NEW AGE EXPLORATION LIMITED — M&A Activity 2012

Oct 21, 2012

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22nd October 2012

ASX: NAE

Acquisition of Redmoor Tin & Tungsten Project in United Kingdom

New Age Exploration Limited (“NAE” or “the Company”) is pleased to announce that it has signed binding formal agreements for the exploration and mining rights to the historic Redmoor Tin-Tungsten Mining Project located in south east Cornwall, United Kingdom.

Highlights:

• Successfully acquired an Exploration Licence with the option to enter into a Mining Lease with the mineral right owner, to develop and operate a mine at the Redmoor Tin-Tungsten Project in the historic Cornwall mining district of the United Kingdom.

• The Exploration Licence is valid for 15 years with a further option for a 25 year Mining Lease.

• The acquisition comes with an extensive historical exploration database including 12,146m of diamond drilling from 35 holes from which an exploration target has been identified as set out below:

w:
	EXPLORATION TARGET(August 2012)
Tonnes (million)	Sn %	W %	Cu %	Sn(eq) %
6 – 11	0.17 – 0.29	0.12 – 0.20	0.32 – 0.53	0.54 – 0.89

• Drill core re-sampling and assaying program to be undertaken in 2013 to verify the historic drilling results aimed at delineating a JORC compliant mineral resource

• Redmoor acquisition adds to NAE’s project portfolio and provides exposure to the strong tin and tungsten markets

NAE Managing Director, Gary Fietz commented : “The Redmoor Tin-Tungsten Project, whilst outside our coal focus, represents an attractive low cost addition to our project portfolio and is in line with NAE’s vision to maximise shareholder value through acquisition and development of assets in favourable locations. Also the project is located in the United Kingdom where the Company has now established a strong presence to develop its flagship project, the Lochinvar Coking Coal Project”.

“The Company has engaged a locally based consultant mining engineer and executive with extensive international experience and also local tin-tungsten experience. The consultant led the acquisition for NAE and will continue to lead the project going forward so that NAE’s management team is not distracted from its primary coal focus and the delivery of the Lochinvar project and other coal projects in Colombia”.

“NAE intends to add value to the project by defining a JORC compliant resource if possible and we will then review the strategic alternatives for the Redmoor project”

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Background

The Redmoor Tin-Tungsten Project is located in south-east Cornwall, some 28 km by road north-west of the port of Plymouth, Devon ( Figure 1 ). The project area is situated between the village of Kelly Bray and the small town of Callington. The local and regional infrastructure is extensive and well established.

The geology of the Redmoor Project is typical of other established tin mining areas of Cornwall. Tin, tungsten and sulphide mineralisation is spatially related to granite intrusions either within the granite or in the adjacent slates and shales into which they have intruded ( Figure 1 ). At Redmoor the tin, tungsten and base metal mineralisation occurs in a swarm of steeply dipping east-west orientated quartz/greisen veinlets hosted by fine grained slates and shales.

South West England and Cornwall in particular, has a long history of hard rock metal mining dating back to the Bronze Age over 3000 years ago. The main metals mined in the region were tin, tungsten, copper, lead, silver, and zinc.

The original Redmoor Mine is one of a group of mines (Redmoor, Holmbush and Kelly Bray) that were opened in the 18[th] century and continued at intervals, until 1892 when they were forced to close due to low tin prices. Parts of the Redmoor Mine were re-opened between 1907 and 1914 and again in 1934. Records show that during the main production period from 1822 to 1893, metal production from this group of mines was approximately 3,900 tonnes of copper, 5,400 tonnes of lead, 400 tonnes of Cassiterite (tin ore), 37,300 ounces of silver and 5 tonnes of Wolframite (tungsten ore).

Previous Exploration

In 1977, Southwest Minerals Ltd “SWM” acquired the mineral rights to a large area around Redmoor and undertook an exploration program. This work included a literature study, underground mapping and sampling, reconnaissance geochemistry, auger drilling, percussion and diamond drilling. Several targets were identified by SWM including the current Redmoor Project.

