GREENWING RESOURCES LTD — Interim / Quarterly Report 2010

Jan 28, 2010

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ABN 31 109 933 995
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29 January 2010

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

Dear Sir

DECEMBER 2009 QUARTERLY REPORT OF ACTIVITIES & CASHFLOW

• Strong closing cash position of $16.7 million.

• Operating revenue for the Quarter estimated to be $5.9 million.

• Completion of the Fossey Feasibility Study with positive financial outcomes; estimated $48 million operating surplus at C1 cost of US$0.33/lb zinc.

• Fossey lead and zinc concentrate sales agreed with Nyrstar and RMB Resources mandated to arrange financing.

• Encouraging Switchback drill intercept of 2.4 metres at 25.0% zinc, 8.7 % lead, 192 g/t silver and 4.9 g/t gold, within a 9.3 metre zone grading 8.5 % zinc, 3.3 % lead, 69 g/t silver and 1.6 g/t gold.

• Major new exploration initiative highlighting substantial areas of prospective ground not previously tested identifying 9 new targets.

• Que River mine reduces costs and increases ore sales and production.

I am pleased to attach the December 2009 Quarterly operating and cash flow report for Bass Metals Ltd (ASX:BSM).

Bass Metals is clearly well poised to embark on its next important growth development; following on from the start of mining at Que River, and then the discovery of the high-grade Fossey deposit, Bass is about to start development of the new Fossey underground mine to feed ore to its 100% owned Hellyer Mill. The December Quarter marked the completion of the feasibility study and the negotiation of important commercial contracts to support the project development such as concentrate sales and banking facility arrangements. Underpinned by a $15 million equity raising and a positive technical due diligence report from Snowden Mining Consultants, the Bass Board approved the start of the project. This culminated in the Company’s recent announcement of a lead and zinc concentrate sales agreement with Nyrstar and a financing mandate with RMB Resources leading to a start of site works.

The Fossey Mine development is considered to be a robust project with a low C1 production cost of US$0.33/lb of zinc equivalent. This is planned to be the start of a long term mining and processing operation producing significant quantities of zinc, lead and copper-silver concentrates based on the Company’s 2.3 million tonne high-grade polymetallic resources and ongoing exploration success.

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

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Since the completion of the feasibility study the development team has focussed on developing and optimising a detailed implementation plan. In conjunction with this the Company is also evaluating other potential feed stocks to the mill such as the remaining Que River Mineral Resource and the Hellyer tails resource. Como Engineers has been appointed to undertake a pre-feasibility study on restarting the Hellyer tailings re-treatment project on a campaign basis in conjunction with Fossey or other hard-rock ore sources.

It was a successful quarter for exploration results with Bass validating its new target generation work completed during the quarter with a high grade, massive sulphide drill intercept at its new Switchback target. The first pass trial of new low level geochemical assay techniques and infra-red spectral analysis has generated nine new targets which warrant follow-up work including drill testing. The Switchback intercept indicates the presence of a new VMS vent system between Hellyer and Que River and potential for proximal massive sulphide mineralisation. Downhole geophysics is now planned for this drill hole while the drilling focus moves on to a new target at North Hellyer.

The Que River mining operation has continued to deliver solid results for the quarter with above budget ore sales to MMG Rosebery at better grades than planned. Ore has been sourced mainly from the lower grade QR32 Pit whilst the cutback on the high grade PQ North orebody advances. As stated previously, given the high strip ratio for the cutback, only minor surplus cash flow is expected to be generated from Que River until the end of June, with the majority of the operating surpluse expected in the first half of the new financial year. The mine plan for QR32 and PQ North based on the MMG ore sales arrangement anticipates mining to be completed in June 2010, with deliveries ceasing in September 2010. The Company has started evaluating its Que River resources based on delivering ore to its own Hellyer processing plant which will hopefully result in a significant boost to the ore reserves at Que River given the lower treatment and haulage costs and higher metal payables anticipated.

In conclusion, Bass Metals has a strong cash position, a robust larger scale mining development in progress and a vigorous exploration programme; all of which combine to provide an exciting growth platform for its shareholders. Whilst the Company received excellent support from its shareholders in the recent Rights Offer and did complete a $10 million placement, its share market performance in recent weeks has not reflected these achievements or potential. It is worth pointing out that an independent research report from respected mining analyst, John MacDonald of Green Leader Equities valued the Company at 48 cents per share (24 November 2009). That valuation was based on the enlarged capital structure, but prior to the recent exploration results and Fossey development announcements.

