GREENWING RESOURCES LTD — Interim / Quarterly Report 2007

Jan 30, 2007

BASS METALS LTD ABN 31 109 933 995

31 January 2007

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

Dear Sir

DECEMBER 2006 QUARTERLY REPORT OF ACTIVITIES & CASHFLOW

Que River Mine Development

• Completion of Stage 1 Mine Plan which comprises a plan to mine 118,000 tonnes at 8% zinc, 4% lead, 3 oz./t silver and 2.1 g/t gold,
• Signing of a Letter of Intent (LOI) outlining the sale terms of Que River ore to the Intec-Polymetals Joint Venture operating the Hellyer Zinc Project.
• LOI terms provide a commercial framework for the project which indicates potential net revenue of approximately \$12 million over 18 months derived only from zinc, lead and silver revenues based on current (US\$3,600/t) zinc prices. Further upside being investigated to generate revenue from gold and copper.
• Positive drill results infilling existing Mineral Resources and confirming resource targets such as:
• $\checkmark$ 19.4 metres at 25% zinc, 9% lead, 11oz./t silver & 11 g/t gold (PQ South)
• ✓ 17.8 metres at 20% zinc, 10% lead, 13oz./t silver & 7.4 g/t gold (PQ South)
• $\checkmark$ 5.4 metres at 11% zinc, 3.2% lead, 4oz./t silver & 1.5 g/t gold (Nico)
• $\checkmark$ 11.6 metres at 1.2% copper, 5% zinc, 2% lead, & 1oz./t silver. (S-Lens)
• New high grade Mineral Resource estimated at PQ South and Mineral Resource upgrade at S-Lens.

Exploration Activities

Mt Charter Gold-Silver Project

• Initial Mineral Resource estimate for Mt Charter completed comprising 240,000 ounces of gold and 6.9 million oz. of silver.
• Metallurgical testwork indicates overall gold recovery of approximately 95% through flotation and cvanidation of float tails, with work on-going to evaluate processing options for the gold bearing concentrates.

Zinifex Hellver Exploration Alliance

• A further 3 diamond drill holes completed of a 19 hole programme testing 13 new Hellyer-Que River style mineralised targets.
• Down-hole geophysical surveys of the completed drill holes has commenced to "vector" into proximal mineralised bodies if they exist.

Regional Exploration

• Work started to evaluate the sixty-five new target areas identified late last year to develop these into drill targets and mineral prospects.
• North Rosebery soil sampling completed follow-up drilling planned;
• Bonds Range soil sampling completed follow-up drilling planned February 07.
• Mt Selina soil sampling completed follow-up geological mapping and drilling planned.
• Positive surface rock chip results at Magnet and Oonah historic mine sites warrant further work.
• Nickel and platinum targets generated at Heazlewood with soil sampling to commence January 2007.

Corporate Administration

• Current cash at bank comprises \$1.63 million, following expenditure of \$0.83 on exploration $\bullet$ for the Quarter.
• Executive team bolstered with appointment of Mr Stephen Ross as Chief Financial Officer $\bullet$ assisting with the planned transition to producer status.
• During the Quarter 6.7 million ordinary shares and 2.2 million options were issued by the $\bullet$ Company.

Commentary

The December quarter has been another very busy quarter with the Company achieving:

.....at Que River,

key milestones towards mine production, namely completion of the stage 1 mine plan and agreement on key terms for an ore sale agreement with the operators of the Hellyer Zinc project. The delay until the 22 February for the Government Board meeting to approve the full scale Que River mine approval is a relatively minor setback given that trial mining is scheduled to commence on 12 February, from which the Company plans to smoothly transition to full scale production given a successful outcome.

.....at Mt Charter.

an initial, meaningful resource inventory of 380,000 gold-equivalent ounces. The scale of the resource estimated provides the impetus to continue the metallurgical testwork to develop a process flow sheet whilst building up the Company's gold inventory over several target areas it holds in the district.

in the Hellyer region,

positive geological confirmations on several of the Hellyer style deposit targets being tested. This is "real elephant hunting" and the Company, along with Zinifex its alliance partner, has shown a rare commitment to grass roots exploration and drilling to "find those elephants"!

.....on the regional holdings

building up an intensive programme of assessment, surface sampling, geophysics leading to at least 2 drill programmes on regional tenements.

To summarise it all another way for the Quarter - over 3,000 metres of diamond drilling in approximately 43 drill holes, 3 regional soil programmes and preparatory field visits to over 9 prospects as well as the Que River mine development tasks and the Mt Charter resource estimation work. With significant positive exploration results all round - it is a credit to Dr Travis Murphy and his exploration team based at Hellyer.

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

SEPTEMBER 2006 QUARTERLY ACTIVITIES REPORT

1.0 Mine Development - Que River

Figure 1: Que River Site Layout Plan

1.1 Drilling and Mineral Resource Estimation

During the quarter the Company completed 2,237 metres of diamond core drilling comprising 40 drill holes on the Que River project to infill and upgrade current Mineral Resources at S-Lens and Nico lens and to delineate new resource potential on the PQ Lens. Assay results and drill hole details for all drill holes are summarised in Attachment 1 and a general location diagram is presented in Figure 1.

Highlights include:

S-Lens

• 11.6 metres at 1.2% Cu, 5% Zn, 1.6% Pb, 38 g/t Ag and 0.4 g/t Au from 22.6 metres $\bullet$ downhole (QRD1243)
• 3.6 metres at 3..6% Cu, 4.4% Zn, 3.6% Pb and 66 g/t Ag from 18.5 metres downhole $\bullet$ (QRD1245)

PQ Lens

• 19.4 metres at 24.7% Zn, 9.0 % Pb, 356 g/t Ag and 11 g/t Au from 50.6 metres downhole (QRD1269)
• 17.8 metres at 19.7% Zn. 10.4% Pb. 411 g/t Ag and 7.4 g/t Au from 45.5 metres downhole (ORD 1274).

