ORA BANDA MINING LTD — Interim / Quarterly Report 2012

Oct 31, 2012

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QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2012

During the quarter the Company continued to work through the transaction executed with Investmet Ltd to enable that transaction to complete.

On 27 July 2012 Martin Depisch, Gerhard Kornfeld and Damian Delaney were appointed to the Board and Keith Vuleta, Ian Price and Allan Brown resigned.

At the end of August 2012 the Company secured interim funding from Investmet Ltd of up to $1,500,000 in 6 equal amounts of $250,000 each. The amount advanced by Investmet is convertible into equity at the proposed placement price at completion.

To reinforce the Investmet commitment to the transaction, a further two Investmet nominated directors, Michael Fotios and Peter Farris were appointed to the Board on 17 September 2012 alongside Thomas Styblo representing DCM.

Exploration

During the quarter the company engaged a consulting geologist and mining engineer to review past exploration and the available mining data on the Davyhurst and Mt Ida Projects.

Site inspections of all the main gold deposits were undertaken as well as a review of the data used to prepare previous geological resource statements for the projects and considering the compliance issues in relation to the current JORC reporting codes.

Following the review, the Company submitted and received approval for a total of 28 POW applications covering extensional and infill resource drilling on a number of existing gold deposits as well as reconnaissance auger geochemical programs.

Towards the end of September, field operations commenced with an auger program totalling some 2200 samples collected. The auger program targeted the area north of Davyhurst - testing along the Lights of Israel trend between the Zuleika Shear and Ularring Granite. The program covered areas previously sampled by LAG geochemistry in the 1990’s, but due to the transported cover in the area were not considered an effective test of the ground. The samples have been submitted to Intertek Genalysis for analysis. Further auger geochemical programs are planned to be completed during the December quarter and RC drilling will recommence on the priority resource areas in early 2013, subject to funding.

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Tenements

During the September quarter the company defended plaint action against Mining Leases 16/262-264 in the Warden’s Court. The company is confident it presented a strong case to retain the tenements and a decision is expected towards the end of the year.

The information in this announcement relating to the company’s exploration project in as much as it that relates to Exploration Results, Mineral Resources or Ore Reserves has been compiled by Mr James Guy who is a member of the Australasian Institute of Mining and Metallurgy. Mr Guy is a consulting geologist engaged by the company, and has the relevant experience under the Joint Ore Reserve Committee guidelines to be regarded as a competent person for the styles of mineralisation under discussion. Mr Guy consents to the inclusion in this of the information in the form and context in which it appears.

For more information:

Damian Delaney Director Tel: 08 6389 7500

BACKGROUND

Transaction with Investmet

On 3 May 2012 the Swan Gold Mining Limited (“SWA” or “Company”) announced it had entered into a binding Term Sheet (“Agreement”) with Investmet Limited (“Investmet”)and DCM DECOmetal GmbH (“DCM”).

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Under the terms of the Agreement, Investmet intends to recapitalize SWA and provide sufficient funding to complete a review into recommencement of operations at the Carnegie and Mt Ida gold projects; it will also work with the Company towards finalizing the application for re-listing of the Company’s shares on the ASX (subject to ASX approval) as soon as possible.

The main terms of the Agreement are as follows:

• SWA will conduct a share placement to sophisticated investors to raise working capital of a minimum of $7.5million by the issue of new ordinary shares at $0.02 on completion of the transaction. The issue will be fully underwritten by Investmet;

• DCM will transfer 39,849,657 SWA shares to Investmet in consideration of a cash payment by Investmet to the Trustee of the Territory Trust of $6.7million in satisfaction of all claims by the Territory Trust;

• The Group Trustee will transfer 134,483,578 SWA shares to Investmet as consideration for the payment of $10.1million; the payment will also clear all claims by the Group Trust under the recapitalization deed;

• The Group Trustee will grant a call option to Investmet over 43,723,382 SWA shares at a price of $0.10 within 2 years after re-quotation of SWA shares;

• The existing charges over the Carnegie assets in favour of the Territory Trust and the Group Trust will be discharged and fresh security will be granted by SWA as required to Investmet;

• Investmet will advance $1.23million to DCM in consideration of DCM discharging the existing charge over the Mt Ida assets; a fresh security will be granted by SWA as required by Investmet;

• DCM will fund ongoing operations of SWA until Completion

• Investmet may also provide additional funding on a secured convertible note basis, the terms of which shall be agreed between the parties.

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The main conditions for Completion to occur include:

• Due diligence by Investmet;

• The share sale agreement between DCM and SWA dated 18 August 2011 (as varied) being terminated on Completion with no further liability for either party;

• The Recapitalisation Deed between SWA, Stirling Resources Ltd and others dated 21 June 2009 (as amended) being terminated on Completion with no further liability for SWA;

• Any plaint proceedings relating to the tenements of SWA and its subsidiaries to be discontinued or withdrawn on terms satisfactory to Investmet;

• All necessary shareholder and regulatory approvals.

The transaction is also conditional on the completion of inter-related transactions between Investmet, DCM and each of Stirling Resources Limited (ASX: SRE) and Redbank Copper Limited (ASX: RCP).

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