ORBMINCO LIMITED — Capital/Financing Update 2012

Aug 12, 2012

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13[th] August 2012

ASX Release By e-lodgement

Option agreement signed for the purchase of Arizona Copper/Gold/Silver projects

Highlights

• AusAmerican has entered into an option to purchase two copper/gold/silver projects located in Arizona in the USA

• Total historical production from volcanogenic massive sulphide (VMS) ore bodies of ~1.5Mt @ 3.3% copper, 1.7g/t gold and 40g/t silver

• Highly prospective for Cu/Au/Ag mineralisation with an initial exploration target of 15 – 20 million tonnes @ 0.6 – 0.8% copper, 0.2 – 0.4 g/t gold and 15 – 30g/t silver[1]

The Directors of Australian-American Mining Corporation Limited (“AusAmerican” or “the company”) are pleased to announce that they have entered into an option agreement to purchase the Bluebell and De Soto projects which are located in Yavapai county, Arizona, USA.

The Bluebell and De Soto Mines

The Bluebell Mine was operated from 1906 to 1926 and produced approximately 1.2 million tons at 3.2% copper, 1.7g/t gold and 42g/t silver. The operation had 5 operating shafts with the main shaft sunk to approximately 420m below the surface. Around 9.1km of underground workings were developed. The mining method used was shrink stoping where high grade lenses were selectively mined. Individual high grade lenses were up to 4m wide. The cut-off grade for the mine varied from 2 to 3% copper depending on the price of copper at the time.

The De Soto mine was discovered in 1890 and operated in the early 1900’s. Production was approximately 280,000 tons at a grade of 3.7% copper, 1.4g/t gold

1 The potential quantities and grades presented are conceptual in nature, there has been insufficient exploration to define an overall Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource

Australian American Mining Corporation Ltd ABN 99 073 155 781 Level 6/5 Mill Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9481 0799 Facsimile: (08) 9481 1927

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and 34g/t silver. The mining operation utilised a number of adits and ore was extracted from several small high grade VMS bodies.

Regional Geological Setting

The properties are located on the volcanogenic massive sulphide assembly in the Jerome Greenstone Belt of Middle Proterozoic age in Central North Arizona. The ore bodies of this region are hosted in submarine volcanogenic lithostratigraphies which

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Figure 1: Location of Blue Bell and De Soto projects

are a steeply dipping rock sequence extending in a north-south direction over a distance of approximately 50km in length and of 2.4km in width.

Numerous ore bodies were mined historically in this region and ranged in size from less than 1 million tons to 25 million tons of high grade sulphide ores (see figure 1). Typically only the high grade copper core (> 3.0% Cu) was extracted with gold/silver produced as smelter by-product. All mining ceased in the region during the 1930’s.

Local Geology and Mineralisation

The ore bodies at both the Bluebell and De Soto mines are hosted in the Yavapai schist; an altered

magnesium-chlorite schist with an anastomosing veinlet pattern which suggests a stock work zone. This unit varies in thickness from 30m – 40m and is believed to extend for the length of both properties (~2.7km at both Bluebell and De Soto).

The tabular strata bound high grade massive sulphide bodies are often located at the foot and hanging wall contacts of the Yavapai schist. Seven massive sulphide lenses were mined at the Bluebell and only one lens outcropped. Although the massive

Australian American Mining Corporation Ltd ABN 99 073 155 781 Level 6/5 Mill Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9481 0799 Facsimile: (08) 9481 1927

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sulphide lenses had a relatively short strike (~140m max) they displayed excellent down dip continuity, with some lenses mined to more than 400m below the surface. At least 4 of the massive sulphide lenses are open at depth.

The Yavapai schist is also host to lower grade stock work mineralization containing copper, gold and silver. This unit has significant exploration potential and forms the exploration target below.

Exploration Target

The project is viewed as highly prospective for Cu/Au/Ag mineralisation with an exploration target at the Bluebell mine of 15 – 20 million tonnes @ 0.6 – 0.8% copper, 0.2 – 0.4 g/t gold and 15 – 30g/t silver. The exploration target is based upon a combination of historical mining information (geological plans, sections and limited underground drilling/sampling) and surface geological mapping of the prospective horizon.

The potential quantity and grade stated in the Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.

The De Soto project is considered equally prospective however due to the limited amount of information available, further work is required to establish an exploration target.

Commercial Terms

AusAmerican has entered into an option to purchase the project subject to a 30 day due diligence period. On payment of a US$75,000 option fee, AusAmerican has 12 months to assess the project. The property can then be purchased for US$2m paid over a 3 year period.

Both projects are located on patented mining claims. This type of claim confers both the ownership of the surface rights as well as the mineral rights. Permitting of exploration projects on private land is a simple and a well-defined process.

Exploration Work Program

It is AusAmerican’s intention to undertake a broad exploration program over the following 6 – 12 months and activities undertaken will include:

• Geological mapping and surface geochemical sampling

• Ground and/or airborne geophysical surveys

Australian American Mining Corporation Ltd ABN 99 073 155 781 Level 6/5 Mill Street, Perth, WA, Australia, 6000

PO Box 1788, West Perth, WA, Australia, 6872

Telephone: (08) 9481 0799 Facsimile: (08) 9481 1927

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• Initial RC/DD drill hole program

Sincerely,

Richard Holmes Managing Director

Competent Persons Statement

The information in this document that relates to exploration results is based on information compiled by Richard Holmes, Managing Director, AusAmerican Mining who is a Member of the Australian Institute of Mining and Metallurgy. Mr Holmes is a full-time employee of AusAmerican Mining and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2004 edition of the “Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Holmes consents to the inclusion in the report of the matters based on the information in the form and context in which it appears

About Australian American Mining Corporation (“AusAmerican”)

AusAmerican is a multi-commodity internationally focused exploration company. All of its projects are currently located in the United States of America (“USA”).

The company’s gold projects are the San Marcos (100%) and Bernard (90%) gold projects which are both located in the state of Arizona.

The company’s uranium projects are as follows;

• Rio Puerco (100%) - New Mexico

• Grants Ridge JV (earning 65%) - New Mexico

• Kit Carson (100%) - New Mexico

• Northern project (100%) - New Mexico

• Apex/Lowboy (100%) – Nevada

• Lone Star JV (90%) – Texas

• Apache Basin (100%) – Arizona

Australian American Mining Corporation Ltd ABN 99 073 155 781 Level 6/5 Mill Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872

Telephone: (08) 9481 0799 Facsimile: (08) 9481 1927

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The company’s REE project is La Paz which is located in Arizona.

The company’s specialty metal (Lithium, rubidium, niobium and tantalum) project is the White Picacho project which is located in Arizona.

ENDS

Further information contact; Richard Holmes Managing Director +61 8 9481 0799 rholmes@ausamerican.com

Australian American Mining Corporation Ltd ABN 99 073 155 781 Level 6/5 Mill Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9481 0799 Facsimile: (08) 9481 1927