GREENWING RESOURCES LTD — Interim / Quarterly Report 2008

Apr 23, 2008

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ABN 31 109 933 995
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24 April 2008

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

Dear Sir

MARCH 2008 QUARTERLY REPORT OF ACTIVITIES & CASHFLOW

Base Metals

Mine Operations – Que River

• Continued excellent record of no lost time injuries or environmental incidents since project commencement.

• Quarterly mine production of 17,194 tonnes of ore, more than double the previous Quarter’s production.

• Quarterly ore sales of 14,067 tonnes at 11.5% Zn, 6.2% Pb, 0.4% Cu, 138 g/t Ag & 2.5 g/t Au.

• Estimated revenues for the quarter of $3.95 million equivalent to $282/tonne sold.

• Operating costs i.e. all operating costs, including mining, treatment, haulage, royalties, depreciation and amortisation of mine properties but excluding capitalised mine development costs are:

lopment costs are:
Unit Cost basis	Unit	March 08 Qtr	FY to date
Ore sold	$/dmt	132	154
OreMined	$/wmt	108	121

• Total cash costs i.e. all costs incurred during the period, with no accounting adjustments as above plus the expected costs to realise value from the stockpile inventory-namely haulage, treatment charges and royalties are:

		Actual	Actual
Unit Cost basis	Unit	March 08 Qtr	FY to date
Value oforemined	$/wmt	277	270
TotalCost oforemined	$/wmt	187	220
OperatingMargin	$/wmt	89	50
Marginas a % ofCost	%	48	23

• Stronger operating margins as indicated above achieved in March Quarter as Que River transitions to cash-flow positive status.

Exploration Activities

Hellyer Mine project (HMP)

• The Company’s core exploration focus is the HMP, namely drilling at Fossey Zone and the continuing Mining Study activities to evaluate the Hellyer Mineral Resource and the resource potential of the adjacent Fossey Zone.

• Fossey Zone yields further significant intercepts, including:

• 19 metres at 7.2% Zn, 3.5% Pb, 0.3% Cu, 65 g/t Ag & 2.1 g/t Au

• 21.4 metres at 17.3% Zn, 8.3% Pb, 0.7% Cu, 231 g/t Ag & 3.4 g/t Au

• Mineralisation now defined over at least 100 metre strike extent.

• Drilling to be accelerated with a second rig to commence in nearly May.

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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Zinifex Hellyer Exploration Alliance (HEA)

Zinifex has selected its final 3 special joint venture project areas to bring the total to 4 on which it will undertake drill testing of deep early stage targets prospective for Hellyer-Que River type deposits. BSM retains a 30% free carried interest to a “decision to mine” stage.

Regional Exploration

• An airborne geophysical survey (using VTEM system) totalling 2,700 line km was flown over several of the Company’s tenements to follow-up several early stage targets prospective for base metal and nickel sulphide mineralisation. This included the Heazlewood nickel in soil anomaly area and several of the Clancy JV tenements. The data is being processed and interpreted but some initial targets have already emerged.

• At the historic high grade Magnet Pb-Ag – (Zn) mine one drill hole at the northern end of the interpreted structure was completed. The structure was successfully intersected, but with only weak zinc sulphide mineralisation. However this did confirm the prospectivity of the rest of the zone. Unfortunately for technical reasons the programme was suspended until a more suitable rig becomes available.

• Drilling was completed at the Bonds Range - Iris River prospect with no significant intercepts. Further surface sampling and mapping was completed on the Tiger Plains prospect with all assays pending.

• A coincident Pb-Zn-Cu and Sn soil anomaly has been delineated over a geologically prospective area defined by a major fault structure and magnetic anomalism at the Oonah licence, near Zeehan.

• Soil sampling testing for northern extensions of the Rosebery deposit commenced at the North Rosebery prospect.

Gold

The Company continued low level work on its Mt Charter gold Mineral Resource and the Sterling Valley gold project. Further drilling and evaluation work is planned.

Nickel & Other Metals

The VTEM survey included the nickel-in-soil anomaly at Heazlewood – and an initial review of the data suggests further follow-up work is justified. The Company is also assessing the magnetite iron potential at Whyte River, 10km south of the Savage River magnetite mine and at Heazlewood where skarn magnetite alteration is evident in regional geophysical data.

