OM HOLDINGS LIMITED — Interim / Quarterly Report 2007

Feb 5, 2008

OM HOLDINGS LIMITED

(ARBN 081 028 337)

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No. of Pages Lodged: 12

6 February 2008

Company Announcements Office Australian Securities Exchange Limited 4[th] Floor 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

31 DECEMBER 2007 QUARTERLY MARKET UPDATE

The Board of OM Holdings Limited (“OMH”) is pleased to provide the following market update.

HIGHLIGHTS

BOOTU CREEK MANGANESE MINE

• Quarterly production of 123,392 tonnes grading 41.34% Mn achieved.

• Plant rectifications to address materials handling issues completed ahead of the wet season. Opportunity to further increase sustainable production output to 700,000 tonnes per annum on target.

• January 2008 monthly production set a new production record of 59,404 tonnes grading 41.36% Mn .

• Mineral Resource and Ore Reserve Statement updates underway with uplifts expected.

• • Encouraging standalone copper mineralisation identified from exploration drilling at the Chugga North prospect with results including 11m at 1.69% Cu, 5m at 2.63% Cu and 12m at 1.14% Cu. Follow up drilling planned for 2008.

• Project now debt free following final repayment from surplus operating cash flows generated from OMM.

• US$2.66 million final instalment paid to GEMCO in relation to acquiring its previous joint venture interest.

QINZHOU SMELTER

• Sustained production of 8,898 tonnes of High Carbon Ferro Manganese (“HC FeMn”) achieved for the December 2007 quarter underpinned by strong China market demand and prices. Annual record production of 38,101 tonnes of HC FeMn exceeded forecast. Outlook for 2008 continues to remain strong.

MARKET OUTLOOK

• The market for manganese ore and alloys remains robust driven by an ongoing shortage of high grade manganese in the world wide market due to a number of supply issues being experienced by key ore suppliers with continued strong underlying demand driving further price increases. Record price levels committed for the first quarter of 2008.

CORPORATE

• Record strong unaudited profit results achieved from the Bootu Creek Manganese Mine and the trading and ferro alloy business units for the 31 December 2007 quarter. Continued stronger results expected into 2008 from all business units.

• Proposed secondary listing on the Main Board of the Stock Exchange of Hong Kong Limited is presently being actively pursued.

08 – 08, Parkway Parade

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80 Marine Parade Road, 449269 Singapore Tel: 65-6346 5515 Fax: 65-6342 2242 Email address: om@ommaterials.com Website: www.omholdingsltd.com ASX Code: OMH

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OM MANGANESE LTD (“OMM”) – 100% OWNED

Bootu Creek Manganese Mine – Northern Territory, Australia

Production

Production at the Bootu Creek Manganese Mine for the December 2007 quarter was as follows:

follows:
	Unit	Dec 2007 **Quarter **	Sep 2007 **Quarter **	FYTD **2007 **	Dec 2006 **Quarter **
Mining Total Material Mined Ore Mined – tonnes Ore Mined – Mn grade Closing ROM Stocks – tonnes Closing ROM Stocks – Mn grade Production Lumps – tonnes Lumps – Mn grade Fines – tonnes Fines – Mn grade Total Production – tonnes Total Production – Mn grade Sales Lumps – tonnes Lumps – Mn grade Fines – tonnes Fines – Mn grade Total Sales – tonnes	BCMs dt % dt % dt % dt % dt % dt % dt % dt		1,099,286	4,422,273	972,312
		1,760,139
		363,771	474,581	1,391,083	329,583
		23.21	25.70 86,237 21.55 123,232 42.53 46,300 42.91 169,532 42.63 108,408 42.22 23,499 42.72 131,906 42.31	24.92 86,315 21.50 383,855 42.01 132,593 42.71 516,448 42.19 376,577 42.37 126,687 43.16 503,265 42.57	22.83 638,892 20.08 81,243 43.54 31,792 43.59 113,035 43.55 77,424 43.49 19,227 43.42 96,651 43.48
		86,315
		21.50
		89,013
		41.26
		34,379
		41.57
		123,392
		41.34
		101,377
		42.71
		51,945
		43.25
		153,322
Total Sales – Mngrade	%	42.89

Quarterly production was 10% less than design capacity due to:

• Lower process plant availability resulting from the completion of the rectification works; and

• Lower plant yields affected by lower grade ore mined in the southern end of the Gogo pit in the latter part of the quarter. This area was subsequently mined to completion to enable waste backfilling.

