GREENWING RESOURCES LTD — Interim / Quarterly Report 2007

Apr 26, 2007

BASS METALS LTD ABN 31 109 933 995

27 April 2007

The Manager Companies Company Announcements Australian Stock Exchange 20 Bridge St Sydney NSW 2000

Dear Sir

MARCH 2007 QUARTERLY REPORT OF ACTIVITIES & CASHFLOW

Base Metals

Mine Development-Que River

• Completion of the trial test pit with a total of 1,765 tonnes being mined grading 15.5% Zn, 8.9% Pb, 3oz./t Ag and 3 g/t Au.
• Trial processing commenced in late March and was completed on 12^th April. Whilst plant assays are still pending early indications from the processing trial are positive.
• All statutory approvals required to commence mining have been received.
• Commencement of full-scale production from Que River is subject to final review of all plant and metallurgical results and negotiation and finalisation of a binding Ore Sales Agreement, hopefully in the next few weeks.

Exploration Activities

Hellver Mine Project

• A review of historical data for the Hellyer deposit has identified several targets including:
• Southern Feeder Zone 4.0m at 12.9% Cu & 2oz./t Ag
• Central Feeder Zone 44.3m at 1.7% Cu, 3.3% Zn, 5.4% Pb & 3oz./t Ag - 5.0m at 6.1% Cu, 2.6% Zn, 1.5% Pb & 2 oz./t Ag
  • Southern Barite Lens - 6.2m at 24% Zn, 10.7% Pb, 1.1% Cu 5 oz./t Ag & 2.6g/t Au
  • -4.7m at 9.3% Zn, 6.3% Pb, 7oz./t Ag & 5.4 g/t Au.
• Potential to delineate Mineral Resource from high-grade remnant mineralisation.

Zinifex Hellver Exploration Alliance (HEA)

A further 3 diamond drill holes completed of a 19 hole programme testing 13 new Hellver-Que River style mineralised targets.

Regional Base Metal Exploration

Significant mineralisation intersected in the first drill hole testing coincident soil and geophysical anomalies at the Iris River Prospect comprising 3.5m at 0.1% Cu, 5.0% Pb, 1.1% Zn, 4oz./t Ag and 1.1 g/t Au.

Gold

Compilation work started on the Sterling Valley gold prospects recently acquired from Saracen Mineral Holdings Limited. Follow-up of better results such as 7.7m at 3.8 g/t Au and 3.7m at 5.9 g/t Au is planned.

Nickel & Platinum Group Metals (PGM)

The Heazlewood tenement has historic nickel and PGM workings and occurrences recorded in prospective geological setting. During the Quarter the Company commenced the first systematic evaluation with the start of a regional soil sampling programme which is ongoing.

Corporate Administration

• Current cash at bank comprises \$1.5 million, net of contribution of option exercise funds.
• During the Quarter 3.56 million ordinary shares were issued by the Company due largely to options being exercised.
• Rights issue announced to raise approximately \$4.4 million.

Commentary

Market volatility and investor uncertainty

During the March Quarter against a backdrop of Market volatility investor interest appeared focussed on the Company's production plans at Que River with uncertainty revolving around four key issues:

• cash position which as at the end of December was \$1.6 million:
• timing of government approvals for Que River which were being delayed: $\bullet$
• commencement of the trial mining and processing programme; and $\bullet$
• zinc price. $\blacksquare$

Has this been addressed?

The Company considers it has largely dealt with these issues in the last Quarter, in so much as:

• a. A rights issue, underwritten to \$4 million will address the funding issue enabling the Company to maintain its aggressive exploration and development programme.
• b. Complete Government approvals for the Stage 1 Mine Plan were received in March.
• c. The Que River trial phase is complete with early results from the processing phase very encouraging of a positive outcome, subject to final plant and metallurgical results.
• d. And finally in terms of the zinc price, whilst that is beyond our control, recent comments in the press from Mr Greig Gailey, CEO of Zinifex Limited a major global zinc producer and Bass Metals' exploration alliance partner at Hellyer, provide credible insight into the zinc price environment. Mr Gailey was reported to say "despite the correction, zinc was still averaging 113% higher this fiscal year, thanks to strong demand and low stocks. These factors are expected to continue supporting a zinc price that is well above long-term average levels for some time to come".