Nico Lens

• $\bullet$ 5.4 metres at 10.8% Zn, 3.2 % Pb, 109 g/t Ag and 1.5 g/t Au from 57.5 metres downhole (QRD1263)
• 8.45 metres at 6.4% Zn, 1.5 % Pb, 38 g/t Ag and 0.6 g/t Au from 59.7 metres downhole $\bullet$ (QRD1268)

PO South & Central Mineral Resource

The first Mineral Resource for this portion of the PQ Lens is presented in Table 1 below. This resource is reported in accordance with the JORC code. It comprises both remnant mineralisation within pillars of the former (1980-1991) mine workings (Decline Stope Pillars) and isolated shallow pods of massive sulphide mineralisation too remote from the previous mine infrastructure to be accessed in the earlier mining phase. Both types occur within 60 metres from the surface.

	Summary of Classified PQ South-Central Mineral Resource
				above 60 metres vertical depth
Ore type/area	JORC Code	Tonnes	Cu	Pb	Zn	Aq	Au	SG.
	Category	(000's)	%	℅	℅	qΛ	.g/t	$T/m^3$
IPO South remnants	Inferred	10.30	0.3	7.2	13.6	194	4.52	3.59
IPQ Central-Surface	Inferred	2.60	0.3	7.0	10.7	151	3.18	3.80
Total Inferred		12.90	0.3	7.2	13.0	185	4.25	3.63
IPQ South remnants	Indicated	30.90	0.3	10.3	18.3	260	6.46	3.99
IPQ Central-Surface	Indicated	1.90	1.1	10.3	24.9	81	3.30	4.22
Total Indicated		32.80	0.4	10.3	18.7	249	6.27	4.01
	TOTAL MINERAL RESOURCE 17.1 5.70 231 45.70 9.4 3.90 0.4

Table 1: PQ South & Central Mineral Resource

Note:

1 Rounding erors may occur

2 COG >5%(Zn+Pb)

The resource estimate is based on a geological model compiled by the Que River Mining Alliance project Manager, Mr. Tim Akerman. Tonnage and grade estimation has been undertaken by Mr. Akerman using a simple polygonal model using length weighted averages to estimate grades.

The drilling information on which the estimate is based comprises Bass Metals' and historic diamond drilling on a 12.5m by 12.5m spaced pattern and mine data from the immediate area. The JORC Category classification used is considered appropriately conservative. It recognises the uncertainty associated with remnant mineralised blocks, such as the spatial extent of mining surrounding the remnant and as a consequence its final dimensions. The bulk of the remnant mineralisation comprises a series of pillars within the high-grade, southern and upper part of PQ Lens - the "Decline Stope" pillars.

The drill hole database used for this estimate comprises the diamond core drill holes completed by Bass Metals as well as 35 historic diamond drill holes used to delineate the original PQ Ore Reserve. In addition, original detailed mine geology cross-sections and a long projection were

available. Details on mined out areas were sourced from an end of mine life report and discussions with ex-Que River Mine mining personnel involved in the mining of PQ Lens in the 1980's. Full details are provided in ASX Report 20 November 20 2006.

Subsequent to the resource estimate and to provide further confidence a drilling programme testing each Decline Stope pillar was completed. All five pillars were intersected to some degree by Bass Metal's holes. The area of the resource estimate is presented in Figure 2

Figure 2: PQ South long section showing remnant resource area.

S-Lens Updated Mineral Resource

The revised Mineral Resource for S-Lens is presented in Table 2 below. This resource is reported in accordance with the JORC code. The updated model has an overall increased tonnage compared to the original Mineral Resource estimated by the Company from historical data. The increase is due to drilling extensions to the south (the copper zone) and to a lesser extent the northern extensions where zinc predominates. The increased drilling density from Bass Metals' drilling has upgraded the assignment of much Inferred Resource material from the previous model to Indicated Resource status. A portion of material in the most densely drilled part of S Lens is also now in the Measured Resource category.

The resource estimate is based on a geological model compiled by consulting geologist. Mr. Steven Richardson. Tonnage and grade estimation has been undertaken by Mr. Richardson using anisotropic 2D inverse distance interpolation, the same method utilised for the previous estimate and considered appropriate for the purposes of this estimate.

The drill hole database used for this estimate comprises 25 diamond core drill holes completed by Bass Metals as well as 100 historical diamond drill holes. In addition, original 1:500 scale mine geology cross-sections, long projections and underground development surveys were available. Mined out areas were not surveyed but details were sourced from an end of mine life report and discussions with ex-Que River Mine mining personnel involved in the mining of S Lens in the late 1980's. A full report on the Mineral Resource parameters was made to ASX on 20 November 2006.

