategy of testing advanced base metal and gold targets to increase resources and production, whilst also focused on the discovery of large new deposits such as already characterise the world class mineral terrain in which it operates. [end]

Figure 1: Schematic Hellyer deposit cross-section.

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Suite 5/2 Richardson Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 9322 8044 Facsimile (08) 9481 2846 www.bassmetals.com.au

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Figure 2: HED 12 Location Plan

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Suite 5/2 Richardson Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 9322 8044 Facsimile (08) 9481 2846 www.bassmetals.com.au

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Figure 3: HED12 schematic cross section

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Suite 5/2 Richardson Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 9322 8044 Facsimile (08) 9481 2846 www.bassmetals.com.au

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Figure 4: Drill core photos-HED12

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Suite 5/2 Richardson Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 9322 8044 Facsimile (08) 9481 2846 www.bassmetals.com.au