Que River production is the immediate priority!

Management's priority in the short term is to start mine production at Que River! The processing trial reports will be completed in early May and hopefully a short period of negotiations will follow thereafter to finalise a binding Ore Sales Agreement. This is the last hurdle to Bass Metals becoming a "producer".

Bass Metals a diversified emerging mining house.

Notwithstanding the current focus on Que River it is important to maintain a proper perspective on all of the Company's activities and assets. We are structuring our activities into distinct business units namely, the Base Metals, the Gold and the Nickel-PGM business units. The Base Metals unit is the most mature with an emerging mine, and the advanced project at Hellyer potentially contributing resources and production in the short to medium term. However, the Gold unit is also a significant asset with a large scale advanced project at Mt Charter (380,000 oz. Au Eq.) and a range of prospects and targets to underpin and grow this asset base. The Avebury Nickel deposit (158,000t contained nickel in resources) illustrates the nickel potential of this district and Bass Metals has several excellent, albeit early stage prospects to further realise both the nickel and PGM potential.

A major discovery remains a core objective.

Each business unit of the Company is actively trying to grow and develop its resources. Whilst we are heading toward production, we are also maintaining our "elephant hunt". Through the next quarter there will be up to three drill rigs on our properties testing new targets - this will include the first drill test of the Bass Metals Pb-Zn-Au soil anomalies at the Dora Prospect, drill testing for a repeat lens position beneath S-Lens at Que River and drilling for Hellver style deposits around the Hellver leases.

Please find further details on our programmes following and on behalf of the Directors and staff I look forward to providing further updates.

Yours sincerely

Mike Rosenstreich Managing Director

MARCH 2007 QUARTERLY ACTIVITIES REPORT

A. BASE METALS

A1.0 Mine Development - Que River

A1.1 Drilling and Mineral Resource Estimation

During the quarter the company completed the Que River Project drilling programs regarded as essential prior to commencing production. A total of 686 metres of diamond core drilling comprising eight holes was completed to infill and upgrade current Mineral Resources at S Lens, Nico Lens and QR32 Lens.

Assay results returned during the Quarter and drill hole details for all holes are summarised in Attachment 1 and a general location diagram is presented in Figure 1.

Highlights include:

$OR321ens$

• 7.45 metres at 11.5% Zn, 6.7 % Pb, 190 g/t Ag and 2.6 g/t Au from 50.55 metres downhole (QRD1276)
• 5.85 metres at 12.1% Zn, 6.9 % Pb, 116 g/t Ag and 2.1 g/t Au from 50.25 metres downhole (QRD1278)
• 8.4 metres at 7.5% Zn. 3.9 % Pb. 76 g/t Ag and 1.1 g/t Au from 39.6 metres downhole (QRD1279)

Nico Lens

5.6 metres at 3.6% Zn, 2.5 % Pb, 36 g/t Ag and 0.8 g/t Au from 50.4 metres downhole $\bullet$ (QRD1284)

Drilling by the company at QR32 Lens has extended the previously recognised limits of this lens some 75m up plunge from that defined by historic drilling, to near surface. High grade mineralisation has been intersected over average true widths of 2.5m. Although now closed off to the south, the lens remains open for 40m to the north at shallow depths as shown in Figure 2.

The final three holes of the proposed program at Nico Lens focused on the upper-northern part of the lens and confirmed the presence of Pb-Zn mineralisation at shallow levels. Geological logging and currently available assays indicate thickness and grade in this part of Nico Lens is consistent with the 2006 Mineral Resource estimate reported previously. Potential remains for a modest shallow northerly extension of the lens.