The Company intends to devote further energy to fully brief the market as well as build support with further positive news from both exploration and production activities.

Yours sincerely

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Mike Rosenstreich Managing Director

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

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Figure 1: Hellyer-Que River Location Plan

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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 .

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

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DECEMBER 2009 QUARTERLY ACTIVITIES REPORT

A. OPERATIONS

A1. QUE RIVER

A1.1 SAFETY & ENVIRONMENT

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

A1.2 MINING ACTIVITIES

Ore production and deliveries to MMG Rosebery are summarised in Table 1. Ore tonnes delivered are marginally above budget but delivered grades are generally greater than budget consistent with ongoing positive ore reconciliation trends.

Table 1: Mining Summary – December 2009 Quarter

	Tonnes (wmt)	Zn (%)	Pb (%)	Ag (g/t)	Au (g/t)	Cu (%)
Opening Stocks at QR	1,665	16.4	8.7	175	2.3	0.6
Ore mined*	17,999	14.9	8.6	201	3.1	0.3
Ore Delivered to MMG	15,629	16.4	9.4	216	3.4	0.4
Remaining Stocks at QR	4,035	9.9	5.6	133	1.7	0.2

* "Remaining Stocks" and "Mined" are estimates from grade control and therefore average grades may not balance.

A1.3 OPERATING PERFORMANCE

Revenues

Ore sales for the December quarter were $5.9 million. Actual cash receipts after payment of treatment charges to MMG for the Quarter were $4.2 million.

Costs

Unit costs for ore mined and sold decreased because more tonnes were mined and sold than in the September 2009 quarter.

Table 2: Unit Operating Costs

Unit Cost basis	Unit	Dec 09 Qtr	Sept 09 Qtr	June 09 Qtr	Mar 09 Qtr
Ore Sold	$/dmt	208	240	205	279
Ore Mined	$/wmt	180	313	227	267
The cost calculation is based on all operating costs, including mining, treatment, haulage, mine development for the Quarter consistent with the Company’s accounting policies as d “mined” unit cost reflects the closing inventory position and minor moisture content.			royalties, depreciation and am etailed in the 30 June 2009 A	ortisation of mine properties but excludes capitalised nnual Report. The difference between “sold” and

Total capital costs at Que River for the Quarter were nil, maintaining the project to date capital expenditure at $0.7 million.

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 (NRV) and operating margin of the ore mined.

The operating profit margin of the project has increased marginally during the quarter due to increased ore value, which offset a slight increase in total costs as presented in Table 3 below. The total cost includes expenditure on the increased waste movement associated with the cutback.

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

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Table 3: Estimate of Operating Performance

			Actual	Actual
Unit Cost basis	Unit	Dec 09 Qtr	Sept 09 Qtr	June 09 Qtr	Mar 09 Qtr
Value of ore mined	$/wmt	337	325	325	406
Total cost of ore mined	$/wmt	208	204	158	204
Operating profit	$/wmt	129	121	167	202
Operating profit margin	%	38	37	51	50

A1.4 MINING OUTLOOK

Reconciliation trends, comparing actual ore tonnes and grades mined to those predicted have remained positive during the quarter with December quarter tonnage 88% above the ore body model predictions and all payable metal grades up significantly. The Company intends to complete the current mine plan which mainly comprises the PQ North cut back and the QR32 pit to produce a further 40,000 tonnes of ore. This mining activity is planned to be completed in June 2010 with ore deliveries to MMG continuing under the current Ore Sales Agreement until approximately September 2010.

The Company has commenced assessment of the remaining Que River Mineral Resource for mining and processing at its Hellyer Mill.

B. ADVANCED PROJECTS

The company’s core focus during the quarter was to complete the concentrate off-take and financing negotiations to support the development of the Hellyer Mine Project (HMP) as well as undertake further optimisation style planning and testwork activity.

B1 HELLYER MINE PROJECT (HMP)

Bass plans to be in production in the September quarter of 2010 at its Hellyer Mine project. It is focussed on developing a mining and processing plan based on a combined Mineral Resource base of 2.3 million tonnes of high grade polymetallic massive sulphide resources located at Fossey, Hellyer and Que River, all within a 4km radius of the Hellyer Mill (refer Figure 1). The Definitive Feasibility Study (DFS) has focussed solely on new mine development at the Fossey deposit, with the assumption that additional feedstock could be opportunistically sourced from the Que River and Hellyer resource inventories to generate a 4 to 5 year mine project.

