ORBMINCO LIMITED — Interim / Quarterly Report 2011

Apr 27, 2011

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28 April 2011

ASX RELEASE By e-lodgement

QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 31 MARCH 2011

HIGHLIGHTS

• The Company announced the intention to apply to have its ordinary shares listed for trading on the TSX. The company anticipates conditional approval being received from the TSX in the next few weeks and trading is anticipated in May 2011.

• The Company announced changes to the Board and management of the Company with Don Falconer and Simon Jackson, both experienced Canadian based resource veterans, agreeing to join the Board of Directors and Nerida Schmidt becoming Company Secretary.

• The Company announced a NI 43-101 resource on the Apex uranium project. This report upgraded the JORC resource at Apex by 52% to 1.452 million pounds grading 700ppm.

• The NI 43-101 recommended more drilling to further increase the resource. Exploration target at Apex is 3 million pounds U3O8.[(1)]

• The NI 43-101 states that considerable exploration potential exists at the adjoining Lowboy uranium prospect. The exploration target at Lowboy is between 2 million and 15 million pounds U3O8.[(2)]

• Company exploration target is between 28 million and 42 million pounds U3O8 JORC/ 43-101 at the three uranium projects by the end of 2011.[(3)]

• Drilling permits for the Rio Puerco uranium project have been received and drilling can commence at any time and is anticipated to commence in June 2011.The Company has commenced a NI 43-101 report on the Rio Puerco uranium project. The Company has a JORC compliant inferred resource of 11.4 million pounds U3O8 grading 900 ppm at a cut-off of 300 ppm.

• The discovery of the San Marcos gold project and also the results of an intensive sampling exercise at this project where 24 of the 86 samples returned gold grades of greater than 1 gram per tonne (g/t). The highest return was 98.2 g/t. Drilling permits are being obtained and drilling is expected to commence at this project in May 2011

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872

Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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• A large channel sampling programme (approximately 1,300 samples collected) was carried out on the White Picacho Strategic Metals Project. Results from all of the samples are expected by the end of April 2011.

• Preliminary sampling was undertaken on an exciting Rare Earth Element project held by the Company in Arizona. This sampling identified a large low grade Rare Earth Element mineralised zone believed to be 10 to 30 meters in depth from surface. Preliminary results are expected in the following 4 to 8 weeks.

The Directors of Australian-American Mining Corporation Limited (“AusAmerican” or “Company”) are pleased to report the following activities occurred in the last quarter ended 31 March 2011.

URANIUM PROJECTS

Apex-Lowboy Uranium Project (Nevada, AIW 100%)

A NI 43-101 was finalised and released in March increasing the former JORC inferred resource of 950,000 pounds @ 770ppm (0.07%) U3O8 at Apex by 52% to a NI 43-101 inferred resource of 1.452 million pounds grading 700ppm using a cut-off of 100 ppm:

Cut off **(%U3O8) **	Tonnes > than cut-off	Grade> Than cut-off (%U308)	Tonnes **U3O8 **	lbs **U3O8 **
0.01	1,015,999	0.070% (700ppm)	707	1,452,300
0.02	639,995	0.098% (980 ppm)	630	1,276,815
0.05	358,146	0.147% (1,470 ppm)	530	1,057,675
0.1	231,061	0.188% (1,880 ppm)	435	850,440

The report has been prepared by qualified persons David S. Boyer, who works as a consultant for the Company, and Erik Ostensoe, who is an independent Qualified Person.

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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The report states that “ potential to increase the resource exists along strike of the meta-sedimentary-intrusive contact, as this area is untested to the east and west. Although the defined resource occurs within 550 feet (170 metres) of the surface, the possibility of increasing the resource at depth also exists ”.

The report also recommends further work which includes detailed structured analysis to better understand controls on mineralisation, further metallurgical test work to determine uranium recoveries at low grades, uranium equilibrium determination and additional drilling to validate historical data, define deposits limits and potentially expand the resource.

The report goes on to state “ Considerable exploration potential also exists on the Lowboy uranium prospect, located on the eastern end of the Toiyabe Range and along the WNW trend with the Apex property. The Lowboy property was not addressed in detail in this technical report, however preliminary review of the data by the authors indicates that prospective targets do exist on the Lowboy property and along the WNW trend. Successful testing of these targets would significantly add to the inferred resource defined in this report”

A full copy of the NI 43-101 report is posted on the company website www.ausamerican.com.