Assays from an exploration hole beneath a gold rich gossan, 40m west of S Lens, confirm that no significant mineralisation was intersected at shallow depth below the gossan.

Figure 2: QR32 long section.

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

A1.2 TRIAL PIT

During the Quarter a Test Pit to provide a bulk sample for process testing was completed. A reconciled total of 1,765 tonnes grading 0.9% Cu, 8.9% Pb, 15.5% Zn, 109g/t Ag and 3.02g/t Au was extracted. The test pit also provided valuable data on geotechnical parameters and waste rock characterisation. A sample of the ore was crushed at the Que River site to 100% passing 10mm and hauled to the Hellver mill site. The mining, crushing and haulage was managed by Mancala Mining Pty Ltd and generally went according to plan and budget.

A1.3 TRIAL PROCESSING

The Hellyer mill is the preferred destination for the Que River ore through an ore sale arrangement. The plant is located 4km north of Que River along an established internal haul road. It is owned by Intec Ltd and in a 50:50 joint venture with Poly Metals Group (IPJV) has been re-commissioned to reprocess the Hellver tailings to produce a bulk zinc-lead concentrate.

Any Ore sales agreement between IPJV and Bass Metals is subject to the successful completion of the trial processing of the Que River bulk sample. At the end of the Quarter the processing had started well with an immediate positive response evident in the plant in terms of zinc recovery to concentrates. Early problems handling the fine, wet Que River ore were overcome and the trial was completed on 12^th April. Assay and metallurgical testwork results from the plant sampling programme will start to become available in early May.

A1.4 STATUTORY APPROVALS

On the 15 March 2007 the Company received approval from the Board of Environmental Management and Pollution Control for the Development Proposal & Environmental Management Plan covering the proposed Que River mine development. On the 21 March approval from the Waratah Wynyard Council for the Development Application was received. No further approvals are required to commence mining at Que River.

A1.5 QUE RIVER - THE NEXT STEPS

Full scale open pit mining at Que River will commence as soon as practical subject to the satisfactory negotiation and execution of a binding Ore Sales agreement with IPJV anticipated to occur in May.

Que River is an important development for the Company with significant upside potential:

• 1. The financial models used to evaluate the project assumes that only zinc, lead and silver contribute to the revenue stream with possible copper and gold revenue streams still to be fully evaluated. Investigations to optimising the Hellyer circuit to recover gold and copper are on-going.
• 1. Stage 1 is considered the first of 4-stage potential mining development which could generate a 3 to 5 year mine life at Que River with significant further exploration upside.
• 1. Untested exploration targets remain at Que River, for example untested geophysical targets beneath S-Lens which may represent new lens positions.

A2.0 Base Metal Exploration Activities

A2.1 HELLYER MINE PROJECT

History

The Hellyer Mine Project (HMP) is a new initiative by the Company to identify "near-term" mining opportunities in and around the historic Hellyer Mine. With full scale production likely at Que River in the near term, it is important to rapidly build-up the Mineral Resource inventory by following up on targets remaining from the Western Metals/Aberfoyle Hellyer mine operation which closed in 2000.

The Hellyer deposit has a published pre-mining Mineral Resource of 16.9Mt grading 13.8% zinc, 7.2% lead, 0.4% copper, 167g/t silver and 2.5g/t gold. It was mined between 1986 and 2000 as a large scale underground mine with production peaking at around 1.5Mtpa with ore treated at the Hellver flotation concentrator plant. The large scale of the Hellver mine operation, the style of mineralisation and the major improvement in metal prices creates significant opportunities for Bass Metals to increase its resource inventory and possibly its production profile in the near to medium term.

