LIVIUM LTD — Interim / Quarterly Report 2011

Jan 22, 2012

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QUARTERLY ACTIVITIES REPORT For the period ending December 2011

Midwin t er Resourc e s NL (ASX: MWN) is pleased to report the following a c hievement s for the Decem b er 2011 qu a rter:

HIGHLIGHTS

• Rec o nnaissance over areas of new ap p lications id e ntifies mag n etite mine r alization on d ip slopes with negligibl e overburde n

• Ge o physical modelling develops drill target for Woolwich  Wo o lwich prep a red for drill i ng

LIMPOPO IRON PROVINCE – REBUBLIC OF SOUTH AFRICA

Northern Lights (Including the Woolwich anomaly)

The pro j ect is locat e d approxim a tely 400km by sealed r o ad, north o f Johannesb u rg (Fig. 1).

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Figure 1 . Location of th e Northern Li g hts magnetite project.

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Prepara t ion was undertaken d u ring the quarter for drilling the la r gest of the magnetic anomalies over w h ich Midwin t er has hig h resolution magnetic s u rveys – th e Woolwich anomaly. The aerial magnet i c database w as augme n ted by gro u nd traverse s to improv e resolution a long the fi r st of the planne d drill fences. This work has resulte d in detailed magnetic i n terpretatio n over about 5km of the 15 k m strike length of the anomaly. T h e interpre t ation is shown in plan v iew (draped over a Goggle E arth image ) in Figure 2, and an exa m ple section in Figure 3.

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Li n e 1
5 kilometres
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Fig u re 2 shows the plan configur a tion of interpr e ted magnetic b odies within t h e core of the W oolwich ano m aly.. Cen t re of the image is 23[o] 02’44’’ S 28[o] 12’22’’E.

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Fig u re 3 shows magnetic feature s on Line 1 as i n terpreted by F u gro. The features occupy a wi dth of 450m w ithin an e nvelope of 80 0 m. It is unlikel y that all of the interpreted fe a tures will reflect ore grade m i neralization.

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Geophysical modelling is continuing over the remaining 10km strike of the Woolwich anomaly. The models produced will be updated as information becomes available from the first of the drilling scheduled for early in the first quarter of 2012.

Regional exploration

Strategy

Areas with prospective magnetic signatures where previously drilled confirm the presence of magnetite as a source of the anomalism, below thin cover (little or no outcrop). Metallurgical investigations proceeding the reporting period, confirm iron concentrates can be produced of very high quality. The concentrates are characterized by:

• liberation at coarse grind size

• iron recovery 85‐90%

• Fe 69.9%

• SiO2 <2.5%, Al2O3 <1.5%, P <0.01%.

Information from the 2010 drilling campaign provided invaluable data on both a regional scale (assisting with interpretation and the development of a regional exploration strategy) and a project scale, particularly with respect to evaluating the nearby Woolwich anomaly. Midwinter reviewed open‐file magnetic data, regional geological map sheets and remote‐sensing imagery to identify priority areas for new Prospecting Right applications and, where appropriate, the target areas were ground‐checked to verify the presence of magnetite mineralization. This work led to a series of priority applications being lodged with the South African DMR in the first half of 2011. Accepted applications are shown in yellow in Figure 4.

Work undertaken during the quarter

During the period Midwinter continued reconnaissance inspections of the new application areas which cover the most prospective locations over a trend length of 270km. The area under application is approximately 3,000 km2 and contains about 600 strike kilometres of interpreted banded iron formation, the host to the target magnetite mineralization (Fig. 4).

Areas of high grade magnetite mineralization (>40% Fe) have been identified, and in some locations the target horizons from dip slopes with negligible overburden (Fig. 5).

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Figure 4 showing areas of new applications (yellow) over a trend length of 270km.

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Figure 5 showing banded iron formations on dip slopes and limited overburden.

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The banded iron formations are extensive, covering are a comparabl e to that of t he Hamersl e y Basin (Fig. 6). Despite the comparabl e areas the p roduct available in Limpopo, being m agnetite, h a s different characteri s tics and ma r kets to the hematite pr o duced as direct shippin g ore from A ustralia and Bra z il.

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Fi g ure 7 shows t h e comparativ e size of the Li m popo Iron pro v ince, with the H amersley Bas i n (insert on th e s ame scale as t he primary m a p).

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CONCLUSION

Midwinter believes the Limpopo Iron Province offers some of the best potential in Africa, due to:

• its size (the target area is more than 270 km in length)

• the superior quality of the concentrate (allows for customer flexibility)

• available infrastructure (well‐developed road, rail and power)

• the proximity of markets (it is close to the heartland of a developing steel industry)

• export opportunities (there are rail links to deep‐water ports)

• the availability of raw materials (local coal, gas, limestone and water).

The Company will produce drill results from Woolwich early in the March quarter and continue its regional exploration evaluation program. Midwinter continues to assess available opportunities, particularly those with geographic and product synergies. The focus remains Africa and the commodities of interest remain the raw materials for steel making.

Investors wanting more information on Midwinter should contact:

Adrian Griffin Managing Director T: +618 9322 6451

About Midwinter

Midwinter is focused on advancing the Northern Lights Iron Ore Project in the Republic of South Africa. The project consists of approximately 3,000 km2 of granted Prospecting Rights, and pending applications prospective for magnetite mineralization. It is estimated that over 600km strike potential of iron formations exist within areas controlled by Midwinter. Assays from drilling and surface iron samples range from 23% to 41% Fe. Mineralization is coarse‐grained and amenable to low cost concentration processes. The mineralization exhibits very low impurity levels and is capable of producing very high quality concentrates.

Competent Persons Statement:

The information contained in the report that relates to Exploration Results of projects owned by Midwinter Resources NL and is based on information compiled or reviewed by Mr Adrian Griffin, who is an employee of the Company and is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Griffin has given consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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