GREENWING RESOURCES LTD — Interim / Quarterly Report 2019

Apr 29, 2019

ASX Announcement 30 April 2019

QUARTERLY ACTIVITIES REPORT -- March 2019

Bass Metals Limited (ASX: “BSM”) (“Bass” or the “Company”) is pleased to provide this quarterly report as it continues its progression towards establishing itself as a material producer of industrial mineral concentrates.

HIGHLIGHTS

• Additional processing capacity successfully installed, with 2 attritioning cells now aiding the delivery of a consistent 94% Fixed Carbon (FC) grade across all concentrate sizes.

• Mining haulage operations improved, with the purchase of two trucks to combat heavy rainfall experienced during the quarter.

• Successful auger drilling completed at Mahela, further highlighted the potential of the prospect for additional resource.

• Bass sold and shipped 734mt (metric tonne) of graphite concentrates to new and existing customers, an improvement on last quarter.

• Forward orders for the end of the March quarter stands at 730mt and total sales for the June 2019 quarter are expected to exceed 1,000mt representing continued growth and improvement.

• Experiencing a lower than expected Head Grade during the quarter of ~3.2% TGC, the team adjusted the mining method, resulting in an increase in Head Grade to ~4% TGC by quarters end.

• Resource drilling and Stage 2 expansion activities continue to positively progress.

• The Company retained a prudent $3.3m cash and receivables as at 31 March 2019, with 100% ownership of asset and no debt.

OPERATIONS

As per ASX announcement March 19[1] , Bass made the strategic decision to expedite elements of the planned Stage 2 expansion to enhance current production. Over the course of the quarter, Bass proceeded with the installation of additional processing capacity, via the installation of two of a planned four attritioning cells. Bass also brought forward expenditure on expanding its mining fleet and optimizing power supply.

The two attritioning cells were installed to immediately address the lower FC achieved in the December Quarter and to establish consistent 94% FC on a daily basis. Bass has been pleased with the results with daily production post installation seeing the plant consistently delivering the critical average FC of 94%.

Within these numbers Bass has had several days producing 95% FC across all concentrate specifications, with some instances of 96% FC being achieved. The consistent achievement of production at 94% FC has been sustained and improved on over the course of April.

Bass also has on site two additional attritioning cells for future installation. The first of which will be installed in the June quarter, with no anticipated interruption to production expected.

Additionally, production was hampered by heavier than anticipated rainfall over the quarter, with production compromised via delivery of ore to the Process Plant being hampered.

The Company made the decision to address this issue with the purchase of two additional all-weather trucks and a bulldozer to guarantee delivery of feedstock to the Process Plant regardless of weather and to ensure sufficient haulage capacity for expansion.

1 Refer ASX Release on 19 March 2019: “Bass progresses Expansion at Graphmada”.

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New dozer arrives as part of Stage 2 development and expansion.

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New 6*6 dump trucks arrive on site to provide all-weather ore supply to the Process Plant.

Bass also brought forward expenditure on its power plant, with the installation of additional power options improving reliability and resulting in significant improvements in Process Plant availability and utilization. The Company has

further plans to install a permanent power supply in later half of this calendar year to meet Stage 2 expansion requirements. The solution is expected to materially lower diesel consumption costs per tonne of concentrate produced.

These significant improvements during the quarter were in addition to practical improvements to the mining method at Mahefedok Pit. With operations seeing a decrease in Head Grade (~3.2% TGC), due in part to heavy rainfall, but predominantly due to deficiencies in the mining method, the team adjusted the method, resulting in an increase in Head Grade to ~4% TGC by quarters end.

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High grade graphite sample recovered from mining at Mahefedok Pit.

The culmination of addressing these issues, such as a decrease in Head Grade received, saw an overall lower level of production for Q3 FY2019 of 535 wet tonnes (403mt dry mt) produced, versus 1237 wet tonnes in Q1 FY2019 and 737 wet tonnes for Q2 FY2019.

Whilst not ideal, the modifications made to mining and processing, along with improvements in power supply, and haulage capacity, were necessary changes and have been successful with enduring benefits for the Company. The

changes made were positively reflected in late March and April production numbers. Bass is now well placed for the coming quarter and beyond to consistently increase production volumes with superior quality.