The Opportunity

The USD, cash price for zinc and copper for the major portion of the historic Hellver mine operations was US\$1.184/t (US\$0.54/lb) and US\$2.200/t (US\$1.0/lb) respectively. The current zinc and copper USD cash prices are approximately US\$3,700 (US\$1,48/lb) and US\$5,705 (US\$2.59/lb) – creating opportunities to follow-up on resources and intercepts not considered attractive when the mine was in operation. These opportunities illustrated in Figure 3 include:

1. Southern Feeder Zone (SFZ)

This target area refers to a large area of stockwork style sulphide veins containing high grade copper mineralisation, representing a feeder zone beneath the main Hellyer massive sulphide deposit and mine workings. The Company plans to follow-up better intercepts from historic drilling which include:

• 4.0m at 12.9% Cu & 70 g/t Ag $\bullet$
• 3.9m at 4.9% Cu & 40 g/t Ag (

2. Central Feeder Zone (CFZ)

The CFZ is an extensive target comprising both copper rich and zinc rich sulphide veins in a stockwork beneath the central portion of the Hellyer deposit and mine workings. Better intercepts warranting follow-up include:

• 44.3m at 1.7% Cu, 5.4% Pb, 3.3% Zn and 101 g/t Ag $\bullet$
• 39.2m at 1.8% Pb, 3.2% Zn & 23q/t Aq
• • 5.0m at 3.5% Cu, 4.1% Pb, 4.9% Zn & 280g/t Ag
• 5.0m at 6.1% Cu, 1.5% Pb, 2.6% Zn & 56g/t Ag
• 3.0m at 1.4% Cu, 4.3% Pb, 6.7% Zn & 100 g/t Ag

3. Southern Barite lens

The Southern Barite lens lies immediately to the south of Hellyer deposit, offset by a fault. It represents a large mineralised target: 400m x 150m wide and extending over a vertical depth of 100m to 250m from surface. It is dominantly barite, potentially similar to the Company's Mt Charter deposit, and the barite component represents additional potential value. The lens has sparse drilling – but positive indications of resource potential such as better intercepts from historic drill holes of:

• 4.7m at 0.4% Cu, 6.3% Pb, 9.3% Zn, 420q/t Aq & 5.4 q/t Au
• 6.2m at 1.1% Cu, 10.7% Pb, 24% Zn, 156g/t g & 2.6 g/t Au

4. Remnant Mineralisation

The Company has estimated a potential remnant Mineral Resource of between 0.6 to 0.7Mt at grades of around 8% zinc. 5% lead. 100g/t silver and 2 g/t gold occurring in the immediate vicinity of the Hellyer mine workings. This estimate range is based on the historic "end of mine" resource block model and assumed mined voids. This resource potential will be reviewed with more detailed survey data and updated resource models prior to undertaking preliminary mine scoping studies.

Future Work - HMP

The HMP represents a substantial undertaking in terms of people and funding, which the Company has to date largely deferred in favour of the higher priority development of the more accessible Que River mining operation. The Company is looking at opportunities for early production from

Hellver and has prioritised the Southern Barite Lens for further work as soon drilling capacity becomes available. The HMP is an advanced high priority target.

Figure 3: Long Section of the Hellyer Deposit with target areas identified.

A2.2 ZINIFEX HELLYER EXPLORATION ALLIANCE (HEA)

The HEA between Zinifex Limited and Bass Metals continues under the Company's management to test a series of targets in and around the Hellver Mine lease prospective for new large scale high-grade zinc-lead-silver-copper gold deposits such as the world class Hellyer deposit. During the March Quarter a further 3 diamond drill holes were completed for a total of 1216.7 metres.

The HEA drill holes generally provided positive geological indications of mineralisation in the interpreted target areas though as vet no potentially economic mineralisation has been intersected. Sampling of the drill-core, in particular zones of alteration along with down-hole geophysical surveys may contribute to further refining the mineralisation target zones. The target positions are not necessarily sterilised by a single drill-hole. Downhole electro-magnetic (DHEM) surveys "see" away from the drill hole to assess the prospectivity of the area. DHEM surveys have been completed for drill-holes HED1 to HED5 with no significant anomalism interpreted.