The DFS outcomes were reported to ASX on the 21 October 2009 and are summarised in Table 4 with metal price assumptions presented in Table 5 below. Two particularly positive aspects of the DFS outcomes are the strong operating surplus generated of approximately $48 million and the bench-mark C1 cost estimated to be US$0.33/lb of payable zinc, after credits - placing it well into the lower half of the world cost curve.

Table 4: Fossey DFS Technical & Financial Summary

Technical Parameters
Ore Reserve/Mining Inventory	851kt at 8.6% Zn, 5.0% Pb, 0.3% Cu, 120 g/t Ag & 2.4 g/t Au
Mine Life	c. 3years(from start-up, i.e. decline commencement, to completion)
Concentrate Production	Zinc Concentrate: 105kt at 53% Zn 150g/t Ag
	Lead Concentrate: 53kt at 59% Pb,478g/t Ag& 2.3g/t Au
	Copper-Silver Concentrate: 9kt at 18% Cu,4374g/t Ag& 9.1g/t Au

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

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Estimates of Financial Outcomes	Estimates of Financial Outcomes	Estimates of Financial Outcomes	Estimates of Financial Outcomes
	Units	**Total **	A$/t ore
Gross Revenue	A$M	229	269
Net Smelter Return	A$M	174	205
Site OperatingCosts	A$M	86	101
Royalties*	A$M	14	17
EBITDA	A$M	74	87
Start-up Capital Costs	A$M	18	21
Ongoing Capital Costs	A$M	8	9
EBIT	A$M	48	57
EBIT Margin	%	c.28%	c.28%
C1 Costs(per lb payable Zn after credits)	US$/lb	US$0.33
*includes State and production/incentive royalties.

Table 5: Commodity price & FX assumptions

	Units	Price
Zinc	US$/t	1,950
Lead	US$/t	2,100
Copper	US$/t	6,000
Silver	US$/oz	15
Gold	US$/oz	980
AUD:USD		0.87

Subsequent to the end of the December Quarter the Company has announced that off-take terms for its zinc and lead concentrates had been agreed with Nyrstar and that RMB Resources Limited had been mandated to arrange a $12 million Project Loan and a hedging facility.

It is important to note that the agreed off-take terms and current metal prices are significantly better than those assumed by Bass in its DFS assumptions. As the Company completes its DFS optimisation process further updates and financial forecasts will be provided.

Following EPA Tasmania and Bass Board approval for the commencement of the project site works have started in January. First ore production is planned in the September quarter and concentrates sales in the December quarter of 2010.

B2. HELLYER TAILINGS RE-TREATMENT PROJECT

Como Engineers has commenced a pre-feasibility study on re-starting the tailings re-treatment project. This project operated for 18 months until October 2008. All of the major equipment such as the dredge and shore tanks are in good condition and now belong to Bass. The concept is to run the mill continuously on alternate campaigns of hard-rock ore and tailings. The tailings would be processed into a bulk lead-zinc-silver concentrate. There are several technical issues to address to ensure a stable long term operation; hence the prudent decision to undertake a pre-feasibility study with external engineers which may progress to a full feasibility study.

The key elements of the pre-feasibility scope include:

• Review of the resources, in particular historical reconciliations and likely lead and zinc grade distributions within the dam;

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

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• Capital works required to enable the plant to alternate easily between the two different feed stocks;

• Tails dam configuration and management to enable recovery and deposition of tails from the two processing routes without mixing;

• Concentrate marketing and financial evaluation;

• Review of the flowsheet and reagent regime; and

• Review of gold concentrate recovery potential.

Whilst the Company’s focus is clearly on the refurbishment and start-up of the Hellyer mill for the Fossey ore, the tails resource presents an opportunity to fully utilise the mill and potentially contribute processing cost benefits for both feed stocks while boosting the Company’s underlying concentrate production and revenue streams.

C. EXPLORATION

Strategically, the exploration focus is returning to the areas prospective for the larger scale volcanic hosted massive sulphide deposits such as Que River, Hellyer and Rosebery – the type of world class polymetallic deposits that the Mt Read volcanic belt is renowned for. In this respect, Bass Metals already controls some of the most prospective areas, particularly on the Hellyer and Que River mine leases. Figure 2 illustrates the Company’s tenement holdings as at the end of December 2009.