Table 2: S-lens Mineral Resource Summary

	Summary of Classified S-Lens Mineral Resource
Ore type/area	JORC Code Category	Tonnes (000's)	Сu %	Рb %	Zn %	Äg .q/t	Au .g/t	SG $T/m^3$
lSouth:Cu Zone. lCentral: Cu-Zn Zone INorth: Zn Zone	Measured Measured Measured	51.00 5.00	1.7 1.8	0.6 1.7	1.9 4.0	69 73	0.34 0.33	3.88 3.83
TOTAL MEASURED		56.00	1.7	0.6	2.1	69	0.34	3.88
lSouth:Cu Zone lCentral: Cu-Zn Zone INorth: Zn Zonel	Indicated Indicated Indicated	126.00 67.00 93.00	2.4 $2.2\,$ 0.6	0.5 2.9 2.7	1.5 5.7 8.1	67 90 46	0.32 0.31 0.42	3.86 3.9 3.73
TOTAL INDICATED		286.00	1.8	1.8	4.6	66	0.35	3.83
lSouth:Cu Zone. lCentral: Cu-Zn Zone INorth: Zn Zone TOTAL INFERRED	Inferred Inferred Inferred	56.00 2.00 58.00	2.6 $0.5\,$ 2.6	0.1 3.5 0.2	0.3 9.8 0.6	33 46 34	0.15 0.28 0.15	3.95 3.58 3.94
	1.9 62 TOTAL MINERAL RESOURCE 400.00 3.7 0.32 3.85 1.4

Note:

1 Rounding erors may occur

2 Cu Zone = >1%Cu and <5% (Zn+Pb)

Cu-Zn Zone = >1%Cu and >5% (Zn+Pb)

Zn Zone = $Cu < 1\%$ and >5% (Zn+Pb)

1.2 MINE PLAN

The mine plan has been divided into 4 conceptual development stages which the Directors consider have the potential to sustain a 3 to 5 year mine life. Stage 1 is based on a detailed mine plan and the remaining stages will be developed as quickly as possible.

• Stage 1: PQ South down to 60m depth and northern end of S-lens to a depth of 40 metres.
• Stages 2-3: S-lens North and Nico resources and P-North and QR32 target areas.
• Stage 4: Underground access deeper S-Lens resources and other targets in the area.

The current stage 1 mine plan is summarised in Table 3 below. The Directors consider that there is also upside potential with Stage-1 from the PQ South pit. This area was problematical as an underground mine and from historic reports at least one stope was abandoned with high grade ore left behind. The mineralisation potentially remaining in the abandoned stope(s) falls within the proposed PQ South pit design.

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Mine Parameter	Description
Total Resource &	118,000t at 0.7% Cu, 3.9% Pb, 8.3% Zn, 96 g/t Ag and 2.1 g/t Au
Reserves mined and	(full dilution and recovery assumptions applied)
hauled to plant.
Dilution and ore recovery	Generally dilution is 25% and ore recovery is 85%, but in some more
assumptions	difficult mining situations dilution is assumed to be 50% and ore
	recovery 80%.
Waste: Ore ratio	S-lens North Pit: 7.6:1 and PQ South Pit: 44:1
Stage 1 time frame	18 months including Trial Pit and site establishment.
Production rate	Between 60,000bcm to 90,000cm per month. Ore production varies
	over the Stage 1 mining period with greater ore volumes later in the
	schedule as the waste to ore ratio decreases.

Table 3^v Mine Plan Summary Stane 1

1.3 ORE SALES

The Hellver plant 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 Polymetals Group (IPJV) and has been recommissioned to reprocess the Hellver tailings to produce a zinc concentrate.

During the Quarter the Company, in association with its mining alliance partner, Mancala Pty Ltd. signed a Letter of Intent (LOI) setting out the terms under which ore from the Que River project may be sold to the IPJV. The non-binding LOI will be formalised into a binding Ore Sales Contract subject to completion of a 1,000 tonne trial mining and processing programme which has been approved already and is scheduled to commence in February.

The LOI is an important step as it provides a commercial framework from which assumptions on revenue for the Stage 1 Mine plan over 18 months can be made and these are summarised below in Table 4 for two zinc price scenarios, referred to as Conservative and Reasonable.

Metal Price Assumptions	Conservative	Reasonable
zinc price (US/t)	3,000	3,600
lead price (US\$/t)	970	1,605
silver price (US\$/oz)	10	12.5
US\$:A\$	0.75	0.76
Estimated Financial Outcomes	AS(M)	AS(M)
IBSM-Mancala Gross Revenue	26.34	30.18
less Capital Expenditures	$-1.06$	$-1.06$
less Operating costs	$-17.31$	$-17.31$
Net Revenue	7.96	11.80

Table 4: Summary of potential financial outcomes - Stage 1 Mine Plan.

1.4 OUE RIVER - THE NEXT STEPS

Full scale open pit mining at Que River will commence as soon as practical subject to the successful completion of the trial mining programme and receipt of Tasmanian Government approvals. Final approval for the full scale mine development is now expected in late February 2007 as the anticipated January meeting of the Dept. of Tourism, the Arts & Environment did not take place.

Que River has 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.

2.0 Exploration Activities

2.1 MT CHARTER GOLD PROJECT

Mineral Resource Estimate

As reported in full to ASX on 30 October 2006, the Company has completed a Mineral Resource estimate for the Mt Charter Au, Ag, Ba and Zn deposit as part of the Company's ongoing project evaluation.

The total resource estimated for the Mt Charter deposit is 6.1 Mt at 1.22 g/t Au, 35.5 g/t Ag, 9.7 % Ba and 0.5% Zn. The resource is reported above a 0.7 g/t Au cut-off within the mineralised

envelope boundary and is classified as Indicated and Inferred Resources according to the JORC code (December 2004), as listed in Table 5 below.

JORC Code Category	Tonnes	Au	Ag	Ba	Zn	Au	Ag	Au (eq)*
	Mt	g/t	g/t	℅	℅	koz	koz	koz
Indicated	1.9	1.21	36.3	9.1	0.7	74	2,218	118
Inferred	4.2	1.22	35.2	10.0	0.4	165	4,754	260
Total	6.1	1.22	35.5	9.7	0.5	239	6,971	378
* Au (Eq) is based on Au & Ag price only; US\$590loz and US\$11.80loz respectively to give a Ag to Au ratio of 50:1.