A summary map showing the target locations, proposed and completed drill holes is presented in Figure 4. Assays have been received for two holes this quarter and are summarised in Table 1 below. Assay results are pending for HED 6 to HED 9, though no obvious mineralisation was intersected in these holes. DHEM surveys of HED 6 to HED 9 is scheduled to be conducted in the June Quarter.

Table 1 HEA Drilling Results Returned - March 2007 Quarter

From $(m)$	To (m)	Drilled	True	$Cu$ (ppm)	Pb (ppm)	$Zn$ (ppm)	Ag $(g/t)$	Au (g/t)
		Interval	Width
		(m)	(m)
	Southeast Hellyer Targets
HED 4
	No significant anomalism
	Transmission Line Targets
HED 5

136	139.65	3.65	na	185	1235	2252	я	0.28
186	188	◠	na	120	730	1960		0.63
HED 6
Assay results pending
HED7
Assay results pending
	South Mt Charler Targets
HED 8
Assay results pending
HED 9
Assay results pending

Figure 4. Target Location Map and completed/planned drill-holes.

A2.4 REGIONAL BASE METALS EXPLORATION

The Company has a very active regional and grass roots base metals focussed exploration programme. During the March Quarter the following activities were completed.

Bonds Range (Cu-Pb-Zn-Ag potential)

(EL28/2002 - 60% Bass Metals Ltd 40% Adamus Resources Limited)

Drilling commenced during the March Quarter at the Iris River Prospect with the completion of BRD001 and BRD002 with BRD003 ongoing for a total of 301.7m. To date only results for the mineralised portion of BRD001 have been received which returned:

3.5m at 0.1% Cu, 5.0% Pb, 1.1% Zn, 120ppm Ag, 1.1ppm Au from 88m, including 0.7m at 0.44% Cu, 21.6% Pb, 3.0% Zn, 3.65g/t Au, 550ppm Ag from 90.8m.

Drill holes BRD002 and BRD003 do not "geologically" appear as strongly mineralised as BRD001. Problematical drill rig access onto the central anomaly area which is covered by fragile button grass flora forced the drill holes to be sited off the central anomaly areas. However all three holes have intersected the Cambrian age Bonds Range Porphyry and the mineralisation in BRD001 and BRD002 suggests the possibility for hybrid volcanic hosted massive sulphide style and/or Devonian intrusion-related mineralisation. The Company is excited by the results received to date and intends a follow-up programme as soon as practicable.

Waratah (Pb-Zn-Aq potential)

(75% Bass Metals Ltd 25% Geoinformatics Exploration Inc)

The Company's initial focus is on the early mining potential of the historic Magnet Mine which according to MRT records produced 630,000t grading 5.7% Pb, 7.3% Zn and 394 g/t Ag between 1895 and 1940. Work has commenced to compile and geo-reference the historic mine plans and exploration data.

Mt Selina (Cu-Pb-Zn-Aq & Au potential)

(EL29/2002 Mt Selina - 60% Bass Metals Ltd 40% Adamus Resources Limited) A three hole diamond-drilling program testing Pb, Zn and Au in soil anomalies at the Dora prospect has been prepared and approved by the MRT. Drilling will start in late April on completion of the Bonds Range drill programme.

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B1.0 GOLD EXPLORATION

Preliminary data compilation work has commenced on the Sterling Valley gold prospects recently acquired from Saracen Mineral Holdings. The Sterling Valley Trend extends for approximately 4km along the Henty Fault. It includes the historic Sterling Gold mine (no production records) and several drill indicated zones of gold-arsenic-copper mineralisation. Better historic drill intercepts include:

• 7.7m at 3.8 g/t Au $\bullet$
• 3.7m at 5.9 g/t Au $\bullet$
• 17m at 1.5 g/t Au

The 1 million ounce Henty gold deposit lies approximately 5km south along the same Henty Fault trend. The objective at Sterling Valley is to delineate a high grade Henty style gold deposit in structures associated with the Henty Fault zone.