Corporate Administration

Cash at bank at the end of the Quarter comprises $4.81 million, with an overall working capital position of $6.59 million. This does not include the $2.14 positive value in the Company’s hedge book.

Negotiations for a debt facility with Investec Bank were terminated by mutual agreement.

Commentary

Bass Metals is performing well in a volatile and challenging market environment. The Company’s activities for the Quarter clearly demonstrate the benefits of the ongoing execution of the twin strategy to develop mines and find new deposits.

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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Developing Mines

Que River stabilised in the March quarter and is performing well on both technical and financial measures. Positive grade reconciliations have buffered the project from lower metal prices and the flow-on from increased smelter costs, and at this time, this trend is expected to continue. The mining alliance with Mancala Mining is working well and the Parties are now looking to further optimise the operation, in particular costs and further evaluate the 740,000 tonne resource base to increase mine life.

Whilst the Que River mine development is a significant step for the Company; it is not a “company maker” except to the extent that it funds ongoing exploration and development activities. The next organic growth phase for BSM is to create a larger scale base metals mining operation around the significant resource base at Hellyer and Que River which totals 1.5 million tonnes and the highly promising adjacent Fossey zone. Realistically this is what will drive the Company’s growth and value in the near term and this is where the Hellyer exploration team activities are focused. Recent drill intercepts such as 21 metres at 17.3% Zn, 8.3% Pb, 0.7% Cu, 231 g/t Ag & 3.4 g/t Au in close proximity to two operating processing plants and core infrastructure serve to further justify this emphasis.

Finding New Deposits

With the obvious focus on the advanced projects it is important to also realise that Bass Metals is still “hunting for elephants in elephant country” as shown during the Quarter by:

• drilling on 2 regional prospects – over 300 metres of diamond core;

• soil sampling and griding on 4 properties – to generate the next series of drill targets;

• completion of a major 2,700 line km airborne geophysics programme over 5 licence areas testing early stage targets;

• new EL application for a prospective tin area, highly regarded by MRT geoscientists and includes historic workings; and,

• the significant “cerebral” energy expended by our team of 5 geologists on site.

In conclusion

The Company has had another busy Quarter in which further major milestones have been achieved and exceeded. The response from the share market has been disappointing and whilst management is very mindful of investor sentiment and market performance, its focus remains on growing the Bass Metals business, in anticipation that the ultimate recognition of value will come. Clearly the Company is well poised to realise that growth organically from its advanced and early stage exploration projects, but is also pursuing acquisition and corporate opportunities to achieve that growth which may generate further enhanced shareholder returns.

I look forward to providing further updates on our progress in these 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

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MARCH 2008 QUARTERLY ACTIVITIES REPORT

A. BASE METALS

A1.0 Mine Operations – Que River

A1.1 SAFETY & ENVIRONMENT

No lost time injuries or environmental incidents have occurred during the Quarter or since the start of the project.

A1.2 MINING ACTIVITIES

Mined tonnages of ore in the March Quarter exceeded predictions from the Ore Body model by 15% ( refer Table 1 ). Actual mined grades for lead, silver and gold exceeded predictions by 18 to 34%. The zinc grade was marginally down by 5% and copper was down by 45% albeit off a very low base of 0.6% copper, though the mined grade remains above the payable threshold.

The project to date reconciliation of mined versus predicted tonnages is excellent with no variation. Grades of lead, silver and gold are higher than predicted by 32 to 48%, zinc is on target whilst copper is down by 31%, but from a low base of 0.5% copper.

Table 1: Production Comparison – Mined vs Predicted

	Tonnes**	Zn (%)	Pb (%)	Ag (g/t)	Au (g/t)	Cu (%)
March 08 Quarter
Predicted (OBM*)	14,929	10.4	4.1	105	1.5	0.6
Ore Mined	17,194	9.9	4.8	131	2.0	0.3
Variance to OBM	15%	-5%	18%	25%	34%	-45%
Project to Date
Predicted (OBM*)	26,641	10.1	3.9	77	1.3	0.5
Ore Mined	26,736	10.1	5.1	113	1.8	0.4
Variance to OBM	0	0%	32%	48%	42%	-31%

(OBM=Ore Body Model used for the original budget; *Tonnes are wet metric tonnes (wmt))

A1.3 ORE SALES

A total of 14,067 wet metric tonnes (wmt) of ore was sold to Zinifex Rosebery operations during the Quarter, consistent with BSM’s target of 5,000 wmt per month ( refer Table 2 ). A large inventory position has been created of 5,677 wmt as at the Quarter end.