Table 5: Summary of Classified Mt Charter Mineral Resource (0.7q/t Au cut-off

The tonnage and grade estimation is based on a 'change of support' geostatistical technique that is targeted at modeling the deposit behaviour using anticipated open pit mining on five metre high benches and a mining selectivity of 5 m by 10 m by 5 m. The change of support process is based on multi-element conditional simulation.

The Mt Charter mineralisation interpretation for this estimate was compiled by Travis Murphy; Bass Metal's Supervising Geologist, with assistance from Snowden. Paul Blackney of Snowden reviewed data collection procedures undertook database checks and inspected core on site. Shaun Hackett (Snowden) reviewed the geological interpretation and was responsible for compiling the grade estimates. Both P Blackney and S Hackett are Competent Persons being Members of the AusIMM with more than five vears experience relevant to gold and multi-element mineral resource estimation

Metallurgical Testwork

Metallurgical testwork has been undertaken to gain a preliminary understanding of the metallurgical characteristics of the Mt Charter mineralisation and its response to possible processing routes. Preliminary testwork included head assay, mineralogy, direct cyanidation and sulphide flotation followed by cyanidation then barite recovery by gravity and barite flotation.

A composite sample representing variable depths, gold, silver, zinc and copper contents was submitted for testwork. The Bond ball mill work index was determined to be 14.7kW/tonne. Summary results for cyanidation and flotation testwork are presented in Table 6 below.

			Elements
Testwork	Au	Aq	Cυ	Zn	Ba
Head Assay	$1.6$ ppm	34.2 ppm	594 ppm	1.50%	17.60%
			Recovery (%)
Direct Cyanidation	48	10	12	0.2
Flotation	86	92	93	98	2
Cyanidation of Float Tails	60	34	13	4
Overall recovery for float followed by cyanidation	95	95	$\blacksquare$
Barium Recovery by Flotation					84

Table 6: Summary of Metallurgical Testwork Results

The objective of the flotation testwork was to assess the flotation behaviour of Au, Cu, Ag Pb and Zn mineral species and to float a bulk sulphide concentrate. These preliminary, bench scale test results show encouraging recoveries using a flotation stage followed by a cyanidation process route. The low recovery of precious metals by direct cyanidation was consistent with historic results reported previously and appears to be attributable to approximately 50% of the gold being present within the sulphide mineral grains. Direct cyanide recovery was relatively insensitive to grind size over a 45 to 75 micron size range.

Metals recovery to a bulk flotation concentrate is summarised in Table 7. Overall the recoveries obtained were good considering the simplicity of the flotation circuit. The objective of the next phase of testwork is to determine the upgrade potential of these concentrate grades to commercial levels. A separate test was undertaken for barite to assess flotation as a possible process for upgrading barite into a potentially saleable product. The barite concentrate produced had a barium grade of 50.2 % which is equivalent to 85.3% barite which at first pass exceeds the 65% barite standard generally adopted in the drilling and chemical industries.

.		---------------------------------------
	Au	Аg	As	Сu	Fe	Pb		ᄼ
	-a/f	.q/f
Rougher Conc. Grade		183	0.4	0.30	20.9	3.8	30.1	8.6
% Recovery to Conc.	86	92	70.	93	80	$\circ$	54	98

Table 7: Flotation recovery and grade

As the metallurgical testwork continues the exploration team will evaluate other known occurrences of gold mineralisation such as around the Hellyer and Que River deposits and on the newly acquired Farrell tenements along the Henty fault, south of Que River. The aim is to understand the potential resource base which could support the various gold processing options as they emerge from the next phase metallurgical testwork. The metallurgical testwork, whilst very preliminary in its nature shows encouraging potential to provide an opportunity to extract value from this polymetallic deposit as well as others in the district.

2.3 ZINIFEX HELLYER EXPLORATION ALLIANCE

During the Quarter a further 3 diamond drill holes were completed for a total of 971 metres. The HEA drill holes generally provided positive geological indications of mineralisation in the general areas identified as targets or Hellyer style mineralisation. Figure 3 presents a summary of the targets and completed and proposed drill holes. Whilst no strong massive sulphide mineralisation has been intersected to date samples have been taken for assay for zones of alteration intersected to gain further data on geochemical signatures and alteration styles. Assays have been received for the first 3 drill holes and are summarised in Table 8 below.

FROM(m)	TO(m)	INTERVAL	Cu (ppm)	Pb (ppm)	$\bar{z}$ n (ppm)	Ag (ppm)
		(m)
HED1
189	195	6	130	407	813
259	263	4	2502	11	233
HED2
337	350	13	459	309	1104	ົ
HED 3
132.5	132.75	0.25	2600	53,400	20,5000	46
275	327	52	125	863	1655	سه

Table 8: Assays from HFA Drilling

Anomalous intervals in HED1 and 2 correspond with observed traces of sphalerite, galena and chalcopyrite in the drill core. These intervals occur at the base of the Hellyer Basalt immediately above the Hellyer ore-position being targeted. Results for HED3 indicate a zone of anomalous Pb, Zn, and Cu coincident with observed clasts of base metal sulphide in the core. The sample at 132.5m may represent a larger clast at a higher stratigraphic level suggesting a possible new, proximal undetected massive sulphide source. This clast appeared very similar to Que River style mineralization and has returned similar grades of 0.3% Cu, 20% Zn, and 5% Pb.

A programme of downhole electro-magnetic surveys has commenced for all HED drill holes completed. The down-hole data still needs to be compiled and interpreted by a geophysical consultant.

