ORBMINCO LIMITED — Interim / Quarterly Report 2006

Apr 26, 2006

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

OUARTERLY ACTIVITIES REPORT FOR THE THREE MONTHS ENDING 31^ST MARCH, 2006

Highlights

• Acquisition of uranium and gold projects in the Kyrgyz Republic completed
• Acquisition of archived exploration data continuing
• Exploration and evaluation activities have commenced
• Rights for metals in addition to uranium are being secured
• Strong anomalies identified on NSW projects prospective for zinc/copper/gold, following processing of aeromagnetic data
• 1 for 4 option entitlement issue announced

1.0 Corporate

1.1 Completion of Acquisition of Uranium and Gold Projects in the Kyrgyz Republic

Shareholder approval for the acquisition of the Kyrgyz licences was obtained on 14 January 2006, and the settlement of the transaction was completed on 24th January, 2006.

1.2 Pro Rata Option Entitlement Issue

The Company announced on 31/3/2006, that it is to undertake a pro-rata entitlement issue of options to shareholders on the following terms;

Terms:	1 for 4 non-renounceable entitlement
Application Money:	$10¢$ per option
Exercise Price:	\$1.20
Expiry Date:	31/7/07
Funds Raised	\$462,000
Underwriter	Douglas Financial Consultants Pty Ltd
Purpose	Exploration projects

The Directors resolved to issue the options in order to provide additional benefits to shareholders in terms of leverage to forthcoming exploration and evaluation activities as opposed to a primary fund raising exercise.

2.0 Uranium Projects

Monaro holds the largest package of 100% owned uranium exploration licences in the Kyrgyz Republic, a country with historical uranium production and similar geology to neighbouring Kazakhstan and Uzbekistan, two prominent uranium producing countries. The Government of the Kyrgyz Republic is favourably disposed towards uranium mining, as evidenced by its involvement in the Kara Balta processing facility which recovers vellow cake from pregnant liquor transported from Kazakhstan.

Monaro's licences cover the spectrum from grass roots prospects to historical uranium mining sites, with Russian reserves on several of the licences (see ASX Release 16/11/05 for table). A map showing the location of these licences is provided below.

Figure 1: Location of Monaro Mining NL's Uranium Licences in the Kyrgyz Republic

2.1 Aramsu Licence (MRO 100%)

Target/Style - uranium mineralization associated with late-stage magmatic epithermal fluids and sulphide mineralization - C1 and C2 CIS Reserves

March Ouarter Activity - completion of a GIS database and geo-referencing of plans of the Central Aramsu area. In addition, the establishment of a structured database including digitized topography to create a DTM and manipulation of plans, sections etc into electronic layers in Mapinfo have also been completed.

Exploration archives including the main report of the Susamyr Expedition were checked for further useful regional data. On a local level, a number of drill hole logs for the Central Aramsu deposit have been found, including 5 out of 12 surface holes and 30 of 62 underground holes. The uranium content of drill core from this program (completed in 1962) was largely assessed by gamma-logging.

Proposed Work for June Quarter - includes field checking key areas of the licence for potential EM surveying and assessment of clay alteration geochemistry as an aid in the detection of non-outcropping targets. The potential for helicopter-borne aeromagnetic surveying will also be considered.

2.2 Utor Licence (MRO 100%)

Target/Style - the prospective geological environment in this licence area is similar to that found in Aramsu Licence. In particular, veins and shears within hydrothermally-altered sandstones adiacent to granitoid intrusives are a target, where sulphide associated uranium mineralization can be found $-$ C2 and P1 CIS Reserves.

March Quarter Activity - attempts made to source data from the Volkov Expedition in Kazakhstan were unsuccessful. However, based on other data sources, six key target areas out of 113 deposits have been revealed as a result of work carried out during the 1950's.

Proposed Work for June Quarter - assessment of the viability of helicopter-borne aeromagnetic surveying as part of a combined program with the Aramsu licence.

2.3 Narvn and Sumsar Licences - North Fergana (MRO 100%)

Target/Style - stratabound roll-front uranium deposits associated with carbonate horizons is the main target type within these two prospecting licences $-C1 + C2$ CIS Reserves.

March Quarter Activity - archive searches were successfully completed resulting in the discovery of exploration reports for the main prospects located within the licence area. These data included geological and geophysical and evaluation information. In addition, logs were acquired for 19 of 32 drillholes from the Shing and Balapan deposits. Rights to explore for polymetals on the Sumsar licence were also acquired.

Proposed Work for June Ouarter - During the next quarter, compilation of data into a structured GIS database will be conducted. This will be followed by an assessment of the data with the view to prioritising targets.