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Quarterly Manganese Production
180
160
140
120
100
80
60
40
20
-
Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07
Actual Production Design Rates
Dry T's (000's)
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Note: Design rates based on 550,000 dts / year

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During the December quarter, the capital rectification works program instigated to enable designed process plant production rates to be met consistently was completed and commissioned. The main modifications involved the replacement of the crushed ore reclaim system and ROM bin with a new surge bin, stockpiling system and improved ROM bin. Indications from achieved production rates in January 2008 have confirmed that the modifications have enabled more consistent and increased throughput, enhanced operational safety and removed the need for a hired bypass feed system.

Additional modifications are planned for 2008 as part of an ongoing capital improvement program to further advance materials handling and plant availability.

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New surge bin in operation

Mining activities were focused on completing stages 1 to 3 and commencing stage 4 of the Shekuma pit while simultaneously continuing to advance stages 3 and 4 of the Gogo pit. ROM ore stocks remain lower than budget primarily as a result of previous under budget mine production rates compared to the mine schedule and lower plant yield. Actions to improve upon the yield and production have been implemented including securing additional earthmoving equipment.

Mining capacity continued to be ramped up during the quarter by utilising a second excavator and third party contractor scraper fleet to complete pre-stripping. Additional earthmoving equipment has been secured with four haulage trucks, an excavator and a dozer scheduled for mobilisation during the March 2008 quarter. Total material mined for the quarter was a record 1.76 million bcm representing 40% of the total material mined for the calendar year.

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Quarterly Mining Production
1,800
1,600
1,400
1,200
1,000
800
600
400
200
-
Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07
BCM (000's)
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Construction of a second deposition cell in the Tailings Storage Facility was completed. Development of additional process water supplies was also completed during the quarter.

During the December 2007 quarter, 153,322 tonnes of manganese product was exported in five shipments through the Darwin Port Corporation facility.

Cash Operating Costs/Revenue

The OMM operations achieved positive financial performance throughout the quarter. The December 2007 quarterly operating profit was significantly higher than the operating profit generated in the September 2007 quarter. Despite the shortfall in quarterly production the higher prices achieved for the production sold in the December 2007 quarter underpinned stronger profitability.

Unit cash operating costs for the quarter were higher on lower production. Cash operating costs for the December 2007 quarter were A$4.16/dmtu produced compared to A$2.41/dmtu produced for the September 2007 quarter. This included the effect of additional operating costs incurred for the quarter in relation to the accelerated mining activity at the higher strip ratio cutbacks of stages 3 and 4 of the Gogo pit. All pre-strip mining activity was fully expensed as opposed to capitalising and deferring such costs over the life of the pit. The increased mining activity in the quarter amounted to approximately 40% of the total cost structure, an increase from 30% in the preceding quarters and accounted for A$0.92/dmtu or over 53% of the unit cost increase from the September 2007 quarter.

Unit cash operating costs for 2008 are expected to be lower than the December 2007 quarter as OMM returns to normal production levels following the wet season and as high grade ore with lower striping ratios is accessed.

The average Australian dollar FOB manganese price received per tonne sold for the December 2007 quarter was 17% higher than the price received per tonne sold for the September 2007 quarter. The average Australian dollar FOB manganese price received per tonne sold for the December 2007 quarter was approximately double the price received compared to the first half of 2007. This included the effect of the strengthening AUD:USD exchange rate which averaged 0.81 for the half year ended 30 June 2007 compared to 0.89 for the 31 December 2007 quarter.

Exploration

Manganese Exploration and Resource Delineation

A total of 19,145 metres of reverse circulation (“RC”) drilling was completed at Bootu Creek during the December 2007 quarter (with 29,596 metres of RC drilling achieved for the 2007 program) including 2,496 metres of exploration and 16,649 metres of resource delineation. The exploration component consisted of widely spaced reconnaissance sections drilled to the north of the known Bootu Creek deposits. The drilling identified further extensions of the known mineralised horizons and requires follow up drilling to test the economic potential.

Results from resource delineation and extension drilling were very encouraging and an update of the Project’s Mineral Resource and Ore Reserve Statement and mine plan is expected to be completed by the end of February 2008. A 1,500 metre diamond drill program is also scheduled to commence mid February 2008 to extend the metallurgical test program beyond the deposits currently being mined.