Table 2: Mining Summary – March 2008 Quarter

	Tonnes (wmt)	Zn (%)	Pb (%)	Ag (g/t)	Au (g/t)	Cu (%)
Opening Stocks at QR	2,551	9.8	5.2	72	1.1	0.4
Oremined*	17,194	9.9	4.8	131	2.0	0.3
Ore Delivered to ZFX	14,067	11.5	6.2	138	2.5	0.4
Remaining Stocks at QR	5,677	9.3	4.9	92	1.3	0.4

* "Remaining Stocks" and "Mined" are estimates from grade control

A1.4 OPERATING PERFORMANCE

Revenues

Revenue for ore sold during the March Quarter is estimated to be $3.95 million. After correcting for minor moisture content, ore tonnes sold is 13,993 dry metric tonnes (dmt) which yields gross revenue of $282/dmt sold. On a year to date basis revenue is $5.88 million

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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equivalent to $280/dmt sold. Revenue quoted above is based on actual tonnes delivered and invoiced.

During the Quarter BSM and Zinifex finalised the 2008 ore payment factors relating to the Ore Sales Agreement. The review needed to incorporate significant increases in global benchmark smelting and freight costs for zinc and lead concentrates resulting in reductions in the zinc and lead payment factors and a small increase in the copper payment factor to BSM. At current metal prices the net impact is to reduce the payability factor from 40% to approximately 37% of the insitu metal value. The revenue figures for the Quarter reflect the revised 2008 ore payment factors.

Costs

A summary of operating costs for the Quarter and Financial Year (FY) to date is presented in Table 3 below. The cost calculation is based on all operating costs, including mining, treatment, haulage, royalties, depreciation and amortisation of mine properties but excludes capitalised mine development for the Quarter consistent with the Company’s accounting policies as detailed in the 31 December 2007 half year report. The difference between “sold” and “mined” unit cost reflects the closing inventory position.

Table 3: Unit Operating Costs

Unit Cost basis	Unit	March 08 Qtr	FY to date
Ore sold	$/dmt	132	154
OreMined	$/wmt	108	121

Total capital costs for the Quarter were $0.17 million, bringing the project to date expenditure to $0.56 million, which is in line with the mine plan.

Operating Margin

To monitor and manage the financial performance of the project; i.e. the margin between cash costs and revenues, the Company also prepares management reports to determine the net realisable value and operating margin of ore mined. The reports include adjustments to the Company’s accounting policies for the following:

Revenue

• Adds the expected revenues from the stockpiles to those from ore already sold and delivered in the period.

Costs

• Collation of all of the costs incurred during a period, with no accounting adjustments for depreciation and amortisation of mine properties or capitalising of mine development.

• Addition of expected costs to realise value from the stockpile inventory - namely haulage, treatment charges and royalties.

On this basis a summary of the Que River mine operating performance is presented in Table 4 below.

Table 4: Estimate of Operating Performance

		Actual	Actual
Unit Cost basis	Unit	March 08 Qtr	FY to date
Value oforemined	$/wmt	277	270
TotalCost oforemined	$/wmt	187	220
OperatingMargin	$/wmt	89	50
Marginas a % ofCost	%	48	23

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

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The operating performance on a cumulative basis is presented in Figure 1 which highlights the project generating positive cash flow during the March 2008 Quarter.

Figure 1: Que River Operating Performance – FY to date.

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Net realisable value and operating margin of ore mined (cumulative)
$8
Net realisable value of ore mined Operating expenses Operating margin
$7
$6
$5
$4
$3
$2
$1
$0
Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08
($1)
A$M
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Suite 5/2 Richardson Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 9322 8044 Facsimile (08) 9481 2846 www.bassmetals.com.au

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Figure 2: Tenement Location Plan – BSM tenement interests

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

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A2.0 Base Metal Exploration Activities

A2.1 QUE RIVER EXPLORATION

There is significant exploration potential at Que River in the vicinity of the current shallow resources and also to the south and at depth within the wide alteration zone which hosts the defined Que River mineralised lenses. No drilling was completed during the Quarter; however review of current data for further drill testing is ongoing.

