GREENWING RESOURCES LTD — Interim / Quarterly Report 2014

Jan 29, 2014

ASX / Media Release

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30 January 2014

The Manager Companies Company Announcements Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam

DECEMBER 2013 QUARTERLY REPORT OF ACTIVITIES & CASHFLOW

Please find following the December 2013 Quarterly Report of Activities and Cashflow for Bass Metals Limited (ASX:BSM) ( Bass or the Company ).

HIGHLIGHTS

• LionGold Litigation update

• Cashflow activities

• Environmental rehabilitation progress

• Approval to undertake exploration activity

Introduction

Having undertaken a review of the Company and its assets, the Board of Directors have addressed and finalised legacy issues faced by the Company and have progressed and approved activities that are focused on delivering value to shareholders in the short term.

1. LionGold Litigation

In addition to the update provided to shareholders on the 19[th] November 2013 when the Board of Bass advised shareholders that based on Senior Counsel’s advice, a fully successful claim against LionGold could achieve recovery of circa A$4.5M (plus costs), the Board continues to:

• Address the matter of a litigation funding arrangement with a litigation funder; and

• Push to fast track the LionGold litigation in the Commercial and Managed Cases List (WA) which the Board is advised is a faster and simpler manner of progressing the litigation, hearing and outcome.

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ASX / Media Release

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2. Cashflow Activities

Cash on hand at the end of the quarter was $1.12 million ($1.9 million at 30 September 2013).

Expenditure of $0.8 million (forecasted at $0.6 million) comprised:

• Exploration and evaluation: $0.03 million ($0.05 million September 2013 quarter); and

• The net Site Care & Maintenance including environmental management costs for the Hellyer and Que River leases: $0.18 million ($0.15 million September 2013 quarter) of which Bass recovers $0.06 million from Ivy Resources; and

• Corporate administration: $0.60 million ($0.38 million September 2013 quarter).

The higher than ‘ business as usual’ ‘Corporate Administration’ quarterly spend for the December 2013 quarter was a result of the Board finalising many outstanding administrative matters including:

• A negotiated payment to the previous Managing Director for all his statutory annual leave, severance entitlements etc. totaling approximately $90,000 (including taxation and superannuation); and

• A final payment to Ponte Capital Pty Ltd ( Ponte ) of $20,000 (plus GST) to terminate early the 12 month, $120,000 agreement entered into by the previous Board of Bass in August 2013 ( Ponte Agreement ). This payment was mutually agreed with Ponte, and officially terminates all of the Company’s activities in Turkey. In addition, Bass now maintains its existing capital structure of 326 million shares and Bass is no longer required or obliged to issue the estimated 22 million new BSM shares proposed under the Ponte Agreement; and

• Legal fees totaling $153,000 were paid during the December 2013 quarter mainly being payment of accrued expenses from the September 2013 quarter and activity in the December 2013 quarter. Activities in the December 2013 quarter related in the majority to the ongoing LionGold litigation.

Forecast Expenditure – is estimated to be approximately $0.45 million for the next quarter.

The Company currently only has 3 fulltime employees being 2 based in Tasmania and 1 (Company Secretary/CFO) in Perth. The salary for the Tasmanian based Environmental Coordinator is 50% shared with Ivy Resources. The Company also contracts a part time COO.

The Company continues to operate from its Perth office.

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ASX / Media Release

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3. Environmental rehabilitation progress

Environmental rehabilitation of the Settlement Dam at the Que River mine site was the primary activity during the quarter. Bass committed funds to reshaping and contouring the final waste stockpile profile of the north-eastern section of the Settlement Dam. This activity will ensure that the rehabilitation of the Settlement Dam will blend in with the undisturbed natural surroundings of the area.

BSM has also worked collaboratively with a local group to advance the remediation of the area by placing approximately 1,200m[3] of topsoil and 1,000m[3] of vegetative matter over the re-contoured surface. This organic matter will promote regrowth and support seed propagation. Bass will continue to monitor the revegetation progress ensuring compliance with the Que River Closure Plan.