During the quarter exploration activities focussed on two key objectives:

1. new target generation and testing; and,

2. existing resource extension/near mine drilling.

C1 New Target Generation

In the December quarter the first phase of new target identification was completed and drill testing commenced. Analysis and interpretation of the short wavelength infra red spectra (ASD) and trace element lithogeochemical data collected from footwall rocks in the Hellyer to Mt Charter Corridor (HMCC) has been completed with results considered very favourable for future ore discoveries.

The HMCC is a geological corridor that covers the Hellyer (CML 103M/87) and Que River (ML 68M) mining leases, the Mt Charter Retention Licence (RL 11/1997) and Exploration Licences EL 24/2004 Bulgobac, EL 48/2003 Mt Block and EL 24/2007 Southwell River, as shown in Figure 3.

Switch Back Target

During the period, the first of four prospective areas at the Switchback Target was tested by a 350.2 metre diamond drill-hole. The drill hole intersected 2.35 metres of high grade massive base metal sulphide mineralisation (2.35 metres at 25.0% Zn, 8.7 % Pb, 192 g/t Ag and 4.9 g/t Au) within an overall 9.25 metre zone (9.25 metres at 8.5 % Zn, 3.3 % Pb, 69 g/t Ag and 1.6 g/t Au). The drill hole then passed into a wide zone of footwall alteration.

The presence of significant hangingwall and footwall alteration is indicative that an active VHMS system occurred in this area and the presence of mineralised clasts indicate that it had ore-forming potential.

The mineralisation intersected in HED016 is not typical of either the Hellyer or Que River deposits in terms of textures, mineralogy or stratigraphic setting. The Pb-isotope analysis

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

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suggests that the massive sulphide clasts from Switchback are from a distinct source; this is highly suggestive that a high grade massive sulphide deposit has existed part way between Que and Hellyer and any preserved in situ mineralisation is yet to be discovered.

Follow-up on HED016 will involve down-hole electromagnetic (DHEM) survey planned in January 2010 and then follow-up drilling.

Figure 2: Bass Metals tenement plan-NW Tasmania

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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

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Figure 3: Hellyer Mt Charter Corridor – schematic geology map

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North Hellyer Target

Drilling commenced testing the North Hellyer target, where there is a 750 metre long “window” of prospective stratigraphy underlain by favourable footwall alteration and untested by previous explorers directly along strike from the Hellyer deposit.

C2 NEAR MINE EXPLORATION

Fossey

During October the final drill hole (HLD996) of a four hole diamond drilling programme to test four target areas identified in the immediate Fossey deposit area was completed. During the Quarter assay results were received from all four holes of this program. Whilst significant alteration was intersected, no ore-grade values were returned and no further follow-up work in this area is planned.

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

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Que River

Drill hole QRD1311 designed to test an enigmatic downhole EM anomaly south of Que River encountered problems at 530 metres depth, still short of the target. Attempts to recover the hole will be made in early 2010.

Four shallow drill holes testing for extensions to PQ mineralisation at a possible waste dump location were completed during the quarter with no ore intersected.

C3 REGIONAL EXPLORATION

The company maintains an active regional exploration programme which involves continually assessing new tenement opportunities and relinquishing tenements no longer considered to be prospective.

Bass was successful in its tender for the Lake Margaret EL on behalf of the Bass (75%) Clancy (25%) joint venture. This highly prospective ground is located between the million ounce Henty gold deposit and the 120 million tonne Mt Lyell copper-gold orebody. Bass' application was based on its targeting work focussed on North Lyell style high grade copper with gold and silver mineralisation. The target area identified contains glacial erratic boulders with assays that average 5.6 % Cu, 0.6 g/t Au and 29 g/t Ag which Bass considers are from a proximal local source.

D. CORPORATE ACTIVITIES

D1 FINANCIAL POSITION

The Company’s closing cash position at the end of the December 2009 Quarter was $16.7 million; a $11.1 million increase from the end of the September quarter balance of $5.6 million.