No work was undertaken on the advanced Mt Charter Gold project where the Company has delineated a shallow mineral resource of 380,000 ounces gold (equivalent) as reported in the previous Quarterly Report to ASX.

The Company has significant gold assets and is looking to recruit a dedicated gold geologist to grow the gold Mineral Resource inventory and evaluate development and processing options.

C. NICKEL & PLATINUM GROUP METALS

C1.0 Heazlewood (Ni-Cu-PGM potential)

(EL31/2003 - 70% Bass Metals 30% Pioneer Nickel Limited)

This licence is considered prospective for nickel and platinum group metal deposits based on intrusive-related and carbonate-replacement base metal, and ultramafic/granite contact aureole (Avebury nickel style) deposit styles. Line cutting and sampling of the northern part of the Heazlewood soil grid has been ongoing throughout the quarter. A total of 15.5km have been gridded and sampled for 346 samples on a grid comprising 11 lines on 400x50m centres. The program represents the first systematic, tenement scale soil grid conducted in the area. This work programme is ongoing with results expected next Quarter.

C2.0 Whyte River (Ni potential)

(EL31/2003 - 70% Bass Metals 30% Pioneer Nickel Limited)

The Company has designed a soil geochemistry program over the interpreted position of ultramafic units on the Whyte River licence considered prospective for nickel. The details of the soil sampling programme are currently with MRT for approval. No work has previously been carried out to evaluate the nickel potential with the previous focus on the known gold and magnetite iron occurrences.

The Company has a QA/QC procedure for all assaying runs which involves submission of "blank" samples, assay standards and repeat samples at a frequency of approximately 1 per 25 samples submitted comprising approximately 10% of samples submitted. To date all results returned have been within acceptable limits.

All the drill samples submitted during the Quarter are half core and all sample preparation and analyses were carried by Ammtec Laboratories at its Burnie Research Laboratory. Gold and silver were analysed by fire assay using a 50g charge with base metals analysed using a triple acid digest and AAS finish.

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.

D. CORPORATE ACTIVITIES

At the end of the quarter the company's financial position stands at \$1.51 million cash at bank. The cash position reflects:

• Contributions of \$0.88 million through the exercise of options $\bullet$
• Exploration expenditure of \$0.67 million after Zinifex's contribution to the HEA expenditure.
• Administration expenses of \$0.33 million.

On the 15 March 2007 the Company announced a one for four renounceable rights issue to raise approximately \$4.4 million underwritten to the extent of \$4.0 million by Paterson's Securities Limited. The rights issue offered one New Share at a price of 28 cents for every four existing shares as at the entitlement date and one New Option for very four New Shares. The New Options have an exercise price of 40 cents and expire on 30 April 2010. Subsequent to the end of the March Quarter, the offer closed on the 18^th April oversubscribed having raised approximately \$4.7 million before costs.

During the Quarter the Company issued 3,535,021 shares as a result option exercise and 25,000 new shares issued under the Employee Share Purchase Plan. Securities issued under the rights issue will be allotted and issued in April.