Figure 3: Summary of HEA drilling and targets

2.4 REGIONAL EXPLORATION

The Company has a very active regional and grass roots exploration programme refer Figure 4. During the Quarter the following activities were completed.

Oonah Project (Cu-Pb-Zn-Ag-Au & Sn potential)

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

The Oonah project contains several historic mining operations including Oonah, Montana and Zeehan Western with the following historic production records noted in the Mineral Resources Tasmania (MRT) database:

• 863,000t at 1.1% Cu, 1.2% Pb, 1.0% tin (Sn) and 153 g/t Ag Oonah:
• Montana: 40,000t at 5.3% Pb, 143 g/t Ag and 0.5 g/t Au
• Zeehan Western: 300,000t at 8.7% Pb. 480 g/t Ag and 0.5 g/t Au

The Company has two exploration objectives at Oonah:

• 1. discovery of large-scale new high grade Pb-Zn-Ag or Cu-Sn-(Au) deposits.
• 1. delineation of high grade mineralised zones which may be amenable to small scale mining and trucking.

To advance exploration activities a reconnaissance field inspection was made during which 6 samples were collected from historic workings and mine mullock dumps. Sample results support the high grade nature of mineralisation in the area. The high zinc result in sample ON001 is particularly interesting as zinc was a contaminant mineral: that is, the miners avoided it in historic times and the historic production figures may not reflect the zinc potential of the area.

Sample ON001	6.8% Pb, 25.9% Zn, 351g/t Ag
Sample ON002	0.4% Pb, 1.5% Zn, 0.54% Sn, 455g/t Ag, 0.18g/t Au
Sample ON003	3.2% Cu, 286g/t Ag, 1.06g/t Au
Sample ON004	13% Pb, 418g/t Ag
Sample ON006	4.5% Pb, 2.4% Zn, 339g/t Ag

The follow-up work planned comprises soils sampling, geological mapping and if warranted drilling.

Waratah (Pb-Zn-Ag potential)

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

The Waratah licence, like Oonah, is considered prospective for new large scale Hellyer-Rosebery style volcanic hosted VHMS deposits and intrusive related nickel and tin deposits as well as small scale high grade mining opportunities focused on a historic mining centre.

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 a/t Ag between 1895 and 1940. Like the Oonah workings the zinc at this time was a contaminant and was either avoided in the mine or left in the tailings. At Magnet those tailings were reportedly retreated in the 1970's to recover the zinc.

Bass Metals' geologists visited the site during the Quarter as preparation for the forthcoming field activities during which they also collected 3 rock chip samples from the historic workings. The sample results confirm the high grade nature of the mineralisation as reported in the historic documentation.

Sample WA001	4.9% Pb, 3.3% Zn, 586g/t Ag, 0.21 g/t Au (Fe-rich gossan)
Sample WA002	15.8% Pb, 3.5% Zn, 629g/t Ag (Fe-rich gossan)
Sample WA003	$2.2\%$ Pb, $2.6\%$ Zn, $237g/t$ Ag ( Banded vein )

The Company intends to undertake geological mapping and detailed sampling along the 1km strike of prospective Magnet line looking for repeat lode positions before drill testing the depth and strike potential of the lode previously mined. Of particular interest is the potential for higher grade zinc zones which may have been deliberately left behind in the pre-WW2 mining activities.

Magnet is within easy trucking distance to Que River and successful exploration leading to the delineation of future ore reserves could well compliment the planned mining activities there in terms of contributing high grade Pb-Ag and Zn ore.

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

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

A proposal to drill two 150m deep diamond holes at the Mariner 1 Prospect has been approved by the MRT. Drilling is planned to commence in February to test an area of coincident Pb & Zn soil anomalism and a historic geophysical (IP chargeability) anomaly. Peak soil anomalism at the prospect is 10,000ppm Pb and 1,050ppm Zn. The soil anomaly overlies the Cambrian Bonds Range Porphyry within the Mount Read Volcanics belt. The Prospect is considered prospective for hybrid volcanic hosted massive sulphide (VHMS) style deposits and for Devonian intrusion-related mineralisation.

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

(EL29/2002 Mt Selina - 60% Bass Metals Ltd 40% Adamus Resources Limited)

• Assay results from an infill soil sampling program at the Dora Prospect (south of Lake Rolleston) confirm the continuity and strike of the previously defined Pb and Zn in soil anomalies.
• The highest assay returned from a single sample was 2,755ppm Pb and 443ppm Zn.
• Further mapping of the area of the anomaly is required so as to better plan follow-up work and determine the nature of mineralisation based on the limited surface exposure.
• A two hole diamond-drilling program is being prepared to test the anomaly at approximately 100-150m below surface.
• Bass Metals has met its earn-in requirements on these tenements.

North Rosebery (Cu-Pb-Zn-Ag potential)

(EL54/2004 - 75% Bass Metals Ltd 25% Geoinformatics Exploration Inc.)

A 115 sample soil geochemistry program at North Rosebery has been completed along five east-west lines to cover the area of the interpreted target zone. Assay results are pending.

A 67 sample rock chip traverse was also completed along the Pieman Road which transects the general target area. The rock chip samples were composited over 5m intervals. The composite sample results were disappointing overall as they failed to replicate earlier high grade rock chip sample results from the same area. Best results included 0.35 g/t Au (sample NR023) and 670ppm Zn (sample NR076).

Heazlewood (Ni-Cu-PGM potential)

(EL31/2003 Bass Metals earning 70% from 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. The Company has prepared an extensive soil sampling covering interpreted and geochemical Ni-Cu-PGE targets between 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 scheduled to commence this summer.

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.

General Exploration Results

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.