2.4 Sogul Licence (MRO 100%)

Target/Style - permeation and precipitation of uranium-enriched fluids through highly-fractured silica rich, carbonaceous black shales is the main exploration target in this licence.

March Ouarter Activity - attempts were made to recover two key reports relative to this licence. These data include the closing report on exploration on the area by the Leninobad Mining, Chemical and Exploration Company and the drill report on activities carried out by the Krasnakomsky Expedition from c.1985 to 1991. To date, these attempts have been unsuccessful. However, further approaches are to be made via the Kyrgyz Ministry to access the Central Archives in Moscow and also through the Ministry in Tashkent via 'Kyzyl Tebir', the nascent organization descending from the Krasnokomsky Expedition.

Proposed Work for June Ouarter - field reconnaissance to confirm evidence of previous drill programs and geo-referencing of boundaries to the drilling activity will take place.

2.5 Hodjaakan and Djurasai Licences - South Fergana (MRO 100%)

Target/Style - these two licences are prospective for black shale hosting, Carlin-style gold mineralization enriched in uranium. This is a project with gold potential.

March Quarter Activity - a work program was submitted to the Kyrgyz Ministries in order to carry out exploration activities. At the same time the licence conditions were extended to allow the Company to explore for metals in addition to uranium. Maps covering regional scale aeromagnetic and radiometry data were also obtained.

Proposed Work for June Ouarter - will include reconnaissance of licence areas and interpretation of regional data to assess priority areas

3.0 Gold Projects

3.1 Gavasai (MRO 100%)

Target/Style - the licence is prospective for gold-quartz hosted shear zones and pull-apart structures located on the edge of the Chatkal Valley region. Encouraging trench grades up to 10 $g/t$ Au have been documented in a number of exploration reports. A large conceptual resource is considered viable for this licence.

March Quarter Activity - completion of a GIS database and geo-referencing of plans and aerial photographs of the Dial-Kokildak area $(6 \text{ km}^2)$ was completed during the quarter.

Proposed Work for June Quarter - fieldwork is scheduled to commence with a program of structural mapping and sampling for alteration as well as re-sampling and geo-referencing of key mineralised trenches excavated during past exploration programs. The primary aim will be to define viable drilling targets.

$4.0$ NSW Projects

Notwithstanding the acquisition of the uranium and gold projects in the Kyrgyz Republic, Monaro continues to advance its Lachlan Fold Belt licences in NSW. The prospectivity of the region is evidenced by the Lake George Mine at Captains Flat, which produced 406,418 tonnes of zinc, 243,851 tonnes of lead, 27,230 tonnes of copper, 236 tonnes of silver and 220,000 oz of gold from 4 million tones of ore. Recorded grades were approximately 10% Zn, 6% Pb, 0.7% Cu, 56 g/t Ag and 1.7 g/t Au. In addition, there are numerous other locations on the licences that have demonstrated economic assay results. The outeropping and near surface potential of the licences has been well explored over the years but there is still very good potential for mineralization at depth. Monaro is pursuing a strategy whereby modern exploration techniques will be used to identify and define drill targets that will be assessed either by Monaro or by joint venture partners.

$4.1$ Captains Flat Project: EL 6381(MRO 100%)

Target/Style - a number of targets have been identified as being prospective for base metals and gold which are associated with Volcanogenic Massive Sulphide (VMS) deposits and include amongst others, the Lake George Mine Deeps, Vanderbilt Hill and Jerangle Prospects.

March Quarter Activity - in order to spread the exploration risk, particularly in relation to the deeper targets, expressions of interest are being sought from larger exploration companies with a view to establishing a joint venture on one or more of these target areas.

Proposed Work for June Quarter - work is continuing on the evaluation of the regional exploration potential. In this regard, geophysical data compiled by the NSW Department of Primary Industries for the Discovery 2000 data set is being reprocessed an interpreted. Results of this work will be available during the coming quarter.

$4.2$ Mavfield Project: EL 6358, (MRO 80%)

Target/Style -the licence covers the Mayfield and other copper-gold skarn deposits. The prospectivity of the region has been significantly enhanced recently with Moly Mines Limited announcing the delineation of a 360,000 oz gold resource at its Dargues Reef Prospect. This prospect is located within Moly Mines's tenements which abut Monaro's EL 6358 immediately to the south (Figure 2).

The Moly Mines resource is located within a mineralized, structurally controlled lode system in the roofzone of the Braidwood Granodiorite. Recent geophysical work by Monaro has suggested that the Mayfield Prospect is one of several skarn occurrences associated with the northern extension of the Braidwood Granodiorite. The results of this work are detailed in the following sections.