The main components of the cash flow comprised:

Ore sales (provisional payments) $4.2 million Hedge settlements ($0.3) million Exploration ($1.2) million Que River Mine development & operating costs ($2.9) million Corporate administration & other costs ($0.7) million Share placement receipts $13.7 million Share issue costs ($0.4) million

D2 Hedging

There were no significant changes to the Company’s ongoing QP forward sales strategy during the quarter. The current position comprises short term forward sales contracts for lead and zinc in AUD terms.

D3 Capital Structure

During the December quarter the Company issued 34,556,601 ordinary shares and 3,505,000 unlisted options as detailed in the Appendix 5B bringing the shares on issues as at the end of December 2009 to 138 million. The share issues resulted from;

• the first tranche ($3.5 million) of a $10 million placement comprising 15,207,320 shares;

• a Rights Issue to existing Bass shareholders $4.4 million for 19,149,281 shares; and,

• 200,000 shares issued under the employee share scheme.

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

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The unlisted options comprise Employee Incentive and Director options.

Subsequent to the end of the quarter, and following shareholder approval, the Company placed the 3,929,041 shortfall shares to raise an additional $0.9 million and tranche 2 of the placement comprising 28,370,941 shares.

The capital raising process initiated in the December quarter and completed in early January 2010 has raised a total of $15.3 million (before costs) and resulted in an increase of Bass Metals shares on issue from 104 million to 171 million.

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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

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 December 2009	Quarter ended (“current quarter”) 31 December 2009
	Bass Metals Ltd
	ABN 31 109 933 995 Consolidated statement of cash flows
			31 December 2009
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 – Mining contractor net profit incentive Other – GST payment to ATO Other – Hellyer Mill maintenance and environmental management Net Operating Cash Flows		Current quarter $A’000		Year to date (6 months) $A’000
		4,160 (1,160) (1,310) (1,584) (686) - 80 (13) - (740) (88) (363)		9,636 (1,941) (1,703) (2,921) (1,346) - 128 (25) - (942) (329) (838)
		(1,704)		(281)
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)		- - (48) - - - - - (336)		- - (137) - - - - - (571)
		(384)		(708)
		(2,088)		(989)

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(2,088)	(989)
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	13,704 - - (64) - (440)	13,704 - - (128) - (440)
	13,200	13,136
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	11,112 5,577 -	12,147 4,542 -
	16,689	16,689

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
		87
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 reportingentityhas an interest

• See chapter 19 for defined terms.

Appendix 5B Page 2

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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
			1,020
			1,300
Total			2,320
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. 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) - deposit as credit support for short dated forward sales - deposit in subscription account awaiting shareholder approval of issue of shares on 11 January 2010 Total: cash at end of quarter(item 1.22)
	Current quarter $A’000		Previous quarter $A’000
	159		211
	9,393		4,356
	1,310 5,827		1,010 -
	16,689		5,577

Changes in interests in mining tenements

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

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

6.2 Interests in mining tenements acquired or increased

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 (cents)	Amount paid up per security (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 escrowperiod	138,205,404	138,205,404
	100,000 100,000 15,207,320 19,149,281	100,000 100,000 15,207,320 19,149,281	23.0 cents 29.0 cents 23.0 cents 23.0 cents
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
	-	-	-	-

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B Mining exploration entity quarterly report

7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter – (Lapsed pursuant to terms and conditions of the options)	4,176,939 1,375,000 350,000 250,000 1,455,000 525,000 300,000 300,000 300,000 950,000 100,000 100,000	4,176,939 - - - - - - - - - - -	Exercise price 40.0 cents 27.5 cents 37.5 cents 37.5 cents 42.5 cents 51.0 cents 26.0 cents 28.5 cents 30.5 cents 30.0 cents 25.0 cents 35.0 cents	Expiry date 30.04.10 22.12.11 31.12.11 02.11.11 16.10.12 31.12.12 31.12.12 31.12.12 31.12.12 31.12.12 01.09.13 01.09.13
	1,455,000 300,000 300,000 300,000 950,000 100,000 100,000	- - - - - - -	Exercise price 42.5 cents 26.0 cents 28.5 cents 30.5 cents 30.0 cents 25.0 cents 35.0 cents	Expiry date 16.10.12 31.12.12 31.12.12 31.12.12 31.12.12 01.09.13 01.09.13
			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: 29 January 2010

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.

• See chapter 19 for defined terms.

Appendix 5B Page 5

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Appendix 5B Mining exploration entity quarterly 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.

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• See chapter 19 for defined terms.

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