A 2,300 line kilometre SkyTEM helicopter borne electro-magnetic (“EM”) survey of the outlying Renner Springs and Helen Springs tenement blocks, located 60 kilometres north west and 30 kilometres north of Bootu Creek respectively, was completed in December 2007. Results are currently being modelled and will be used to assist to define drill targets for the 2008 exploration program.

OMM plans to significantly expand its manganese exploration program in 2008 to replace and further expand the Mineral Resources and Ore Reserves inventory and support long term production planning as well as to evaluate opportunities for future expansion beyond 700,000 tonnes per annum.

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Copper Exploration

In addition to manganese exploration referred to above a limited number of exploration holes were extended 30 to 50 metres beyond the manganese ore zone to test the potential of the footwall siltstone/dolomite sequence (upper Attack Creek formation) to host copper mineralisation.

Anomalous copper values are associated with the Bootu Creek manganese ores (average around 0.4% Cu in railed product) and anomalous copper values have previously been noted in rare holes drilled well beyond the manganese ore zone. The copper intersections discussed below are exclusive of anomalous copper directly associated with manganese ore.

Drill results proved very encouraging with five prospect areas identified in initial reconnaissance drilling. Best results included 11 metres at 1.69% Cu, 5 metres at 2.63% Cu and 12 metres at 1.14% Cu from the Chugga North prospect. The copper mineralisation identified is generally located between 15 and 30 metres beneath the gently dipping (~30[o] ) manganese ore horizon and visible mineralisation consists predominately of malachite. The accompanying table and figure highlight selected intersections and prospect locations. All assay results are by XRF analysis and intersection lengths quoted are at least 75% of true width.

A 5,000 metre follow up RC drilling program is planned with the 2008 exploration program and is intended to extend the limited strike extent tested to date and evaluate the economic potential of the copper mineralisation encountered. The program will include a limited number of deeper stratigraphic drill tests.

Table 1. Bootu Creek – Selected Copper Intersections (0.4% Cu cut off)

Prospect	Hole ID	Northing	Easting	from (m)	length (m)	%Cu
Tourag SE	BCRC1030 BCRC1034 BCRC1060	7932809 7931483 7934063	403551 405034 402283	63 21 24	4 4 4	0.53 1.17 0.66
Chugga Fold	BCRC1086 BCRC1173 BCRC1174 BCRC1187 BCRC1188 BCRC1201 BCRC1212 BCRC1224 BCRC1226	7934435 7934510 7934510 7934470 7934469 7934580 7934548 7934547 7934699	407295 407296 407267 407336 407286 407267 407288 407278 407442	24 18 32 29 13 23 34 59 29 42 33 48 34	5 9 4 1 4 4 2 3 10 7 2 5 7	0.78 0.55 0.71 1.80 0.83 0.70 2.90 0.99 0.49 1.10 0.90 1.12 0.88
Chugga F/W	BCRC1092 BCRC1093 BCRC1246 BCRC1374 BCRC1486	7934304 7934298 7934943 7934471 7934580	407564 407525 407379 407541 407504	15 19 39 32 15	11 10 6 5 4	0.74 0.72 0.61 1.20 1.42
Chugga North	BCRC1097 BCRC1127 BCRC1128 BCRC1142 BCRC1285 BCRC1287	7936664 7937507 7937505 7938171 7937565 7937505	407233 407335 407285 406977 407335 407354	30 25 45 45 32 25	3 11 3 3 5 12	0.88 1.69 0.68 0.81 2.63 1.14
Looa Bore	BCRC1265 BCRC1267	7939246 7939248	406598 406679	27 7 14	7 3 4	1.13 0.65 0.56

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Figure 1: Location of Bootu Creek Copper Prospects

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Looa Bore
Chugga North
Chugga
Chugga Footwall
Chugga Fold
Gogo
Tourag
Shekuma Xhosa
Tourag SE
Zulu
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Manganese Deposits Copper Prospects
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The details contained in this report that pertain to mineral resources and exploration results are based upon information compiled by Mr Craig Reddell, a full time employee of OM (Manganese) Ltd and who is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM). Mr Reddell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Reddell consents to the inclusion in the report of the matters based upon his information and in the form and context in which it appears.

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Outlook for March 2008 Quarter

January 2008 production achieved a new monthly record with 59,404 tonnes produced. Production during the March 2008 quarter is forecast to be approximately 140,000 tonnes (100% of rated capacity). Despite not experiencing extensive rainfall to date and the January 2008 record monthly production, it is still anticipated that ore supply and processing may be affected by the imminent wet season.

