GREENWING RESOURCES LTD — Interim / Quarterly Report 2019

Jul 14, 2019

ASX Announcement 15 July 2019

Record graphite production, sales and revenue achieved at Graphmada Graphite Mine for the June quarter 2019.

Bass Metals Limited (ASX: “BSM”) (“Bass” or the “Company”) is pleased to provide a production and sales update ahead of the release of its quarterly report. Bass has delivered a strong quarter of results across several key performance indicators for the June quarter.

HIGHLIGHTS

• Record 32,000 tonnes processed with 1,005 wet tonnes produced at the premium benchmark quality of >94% Fixed Carbon, an 80% increase on the previous quarter’s wet tonne production.

• Record 1,096 dry tonnes produced, an 85% increase on the previous quarter’s dry tonne production.

• Record 783 tonnes sold, a 94% increase in sales by revenue over the previous quarter.

• Record revenue received of $A638,000 for the June quarter, continuing the quarter by quarter doubling of revenue since Bass re-commissioned Graphmada.

• Record 137,000 tonnes mined, at low strip ratios and declining cost.

• Recent agency agreement signed for key, high growth market of India.

Bass, having made a significant additional investment over the first half of this calendar year has delivered strong production and sales results for the June quarter, with record revenue for the quarter.

Bass anticipates further improvements in production and sales and revenue over the coming quarters.

Bass recently announced an updated exploration target (ASX announcement June 3, 2019). In parallel to the ongoing improvements at Graphmada and to underpin a much larger production profile, Bass is undertaking a major exploration program at Graphmada over the next 6 months with a view to growing the existing resource both at and in the immediate proximity to the Graphmada Mine.

Bass is currently drilling at the exciting Mahela deposit following up two previous successful augur campaigns. Additionally Bass has recently completed an infill and extension program at the existing Mahefedok deposit.

PRODUCTION

The mining fleet at Graphmada achieved record utilization during the quarter resulting in a record 137,000 tonnes mined at a low strip ratio of 5:1. These results positively impacted the operating costs associated with mining the full details of which will be published in the upcoming quarterly financial report.

The increase in tonnes mined lead to a record 32,000 tonnes processed and 1,005 wet tonnes produced at an average >94% Fixed Carbon (FC), with some production periods over 95% and 96% FC achieved. The improvement in wet tonne production equates to an 80% increase on the previous quarter’s production.

For the June quarter, an average of 33% of production from Graphmada was greater than 180 microns, with periods over 45% achieved. The Company, having stabilized and grown production at >94% FC, is continuing to improve

operations to increase the total amount of large flake incrementally to consistently above 45% of total production while maintaining greater than 94% FC average.

94% FC is recognized as the industry benchmark for premium graphite concentrates along with flake size greater than 180 microns (large flake). Concentrates such as these, demands significantly higher prices than graphite concentrates of less than 180 microns in flake size (fine flake), regardless of percentage Fixed Carbon achieved. This includes concentrates sold as lithiumion battery-anode feedstock which is predominantly less than 180 micron or finer.

This distinction is the primary revenue driver and hence return on capital metric for the graphite industry and is the critical element of Bass' strategy to become a large scale producer of concentrates greater than 180 microns at >94% FC, given the relative scarcity of consistent suppliers of these premium concentrates.

On the back of record production for mining and processing, drying operations also achieved a record number of tonnes dried during the June quarter. A total dryer output of 1,096 tonnes was produced, an 85% increase on the previous quarter, with record results for plant efficiency, feed rate, and drying rate achieved.

SALES

With secure sales channels established into the USA, India, and Europe, Bass is making considerable progress in building additional sales channels and capacities, evident by the recent announcement of a agency agreement for the key, high growth market of India.

The significant effort to broaden sales channels and strengthen market relationships has helped the Company achieve a record for tonnes sold in the June quarter of 783 tonnes with forward sales booked of 389 tonnes, resulting

in record revenue generated and is a 94% increase in sales by revenue over the previous quarter.

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This significant volume in sales resulted in record revenue received for the June quarter of $A638,000, continuing the doubling of revenue quarter on quarter since Bass re-commissioned Graphmada.

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The Company anticipates that sales of concentrate are likely to exceed 1,000 tonnes for the September quarter, representing growth of approximately 30% on sales over the June quarter.

TIM MCMANUS CEO:

“The team at Bass continues to deliver incremental improvement and growth on behalf of its highly valued shareholders. With substantially improved production, sales and revenue, the team now looks to the next quarter to once again improve and grow our business to become a globally significant producer of high-value large flake graphite concentrates and downstream products. Additionally we look forward to tabling results from our ongoing exploarion program.. We see the establishment of a materially larger resource at Graphmada as a core company objective".

For more information, please contact:

Tim McManus

Peter Wright

Chief Executive Officer Phone: (07) 3203 5894 Email: admin@bassmetals.com.au www.bassmetals.com.au

Executive Director Phone: (07) 3203 5894 Email: admin@bassmetals.com.au

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@bassmetals

Disclaimer

This document has been prepared by Bass Metals Limited (the “Company”). It should not be considered as an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this document.

This document is provided on the basis that neither the Company nor its officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the document and nothing contained in the document is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law.

Forward Looking Statements

This announcement contains certain ‘forward-looking statements’ within the meaning of the securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as ‘may,’ ‘should,’ ‘expect,’ ‘anticipate,’ ‘estimate,’ ‘scheduled’ or ‘continue’ or the negative version of them or comparable terminology.

Any forecasts or other forward-looking statements contained in this announcement are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material.

Bass Metals does not give any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur and you are cautioned not to place undue reliance on forward-looking statements. The information in this document does not take into account the objectives, financial situation or particular needs of any person. Nothing contained in this document constitutes investment, legal, tax or other advice.

Important information

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal. The securities referred to in this document have not been and will not be registered under the United States Securities Act of 1933 (the ‘US Securities Act’), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the US Securities Act or an exemption from the registration requirements of the US Securities Act is available.

This document may not be distributed or released in the United States.

Competent Person Statement

The information in this document that relates to Exploration Results, Exploration Targets and Mineral Resources is based on information compiled by Tim McManus, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy and a full-time employee of the Company.

Tim McManus has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken 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.

Tim McManus consents to the inclusion of the information in this document in the form and context in which it appears.