The Company has an exploration target of 3 million pounds U3O8 grading between 500 ppm and 1000 ppm (0.05% and 0.1%) at Apex and between 2 million and 15 million pounds of U3O8 at the Lowboy project at a grade of between 500 and 1000 ppm (0.05% and 0.1 ppm)[(4)] .

Rio Puerco Uranium Project (New Mexico, AIW 100%)

This project has a JORC inferred resource of 11.4 million pounds at a grade of 900 ppm (0.09%) using a 300 ppm cut-off:

Cut Off Grade % eU3O8*	Tonnes U3O8 Ore	Average Grade % eU3O8	Tonnes U3O8	Lbs U3O8
0.03	5,994,968	0.09	5,154	11,362,640
0.05	3,584,925	0.12	4,214	9,290,481
0.10	1,298,081	0.27	3,464	5,778,493

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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There is significant upside on this project in terms of resource for the following reasons:

• (i) Only a small portion (7%) of the project has been used in calculating the current resource.

• (ii) Preliminary test-work carried out by Hazen Laboratories of Denver on ore removed from the project in pre development by Kerr McGee has indicated recoveries of 90% by using ISR methods. If the project is amenable to ISR extraction methods (and further test work and flow work is required) then a considerable portion of lower grade ore would be able to be bought into the resource calculation The exploration target for this project is approximately 2 to 5 times the existing resource[(5)] .

Lone Star Uranium Project (Texas, AIW 90%)

This project was brought to the Company by Lone Star LLC. Lone Star LLC holds a 10% free carry in the project and also receives AIW shares on meeting certain milestones (based primarily on JORC resource targets). This project has an exploration target of 3M lbs to 4Mlbs[(6)] grading between 700ppm (0.07%) and 1200ppm (0.12%) and is shallow and amenable to ISR recovery. This exploration target is based on a number of factors including historical exploration work carried out by Union Carbide Corporation during their 1968 – 1971 exploration programme that included a considerable amount of drilling. These projects are on 5 X 5 year leases and have a royalty of approximately 8% on the net uranium. It is intended to extract using ISR and ion exchange techniques and use existing plants in the area for additional treatment.

The Company is attempting to secure further acquisitions in the area, several of which are currently pending the outcome of negotiations.

Apache Basin Uranium Project (Arizona, AIW 100%)

The prospectively of this project area is based on the Unconformity model and its similarities with the Canadian Athabasca Basin, one of the world’s premier uranium provinces. Well-developed uranium mineralisation occurs in the Dripping Springs Quartzite, which is the upper target zone and is associated with well-developed structural controls which are expressed as strong linear radiometric anomalies consistent in placement with the known mineralization and structural trends. Based on the currently available information, the project is highly attractive on a conceptual basis as it represents a significant regional “play” with the possibility of yielding multiple targets.

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872

Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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Exploration target table – Uranium Projects

Project	Location	Current resource	Grade	Target resource by Dec 2011	Target grade (ppm)	Target grade (%)
Rio Puerco	New Mexico	11.4 million lbs	900 ppm (0.09%)	20 million lbs	500-1200	0.05%- 0.12%
Apex	Nevada	1.45 million lbs	700 ppm (0.07%)	3 million lbs	500-1000	0.05%- 0.1%
Lowboy	Nevada	nil	nil	2-15 million lbs	500-1200	0.05%- 0.12%
Lone Star	Texas	Exploration Target(7)		3-4 million lbs	700-1200	0.07%- 0.12%
Total	NM, NV,TX	12.85 million lbs	700ppm (0.07%)- 900ppm (0.09%)	28-42 million lbs	500-1200	0.05%- 0.12%

Precautionary Notes

Notes (1),(2),(3),(4),(5) - These exploration targets are speculative in nature and are not yet classified a resource JORC or NI 43-101. There is insufficient data or work completed by the company to define a mineral resource other than that already reported under the JORC or NI 43-101 and it is uncertain if further exploration will result in the determination of a mineral resource.

Note (6),(7) - This exploration target is speculative in nature. There is insufficient data completed by the Company to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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NON-URANIUM PROJECTS

White Picacho Strategic Metals Project (Arizona, AIW 100%)

Following on from the initial sampling programme last quarter, a more consistent, large channel sampling programme (approximately 1,300 samples were collected) was carried out on a number of the 28 pegmatites in the White Picacho Strategic Metals Project. Results from all of the samples are expected by the end of April 2011.

The mineralisation is spodumene in pegmatites and this is commonly associated with lithium and

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tantalum deposits (the Western Australian lithium project Greenbushes is the largest

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and best known spodumene in pegmatite hosted lithium/tantalum project in the world.