There are 5 planned shipments in the March 2008 quarter to export approximately 150,000 tonnes of manganese product. Civil works are planned to commence to extend OMM’s stockpiling facility at the Port of Darwin by increasing the stockpile area by approximately 50%.

Other operational activities planned for the March 2008 quarter include:

• Complete the updated Mineral Resource and Ore Reserve Statement and mine plan.

• Complete test work and initial cost estimates for an additional crushing and cyclone plant to re-process lump rejects from the Heavy Media drum plant.

• Complete 1,500 metre diamond drilling program for metallurgical test work purposes; and

• Commence 2008 exploration drilling program.

Project Financing Facilities

During the December 2007 quarter A$5 million was repaid from surplus operating cash flows against the Working Capital Facility.

During January 2008, a further A$5 million was repaid from surplus operating cash flows against the Working Capital Facility, fully repaying the facility.

During the December 2007 quarter the final remaining contractual obligation to GEMCO of US$2.66 million was made releasing the requirement for a guarantee.

An overview of the position with the project financiers, the Commonwealth Bank of Australia (“the Bank") as at 31 January 2008 was as follows:

Project Facilities	Total Available	Extent Drawn-Down
Working Capital	A$10 million	A$ Nil
Guarantee	US$2.66 million	A$ Nil
Performance Bond	A$0.5 million	**Drawnto A$0.456 million **

OMM and the Bank are currently reviewing the level of project facilities with the view to establishing an ongoing A$8 million working capital facility and an increased A$1 million performance bond for rehabilitation commitments.

The Bank has also agreed to release its mortgage and charge over OMH’s shareholding in Territory Resources Limited. As at 31 January 2008, notwithstanding some minor finance leases, OMM is debt free.

Currency Hedging

During the December 2007 quarter OMM entered into US$31.7 million of US dollar forward exchange contracts to the end of December 2008 at an average AUD:USD exchange rate of rate of 0.8488.

This combined with existing AUD:USD cover maintained by OMH of US$23.6 million provides hedging cover for approximately 60% of the total budgeted AUD operating and capital expenditure for the project in 2008 at an average rate of 0.8594.

In effect the hedging arrangements will safeguard OMM’s AUD operating and capital expenditure requirements throughout 2008.

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Expanded Production Options

OMM continues its assessment of the Projects capability to increase its annual sustainable production rate to approximately 700,000 tonnes per annum following the successful completion of the rectification works. This has been demonstrated as achievable in the past whereby production rates of over 2,000 tonnes per day have been achieved for consistent periods. In particular during January 2008 the first month following the completion of the rectification works, production was almost 60,000 tonnes which annualises plant capacity in excess of 700,000 tonnes per annum.

Test work has commenced on the value adding benefit of crushing and re-processing lump rejects from the Heavy Media drum plant. Site trials to date indicate that a marketable product can be produced by crushing and re-processing the rejects through a Heavy Media cyclone plant.

Further opportunities to significantly expand production beyond 700,000 tonnes per annum will also be examined in 2008 following the release of the updated Mineral Resource and Ore Reserve position.

OM MATERIALS (QINZHOU) Co Ltd (“OMQ”) – Guangxi, China - 100% OWNED

Production

OMQ produced 8,898 tonnes of High Carbon Ferro Manganese (“HC FeMn”) for the December 2007 quarter. The quarterly output exceeded budget by 13%, despite having only one of the two furnaces operating throughout the quarter. As a result the total annual production for the year ended 31 December 2007 was a record 38,101 tonnes of Hc FeMn which was marginally higher than the forecast 37,500 tonnes.

The continued strong demand for HC FeMn experienced throughout the quarter contributed to the OMQ operation generating a new record operating profit for the December 2007 quarter. This record operating result included the effect of increased ore material costs however this impact was more than offset by the strengthened alloy prices achieved.

The second furnace did not operate during the December 2007 quarter due to a planned reline and overhaul as well as the dry season curtailing activity due to reduced availability of low cost hydropower. Sinter ore availability also remained tight.

During the December 2007 quarter, OMQ achieved success in further expanding its presence in both the domestic and export markets. The HC FeMn sold was approximately 44% greater than the September 2007 quarter due to the sales recorded from the record production achieved in the September 2007 quarter.

