GREENWING RESOURCES LTD — Capital/Financing Update 2008

Mar 17, 2008

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----- Start of picture text ----- ABN 31 109 933 995----- End of picture text -----

18 March 2008

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

Dear Sir

Que River Operations Update

Que River Mine Operations

1. Lost Time Injuries & Environmental Incidents – nil since project inception.

2. Ore production is on track, with an overall positive reconciliation of mined tonnes compared to predicted tonnes in mine plan.

Actual Mined Ore: 24,104t at 9.6 % Zn, 4.8 % Pb, 0.4% Cu, 96 g/t Ag & 1.5 g/t Au Predicted Ore: 22,737t at 9.0 % Zn, 2.3 % Pb, 0.5% Cu, 56 g/t Ag & 0.9 g/t Au

3. Ore Sold to the end of February 2008:

• 15,938dmt at 11 % Zn, 6 % Pb, 103 g/t Ag, 2.0 g/t Au & 0.4 % Cu

4. Ore Stocks as at the end of February 2008:

8,144t* at 10.4 % Zn, 5.3 % Pb, 0.4% Cu, 95 g/t Ag & 1.5 g/t Au

*note mined tonnages are ‘wet tonnes’ whilst sold tonnes are ‘dry metric tonnes’

5. Revenue to date estimate as at the end of February 2008:

$4.26 million or $267/t ore.

6. Operating Costs: (up to the end of February 2008):

Total operating cost*$80/t ore sold

Total operating cost $53/t ore mined

*after adjustments for depreciation, amortisation and capitalisation

Cash operating costs** $317/t ore sold

Cash operating costs $207/t ore mined

**These costs represent the total cash spent to date reflecting higher initial waste stripping costs, ramp-up stage activities. The difference between ‘sold’ and ‘mined’ unit costs reflects the large ore stockpile accumulated to date.

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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7. Financing: Bass Metals Ltd (ASX:BSM) and Investec Australia have mutually agreed to terminate the financing mandate for the proposed $5 million facility. There are no break fees and the options approved by Shareholders on 17 December 2007 will not be issued. From BSM’s perspective, changed circumstances – including the positive advancement of the project - have reduced the need for a facility to support the working capital position of the Company.

Commentary

The rationale for the finance facility was to accelerate ore payments from the Ore Sales contract with Zinifex Limited and provide a working capital buffer which would enable fasttracking of the Hellyer Mine Project (HMP) mining study. Any future need for a finance facility will be reviewed on an ongoing basis in light of HMP results and Que River mine performance.

Drilling will continue at Fossey Zone (part of the HMP) with the current rig. The deployment of a second drill rig to accelerate the HMP study will need to be reviewed in the wake of updated cash flow forecasts.

The Company remains in a strong position with a closing cash position at the end of February of $4.5 million, a hedge book with a positive value of approximately $2.0 million and a net working capital position of $7.2 million which includes an estimate for Receivables of $2.94 million largely related to Que River ore sales to the end of February 2008. The Que River mine is performing well technically in terms of both ore production and costs.

I look forward to providing further updates on the Company’s ongoing mining, development and exploration activities.

Yours sincerely

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Mike Rosenstreich Managing Director

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