Of particular interest are the very high grades of Rubidium found in 70% of the samples received to date. Metallurgical test work is currently being conducted on bulk material sent to an ISO 9000 laboratory based in Ontario Canada. Results are expected in the next 4 to 8 weeks.

San Marcos Gold Project (Arizona, AIW 100%)

The Company announced in the quarter that tenements had been acquired over the old San Marcos mine and surrounding lands located in La Paz County, Arizona consisting of 126 contiguous lode mining claims over 4 square miles (10.5 square kilometers).

The Company has undertaken an evaluation of the potential of this strongly mineralized area. Work has consisted of evaluation of numerous mineralized prospects, extensive sampling of outcropping mineralized zones, a total magnetic survey, and preliminary geologic mapping.

Geologic mapping has confirmed the structural control of mineralization by both lowangle and high-angle faults. The structural setting is similar to that of Copperstone mine, which lies some 48 miles (77.5 kilometers) to the WNW, where the regional detachment fault and associated high angle faults host nearly one million ounces of gold. The San Marcos underlay shaft attempted to follow a similar low-angle fault. The prospect pits and the shallow (<3 metres) San Marcos open cut expose both a low angle fault and associated high-angle structures.

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872

Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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The magnetic survey was conducted by HydroGeophysics and is a preliminary survey intended to determine if the technique might be used to evaluate the structural setting of the area. This data is being compiled and analysed, and a report is imminent.

Surface sampling has so far included collection of 86 samples over about 80% of the property. Analytical data have been received for nearly all of these, and include fire assay for gold and a multi-element scan for numerous other metals including silver. These samples include grab, composite, continuous chip, or short channel samples depending upon the nature of each occurrence. They were analysed by ALSChemex, an ISO certified laboratory, in Reno, Nevada. Results contained some

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interesting high grade returns, the highest of which was 98 g/t. 24 of 86 samples returned grades of > than 1 g/t.

Drilling permits are being finalised and the maiden drill programme is expected to commence in May 2011.

Bernard Gold Project (Arizona, AIW 90%)

The Bernard Gold Project is joint ventured with a US private company Cristol LLC. The first drilling programme met with limited success (due to poor drilling and limited recovery of core) but over $415k was spent by Cristol earning them a 10% interest in the Bernard property. Cristol consequently failed to fund the second part of their commitment and as a result the Company is now conducting further exploration on this project.

A seismic survey was undertaken in the quarter and identified some new drilling targets. A small drilling programme was undertaken on these targets and results are pending.

North Claims Rare Earth Element Project (Arizona, AIW 100%)

Preliminary sampling on this project identified a large low grade Rare Earth Element mineralised zone believed to be 10 to 30 meters in depth from surface. Of particular interest is the very high ratio of Heavy REE’s to the Light REEs. Metallurgical test work is currently being carried out by SGS laboratories Ontario Canada to determine whether the low grade material can be beneficiated to a higher grade concentrate. Preliminary results are expected in the following 4 to 8 weeks.

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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Exploration Update

Drilling permits for the Apex-Lowboy, Rio Puerco and Texas Lone Star uranium projects have all been received. However, drilling programs on these uranium projects were suspended in the wake of the events that took place at the Fukushima nuclear complex in Japan in early March 2011 and the resulting change in market sentiment. The uranium drilling programs can be reactivated at two weeks’ notice once it is established that the Japanese situation has not caused a major longer-term lack of confidence in the nuclear and uranium industries, with programs currently rescheduled to commence in June 2011.

The Company has taken the opportunity to focus more closely on non-uranium assets with a drilling program planned on the San Marcos gold project in May 2011 following the encouraging results of the intensive sampling exercise.

CORPORATE

Toronto Stock Exchange Listing

The Company announced the intention to apply to have its ordinary shares listed for trading on the TSX. The company anticipates conditional approval being received from the TSX in the next few weeks and trading is anticipated in May 2011.

The decision to dual list on the TSX was influenced by the following issues;

1. Size of market - The TSX is the largest market in the world for mining stocks in terms of dollars invested and number of companies.

2. Proximity of projects - AusAmerican’s resource projects are located 100% in North America which we believe will assist the investors in understanding the projects better; and

3. Valuation - TSX valuation per Enterprise value per pound of JORC /43-101 pound of U3O8 (EV/lb) for uranium junior exploration/development companies is currently between $2.50 and $3 per pound. ASX EV/lb valuation is lower than the TSX’s and AIW’s current EV/lb is less than $0.50 per lb.