OMQ is expecting the HC FeMn market to continue to remain strong throughout the March 2008 quarter. The OMQ operation is presently experiencing the seasonal dry period which commenced at the end of October 2007, whereby the electricity costs are higher due to the limited availability of hydropower supply. The OMQ facility will therefore continue to maintain one operating furnace operating until the commencement of the wet season in May 2008. However, due to the strong HC FeMn market conditions the operation is presently assessing whether to commence the operation of the second furnace ahead of the commencement of the wet season. This will also depend upon sinter ore availability which continues to be an inhibiting factor to greater production.

The OMQ operation is expected to produce a minimum annual production output of approximately 41,000 tonnes of HC FeMn for the year ending 31 December 2008.

Opportunities to further expand the OMQ production capabilities in 2008 are continuing to be evaluated especially in the area of dedicated sinter ore production.

For the year ended 31 December 2007, OMQ achieved an accident free workplace within the production plant. This marked a significant achievement by the management and employees where safety is ranked as a high priority.

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OM MATERIALS (S) Pte Ltd (“OMS”) – Singapore - 100% OWNED

Trading Operations and Market Outlook

The trading operations had an outstanding trading and financial result for the December 2007 quarter.

The trading operations had a strong result for the December 2007 quarter with ore and alloy tonnages traded increasing by 5% compared to the previous quarter. Overall the ore and alloy tonnages for the year ended 31 December 2007 were 21% higher than the tonnages traded for the preceding year.

During the December 2007 quarter the trading operations benefited from:

• record manganese ore prices achieved from a combination of prices negotiated in the September quarter and December 2007 spot sales commitments with significant premiums secured;

• significant increases in manganese ore and alloy prices throughout the December 2007 quarter; and

• sustainable production from the OMM operation throughout the December 2007 quarter demonstrating a reliable supply of manganese product.

OMS expects the manganese market to remain strong throughout 2008 based upon robust demand and a number of supply issues being experienced by key manganese ore suppliers. In particular world wide supply has and will be impacted by the partial withdrawal of two key international suppliers from the market (Vale and Ghana Manganese) and the recent takeover of Consolidated Minerals Limited in Australia.

In addition it is yet to be ascertained how the recently announced national power crisis in South Africa will impact production capabilities and world wide supply of manganese by key South African producers throughout 2008 and beyond. This power predicament could further exacerbate the shortage of high grade manganese ore and alloys within the world market.

Manganese

The ongoing aggressive purchase of minerals and metals by China has caused the prices of commodities to continue to rise and this includes manganese ore.

China produced approximately 490 million tonnes of crude steel in 2007 and is scheduled to increase its output of crude steel in 2008 to approximately 520 million tonnes. Therefore, China is estimated to require 7.5 to 8 million tonnes per annum of imported manganese ore and will not find it easy to procure such a quantity of high grade product. It is unlikely that despite the world wide shortage of manganese ore that the production of crude steel will be obstructed. It is expected that due to such underlying market fundamentals the price of manganese ore will continue to rise. However due to the prevailing high prices, there are also more supplies from non traditional sources and lower quality ores coming into the market. This may put pressure on further increases of high grade manganese ore prices.

The demand of manganese alloys continues to remain strong. However due to the rapid rise of manganese ore prices, there is a time lag between the rise in manganese ore prices and manganese alloy prices. As such, margins are not as extensive as ore pricing, however demand remains strong.

The equivalent net Australian dollar price to OMM (FOB) for ore will continue to be impacted by higher sea freight rates. Freight cost increases are being driven by the global demand for bulk commodities, exacerbated by port infrastructure constraints at some major export ports world wide. Despite the freight increases, the landed prices being negotiated continue to remain extremely strong.

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Chrome

China is still on the expansion path of stainless steel production. For the year ended 2007, about 7.5 million tonnes of stainless steel was produced against approximately 5.3 million tonnes during 2006. Tangshan Iron & Steel Co., based in Hebei province near Beijing, is expected to start production this year at a mill with annual capacity of 600,000 tonnes. Shangxi Taigang Stainless Steel Co., Zhangjiagang Pohang Stainless Steel Co., and Liangzhong Stainless Steel are also increasing capacity. This indicates that China will be expanding stainless steel capacities further, which in turn will derive further demand for chrome ore and ferro chrome alloys.

Chrome ore traded during the December 2007 quarter experienced the highest ever CIF prices in most supply sources, which the market was able to absorb. During the first quarter of 2008, prices are expected to maintain more or less at these levels, with marginal changes, since supplies of high grade chrome are still in demand.