PQ Lens Resource Estimate

Mr. Akerman BSc (Hons) MAusIMM has 20 vears industry experience including 4 years as a production geologist at Que River from 1986. Since then he has had direct involvement in the planning and development of 5 other similar deposits in the Que River region as well as extensive resource delineation and mine planning work on many deposits in Australia and overseas. Mr. Akerman meets the formal requirements as defined in the JORC Code to be a Competent Person for the estimation of the Que River PQ Lens Mineral Resources and has consented to the inclusion of this information in the original report to ASX dated 20 November 2006 from which extracts are included herein

S-Lens Resource Estimate

Mr. Steven Richardson BSc(Hons) MAusIMM, a fulltime employee of McArthur Ore Deposit Assessments (MODA) has 26 years experience, including 10 years at Que River-Hellyer. He completed the bulk of the estimation work under the direction and supervision of Dr Gary McArthur PhD FAusIMM MICA MSEG, principal of MODA. Dr McArthur has over 35 years experience as a professional in the mining industry (including 10 years at Hellyer), with considerable involvement in the estimation of resources over a wide variety of commodities and mineralisation styles. As such, Dr McArthur meets the formal requirements as defined in the JORC Code (Joint Ore Reserves Committee, 2004) to be a Competent Person for the estimation of the Que River S Lens Mineral Resources and has consented to the inclusion of this information in the original report to ASX dated 20 November 2006 from which extracts are included herein

Mt Charter Resource Estimate

The information within this report that relates to the Mt Charter Mineral Resource is based on information compiled by Mr Paul Blackney and Mr Shaun Hackett who are both full lime emolovees of Snowden Mining Industry Consultants and Members of The Australasian Institute of Mining and Metallurgy. Mr Blackney and Mr Hackett have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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 consented to the inclusion of this information in the original report to ASX dated 30 October 2006 from which extracts are included herein.

3.0 CORPORATE ACTIVITIES

At the end of the quarter the company's financial position stands at \$1.63 million cash at bank. Total exploration expenditure for the Quarter was \$0.83 million which includes Zinifex's share of the HEA expenditure of which \$0.16 million is still to be paid. Administration expenses for the quarter were \$0.19 million.

The following activities were initiated or completed during the period.

• Acquisition of 3 exploration licences covering 148km² of prospective host rock units and $\bullet$ fault structures from Saracen Mineral Holdings Limited. Settlement of the transaction occurred in early in early November with the Company issuing Saracen with 6.4 million shares and a cash payment of \$275,000.
• The issues to Geoinformatics Exploration Inc. of 300,000 ordinary shares and 100,000 $\bullet$ options in accordance with the Tasmanian Exploration Alliance agreement.
• The issue to employees and Directors of 2.1 million incentive options.

Mr Stephen Ross was appointed as the Company's Chief Financial Officer in November. Stephen is a CPA and was most recently the General Manager of Operations for the Monywa Copper project a 50:50 joint venture between the Myanmar Government and Ivanhoe Mines Ltd. He was based in Myanmar for the past 8 years and prior to that held senior financial management roles with resource companies such as Coal and Allied, Western Metals and Rio Tinto. His financial and operational experience is a significant boost to the management team as it steers the Company towards becoming a producer.

Attachment 1: Que River Assay and Drill Hole Summaries

Table 1 Que River Drilling Results - December Quarter 2006

	From $(m)$ To $(m)$	Drilled	True		$Cu (%) \quad Pb (%)$	Zn (%)	Ag (g/t)	Au $(g/t)$
		Interval	Width
		(m)	(m)
		S-Lens South-central (Copper-Zinc Zone)
		QRD1243 (1% Cu / 5% Pb+Zn COG)
22.60	34.20	11.60	8.0	1.2	1.6	5.0	38	0.4
6.30	8.70	As well as the following intercepts to the west of the S-lens position					90	$\cdot$ 1
16.30	18.30	2.40 2.00	1.7 1.4	0.9 $\overline{1.0}$	4.4 $\blacksquare$	8.5	$\overline{33}$	0.3
		QRD1244 (1% Cu / 5% Pb+Zn COG)
27.80	29.40	1.40	0.7	3.9	0.3	0.2	164	0.4
37.40	39.30	1.90	1.0	0.2		9.3	10	0.2
45.60	50.50	4.90	2.5	2.1		0.2	65	1.1
		QRD1245 (1% Cu / 5% Pb+Zn COG)
18.50	22.05	3.55	3.0	3.6	3.6	4.4	66	3.6
	QRD1246 (1% Cu COG)
12.00	13.00	1.00	0.7	2.1	$\blacksquare$	$\overline{\phantom{a}}$	33	0.5
	S-Lens North (Zinc-Lead Zone)
	QRD1240 (Zn+Pb>5% COG)
53.0	55.8	2.8	1.4	0.5	2.5	10.0	38	0.4
36.80	37.80	As well as the following intercepts to the west of the S-lens position 1.00	0.6	0.2	1.5	5.4	26	0.4
43.80	44.80	1.00	0.6		1.6	5.3	12 2	0.3
47.70	48.95	1.25	0.7		1.0	4.0	16	0.2
	QRD1242 (Zn+Pb>5% COG)
42.80	47.00	4.20	2.30	0.3	5.0	5.5	40	0.4
	QRD1251 (Zn+Pb>5% COG)
29.60	33.10	3.50	3.0	0.6	4.0	7.2	35	n/a
		As well as the following intercepts to the west of the S-lens position
1.80	2.80	1.00	0.8		1.8	3.5	33	1.5
4.20	5.40	1.20	1.0		1.5	$\overline{3.6}$	$\overline{27}$	1.0
23.30 PQ Central	24.10	0.80	0.6		2.4	4.8	52	2.0
	QRD1247 (Zn+Pb>5% COG)
13.00	13.60	0.60	0.5	1.0	14.1	35.0	100	4.2
16.00	17.40	1.40	1.1	1.5	7.4	21.6	115	4.0
	QRD1248 (Zn+Pb>5% COG)
16.00	$16.20$ 0.2		0.10	0.3	7.3	20.0	200	3.9
		QRD1249 & QRD1250 - No significant intercepts at Zn+Pb>5% COG
PNorth
10.30	QRD1252 (Zn+Pb>5% COG) 16.00	5.70	4.3	0.4	8.0	13.9	146	4.3
		QRD1254 (Zn+Pb>5% COG / 1.0 g/t Au)
6.60	11.60	5.00	3.8	0.4	1.3	2.7	264	8.3
		Nico Lens (intercepts are for Nico Lens position unless indicated otherwise)
	QRD1260 (5% Pb+Zn COG)
37.70	41.00	3.3	2.8	0.3	3.8	6.5	58	0.4
44.00	45.00	1.00	0.8	0.2	6.6	4.9	77	0.2
	QRD1261 (5% Pb+Zn COG)	No definitive Nico massive sulphide lens, but several significant zones of stringer type mineralisation
40.00	41.00	1.00	$_{\rm m}$	0.2	2.1	4.9	33	0.3
45.00	48.00	3.00	$\tilde{\phantom{a}}$	0.1	1.8	6.8	35	0.8
51.00	57.00	6.00	$_{\rm{m}}$	0.1	1.1	4.2	20	0.3
	QRD1262 (5% Pb+Zn COG)
52.00	56.10	4.10	2.5	0.3	5.8	5.2	95	0.8
	QRD1263 (5% Pb+Zn COG)
Nico East Lens
38.15	39.20	1.05	0.8	0.3	4.6	6.9	76	1.8