Between 1980 and 1983 SWM followed up its initial exploration program with a detailed program of diamond drilling to a depth of 600 meters to test the extent of sheeted vein tin-tungsten mineralisation at Redmoor. As shown in the drill hole location plan ( Figure 2 ), a total of 35 holes were drilled totalling 12,146m. The schematic long section ( Figure 3 ) and the isometric view of the mineralised envelope ( Figure 4 ) illustrate the down dip and along-strike extension potential at Redmoor. Bench scale metallurgical tests achieved recoveries of 72% tungsten and 68% tin. No systematic exploration or metallurgical testing has taken place since 1985.

Exploration Target

NAE commissioned SRK Consulting (UK) Limited “ SRK ” to undertake the independent review of the potential of the project based on the historic SWM drilling results. SRK used this information to delineate an exploration target detailed below:

	EXPLORATION TARGET(August 2012)	EXPLORATION TARGET(August 2012)	EXPLORATION TARGET(August 2012)
Tonnes (million)	Sn %	W %	Cu %	Sn(eq) %
6 – 11	0.17 – 0.29	0.12 – 0.20	0.32 – 0.53	0.54 – 0.89

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The potential quantity and grade of the above exploration target is conceptual in nature and based on historical drill results that require further verification. Notably, there has been insufficient exploration to define a Mineral Resource. The Company intends to undertake a verification program comprising checksampling of existing drill core and/or confirmatory drilling. It is uncertain if the historic results can be replicated or if further exploration of this type will result in the determination of a Mineral Resource.

Mike Armitage (CGeol CEng FGS MIMMM) and Howard Baker (MAusIMM(CP)), both full time employees of SRK, have indicated that the quantity and quality of available data, and the continuity of mineralisation is sufficient to support the reporting of the above exploration target and have verified and authorised the technical information detailed in this release.

Agreement Terms

NAE has signed a binding Exploration Licence and Option Agreement with the owner of mineral rights covering an area of approximately 23 km[2] that includes the Redmoor Tin-Tungsten Project. The licence is granted for up to 15 years and is secured by modest annual payments to the mineral right owners, which are not material to NAE’s cash flow.

The Exploration Licence also grants NAE an option to take up a 25 year Mining Lease, extendable by a further 25 years which can be exercised at any time during the term of the Exploration Licence. The Mining Lease permits commercial extraction of the minerals and is subject to a 3% Net Smelter Return Royalty payable to the mineral right owner once commercial production has commenced. NAE also has a pre-emptive right over the sale of the mineral rights by the vendor. Surface land access for exploration drilling and mining over the majority of the Redmoor deposit is also included in these agreements.

Strategy / Work Program

Having secured mineral rights and delineated an exploration target, NAE intends to commence a work program in 2013 to confirm the exploration target and to enable the reporting of a JORC Mineral Resource if possible. The program will include verification sampling of the historic drilling data and new confirmatory drilling as required. In addition, the Company will continue to compile and review the extensive database of historic exploration results and technical studies. NAE will then review strategic options for the Redmoor project including joint development with capable partners.

ENDS

For further information please contact:

Victoria Thomas Gary Fietz Six Degrees Investor Relations Managing Director V ictoria.thomas@sdir.com.au New Age Exploration Limited +61 3 9645 7567 info@nae.net.au +61 3 9614 0600

JORC Competent Persons Statement

Information in this document that refers to the exploration target at Redmoor is based on information compiled by Dr. Mike Armitage (CGeol CEng FGS MIMM) and Mr. Howard Baker (MAusIMM (CP)) who are both full time employees of SRK. Dr Armitage and Mr Baker have more than 5 years experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they have 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’. Dr Armitage and Mr Baker consent to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.

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Figure 1: Location Plan & Regional Geology

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Figure 2: Redmoor drill hole location plan for SWM drilling, showing the projection to surface of Mineral Zone 100 of the exploration target.

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Figure 3: Schematic long section of the Redmoor

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Figure 4: Oblique, isometric view of the Redmoor deposit, showing the 100 mineralised zone in green which forms the exploration target. (Also shown are the 200 and 300 mineralisation zones, the drill traces and the surface. The strike length of the 100 zone is approximately 1,130m)

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