TERRITORY RESOURCES LIMITED (“TTY”) – 11.5% INTEREST

TTY announced that it shipped a total of approximately 271,000 tonnes of high grade iron ore lump and fines product for the December 2007 quarter from its Frances Creek iron ore mine in the Northern Territory.

OMH participated in TTY’s Share Purchase Plan and a subsequent share placement during the quarter by subscribing for an additional 4,161,413 ordinary shares at a total cost of A$4,161,413.

OMH continues to hold its strategic holding of 29,161,413 ordinary shares in TTY, with a current market value of approximately A$32 million.

OM HOLDINGS LIMITED (“OMH”)

Capital Structure

During the quarter 3,604,500 ordinary shares were issued arising from the exercise of unlisted options.

As at 31 December 2007 the Company had 227,472,575 ordinary shares and 19,335,000 unlisted options on issue.

The Company paid an interim dividend of A$0.02 per share on 23 November 2007.

OMH announced on 12 November 2007 that it was assessing a proposed secondary listing on the Main Board of the Stock Exchange of Hong Kong Limited (“HKSE”). The Company has now commenced the detailed process to seek the secondary listing on the HKSE. Various due diligence and compliance processes have commenced in addition to site visits by key due diligence team members and various experts.

The Company considers that the secondary listing will further broaden the Company’s shareholder base internationally and give the Company access to future capital raising opportunities in the growing Asian market to support its longer term growth strategy.

The Company has appointed CITIC Securities Corporate Finance (HK) Limited (being a subsidiary of CITIC Securities International Company Limited, “CSI”) to be its financial advisor, sole sponsor, sole global coordinator, sole bookrunner and lead manager. CSI’s parent, CITIC Securities Co., Ltd. (“CITIC Securities”), is the largest investment bank in China and is listed on the Shanghai Stock Exchange. CSI is an offshore investment banking arm of CITIC Securities, specialising in the provision of corporate finance, securities brokerage and equity research services.

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The Company has now completed the appointment key professional advisers to commence the process of preparing the requisite global offer documentation. The Company is expecting to complete all relevant documentation and seek approvals for the secondary listing on the HKSE by 30 June 2008.

OUTLOOK

The operational results for the December 2007 quarter were driven by the strengthening market for manganese ore and alloy and the strong appreciation in pricing for both manganese and chrome experienced particularly in the past nine months.

Manganese prices continue to remain buoyant, with landed prices recently negotiated for shipments to Chinese customers for the first quarter of 2008 exceeding prices achieved for the December 2007 quarter. These price increases over the previous quarter are consistent with expectations that the manganese market will remain robust throughout 2008, underpinned by continued strong demand for high grade manganese product and a number of supply issues continuing to be experienced by key ore suppliers.

Indications are that current landed China manganese ore prices (CIF) will increase further in 2008.

Despite the volatility within financial markets the fundamentals of the manganese market remain extremely positive.

Overall the substantial turnaround in operating and financial performance from all business units in the December 2007 quarter has remained sustained and is expected to continue into 2008. The emphasis into 2008 will be on assessment of expansion opportunities at both the Australian and China based operations and the development of further growth opportunities internationally.

Yours faithfully

OM HOLDINGS LIMITED

Heng Siow Kwee/Julie Wolseley Company Secretary

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BACKGROUND PROFILE OF OM HOLDINGS LIMITED

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OMH which was listed on the ASX in March 1998 has its foundations in metals trading – incorporating the sourcing and distribution of manganese ore products and subsequently in processing ores into ferro-manganese intermediate products. The OMH Group now operates commercial mining operations – leading to a fully integrated operation covering Australia, China and Singapore.

Through its wholly owned subsidiary, OM (Manganese) Ltd (“OMM”), OMH controls 100% of the Bootu Creek Manganese Mine (“Bootu Creek”) located 110 km north of Tennant Creek in the Northern Territory.

Bootu Creek is designed to produce at an annual rate of 550,000 tonnes of manganese ore. Bootu Creek has further exploration potential given that its tenement holdings extend over 1,599 km[2] .

Bootu Creek’s manganese product is exclusively marketed by the OMH Group’s own trading division with a proportion of the product consumed by the OMH Group’s wholly-owned Qinzhou smelter located in south west China.

Through its Singapore based commodity trading activities, OMH has established itself as a significant manganese supplier to the Chinese market. Product from Bootu Creek has strengthened OMH’s position in this market.

OMH also holds an 11.5% shareholding in Territory Resources Ltd, a company presently operating the Frances Creek iron ore project in the Northern Territory.

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