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August 2013, prior to commencing the rehabilitation of the Settlement Dam waste stockpile

Sept 2013, Reclamation activity commences by spreading waste overburden stockpiles.

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Nov 2013, Final re-contoured profile of the Settlement Dec 2013, Topsoil and vegetative matter ready for Dam waste stockpile area final placement to support regrowth

Once completed, the total cost of undertaking the rehabilitation of the north-eastern area of the Settlement Dam waste stockpile will be approximately $70,000. This area equates to around 40% of the total disturbed surface area.

The completion of this activity will have a direct benefit to Bass by reducing the ongoing environmental operating costs at site.

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ASX / Media Release

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4. Approval to undertake exploration activity

The Board of Bass are committed to further developing the geological knowledge of Bass’ tenements. Bass has targeted priority areas within our tenement portfolio and has committed an additional $75,000 of funding to leverage off the initial multi-element soil geochemistry analysis conducted during the second half of 2013. Bass has prepared an achievable ‘program of works to advance this exploration activity, with work to commence immediately.

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

Bulgobac River
HMO
Commence soil
(blue)
sampling above the
hanging wall basalts
on the Sock Creek
tenement
Que River
(yellow)
Sock Creek
Mt Charter
Mt Block
Area of proposed
exploration activity for
geochemical soil sampling
Orientation of
mineralisation
corridor
----- End of picture text -----

Aerial Map showing Exploration Tenements and Mining Leases

The exploration work will initially focus on the Bulgobac River, Mt Charter and Mt Block tenements. The majority of the allocated costs will be in the collection and analysis of over 650 samples scheduled to be recovered. In addition, Bass will also begin sampling at Sock Creek to investigate the potential of a mineralised system underlying the hanging wall basalts.

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ASX / Media Release

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5. Other Opportunities

The Board of Bass continues to investigate and explore other business opportunities such as:

• Recovering the residual value in the Fossey underground operation: The Company’s Fossey underground mine ceased operations in April 2012. Approximately 400kt of mineralised ore is accessible from the underground operation. Bass is reviewing the merits of reopening the Fossey underground operation to extract economic mineralised ore zones.

• Sale of equity in exploration assets:

• In order to accelerate the exploration activity on the Company’s portfolio of exploration assets, Bass is considering reducing the level of equity in certain exploration tenements. Tenements such as Lake Margaret cover areas that have a high level of geological structural alteration, are along strike of existing mining operations and have the potential of hosting large mineralised deposits.

• New Projects: Bass has considered and will continue to consider new assets that add value to shareholders.

About Bass

Bass Metals Ltd is an ASX listed gold and base metal exploration company. Since listing in October 2005 the Company has focused on exploring and mining polymetallic (copper, lead, zinc, silver and gold) deposits in the highly mineralised Mt Read VMS terrain in NW Tasmania, Australia. The Company is reassessing its Tasmanian exploration strategy and also reviewing other resource opportunities.

Refer to: http://www.bassmetals.com.au/

Contact

Mark Sykes Chief Operating Officer T: +61 (0)8 6315 1301

Competent Persons Statement Exploration Results and Mineral Resources

The information in this report that relates to Mineral Resource estimates is based on information reviewed by Mr Tony Treasure who is a Director of Bass and a Member of the Australasian Institute of Mining and Metallurgy. Mr Treasure has sufficient experience which is relevant to the style of mineralisation and type of deposit and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code)”. Mr Treasure consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.”