March Quarter Activity - a geophysical and structural interpretation of the Mayfield Tenement was completed during March, 2006, based on airborne magnetic survey, flown by the NSW Government in 2001. Results of the interpretation include the following:

• Enhancement filters have highlighted a number of dominant structural trends;
• $\blacksquare$ A structural interpretation of the magnetic data defines a prominent NNE striking fault bounded block of granite-granodiorite-quartz porphyry is present in the centre of the tenement. This fault bounded block of granite is thought to be more extensive than previously mapped (in government mapping), though reports by previous explorers identified varying occurrences of intrusive quartz porphyry, volcanic brecciated sediment and skarn units throughout the southern part of the tenements;
• A strong association between a number of skarn mineral occurrences and the western edge of the interpreted granite-granodiorite-quartz porphyry mass that has been delineated in the central part of the tenement has been noted. This "corridor" of mineralisation as well as some of the abovementioned features is well illustrated in Figure 3; and
• At least 8 discrete magnetic anomalies have been delineated which warrant further investigation. Three of these targets are illustrated in Figure 4.

Proposed Work for June Quarter - the discrete magnetic anomalies delineated as a result of the above work will now be subject to ground inspections and evaluations. It is anticipated that this will result in a number of anomalies being drill tested in due course.

Figure 3: Magnetic Image within the vicinity of Monaro Mining NL's tenement

Figure 4: Delineation of several discrete magnetic signatures associated with known mineralized skarns and identified targets.

$4.3$ Mount Paynter: EL 6356, (MRO 100%)

Target/Style – quartz vein hosted tin tungsten mineralization in granitic host

March Quarter Activity - no work has been conducted on this licence during the last quarter. An application has been lodged with the NSW Department of Primary Industries to commence the Right to Negotiate process under the Native Titles Act, as the land affected by the main prospect is located on Crown Land. This process will take some 4-5 months to resolve. At the same time, a further application has been lodged with the DPI seeking relief from expenditure conditions as this process is taken to its logical conclusion.

Proposed Work for June Ouarter – no exploration work is planned until the above issues are satisfactorily resolved.

$4.4$ Wymah Tungsten: ELA 2636 and ELA 2694, (MRO 100%)

Target/Style - granite hosted molybdenum, tungsten and tin mineralisation

March Quarter Activity - ELA 2694 was been lodged with the NSW Department of Primary Industries to cover an extensive molybdenum (Mo) ridge soil anomaly delineated by North Broken Hill during the early 1970's. The anomaly is up to 2.400 metres long and 600 metres wide and is hosted by Koeting Granite of Early Silurian age. No exploration work has been conducted on the anomaly since this time. This ELA is located directly to the north of the Wymah Prospect which has been secured under ELA 2636 and is prospective for tin, tungsten and molybdenum.

Proposed Work for June Ouarter – complete review of the prospectivity of both ELA's.

$4.5$ Michelago: EL 6376 and ELA 2637, (MRO 100%)

Target/Style - both EL 6376 and ELA 2637 contains typically volcanogenetic environments which are host to a number of base metal and gold prospects. Initial assessment of previous exploration work has so far identified the Cosgrove Hill-Billilingra and Woolshed South prospects as prospective for gold and zinc respectively.

March Quarter Activity - a field assessment of the terrain was undertaken as a prelude to a planned airborne magnetic and radiometric survey.

Proposed Work for June Quarter - to assist in the assessment of the prospectivity of both tenements, an airborne fixed-wing magnetic and radiometric survey has been commissioned. This work will entail flying the entire tenement areas on east-west lines spaced at 150 metres and at elevations of 50-60 metres. It is anticipated that the level of detail generated as a result of the survey will lead to a greater understanding of the mineral controls within the area and will provide the basis for targeting areas and prospects suitable for further evaluation.

$5.0$ Financial

As at 31 March 2006, the Company had a cash balance of \$2.33m and no interest bearing debt.

6.0 Overview

The Chairman of the Company, Mr Warwick Grigor, has said that:

"Efforts to source all relevant data and process it using modern exploration techniques is now starting to bear fruit as the Company goes forward in the assessment of its Kyrgyz uranium and gold projects as well its NSW base-metal and gold projects. We are now establishing the technical platform which will enable us to make material progress in the assessment of these projects".

Want Rampe

Mart Rampe Executive Director

Competent Person

The review of exploration activities and results contained in this report in relation to the NSW projects is based on information compiled by Mr Mart Rampe, a Member of the Australasian Institute of Mining and Metallurgy. He is a director of the Company and a full time employee of Harvest Exploration Pty Ltd. He 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). Mart Rampe consents to the inclusion of this information in the form and context in which it appears in this report.

The review of exploration activities and results contained in this report in relation to the Kyrgyz Republic projects 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.