A2.2 HELLYER MINE PROJECT (HMP)

The HMP was the core focus for the Company during the March Quarter. The project comprises a combined Mineral Resource base (Indicated and Inferred) of 748,000 tonnes grading 7% Zn, 4% Pb, 0.3% Cu, 87 g/t Ag and 1.3 g/t Au around the now closed Hellyer Mine workings as well as the Fossey Zone, an exciting new high grade prospect immediately south of the Hellyer workings and not included in the above Mineral Resource.

The HMP (Fossey & Hellyer Resource) activity focus has been to:

• Drill out Fossey Zone – a further 5 drill holes were completed, with one in progress for a total of 1,469 metres in the Quarter.

• Commencement of the Mining Study comprising, resource assessment, mining studies, environmental studies and metallurgical testwork.

Drilling at the Fossey Zone is targeting the strike and own dip extensions of high grade massive sulphide intersected in the previous Quarter. A summary of drill hole details is shown in Table 3 and a schematic drill plan in Figure 3.

Table 3: Fossey Zone Drill hole details

HOLE	TARGET	COLLAR NORTH	COLLAR EAST	COLLAR RL	AZ (grid)	DIP	EOH
HLD959*	FosseyZone	10149.43	5653.34	679.66	270	-67	274.0m
HLD960	FosseyZone	10199.66	5689.75	680.85	270	-54	305.0m
HLD961	FosseyZone	10199.48	5690.11	680.93	270	-58	314.2m
HLD962	FosseyZone	10199.44	5689.48	680.69	270	-49	293.8m
HLD963	FosseyZone	10100	5674.9	683.7	270	-62	272.5m
HLD964	FosseyZone	10100	5675.3	683.7	270	-66	89.0m(Abandon)
HLD965	FosseyZone	10100	5676.3	683.7	270	-68	22.0m (In Prog.)

( * Commenced in December, completed in January )

Results were positive, confirming the new interpretation of a large wedge of mineralised barite alteration hosting several zones of massive high-grade base metals sulphides. Assay results for the Quarter are presented in Table 4; highlights include:

HLD959: 19m at 7.2% Zn, 3.5% Pb, 0.3% Cu, 65 g/t Ag & 2.1 g/t Au (refer Figure 4)

HLD960: 21.4m at 17.3% Zn, 8.3% Pb, 0.7% Cu, 231 g/t Ag & 3.4 g/t Au (refer Figure 5)

BSM has now completed 12 diamond drill holes at Fossey Zone. Based on assays up to drill hole HLD960 and geological observations in drill holes HLD961 to 963 it is clear that the target barite alteration wedge has now been defined over a strike extent of over 100 metres on drill lines 10,200mN south to 10,100m. Whilst the barite zone has significant intervals of disseminated gold and base metal mineralisation, it also hosts (on all sections tested to date) high grade massive base metals sulphide mineralisation; albeit the intercept in HLD963 is less than a 1 metre thick. HLD 964 is in progress to test beneath this intercept as the high grade zone is interpreted to plunge deeper to the south.

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

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The results to date confirm the new geological interpretation and, as drilling steps out to the north and south, that interpretation is being supported with positive drill results.

Drilling of the Fossey Zone will be accelerated with a 2[nd] rig commencing in early May and will continue until sufficient information has been collected to enable an initial Mineral Resource estimate to be completed. The Fossey mineralisation lies very close to, and “up-plunge” from, the recently completed Hellyer Mineral Resource and the Company considers that there is excellent potential for this zone to be included in its Hellyer Mine project mining study.

Table 4: HLD959 assay results(at a 5% Pb+Zn cutoff)	Table 4: HLD959 assay results(at a 5% Pb+Zn cutoff)	Table 4: HLD959 assay results(at a 5% Pb+Zn cutoff)	Table 4: HLD959 assay results(at a 5% Pb+Zn cutoff)	Table 4: HLD959 assay results(at a 5% Pb+Zn cutoff)	Table 4: HLD959 assay results(at a 5% Pb+Zn cutoff)
From (m)	To (m)	Drilled Interval (m)	Zn (%)	Pb (%)	Cu (%)	Ag (g/t)	Au (g/t)
HLD959
118.05	124.30	6.25	6.0	2.2	0.3	35	1.29
207.30*	212.10	4.80	6.6	3.1	0.2	108	2.56
232.95**	252.00	19.05	7.2	3.5	0.3	65	2.10
239.20	244.35	5.15	11.4	5.3	0.4	62	2.79
Within 2gold rich zones defined at a 1.0g/t Au cut-off
184.60	215.40	30.75	1.9	0.7	0.1	56	2.38
225.20	250.80	25.60	5.6	2.6	0.3	71	2.07
HLD960
231.25*	237.95	6.70	15.1	5.0	0.6	203	2.87
251.65**	273.00	21.35	17.3	8.3	0.7	231	3.36
Including at 10% (Pb+Zn) cutoff)
251.65**	264.25	12.60	20.0	9.7	1.0	185	3.21
Withina gold rich zones defined at a 1.0g/t Au cut-off
229.05	274.00	44.95	11.6	5.1	0.5	167	3.16

