ORBMINCO LIMITED — Capital/Financing Update 2007

Jun 11, 2007

Tel: +61 2 4647 9566 Fax: +61 2 4647 7332 All Correspondence to: PO Box 427 Narellan NSW 2567

12 June, 2007

OPERATIONS UPDATE

Uranium and Gold Projects in the Kyrgyz Republic

1. Aramsu - Uranium (100% MRO)

The Aramsu deposit is a uranium orebody with Soviet $C_1 + C_2$ resources totalling 326 tonnes of U metal at an average grade of 0.166% U. The resource was estimated in 1963, from surface trenches, diamond drill holes and three levels of adit sampling to a depth of around 200 metres below surface (Figure 1). Monaro Mining has produced a 3D digital model of drill holes, adits, trenches, eU gamma values, uranium assays, topography, orebody (at >0.03% U₂O₃) and porphyry and sediments. The major uranium minerals found in the deposit are pitchblende and curite.

From the new 3D model it is apparent that in the upper section of the main orebody there is a second plunge direction, which is towards the southwest (Figure 2). The first plunge direction becomes dominant from the first to the second adit levels. One historical drill hole on the western side and below the deepest adit contains the highest anomalism below this level. This suggests that the orebody may at this depth have reverted back to a south-westerly plunge. If this is the case then there is a large area that is relatively untested below the deposit on the western side. It is planned to test this area with two diamond drill holes. A further hole is planned to validate the main orebody below the mushroom-shaped carapace where mineralisation has been discovered in historical drill holes at deeper levels. A fourth hole plans to test Porphyry 2 (Figure 1) where surface uranium mineralisation has been discovered. It will test the northern side of the porphyry contact with the sediments, a similar structural location to that found on the Aramsu orebody. The total number of drill metres will be a maximum of 1,600m and drilling is due to commence at the beginning of July.

Perspective view, looking east, of topography and geology illustrating the Aramsu Porphyry in the Figure 1 background and the Urantum anomaly (yellow) within Porphyry 2 (pink)

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Long section of Aramsu Deposit illustrating untested depth potential of the western area if second Figure 2 plunge direction is prevalent

2. Sogul - Uranium (100% MRO)

A total of 19 diamond drill holes, for 2,035 metres, have been drilled to test a broad alteration zone that is strongly mineralised at surface, demonstrating grades up to 2,600 ppm U₃O_s in trenching, over intervals of 1m, with carnotite being frequently observed at the surface. These holes were drilled over a strike length of 1.3 km, out of a total strike length of 6.5 km of anomalous mineralisation mapped at surface. They were designed to test for depth extensions of the alteration zone and to achieve a three dimensional view of the geology, structure and mineralisation.

The first three holes have returned broad widths of mineralisation up to 10 metres in length with highly anomalous assay values in the mineralised zones averaging 100-120 ppm .U The better grades were proximate to fault zones which have enabled greater flow of uranium bearing solutions. The implication of these grades is that the higher grades recorded at the surface by re-assaying old trenches have resulted from near surface enrichment at this location due to favourable localised changes in structural competency and/or adsorption of mobile uranium by Fe complexes in the supergene environment. The sources of these uranium bearing solutions is yet to be determined. Assays for the remaining holes are awaited.

Assays were acquired using the XRF technique at the RSFA ("Volkovgeologia") labroratory in Almaty. Check ICP assays from the Central Scientific Research Laboratory at Kara-Balta provided confirmation with acceptable variances. Further assay checks are being carried out by ALSChemex in Brisbane. It has been apparent that during assaying of channel samples from old trenches in Silurian strata there is a discrepancy between standard Soviet procedure for ore grade samples using wet chemistry and modern XRF analysis.

Initial analysis suggests that the black shale/chert geology is a suitable host to uranium and vanadium mineralisation, with the complex structural and lithological environment providing a suitable environment for uranium precipitation. However, results returned to date from 3 drillholes have revealed insufficient levels of $\overline{\phantom{a}}$

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concentration of uranium in the oxide targets. Nevertheless, the Sogul licence demonstrates a strongly mineralised environment with pervasive uranium. The on-going focus will be to identify the optimal structural and lithological locations where the mineralising solutions will have undergone concentration. To this end, there are another 9 targets to be assessed hosted by both black shale and altered limestone rock types. At the same time the Company will renew efforts to locate the geological and drill reports from the late 1980s, which may provide more concrete information on the whereabouts of better grade zones previously identified by Soviet-era exploration programs.

3. Naryn-Sumsar - Uranium Waste Dumps (100% MRO)

The Company has no final abandonment data on uranium workings at Shekaftar and Terak-Sai, but from secondhand archived reports it has been shown that 20 ore lenses were outlined from 1951-53, and at least two shafts >100m in depth were sunk with production commencing in 1958. No production figures have been located but the report suggests an average thickness of 0.65m for the historical orebody grading from 0.077% to 0.165% U metal. In light of these grades and potential environmental benefits for the local community, Monaro geologists have begun assessing the Shekaftar waste dumps and have outlined 7 main dumps adjacent to a disused power station. An environmental report produced by a local journalist (Kyshtobayev, 1994) quotes figures of 700,000m³ of waste material contained in eight main dumps and further ancillary tips.