Production Outlook

As such, Bass is pleased with production post the necessary modifications, with ~400 wet tonnes (280mt dry mt) likely to be produced in April at 94% FC. As previously guided to the market, the Company is anticipating strong production for the current June quarter, with the aim of producing ~1300 wet tonnes (1,100mt of dry production) at 94% FC, which will represent a record quarter for production.

Differences between wet and dry production results are mainly represented by stock awaiting screening and drying and is within operational forecasts.

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Graphite processing at Graphmada Mine.

SALES

As per ASX announcement March 29[th2] , Bass sold 734mt of graphite for the March quarter. Bass continues to make significant progress in broadening its sales channels and looks forward to updating the market further in this regard.

Over the course of the quarter Bass hosted a delegation from a global major industrial company. The Company is in advanced discussions with this group in relation to a potential binding offtake agreement which could result in substantial concentrate supplies to Asia.

Bass also shipped trial cargo t to a potential new buyer in Japan for comprehensive testing and the Company is optimistic of a future supply arrangement with this group. .

Bass has been directing significant effort to broadening its sales channels and is now consistently selling concentrates to the growing Indian market. With strong sales channels already established to the USA and Europe, Bass is making considerable progress in establishing sales channels and capacities into Japan, Korea and China, which the consistent achievement of concentrates of 94%FC will assist.

The Company has a forward order book of currently 716mt, making a strong start to the June quarter for sales. With the plant now consistently producing 94% FC concentrates across all flake sizes, Bass is well placed to continue its progress over the coming quarters.

At this stage, the Company believes that sales of concentrate are likely to exceed 1,000mt for the June 2019 quarter and this represents sales growth of around 35% from the March 2019 quarter.

The Company is pleased with the growth of sales and expects revenue and cash flow to materially improve in the June 2019 quarter.

2 Refer ASX Release on 1 April 2019: “Bass continues Growth in sales and export of Graphite”.

HEALTH, SAFETY, ENVIRONMENT AND COMMUNITY

Graphmada continues to operate with no Lost Time Injuries (LTI) and no major environmental incidents.

The Company continues to have a strong focus on community engagement activities under the Graphmada Care Program.

PRODUCTION & SALES METRICS

Mining & Processing

ining & Processing	ining & Processing
Qtr. Feed Tonnes Head Grade Process Recovery Wet Tonnes Produced Carbon Grade
FY Q1	37,195 4.7 % 82% 1,230 94 %
FY Q2	21,141 4.8 % 78% 732 91 %
FY Q3	20,128 3.2 % 70% 559 94 %
FY YTD	58,366 4.5 % 81% 2,521 93 %

Inventory Movement

nventory Movement	nventory Movement
Qtr. Opening Stock Incoming Stock (dry stock) Shipped Stock Closing Stock
FY Q1	240 1,121 274 1,087
FY Q2	1,087 517 78 1,526
FY Q3	1526 403 734 1,195
FY YTD	- 2,041 1,086 -

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Forecast Sales
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EXPLORATION

Core to Bass’ strategy has been the aim to deliver a material increase in resource inventory, primarily in proximity to the Graphmada Process Plant. Delivering the Company greater flexibility in ore scheduling and to underpin a Stage 2 expansion.

As per ASX announcement April 9th[3] , Bass undertook an auger drilling program at the exciting Mahela Prospect during the quarter. 44 drillholes were completed at the prospect for a total 411m drilled at an average depth of 9m. The drilling yielded high grade intersections of large flake graphite up to 6.8% FC over 11.3m, including 8.4% FC over 8m.

Based on these results a significant easily minable, saprolitic-hosted, large flake graphite mineralization zone has now been identified over at least a 650m strike length and is open ended to the north and south of the prospect.

3 Refer ASX Release on 1 April 2019: “Bass continues Growth in sales and export of Graphite”.

On the strength of the results, and the initial results from Mahela announced on 10th of July 2018, Bass has made the decision to conduct an initial diamond drill program at Mahela in the second half of this year, with a view to potentially establishing a resource.

Subsequent to the quarters end, Bass as per ASX announcement April 9[th] , has also began a diamond drill at its primary deposit; Mahefedok. The program consisting primarily of infill and extension drilling is aiming that to add additional resource, based on the initial drilling program in 2017 delivering an initial Mineral Resource of 4.2mt at 4.1% TGC. Mahefedok has an estimated strike length of 8kms and the initial 2017 program was only conducted along the first 600m of this strike to establish the maiden Mahefedok Mineral Resource. Bass looks forward to updating the market over the coming quarter as to its progress in this regard.

