GREENWING RESOURCES LTD — Capital/Financing Update 2011

Sep 29, 2011

ASX / Media Release

==> picture [136 x 51] intentionally omitted <==

30 September 2011

Bass Metals lays platform for future growth during 2010 / 11

HIGHLIGHTS:

• Commencement of mining at Fossey

• Hellyer Mill recommissioned

• Continued exploration success

• Recapitalisation under way

Polymetallic producer Bass Metals Ltd (ASX: BSM ) ( “Bass” or “the Company” ) is pleased to report the Company has achieved a number of significant growth milestones during the past year as it continues to develop its Tasmanian base and precious metal assets and strengthen the platform for future value creation.

Production

Production highlights for 2010/11 included the commencement of underground mining at Fossey, the recommissioning of the Hellyer mill and commencement of concentrate production and shipping.

Ore production from the newly commissioned Fossey underground mine commenced in the December quarter 2010, and a total of 156,000 tonnes of ore was mined during the year. Concentrate production commenced in February 2011, with the Hellyer operations officially opening two months later.

Four milling campaigns were successfully completed in the second half of the year, with a total of 130,000 tonnes of ore being treated, producing 10,200 tonnes of zinc concentrate and 4,200 tonnes of lead concentrate sold under an offtake agreement to Nyrstar and 500 tonnes of copper-silver concentrate to LN Metals.

June 2011 quarter production and cashflows were adversely impacted by the combination of a major water inflow into the underground mine, and ore grade underperformance. The latter has been resolved following a program of underground infill drilling and the generation of a modified Ore Reserve estimate that has resulted in acceptable reconciliation between mine and mill, and installed dewatering and power supply capacity is being upgraded to manage future water inflows.

The mill and mine both continue to operate as normal, with Fossey mine production as at September 2011 averaging around 30,000 tonnes per month.

Following the exhaustion of ore reserves, the Company’s Que River open pit mine was closed as planned in October 2010 after three years of continuous and profitable operation.

Level 1, 91 Havelock Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 6315 1300 Facsimile (08) 9481 2846 www.bassmetals.com.au

ASX / Media Release

==> picture [136 x 51] intentionally omitted <==

Bass Chairman Don Boyer said: “Although modest in scale, the Que River mining operation was extremely successful and profitable, producing in excess of $25 million in cashlow from the mining of 166,000 tonnes of ore over a three year period, considerably more than originally forecast.”

Exploration success and gold recovery study

Bass Metals’ exploration focus continues to bear fruit, with important discoveries in the Hellyer area at Fossey East and Switchback during 2010/11, and the McKay discovery which was announced to the market in July 2011. Feasibility studies into recovering metals from the large mineral resource inventory in the Hellyer tailings were initiated and preliminary results from the gold evaluation highlight the potential to establish a substantial new gold business.

“The Fossey East, Switchback and McKay exploration discoveries demonstrate the quality of our exploration team and the value of the new exploration model being applied, as well as the substantial resource potential for the Hellyer-Que River area,” Mr Boyer said.

“Importantly, these discoveries lie close to the existing Fossey underground mine infrastructure and to the Hellyer processing facility and – subject to further successful exploration and feasibility studies – have the potential to add to mine life. Evaluation of the Fossey East deposit is well advanced, with infill drilling in progress to update the resource and assist in mine planning,” he added

Funding

The Company has funded its development and mining activities through a combination of debt and equity. The adverse technical events encountered in the June 2011 quarter highlighted the need for the Company to be recapitalised, and this is being achieved in stages. Subsequent to the year’s end, a further $4.3 million was raised by the issue of a combination of Convertible and Loan Notes, which was followed up with a credit approved offer to increase Bass’ Corporate Facility with RMB Australia by an additional $13 million. The final stage is in progress comprising a Rights Offer to existing shareholders to raise up to another $10.7 million. These funds are intended for general working capital requirements as well as sustaining a large scale exploration and refractory gold recovery feasibility study program.

Future

The Company responded quickly and decisively to unexpected technical events at its Hellyer Mine Project, getting operations back on track to generate positive cash flows, which will be used to further develop and grow the Company’s asset base.

“We have a number of exciting growth opportunities such as new exploration prospects and a large scale tailings gold-silver project under evaluation, all underpinned with strong cash flow estimates from the Fossey Mine,” Mr Boyer said.

“However, our first priority is to ensure the success of the recapitalisation process to provide an appropriate working capital buffer so that the Company is in a better position to either withstand any future unanticipated adverse events or take advantage of new growth opportunities.”

Contact

Media

Mike Rosenstreich David Brook Managing Director – Bass Metals Ltd Professional Public Relations Tel: (+61 8) 6315 1300 Mob: (+61) (0) 415 096 804

Level 1, 91 Havelock Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 6315 1300 Facsimile (08) 9481 2846 www.bassmetals.com.au

ASX / Media Release

==> picture [136 x 51] intentionally omitted <==

About Bass Metals Ltd (ASX: BSM )

Bass Metals Ltd is a growth-focused Australian base and precious metal producer with a portfolio of high quality zinc, lead, copper and gold assets in the rich Mt Read Volcanic belt in northwest Tasmania.

Listing in 2005, Bass has delivered operating profits for the past three years since 2008 based on its profitable base metals production hub at Que River in Tasmania.

The Company’s larger transformational Hellyer Mine Project has commenced production from the Fossey deposit, discovered by Bass in September 2007. The planned ore treatment rate is 350,000 tonnes per annum (tpa), through the Hellyer Mill to produce 46,000 tpa of zinc concentrate, 22,000 tpa of lead concentrates and 3,000 tpa of copper-silver-gold concentrates. Bass has off-take contracts for its lead and zinc concentrates with global multi-metals business, Nyrstar, for its copper silver concentrates with LN Metals.

The Company also has an active and successful exploration programme which has yielded new discoveries such as Fossey, Fossey East and McKay as well as new exploration targets through the use of new exploration techniques not applied in the district before. The Company’s has significant gold and polymetallic resources and is currently undertaking a feasibility study following on from positive scoping study outcomes indicating the potential to become a long-term, significant scale gold producer.

Bass has differentiated itself through successfully finding high grade polymetallic resources, strategically and incrementally building up its assets and production profile to now become an emerging mid-tier diversified mining business.

Level 1, 91 Havelock Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 6315 1300 Facsimile (08) 9481 2846 www.bassmetals.com.au