Monaro intends to seek permits and plan how best to evaluate the main dumps at Shekafter and also uranium workings and ore-sorting facility located at the town of Kyzyl Jar on its 100%-owned Naryn Licence

4. Kokildak - Gold/Copper (100% MRO)

The Kokildak Au-Cu prospect encompasses an area of 6 km² and is located 5 km NW of the village of Sumsar in Jalalabat Oblast, on the Company's Sumsar Licence. It is allied to the same porphyry system controlling Bozymchak (1.1Mozs @ 2.0g/t Au/Cu) located 6 km to the SW. Five diamond drill holes are proposed to test four prospects labelled North, East, South and West. The types of target include gold in quartz veins and mineralised porphyries within tuffs and lavas. The total number of drill metres will be a maximum of 1,000m

Geological and structural mapping carried out in 2006, by local contractors, re-interpreted much of the previous Soviet-era work. The new mapping identified considerably more mid-Palaeozoic intrusive than was previously known and put the structure into a Tien Shan style 'thrust and nappe' setting (Figures 3 & 4). Recently generated surface soils anomalies (Figure 3) coincide with thrust faults at the Kokildak Prospect. Two of the most significant secondary thrust faults containing both rock chip and high tenor soil anomalies are to be tested in this drill program. The third and fourth areas are located proximal to historical trenches containing gold anomalism that is associated with high tenor soil anomalies.

4.1 East Prospect

This is the most historically well-tested surface area with trenching producing gold results from a outcropping quartz veins (e.g.: 4m @ 2.4g/t Au). A down-slope soil anomaly peaks at 0.215 ppm shedding from a vein with around 300m of strike length. The highest potassium values from radiometric data are centred on this area. One drill hole is planned to test both the quartz vein and adjacent porphyry.

4.2 West Prospect

A thrust fault is mapped in this area strikes east-westward. A surface soil anomaly with dimensions of 340m by 190m peaking at 0.195 ppm is located parallel with and above the structure. The structure offsets the Ordovician-Silurian contact with the Devonian. This orientation is similar to a trenched gold trend found in the north-western section of the East Prospect. One drill hole is planned on this anomaly to test gold in quartz vein lodes.

4.3 North Prospect

The structure strikes more towards the west than observed in past trench mapping. A surface soils anomaly with dimensions of 430m x 180m peaks at 0.656 ppm across the southern part of the mineralised structure. Significant surface trench assay results located 140 metres to the northwest of the planned drill hole include 8m $@1.9g/t$ Au. The drill hole will attempt to intersect an intrusive within the structure and cross into footwall tuffs and lavas.

4.4 South Prospect

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A thrust fault mapped splays off underneath a nappe structure that has thrust Cenozoic rocks over Palaeozoic. One drill hole is planned to test an area where a soil anomaly peaks at 0.777 ppm and has the dimensions of 210m x 160m. Intrusives were mapped at surface around the fault. A second drill hole will test south-southeast along strike from the first hole. In this area a very high rock chip assay was obtained from a quartz breccia vein (183 ppm). A series of parallel copper-rich quartz veins are located just to the north of the gold vein.

Figure 4. Geological cross section with planned drill holes for three of the four prospects (white). Note the inferred increase in porphyry at depth. (Legend as Figure 3)

Location of Monaro's tenements in the Kyrgyz Republic Figure 5

5. Corporate

Monaro has identified a number of new projects considered highly prospective for uranium. Each of these could have a material impact upon the future of the Company, depending upon the outcome of negotiations and subsequent exploration programs. The Company will provide details to its shareholders if and when commercial certainty is achieved. Additionally, negotiations with Chinese organisations are proceeding regarding the commercial advancement of the Kyrgyz uranium assets. The existence of a common border between Kyrgyz and China, and that country's availability of experienced geological and operating personnel make it a logical choice as a joint venture partner.

Commenting on the release, the Chairman, Warwick Grigor, said;

"Whilst we were hopeful that the scout drilling at Sogul may have provided us with a rapid path to the location of an economic orebody, it is apparent that this will require a more sustained effort to identify the better grade zones. This means that the high grade Aramsu deposit, which has already been tested by 7,500m of core drilling and 5,600m of underground development, is now our highest priority and our most likely early development project. The waste dumps at Naryn-Sumsar may also provide an interesting opportunity."

Warwick Grigor Chairman

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Competent Person: The review of exploration activities and results contained in this report is based on information compiled by Steve McRobbie, a Member of the Australasian Institute of Mining and Metallurgy. He is a full time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and types of deposits 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 (the JORC Code). Steve McRobbie consents to the inclusion of this information in the form and context in which it appears in this report.

Further Information

For further information please contact Mart Rampe, Executive Director, on (02) 46479566 or Warwick Grigor, Chairman, on (02) 92470077.

It should be noted that based on the information to date, there has been insufficient exploration to define a Mineral Resource which is JORC compliant and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

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