GREENWING RESOURCES LTD — Interim / Quarterly Report 2010

Feb 15, 2010

==> picture [197 x 77] intentionally omitted <==

----- Start of picture text -----

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

16 February 2010

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

Dear Sir

BASS METALS OPERATIONS UPDATE

Highlights

• Following Board approval to commence the new high grade Fossey underground mine, development is ramping up with decline site works underway and key underground mining equipment mobilised to site;

• Refurbishment and upgrading of the Hellyer mill has commenced;

• Strong performance from Que River has continued with an interim operating profit of $3.1 million on sales revenue of $10.6 million reported for the December 2009 half year, against $4.5 million on sales revenue of $11.7 million for the same period in 2008;

• Aggressive exploration program yields further success at the new North Hellyer target with high grade mineralisation intersected;

• Strong cash position of $16.7 million at the end of the December 2009 quarter following successful equity raisings; and,

• Outlook is for the Fossey mine to provide a major development growth path, with many potential enhancements.

Bass Metals Ltd (ASX:BSM) is pleased to provide the following update on its current key operations in NW Tasmania, namely the Hellyer Mine Project development, the Que River Mine and progress on exploration drilling as well as some comments on the outlook of the business.

Hellyer Mine Project

==> picture [236 x 177] intentionally omitted <==

Figure 1: Ground support drilling at the Fossey decline portal in preparation for portal installation.

16 Thelma 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 [102 x 38] intentionally omitted <==

On 27 January, 2010, Bass announced that the Board of Directors had approved development of the new high grade Fossey underground mine. Since then a service corridor for power, water and other services necessary for the underground mine has been prepared. The portal site has been cleared, scaled and stabilised (Refer Figure 1), ready for decline development to commence.

Underground mining machinery has begun arriving at site including a new twin boom jumbo drilling rig, low profile front end loader and underground truck (Refer Figures 2 & 3).

==> picture [216 x 161] intentionally omitted <==

Figure 2: New twin-boom underground drill rig.

==> picture [213 x 160] intentionally omitted <==

Figure 3: New low-profile front end loader.

Bass is very pleased to have extended its Que River Mining Alliance agreement with Mancala Pty Ltd to include mining the Fossey and Hellyer resources. Mancala contributes a high standard of mining expertise as well as strong local operational knowledge, as several of the key Mancala personnel were directly involved in the former Que River and Hellyer mining operations through the 1980’s and 1990’s.

Activity in the Company’s 1.5 mtpa Hellyer Mill has now transitioned from “care and maintenance” to major refurbishment and upgrade work to prepare the Mill to treat Fossey ore in the second half of 2010. The plant is generally in very good repair, though certain areas require upgrade such as the on-line analyser system and SAG Mill, which together comprise the major expense items of the $4 million dollar plant capital cost estimate.

Recruitment of key personnel actually started in September 2009 with the appointment of Mr Brian Burdett as Operations Manager-Tasmania, but since then has progressed well with the recent appointment of an Environmental Officer and a Mining Manager and Senior Underground Geologist for Mancala. The Company has also retained the services of several people who were involved in the Hellyer operations since the early 1990’s, including the recent tailings re-treatment operations, and who bring with them a wealth of knowledge and experience in processing polymetallic ore types and operating the Hellyer plant. This includes a senior metallurgist, electrical and mechanical engineering superintendents as well as experienced plant operators. Indeed the Company expects that more than 80% of the plant operators will have worked at Hellyer previously, which assists greatly in the production ramp-up process.

Que River Operations

Strong performance from the Que River Mine has continued with an interim operating profit of $3.1 million on sales revenue of $10.6 million reported for the December 2009 half year, against $4.5 million on sales revenue of $11.7 million for the same period in 2008. The Company has indicated that this performance is consistent with expectations, given that its Que River mine production is now focussed on a lower grade portion of the resource with a higher strip ratio. These anticipated mining constraints resulted in a 24% drop in tonnes of ore sold compared to the half year ending December 2008.

16 Thelma 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 [102 x 38] intentionally omitted <==

Overall, mining is going to plan in terms of pit progress and ore positions. In January 2010 mining production has been affected by minor slips on the QR32 access ramp which has diverted production machinery to remedial duties. This production pressure was further compounded in early February with local forest fire threats and thick smoke. However with ore reconciliation trends for tonnes and grade remaining strongly positive, any delivery shortfall that may result in the March 2010 quarter should be well covered in the following period. Figures 4 and 5 show progress on the PQ North and QR32 pits.

==> picture [215 x 162] intentionally omitted <==

Figure 4: Ore lens in PQ North Cutback.

==> picture [213 x 159] intentionally omitted <==

Figure 5: Mining in the base of the QR32 Pit.

Exploration

Further highly encouraging drill results from the new North Hellyer target were received with a massive base-metal sulphide clast intersected at the ore horizon position. HLD999 (Refer Figure 6) intersected 0.6 metres at 13.9 % zinc, 8.7 % lead, 132 g/t silver and 0.85 g/t gold. The clast is linked to intense footwall alteration and base-metal stringer vein mineralisation indicating that it is very proximal to its source. Whilst a strong Down-hole EM response was not generated these results are regarded as highly encouraging and Bass has commenced drilling a second hole (HLD1001) to continue testing a 700 metre long window of untested “ore-horizon” immediately north of the Hellyer deposit. Figure 7 is a schematic plan view of the Hellyer-North Hellyer target area showing the locations of HLD999 and HLD1001. Note the widely spaced historic drill holes north of Hellyer, most of which do not intersect or test the key ore-host horizon.