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ASX / Media Release

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The Company’s interests in mining tenements are as follows:

Tenement	Interest
EL31/2003 Heazlewood1	22%/100%
EL36/2003 Whyte River1	22%/100%
EL48/2003 Mt Block5	100%
EL24/2004 Bulgobac River5	100%
EL28/2009 Lake Margaret2	75%
EL20/1010 Sock Creek2	75%
CML 103M/1987 Hellyer Mine Lease3 & 5	100%
CML 68M/1984 Que River Mine Lease5	100%
ML 10W/1980 Access Easement to QRML	100%
RL11/1997 Mt Charter Retention4 & 5	100%
EL 24/2010 Mackintosh Creek	100%

Notes:

1. Subject to a commodity based joint venture with Venture Minerals and a 2% NSR Royalty to Pioneer Resources Ltd. Venture has earned 78% interest on the iron, tin and tungsten rights on EL31/2003 & EL36/2003. Bass retains a 100% interest in other commodities.

2. Subject to joint venture with Clancy Exploration Limited.

3. CML 103/1987 is owned by HMO a 100% subsidiary of Ivy Resources Ltd. Bass has 100% interest in all of the existing base metal resources and base metal exploration rights through a Sublease Agreement.

4. RL11/1997 is owned by Bass, but HMO has a 100% interest in the existing gold resource and gold exploration rights through a Sublease Agreement. Bass retains all base metal exploration rights.

5. Intec Limited holds a 2.5% NSR Royalty over all Product from Bass’ interests in RL11/1997, EL24/2004, EL48/2003, CML68M/1984 and CML103M/1987.

Disclaimer

This announcement contains certain forward looking statements. Forward looking statements can generally be identified by the use of forward looking words such as, “expect”, "intend", “should”, “could”, “may”, “will”, “believe”, "propose", “forecast”, “targets”, “outlook” and other similar expressions. The forward looking statements contained in this announcement are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Bass, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. Bass cautions shareholders and prospective shareholders not to place undue reliance on these forward looking statements. The forward looking statements are based on information available to Bass as at the date of this announcement. Except as required by law or regulation (including the ASX Listing Rules), Bass undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

BASS METALS LTD

ABN 31 109 933 995	Quarter ended (“current quarter”)
31 109 933 995	31 DECEMBER 2013

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) Site Care and Maintenance (d) administration Includes Legal fees of $153K & _ Termination settlement of $85K_ 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*	Current quarter $A’000	Year to date (6.months) $A’000
	- (27) - (197) (604) - 6 - - -	- (82) - (351) (976) - 18 - - -
	(822)	(1,391)
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 (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - - - - - - - -	- - - - - 3
	-	3
	(822)	(1,388)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(822)	(1,388)
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 Other (provide details if material) Net financing cash flows	- - - - - -	91 - - - - -
	-	91
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 ofquarter	(822) 1,924 -	(1,297) 2,399 -
	1,102	1,102

Payments to directors of the entity, associates of the directors, 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
		28
		-
1.25	Explanation necessaryfor an understandingof the transactions
	1.2 (d) Administration expenditure for the quarter includes and amount of $153,000 of legal fees paid during the quarter as well as Termination settlement payments of $90,000. The remaining amount of$366,000 represents normal administration costs for thequarter.

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.

Appendix 5B Page 2

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

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

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Environment including Site Care and Maintenance 4.4 Administration	$A’000
	84
	-
	96
	267
Total	447

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 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	1,102	1,924
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,102	1,924

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

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

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 note3) (cents)	Amount paid up per security (see note3) (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	326,105,104	326,105,104
7.5 +Convertible debt securities (description)

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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 7.10 Expired during quarter	90,137,678 50,000 50,000 50,000 15,000,000	90,137,678	Exercise price 20.0 cents 43.5 cents 61.0 cents 88.0 cents 1.30 cents	Expiry date 30.09.14 31.01.15 31.01.15 31.01.15 31.05.15
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 5).

• 2 This statement does / ~~does not*~~ (delete one) give a true and fair view of the matters disclosed.

Sign here: P.J. Malherbe Date: 30 January 2014 ( ~~Director/~~ Company secretary)

Print name: P.J. Malherbe

Notes

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 5

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

• 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 and petroleum 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 or petroleum 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

Appendix 5B Page 6

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