Attachment 1: Drill Hole Assays and Location Summaries

$From (m)$ To $(m)$ Drilled True $Cu (%)$ $Pb(%)$ $\overline{Zn($ %) $\overline{Aq}$ (g/t) Au $(q/t)$ Interval Width $(m)$ $(m)$ POP Gossan / Sekens North (zinc Lead Zone) QRD1275 - No significant intercepts at Zn+Pb>5% COG 向敌对的危险 QRD1276 (Zn+Pb>5% COG) $50.55$ $58.00$ | $3.5$ $\overline{0.3}$ $\overline{11.5}$ $190$ 7.45 6.7 2.6 QRD1277 (Zn+Pb>5% COG) 35.70 37.20 $\overline{\phantom{a}}$ 1.50 $\overline{1.3}$ $0.4$ 7.9 $13.3$ $143$ $\overline{1.8}$ QRD1278 (Zn+Pb>5% COG) $50.25$ $56.10$ 5.85 $\overline{3.2}$ $\overline{0.3}$ $6.9$ $12.1$ $\overline{116}$ $\overline{2.1}$ QRD1279 (Zn+Pb>5% COG) $8.40$ $\overline{7.0}$ $3.9$ 48.00 $\overline{0.2}$ $\overline{7.5}$ $\overline{76}$ 39.60 $1.1$ QRD1280 (Zn+Pb>5% COG) $50.95$ $190$ $\overline{09}$ $\overline{33}$ $\overline{7.6}$ $\overline{58}$ $\overline{03}$ 49.05 $\overline{0}$ 1 Plus an eastern position or fault repeat of the QR32 position $63.70$ $2.50$ $\overline{3.0}$ $\overline{3.9}$ $\overline{72}$ $\overline{1.5}$ $\overline{1.2}$ $61.20$ | $0.2_z$ QRD1281 - No significant intercepts at Zn+Pb>5% COG QRD1282 - No significant intercepts at Zn+Pb>5% COG Nico Lens (interegots are for Nico Lens cosition unless indicated otherwise) QRD1283 - No significant intercepts at Zn+Pb>5% COG Thin pyrite band in Nico hangingwall at (Au>1g/t COG) 49.05 $\overline{0.6}$ $\overline{0.3}$ $\overline{92}$ $\overline{7.5}$ $48.9$ $0.15$ $0.1$ $0.3$ QRD1284 (Zn+Pb>5% COG) $5.60$ $2.6$ $0.2$ $\overline{2.5}$ $3.6$ $\overline{36}$ $0.8$ 50.40 56.00 Plus mineralised clasts in Nico hangingwall 42.00 $43.00$ $1.00$ $0.4$ $0.1$ $\overline{2.2}$ $\overline{3.2}$ $\overline{20}$ $0.7$ Probable Nico West position $9.9$ 81.85 82.80 0.95 $0.4$ $0.3$ 6.5 153 $1.4$

Table 1 Que River Drilling Results - March Quarter 2007

Table 2 Que River drilling summary

HOLE	Lens	Collar North	Collar East	Collar RL	Azimuth	Dip	EOH(m)
QRD1281	QR32	7937.5	5186.9	692.9	90	$-31$	68.2
QRD1282	QR32	7937.6	5185.8	692.8	90	$-57$	80.7
QRD1283	Nico	7784.2	5160.4	689.7	270	$-31$	74.9
QRD1284	Nico	7826.5	5185.8	689.9	270	$-63$	89.6
QRD1285	Nico	7826.5	5185.0	689.9	270	$-43$	77.0
QRD1286	QR32	7925.1	5168.4	691.8	90	-66	116.6
QRD1287	QR32	7975.0	5160.4	689.6	90	-63	119.8
QRD1288	Nico	7826.0	5176.1	689.9	270	$-33$	59.4

Table 3 HEA drilling summary - March 2007 Quarter

HOLE	Target	Collar North	Collar East	Collar RL	Azimuth	Dip	EOH(m)
HED7a	Transmission Line target	8750.00	5397.00	671.00	273	53	348
HED8	South Mt Charter	3900.00	4440.00	707.00	277	55	422.70
HED9.	South Mt Charter	3600.00	4390.00	715.00	277	56	446 (incomplete)

Table 3 Bonds Range Drilling Results - March Quarter 2007

From $(m)$	To (m).	Drilled Interval (m)	True Width (m)	Cu (%)	Pb(%)	$Zn$ (%)	Ag $(g/t)$	Au $(g/t)$
BRD001 (>1% Pb+Zn cut-off)
88.0	91.5	3.5			5.0	۱.۱	120
	BRD001 (>5% Pb+Zn cut-off)
90.8	91.5	0.7		0.44	21.6	3.0	550	3.65