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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Change of Officers

With the TSX listing in mind, and in order to bolster the expertise of the board, the Company appointed two new Canadian based non executive Directors, Simon Jackson and Don Falconer, on 28 February 2011. Nerida Schmidt was also appointed Company Secretary on this date. The Company would like to thank Mike Duncan, a founding Director of the Company, for his efforts over the past five years. Mike resigned as a director on 28 February 2011 but will remain an executive and a shareholder of the Company. The composition of the Board is now as follows:

Name	Position	Executive	Independent	Location
Jim Malone	Executive Chairman	Yes	No	Perth, Australia
Denis Geldard	CEO, Executive Director	Yes	No	Tucson, USA
Greg Barns	Non Executive Director	No	Yes	Melbourne/Hobart, Australia
Don Falconer	Non Executive Director	No	Yes	Toronto, Canada
Simon Jackson	Non Executive Director	No	Yes	Vancouver, Canada

Simon Jackson is a Chartered Accountant with over 20 years experience in the resources industry. Don Falconer is a uranium veteran and a seasoned senior executive with extensive industry experience in the mining and electric utility sectors. Both Mr Jackson and Mr Falconer are highly talented individuals who bring a great deal of expertise to the AusAmerican Board of Directors and the Company is delighted they have agreed to join the Board.

Japanese Crisis

In the wake of the earthquake and tsunami that took place in Japan in early March Uranium stocks have been put under pressure and the nuclear and uranium mining industries are under scrutiny by governments around the world.

The main issue is one of perception, with the legitimacy of the nuclear industry being questioned again - especially by the powerful anti-nuclear lobby. It is expected that there will likely be a slowing down in the rate of growth of new reactor construction as governments of nuclear expansion countries review their reactors and their safety as a matter of proper prudence. However, compared to other generating sources, nuclear demonstrably has an excellent safety record and possesses unique advantages.

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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Hence, new builds will almost certainly resume in China, India, Russia and other countries with a strong commitment to nuclear power, and uranium will continue to be considered a legitimate and important part of the world’s future energy mix.

Regards,

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Jim Malone Executive Chairman

Competent person

The review of exploration activities and results contained in this report is based on information compiled by Mr. Denis Geldard, Chief Executive Officer and Executive Director of Australian-American Mining Corporation Limited (“AusAmerican” or “Company”). Mr Geldard is a member of the Australasian Institute of Mining and Metallurgy. Mr Geldard has significant experience relevant to the style of mineralisation and types of deposits under consideration. Mr Geldard consents to the inclusion of this information in the form and context of this announcement.

Further information

Please contact Jim Malone +61 419 537 714 or jim.malone@iinet.net.au

Investor and Media Enquiries: Fortbridge- Bill Kemmery on +61 2 93310655 or +61 400 122 449.

North American Investor Relations Manager: Peter Barnes on +1 646 269 3073.

Cautionary note to U.S investors

The United States Securities and Exchange Commission limits disclosure for US reporting purposes to mineral deposits that a company can economically and legally extract or produce. We may use terms in the release such as “reserves”, “resources”, “geological”, “proven”, “probable”, “measured”, “indicated” or “inferred” which may not be consistent with the reserve definitions established by the SEC. US investors are urged to consider closely the disclosure in our annual reports. You can review and obtain copies of these filings from our website.

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574

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This announcement contains forward looking statements. These statements relate to future events, or our future financial performance. We have attempted to identify forward looking statements by terminology including “anticipates”, “believes”, “can”, “continue”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “potential”, “predicts”, “should” or “will” or the negative of these terms or other comparable terminology. The statements are only predictions and involve known and unknown risks, uncertainties and other factors. The following factors, among others, could cause our actual results and performances to differ materially from the results and performance projected in, or implied by, the forward looking statements:

• Our history of losses and expectation of further losses.

• The effect of poor operating results on our company.

• Our ability to expand our operations in both new and existing prospects and our ability to develop or acquire new prospects.

• Or ability to develop new prospects and our performance in detecting and producing uranium for yellow cake.

• Our ability to raise capital.

• Our ability to fully utilize and retain new executives.

• Negative publicity surrounding our product.

• Trends in consumer tastes in energy.

• The impact of litigation.

• The impact of Federal, state, local or foreign government regulations.

• The effect of competition in our industry.

• Economic and political conditions generally.

Australian-American Mining Corporation Limited ABN 99 073 155 781 572 Hay Street, Perth, WA, Australia, 6000 PO Box 1788, West Perth, WA, Australia, 6872 Telephone: (08) 9325 5568 Facsimile: (08) 9325 5574