A study manager has been appointed to the HMP and a team of consultants engaged to assist the Company. The planned activities cover all of the aspects necessary to evaluate and if viable bring the HMP into production. These include resource delineation, mining studies, environmental management plans, metallurgical testwork, evaluation of processing options (effectively Hellyer or Rosebery Plants) and review of local services and infrastructure. The Company is intent on advancing this work as quickly as practical, with the next milestone being a Mineral Resource for Fossey Zone – expected in the September Quarter 2008.

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

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Figure 3: Fossey drill hole location plan & simplified geology

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

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Figure 4: Schematic Drill Section – 10,150mN

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Figure 5: Schematic Drill Section – 10, 200mN (HLD 961 results reported in April 2008)

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

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A2.3 ZINIFEX HELLYER EXPLORATION ALLIANCE (HEA)

In February Zinifex Australia Limited selected a further 3 areas, bringing the total to 4, to fill its agreed number of Special Project Joint Venture (SPJV) areas under the Hellyer Exploration Alliance (HEA) agreement.

The areas selected cover prospective portions of the Hellyer-Que River stratigraphy and include the promising early stage Switchback prospect where strong alteration and anomalous base metal sulphides were intersected during the HEA phase of exploration drilling.

Under the terms of the HEA executed in August 2005, and subsequently amended, Zinifex has the right to select up to 4 SPJV areas each with an area of up to 2 km[2] . It can acquire a 51% interest by spending at least $4.5 million in aggregate within 3 years of having made its first election. During this period Zinifex will act as joint venture manager and undertake all exploration activities. BSM may continue its own exploration and development activities outside of the SPJV areas. Zinifex may earn a further 19% interest in any of the SPJV areas (taking its total interest to 70%) by continuing to sole-fund work to the delivery of a bankable feasibility study. BSM’s 30% interest shall be free-carried during this period.

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 of 2007 the following activities were completed.

A2.4.1 Bonds Range (Cu-Pb-Zn-Ag potential)

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

The Bond Range area comprises a series of intrusive porphyry units some of which are regionally related to base metal and gold mineralisation. The Company’s ongoing work during the quarter involved drill testing a new lead-silver occurrence discovered by BSM at Iris River and follow-up of a new prospective area know as Tiger Plains.

The final two diamond rill holes of the planned programme (BRD006 and BRD007) were completed during the quarter for a total of 217.3 metres. BRD006 was designed to test an interpreted mineralised “magnetic intrusive” body but failed to intersect any appreciable alteration or mineralisation. Hole BRD007 was designed to test extensions of the “discovery” intercept (BRD001 of 3.5 metres at 5% Pb, 1.1% Zn, 120 g/t Ag and 1.1 g/t Au) approximately 100 metres along strike. Unfortunately only discreet alteration and mineralisation was intercepted in the hole, culminating in a 10cm galena (Pb-sulphide) vein at 119.8m depth. Consequently the mineralisation is considered to be of insufficient quantity and too inconsistent to warrant further work at this point.

The Tiger Plain soil grid and geological mapping was completed during February and 75 soil samples were collected in the four day helicopter-assisted program. Assay results are pending.

A2.4.2 Waratah (Pb-Zn-Ag potential)

( 75% Bass Metals Ltd 25% Clancy Exploration Limited )

The Company’s initial focus is on the early mining potential of extensions to mineralisation associated with lodes in the historic Magnet Mine, which according to Mineral Resource

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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Tasmania (MRT) records produced 630,000t grading 5.7% Pb, 7.3% Zn and 394g/t Ag between 1895 and 1940.