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

Nico West Lens
57.50	62.90	5.40	4.5	0.2	3.2	10.8	109	1.5
		As well as intervening stringer zones
50.00	51.00	1.00	0.8	0.2	3.7	5.3	69	1.5
	QRD1264 (5% Pb+Zn COG)
Nico East Lens
47.80	53.00	5.20	3.4	0.2	4.0	6.1	60	1.5
Nico West Lens
66.20	72.10	5.90	3.8	0.3	5.2	8.4	103	0.3
		As well as intervening stringer zones
57.80	58.30	0.5	$\tilde{}$	0.1	3.5	6.1	26	1.6
60.70	62.30	1.60		0.1	$\overline{2.1}$	3.8	39	0.9
	QRD1265 (5% Pb+Zn COG)
Nico West Lens
82.90	85.80	2.90	1.4	0.3	6.7	11.3	146	1.7
	As well as stringer mineralisation
78.60	79.60	1.00		0.1	3.0	6.0	64	0.3
		QRD1266 (2% Pb+Zn COG) poor core recovery & uncertain identification of the Nico Lens position
10.50	13.00	2.50	2.1	0.1	3.5	6.4	42	1.0
		As well as associated stringer zones including;
19.10	20.40	1.30	1.0	0.3	6.1	8.6	00	$\overline{1.9}$
	QRD1267 (5% Pb+Zn COG)
		Possible Nico Lens position intercepts; No significant intercepts at 5% Pb + Zn COG, but the following
	intercepts at 2% were recorded
39.60	40.60	1.00	0.7	0.1	0.6	2.3	16	0.5
49.90	51.00	1.10	0.8	0.1	0.7	1.5	$\overline{7}$	0.3
53.00	54.00	1.00	0.7	0.02	0.5	2.6	$\overline{9}$	0.5
		As well as hanging & footwall string vein zones
29.80	31.00	1.20	0.8	0.2	1.3	2.1	27	0.1
65.00	66.00	1.00	0.7	0.1	0.3	1.8	10	0.5
68.00	72.60	4.60	3.5	0.1	1.0	3.0	17	0.3
	QRD1268 (5% Pb+Zn COG)
59.70	68.15	8.45	5.0	0.3	1.5	6.4	38	0.6
	PQ South - Remnant Pillar Zone
	QRD1269 (5% Pb+Zn COG)
50.6	70.0	19.4		0.3	9.0	24.7	356	11.0
		*QRD1269 (5% Pb+Zn COG) targeting Pillar #1
	$50.6$ 70.0 19.4			0.3	9.0	$\overline{24.7}$	356	11.0
		QRD1270 (5% Pb+Zn COG) targeting Pillar #2 (abandoned early)
39.00	42.00	3.0		0.5	3.4	4.2	81	1.3
		QRD1271 (5% Pb+Zn COG) targeting Pillar #3
46.40	56.00	9.60	4.0	0.3	6.1	12.0	165	4.2
including
52.90	56.00	3.10	1.3	0.4	12.9	27.4	336	8.9
		QRD1272 (5% Pb+Zn COG) targeting Pillar #4
53.00	56.25	3.25	1.5	0.2	2.6	7.6	55	1.3
		QRD1273 (5% Pb+Zn COG) targeting Pillar #5
Assays pending
		QRD1274 (5% Pb+Zn COG) targeting Pillar #2
45.50	63.30	17.8		0.3	10.4	19.7	411	7.4

Table 2 Que River drilling summary

HOLE	Lens	Collar North	Collar East	Collar RL	Azimuth	Dip	EOH(m)
QRD1240	S-lens	7,513	5.283	696	90	-56	74.5
QRD1241	S-lens	7,525	5,288	696	90	$-30$	44.6
QRD1242	S-lens	7.525	5,286	696	90	-57	66.0
QRD1243	S (Met)	7,402	5,274	716	90	$-44$	56.6
QRD1244	S (Met)	7,402	5.274	716	90	-57	71.8