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Mineralisation footprint for the Mahela Prospect.

Millie’s Reward Lithium Project

A maiden scout drilling program consisting of five shallow diamond drill holes was recently completed at the Millie’s West prospect[4] , one of eight high priority prospects within the Millie’s Reward project area. These holes were the first to ever be drilled within the project area and aimed to identify the depth and width of the pegmatites surrounding the underground workings at Millie’s West.

Previous channel sampling of the underground workings in the area returned a weighted average intersection of 3.72% Lithium Oxide (Li2O) over 31m, with a maximum 1m result yielding 6.61% Li2O[5] , indicating Millie’s West as a highly attractive prospect for exploration.

A total of ~341 metres were drilled over a short strike length of only 50 metres to a maximum depth of 100 metres. The drilling confirmed the presence of pegmatites with low levels of lithium-in-spodumene (ppm) returned by assay.

Soil sampling was also completed with 472 samples analysed using a pXRF[6] . The soil geochemical survey program resulted in anomalous lithium values of up to 849ppm Lithium (Li) along with 143ppm Caesium (CS), 65ppm Gallium (Ga), 116ppm Niobium (Nb) and 510ppm Rubidium (Rb) identifying at least three significant anomalies not previously discovered. Two of these anomalous zones are immediately north-east of the scout drilling area, and an additional anomalous zone is located to the south, across the valley, where more historical artisanal workings are present.

The subsequent study of the results from both drilling and soil sampling indicates the scout drilling was to the south-west of the main target. The Company plans to return to Millie’s West to investigate the main anomaly further in an effort to re-define the drill targets for the prospect, as well as follow up on other highly prospective prospects within the pegmatite field.

4 Refer ASX Release on 1 March 2019: “Millie’s Reward Exploration Update”.

5 Refer ASX Release on 11 September 2018: “31m lithium intersection at 3.72pct”.

6 Refer ASX Release on 1 March 2019: “Millie’s Reward Exploration Update”.

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Millie’s West soil anomaly with scout drilling program.

PROJECTS

Feasibility works continue for the expansion of Graphmada’s production. The Company is completing an internal study incorporating the significant intellectual property obtained from the implementation of Stage 1 and current operations, which will significantly reduce expansion risks.

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Stage 2 tailing storage capacity under construction.

In addition, the Company progressed its study for the construction of an Expandable Graphite Plant, as it continues to deliver on its strategy for material growth as a producer of high value graphite concentrates and products.

CORPORATE

Finance

The Company is in a strong financial position at 31 March 2019, with approximately A$3.3m in cash and receivables.

Management and Divestment of Tasmanian Assets

The Company continued its care and maintenance activities in Tasmanian during the quarter. The Fossey and Que River projects continue to comply with their respective Care and Maintenance Plans.

The Company continues its divestment process for these assets and has engaged with a number of parties. Discussions are ongoing in this regard.

SUMMARY

Bass made considerable progress over the quarter to establishing itself as consistent producer of industrial mineral concentrates. Whilst production was moderated for the quarter the investments made for the longer term have delivered immediate and enduring benefits to the Company.

Bass is anticipating a strong June Quarter which is already being reflected in the improved April production numbers.

For more information, please contact:

Tim McManus

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

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

TENEMENT & PERMIT HOLDING

The Company’s interests in mining and exploration tenements and permits at the end of the quarter were as follows:

Country	Region	Tenement / Permits	Interest
Australia	Tasmania	EL48/2003 Mt Block 2 (under Renewal)	100%
Australia	Tasmania	CML 103M/1987 Hellyer Mine Lease 1&2	100%
Australia	Tasmania	CML 68M/1984 Que River Mine Lease2	100%
Australia	Tasmania	ML 10W/1980 Access Easement to QRML	100%
Madagascar	Antsinanana	PE 25600 Loharano (East)	100%
Madagascar	Antsinanana	PE 26670 Mahefedok	100%
Madagascar	Antsinanana	PE 24730 Andapa	100%
Madagascar	Antsirabe	PRE 4383	100%
Madagascar	Antsirabe	PE 11545	100%
Madagascar	Antsirabe	PE 39808	Mineral Rights

Notes:

1. CML 103M/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. 2. Intec Limited holds a 2.5% NSR Royalty over all Product from Bass’ interests in EL48/2003, CML68M/1984 and CML103M/1987.

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 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.