A planned programme of 12 shallow diamond drillholes to test the shallow resource potential around the Magnet Mine was suspended after one drill hole was completed at 97 metres due to slow drilling advance in difficult drilling conditions. The programme will resume with a more appropriate drill rig as soon as practical. The completed drill hole (MGD001) was drilled to intersect possible northern extensions of the Magnet Lode system. It intersected weak developed vein related sphalerite (Zn-sulphide) mineralisation at the target position 70 metres downhole. The persistence of the mineralised structure leaves open the possibility of finding more substantive mineralisation along strike, particularly to the south adjacent to the known workings.

A high powered airbourne geophysical survey (using the VTEM system) totalling 174 line-km was completed over the central portion of the Waratah tenement in March. The aim of the survey is to test at a regional scale for Hellyer-Rosebery deposit style targets which were generated in collaboration with Clancy Exploration. Data processing and interpretation is in progress.

A2.4.3 Farrell Line Project (Cu-Pb-Zn-Ag potential)

(EL47/2003 BSM 100%)

The Farrell Line project located approximately halfway between Hellyer and Rosebery covers a 4km extent of the Henty fault which hosts numerous base metal and gold occurrences on the Company’s lease including the historic Mt Farrell mining centre. The Mt Farrell-Murchison Mines had significant historic Pb-Ag production of approximately 700,000 tonnes at 13% Pb and 14oz./t Ag.

A first pass drilling program is pending approval by Mineral Resources Tasmania targeted at shallow extensions of historic exploration work, depth extensions of the main New North Mount Farrell and North Mount Farrell Mines, and shallow depth extensions of Mount Farrell, South Farrell and Dutton’s Workings.

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

(EL54/2004 - 75% Bass Metals Ltd 25% Clancy Exploration Ltd)

Line cutting is complete and approximately two thirds of the samples collected from the 8.5 line km partial digest soil geochemistry program testing prospective stratigraphy along strike from the Rosebery Mine.

2.4.5 Oonah (Cu-Pb-Zn-Ag-Sn potential)

(EL63/2004 - 75% Bass Metals Ltd 25% Clancy Exploration Ltd)

The results for a major soil geochemistry program completed in December 2007 comprising 365 samples collected over 200 metres spaced grid lines were received during the Quarter. Two areas have been highlighted for further work:

• A discrete coincident Cu-Pb-Zn and low-level Sn anomaly extending north-south over for approximately 600 metres over a sharp bend in the Tenth Legion Fault, which is spatially coincident with a discrete magnetic high. The Tenth legion fault is large scale regional structure associated with mineralisation in the Zeehan district; where bends occur can be a structural site for mineralisation which may have a magnetic signature.

• An area of wide spread low level Sn anomalism in the north-western part of the lease.

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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2.4.6 Wilmot (Cu-Pb-Zn-Ag potential)

(EL51/2004 - 75% Bass Metals Ltd 25% Clancy Exploration Ltd)

An airbourne VTEM survey comprising 295 line-km was completed over most of the tenement area during the Quarter. Data is being processed and interpreted.

2.4.7 Loyetea (Cu-Pb-Zn-Ag potential)

(EL51/2004 - 75% Bass Metals Ltd 25% Clancy Exploration Ltd)

An airbourne VTEM survey completed in March has replaced the planned 12.5km soil geochemistry grid to test a high-ranking regional target prospective for Hellyer-Rosebery-style mineralisation. Whilst the data is still being processed and interpreted several early stage anomalies have been identified which may represent granite related skarn type deposits.

B. GOLD

Planning of follow up drilling at Mt Charter and data compilation for the Sterling Valley gold project continued at a low level during the Quarter. Further drilling and metallurgical testwork is planned. See Section for gold exploration at the Whyte River project.

C. NICKEL & OTHER METALS

C.1 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. Skarn related magnetite mineralisation is also evident in the regional aeromagnetic datasets.

Approximately 221 line-km of VTEM was completed to follow-up on encouraging nickel assay results which defined a 1.5km long nickel in soil anomaly. The objective of the survey is to identify discrete targets within the prospective sequence and soil anomalies to generate drill targets. Data processing and interpretation is in progress but early results indicate further infill work will be required.