The Company has a very active and successful exploration programme which is building momentum – given that last month the new Switchback target also yielded a high grade massive base metal sulphide intercept of 2.35 metres at 25% zinc, 8.7 % lead, 192 g/t silver and 4.9 g/t gold within an overall 9.25 metre zone grading 8.5 % zinc, 3.3 % lead, 69 g/t silver and 1.6 g/t gold.

==> picture [231 x 173] intentionally omitted <==

Figure 6: Boart-Longyear rig drilling HLD999 at North Hellyer Target.

16 Thelma 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 [102 x 38] intentionally omitted <==

Target testing and evaluation is ongoing. With the assistance of several geology students from the University of Tasmania a major soil sampling programme was completed last week over several large tracts of prospective host horizon rocks with little previous effective drill testing.

Commentary & Outlook

Bass Metals is in a strong financial position with $16.7 million cash as at the end of December 2009 and ongoing mine operations. The company is obviously highly active on several fronts; principally getting the Fossey Mine and Hellyer Mill into operation as well as the exploration focus on the discovery of a major new deposit, hence this update.

The Fossey Mine development is proceeding well, albeit it is early in the development process. It is pleasing to note that since the completion of the Definitive Feasibility Study (DFS), which already demonstrated robust economics and low operating costs, Bass has made further important enhancements to the project which includes superior concentrate sales terms and currently higher AUD metal prices than assumed in the DFS. The Company plans to be shipping concentrates produced at Hellyer and generating cash flow from Fossey in the December 2010 quarter.

This is the key planned “growth” event for Bass Metals, that based on the DFS outcomes, is expected to generate an EBITDA of $75 million through 2011 and 2012 financial years.

The forecasts above assume that only Fossey ore is processed in the Hellyer plant on a campaign basis, which carries significant extra costs. Therefore an important potential enhancement to the project is to fully utilise the Hellyer Mill’s 1.5mtpa processing capacity and spread those fixed overhead costs over more feedstock sources. Bass will evaluate the Mineral Resources it owns in the immediate proximity of the Mill, which includes the Fossey, Que River and Hellyer high-grade “hard-rock” resources, the Hellyer Tails resource which is currently the subject of a pre-feasibility study and also the lower grade Mt Charter gold resource. There is also an opportunity to process third party ore on a toll treatment basis and there have been several inquiries on this potential. One of these is to treat Nautilus Minerals’ ore from its proposed sub-sea mining development. Bass has agreed to grant Nautilus a second extension to the Discovery Period to 31 March 2010 subject to payment of an Extension Fee. The Hellyer Mill is one of several processing options that Nautilus is reviewing and further investigation by Nautilus of the Tasmanian logistics costs is required to determine if it is viable.

Mining activity at Que River is directed to completing the current Ore Sales agreement with MMG Rosebery operations. This mine plan anticipates that mining will be completed in July 2010 and ore deliveries in October 2010. The majority of the revenues from these sales will flow into the Company in the 2011 financial year. Bass Metals is optimistic that utilising higher metal payment assumptions and lower treatment and haulage costs than the current MMG ore sales arrangement will generate additional ore reserves at Que River to incorporate into the Hellyer Mill processing schedule. Evaluation and metallurgical testwork has already commenced.

The exploration work is building up momentum toward another new discovery. The second drill test of a new target has also intersected mineralisation, which the Company is vigorously following up. The focus will continue to be on working up new prospects and testing by drilling and geophysics. The Company considers that the most prospective ground is in the Hellyer-Mt Charter corridor; in close proximity to its Hellyer Mill.

Bass has been a “self-funding” explorer with several profit results for the last two to three years. The recently announced interim half year accounting loss of $1.1 million is not due to any adverse or unexpected events. Bass expects the current operations to remain viable and cash flow positive until it transitions to its new larger scale operations. To secure that unique growth opportunity the Company acquired the Hellyer Mill for a $4 million cash payment, and also assumed certain holding costs to ensure that the plant was well maintained and to contain several environmental issues to ensure the sustainability of the Hellyer site to process ores. These costs also impacted the Company’s financial results.

16 Thelma 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 [102 x 38] intentionally omitted <==

The near-term future of the Company is with the successful development and ramp-up of the Fossey Mine and Hellyer Mill and on making further major mineral discoveries. The company is in a major transitional phase, as planned. This transition will culminate with a new larger scale metal production and revenue profile that, perhaps with another new discovery, will elevate Bass as a widely recognised emerging metal producer in its own right. I am very excited about the Company’s prospects and look forward to providing further updates.

Yours Sincerely

==> picture [122 x 67] intentionally omitted <==

Mike Rosenstreich Managing Director

Figure 7: Schematic Geology and Location Plan of Hellyer-North Hellyer target.

==> picture [338 x 451] intentionally omitted <==

16 Thelma 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 [102 x 38] intentionally omitted <==

Competent Person

The information within this report that relates to exploration results is based on information compiled by Mr Kim Denwer and Mr Mike Rosenstreich who are both full time employees of the Company. Mr Rosenstreich is a Member of The Australasian Institute of Mining and Metallurgy and Mr Denwer is a Member of the Australian Institute of Geoscientists. They both, individually have 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(s) as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and they consent to the inclusion of this information in the form and context in which it appears in this report.

Technical Detail

This Report aims to provide a high level summary of various technical aspects of the Company’s projects. For more details on the underlying technical parameters the reader is referred to the ASX Reports on the Bass Metals’ website, www.bassmetals.com.au .

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Bass Metals Ltd’s planned development and exploration programmes and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although Bass Metals Ltd believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

16 Thelma Street WEST PERTH WA 6005 PO Box 1330 WEST PERTH WA 6872 Telephone (08) 9322 8044 Facsimile (08) 9481 2846 www.bassmetals.com.au