Table 4 Bonds Range drilling summary

HOLE	Target	Collar North	Collar East	Collar RL	Azimuth	Dip	EOH(m)
BRD001	Pb-Zn anomaly	5400783	412997	835	154	-61	109
BRD002	Pb-Zn anomaly	5400783	412997	835	156	-38	120.7
BRD003	Pb-Zn anomaly	5400962	412932	835	315	-35	$72*$

In progress

$Rule 5.3$

Year to date (12months)

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Bass Metals Ltd

Current quarter

ABN

31 109 933 995

Quarter ended ("current quarter")

31 March 2007

Consolidated statement of cash flows

Cash flows related to onerating activities

	Cash flows related to operating activities	Сансия дианет \$A'000	$1 \text{ can to take } 1 \text{ amplitudes}$ \$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation (b) development (c) production	(669)	(2,705)
	(d) administration	(333)	(693)
1.3 1.4	Dividends received Interest and other items of a similar nature received	20	81
1.5	Interest and other costs of finance paid	(2)	(6)
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(984)	(3,323)
1.8 1.9	Cash flows related to investing activities Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets	(22)	(245) (204)
1.10 1.11	Loans to other entities
1.12	Loans repaid by other entities Other (provide details if material)
	Net investing cash flows	(22)	(449)
1.13	Total operating and investing cash flows (carried forward)	(1.006)	(3.772)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(1,006)	(3, 772)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	884	4,155
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings	(3)	(11)
1.18	Dividends paid
1.19	Costs of share issues		(143)
	Net financing cash flows	881	4,001
	Net increase (decrease) in cash held	(125)	229
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	1,633	1,279
1.22	Cash at end of quarter	1,508	1,508

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	49
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

All transactions with directors and their related parties are on normal commercial terms

Non-cash financing and investing activities

• $2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
• $2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

⁺ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used SA'000
3.1	Loan facilitíes	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

		- SA (900-
4.1	Exploration and evaluation	700
4.2	Development	750
	Total	.450

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	308	11
5.2	Deposits at call	1,200	1,622
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1,508	1.632

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note(2))	Interest at beginning of quarter	Interest at end of quarter
-6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or increased

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per	Amount paid up per
				security (see note $3)$ (cents)	security (see note 3) (cents)
7.1	Preference
	i securities
7.2	(description) Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns of capital, buy-
	backs,
	redemptions
7.3	+ Ordinary	66,860,034	54,815,105	20 cents	20 cents
	securities
7.4	Changes during
	quarter (a) Increases	3,535,021		25 cents	Fully paid ordinary
	through issues	25,000		22 cents	shares
	(b) Decreases
	through returns
	of capital, buy- backs
7.5	+ Convertible
	debt securities
	(description)
7.6	Changes during quarter	$\tilde{\phantom{a}}$			μ.
	(a) Increases
	through issues
	(b) Decreases
	through securities
	matured,
	converted
7.7	Options			Exercise price	Expiry date
	(description and conversion	5,924,979	5,761,229	25 cents	31.07.07
	factor)	1,365,000 350,000		25 cents 30 cents	31.12.07 31.12.07
		350,000		35 cents	31.12.07
		1,600,000		$27.5$ cents	22.12.11
		500,000		37.5 cents	31.12.11
7.8	Issued during quarter	75,000		25 cents	31.12.07
7.9	Exercised during	2,350,021		$\overline{25}$ cents	31.07.07
	quarter	1,185,000		25 cents	31,12,07
7.10	Expired during quarter

⁺ See chapter 19 for defined terms.

-7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

Compliance statement

• $\mathbf{I}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\overline{\mathcal{L}}$ This statement does give a true and fair view of the matters disclosed.

Sign here:	Managing Director	Date: 27 April 2007
Print name:	Mike Rosenstreich

Notes

• $\mathbf{I}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• $\tilde{5}$ Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

$\frac{1}{100000000000000000000000000000000000$

⁺ See chapter 19 for defined terms.