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

QRD1245	S-lens	7,350	5,299	721	270	-30	29.7
QRD1246	S-lens	7,300	5,274	716	90	$-45$	50.7
QRD1247	PQ Central	7,513	5,184	695	270	$-34$	22.9
QRD1248	PQ Central	7,513	5,184	695	270	-56	29.8
QRD1249	PQ Central	7,488	5,183	7,488	270	$-40$	20.7
QRD1250	PQ Central	7,525	5,182	7,525	270	$-35$	38.5
QRD1251	S-lens	7,506	5,280	696	90	$-30$	44.7
QRD1252	PNth	7,650	5,167	688	90	$-41$	22
QRD1253	PNth	7,650	5,167	688	90	$-70$	29.9
QRD1254	PNth	7,650	5,203	681	270	-39	18.4
QRD1255	PNth	7,663	5,205	682	270	-44	18.7
QRD1256	PNth	7,638	5,202	681	270	$-50$	17.7
QRD1257	PQ Sth	7,363	5,150	704	270	$-38$	35.8
QRD1258	PQ Sth	7,313	5,125	704	90	$-37$	26.5
QRD1259	PQ Sth	7,325	5,130	702	90	$-36$	20.6
QRD1260	Nico	7,738	5,160	691	270	$-30$	67.1
QRD1261	Nico	7,725	5,156	690	270	$-45$	65.05
QRD1262	Nico	7,750	5,154	690	270	$-51$	64.6
QRD1263	Nico	7,775	5,173	690	270	$-30$	74.9
QRD1264	Nico	7,775	5,173	690	270	$-49$	89.7
QRD1265	Nico	7,775	5,173	90	270	$-63$	95.9
QRD1266	Nico	7,750	5,134	690	270	$-30$	50.1
QRD1267	Nico	7,700	5,152	687	270	-39	80.7
QRD1268	Nico	7,700	5,152	687	270	$-54$	101.8
QRD1269	PQ Pillar #1	7,293	5,177	706	225	$-48$	70
QRD1270	PQ Pillar #2	7,310	5,118	704	144	$-53$	56
QRD1271	PQ Pillar #3	7,294	5,177	706	270	$-63$	58.4
QRD1272	PQ Pillar #4	7,738	5,190	708	245	$-55$	62.2
QRD1273	PQ Pillar #5	7,739	5,190	708	270	-60	74.5
QRD1274	PQ Pillar #2	7,281	5,176	707	270	$-61$	68
QRD1275	Gossan	7,525	5,260	696	90	$-50$	95.4
QRD1276	QR32	7,985	5,185	693	90	-59	68.4
QRD1277	QR32	7,962	5,185	693	90	$-30$	52.1
QRD1278	QR32	7,962	5,185	693	90	-56	71.7
QRD1279	QR32	8,000	5,189	693	90	$-30$	50.1
QRD1280	QR32	8,000	5,189	693	90	-59	80.7

$Rule 5.3$

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 December 2006

Consolidated statement of cash flows

Cash flows related to operating activities

	Cash flows related to operating activities	\$A'000	\$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation (b) development	(832)	(1987)
	(c) production (d) administration	(193)	(360)
1.3	Dividends received
1.4	Interest and other items of a similar nature received
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(1025)	(2345)
	Cash flows related to investing activities
1.8	Payment for purchases of:
	(a)prospects	(275)	(245)
	(b)equity investments
	(c) other fixed assets	(46)	(182)
1.9	Proceeds from sale of:
	(a)prospects
	(b)equity investments
1.10	(c)other fixed assets Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	(321)	(427)
1.13	Total operating and investing cash flows
	(carried forward)	(1, 347)	(2,774)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(1, 347)	(2, 774)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	72	3271
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Costs of share issues		(143)
	Net financing cash flows	72.	3128
	Net increase (decrease) in cash held	(1,275)	354
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	2,908	1,279
1.22	Cash at end of quarter	1,633	1633

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	114
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

Issue of 300,000 ordinary shares and 100,000 options pursuant to Tasmanian Alliance Agreement

$2.2$ 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

	Total	1.075
4.2	Development
4.1	Exploration and evaluation	1,075
		\$A'000

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	11	65
5.2	Deposits at call	1,622	2,843
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1,632	2.908

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	EL /47/2003 EL /48/2003 EL/55/2004	100% 100% $100\%$

⁺ 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 security (see note	Amount paid up per security (see note 3)
				$3)$ (cents)	(cents)
7.1	Preference *securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3	+ Ordinary securities	63,300,013	54,321,959	20 Cents	20 Cents
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	6,400,000 300,000		Deemed 20c 20c	Fully paid ordinary shares
7.5	+ Convertible debt securities (description)
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	8,275,000 2,475,000 350,000 350,000 1,600,000 500,000	6,104,375	Exercise price 25 cents 25 cents 30 cents 35 cents $27.5$ cents $37.5$ cents	Expiry date 31.07.07 31.12.07 31.12.07 31.12.07 22.12.11 31.12.11
7.8	Issued during quarter	1,600,000 100,000 500,000		27.5 cents 25c cents 37.5cents	22.12.11 31.12.07 31.12.11
7.9	Exercised during
7.10	quarter Expired during quarter
7.11	Debentures (totals only)

⁺ See chapter 19 for defined terms.

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).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Chief Financial Officer.................................... Sign here:

Print name: Stephen Ross

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.
• $\overline{3}$ 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.
• $\overline{5}$ 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.

== == == == == ==

⁺ See chapter 19 for defined terms.