C.2 Whyte River (Au-Ni-Fe potential)

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

This lease lies 10km south of the Savage River magnetite iron mine and within the same geological sequence. It also covers a large portion of the Corinna Alluvial gold field and has been subject to historical exploration for both commodities. During the Quarter BSM located historic drill core targeting gold mineralisation, which reported also intersected significant magnetite mineralisation. These drill samples were assayed for Au, Ag, As, Cu, Zn, and Pb but not Fe. The relevant intervals will be resampled for iron in April. In the coming Quarter BSM will also undertaken a detailed ground magnetic survey over the interpreted zone of magnetite mineralisation which does feature in the regional airbourne magnetite data. Whilst iron ore is not a core focus for the Company this work compliments the gold exploration currently underway and may enhance the prospect of attracting a joint venture partner for the iron potential, possibly in combination with the magnetite potential at Heazlewood.

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

==> picture [107 x 40] intentionally omitted <==

C.3 New Application - Tor Tin Prospect (Sn potential)

The Tor tin Exploration Licence Application (ELA) covers 126km[2] centred on the Granite Tor Batholith (refer Figure 2). Within the ELA area there are numerous historic tin workings and prospects. The area was vacant and based on published reports by Mineral Resources Tasmania geoscientists and BSM’s internal research the area is regarded as conceptually prospective for granite related tin and tungsten mineralisation. The area was explored in the late 70's to early 80's with several prospects identified but never followed up because of the crash of the tin market. No modern exploration has occurred there since that time and BSM considers that it will be able to apply recent advances in geological concepts and technology to assess the area.

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

D.1 Financial Position

The Company’s closing cash position at the end of the March Quarter was $4.81 million.

The main cash flow components comprised:

Ore sales (provisional payments) $1.49 million Hedge settlements & Interest $0.19 million Exploration ($0.51) million Que River Mine development & operating costs ($1.95) million Capital Costs ($0.13) million Corporate administration costs ($0.37) million

The Company’s working Capital position at the end of the Quarter is $6.59 million, not including the positive value in the liquid hedge position.

The planned finance facility with Investec was terminated by mutual agreement in February.

D.2 Hedging

The Company has not entered into any additional hedge contracts during the Quarter. It received $97,000 in hedge settlements through the Quarter as currency and commodity contracts matured. This revenue is not included in the Que River mine revenue reported in Section A above.

The hedge position has a total marked to market value of approximately $2.14 million as at the end of March. All of the hedge position comprises purchased Options to create a floor price structure against falling zinc and lead prices and a rising AUD. BSM will continue to benefit from commodity prices increases as and if they occur.

D.4 Capital Structure

There was no change to the Company’s capital structure during the Quarter.

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

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

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	Name of entity	Quarter ended (“current quarter”) 31 March 2007	Quarter ended (“current quarter”) 31 March 2007
	Bass Metals Ltd
	ABN 31 109 933 995 Consolidated statement of cash flows
			31 March 2007
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 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 – Payments for trial mining / evaluation Net Operating Cash Flows		Current quarter $A’000		Year to date (.9 months) $A’000
		1,492 (513) (856) (1,090) (366) - 98 (2) - -		2,865 (2,045) (2,097) (1,457) (1,122) - 256 (6) - (276)
		(1,237)		(3,882)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other – Options purchased/settlements Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - (133) - - - - 97		- - (510) - - - - (2,036)
		(36)		(2,546)
		(1,273)		(6,428)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,273)	(6,428)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 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 Net financing cash flows	- - - (5) - (69)	6,942 - - (16) - (294)
	(74)	6,632
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(1,347) 6,161 -	204 4,610 -
	4,814	4,814

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		22
1.25	Explanation necessaryfor an understandingof 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.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Nil	Nil
	Nil	Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development	$A’000
	1,000
	1,050
Total	2,050

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter		Previous quarter
shown in the consolidated statement of cash flows) to	$A’000		$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank		1,238		43
5.2 Deposits at call		3,576		6,118
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter(item 1.22)		4,814		6,161

Changes in interests in mining tenements

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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 3) (cents)	Amount paid up per security (see note 3) (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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs (c) Other – End of escrow period	103,548,803	103,548,803
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) 7.8 Issued during quarter 7.9 Exercised during quarter	4,176,939 1,600,000 450,000 830,000	4,176,939 - - -	Exercise price 40 cents 27.5 cents 37.5 cents 51 cents	Expiry date 30.04.10 22.12.11 31.12.11 31.12.12

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.10 Expired during quarter			Exercise price	Expiry date
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

• 1 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).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Managing Director.................................... Date:24 April 2008

Print name: Mike Rosenstreich

Notes

• 1 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.

• 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.

• 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.

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