ORBMINCO LIMITED — Interim / Quarterly Report 2011

Mar 15, 2011

AUSTRALIAN-AMERICAN MINING CORPORATION LTD (FORMERLY MONARO MINING NL) ABN 99 073 155 781

HALF YEAR FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2010

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AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS’ REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

The Directors of Australian-American Mining Corporation Ltd (“Aus-Am” or “Aus-American” or “Consolidated Entity” or “Company”) submit herewith the interim financial report for the half-year ended 31 December 2010.

Directors

The names of directors of the Company in office during or since the end of the half-year are:

Jim Malone	-	Executive Chairman (Appointed 30 July 2008)
Denis Geldard	-	Executive Director (Appointed 29 January 2010)
Greg Barns	-	Non-Executive Director (Appointed 30 July 2008)
Simon Jackson	-	Non-Executive Director (Appointed 28 February 2011)
Don Falconer	-	Non-Executive Director (Appointed 28 February 2011)
Michael Duncan	-	Executive Director (Appointed 30 July 2008 – Resigned 28 February 2011)

All directors held office from the start of the financial year to the date of this report unless otherwise stated.

Operating results

The consolidated loss after tax for the reporting period was $4,090,501 (half-year ended 31 December 2009: loss of $4,917,030).

Review of operations

Overview

The period 1 July 2010 until 31 December 2010 was a significant period of development for AusAmerican. The most significant development was the capital raising concluded in December 2010 which saw the Company raise $8.5 million before costs. This allowed the Company to cancel the convertible note facility the Company had previously negotiated and most importantly, will provide the working capital which will allow the Company continue to allow the company to pursue the exploration and development opportunities it has not been able to capitalize on over the past two years due to a shortage of funds.

Despite funding difficulties, the Company has:

1. Been able to keep our technical and financial team together.

2. Been able to continue to progress on developing our existing projects; and

3. The technical team has discovered/acquired a number of prospective new projects to add to the Company’s growing inventory of assets.

During the period in review a number of significant events occurred including the following:

1. A convertible note financing agreement was announced with SpringTree Special Opportunities Fund, LLP of New York City for $3.65 million.

2. The Company changed from an N.L. company to a Limited company

3. The Company announced a capital raising consisting of a placement and a share purchase plan (SPP). It also saw the first instance of participation by North American institutions who took up $2.2 million of the total $8.5 million raised.

4. The Company announced the discovery of the White Picacho pegmatite specialty metal project in Arizona as well as announcing that it had completed the acquisition of properties which were part of the White Picacho pegmatite specialty metals project in Arizona. This transaction involved the purchase of a number of claims which comprised the total area of the pegmatite project at White Picacho which the company had not already staked to allow us to control the entire project area. An agreement with Stith Mining was completed for consideration of 3,000,000 shares and US $25,000 in cash consideration.

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2010

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AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS’ REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

1. The Company completed a 917.1 metre, 11 hole drilling programme at the Apex uranium project in Nevada.

2. The Company acquired all of the permits required to drill the Rio Puerco, Lowboy and Lone Star (Texas) uranium projects. Drilling on these projects was delayed due to the poor winter weather experienced in the USA this northern winter but drilling is expected to commence at Rio Puerco in the first half of March 2011 and at Lone Star in the late March 2011.

Subsequent to 31 December 2010, up to the time of writing of this report, the following events have occurred:

1. An NI 43-101 resource on the Apex uranium project has been released. This report upgraded the resource at Apex by 50% (see below).

2. The Company announced it is intending to apply to have its ordinary shares listed for trading on the TSX and anticipates to be trading by Easter 2011.

3. 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; and

4. The Company announced the discovery of the San Marcos gold project and also the results of an intensive sampling exercise at this project where 24 of the 84 samples returned gold grades of greater than 1 gram per tonne (g/t). The highest return was 98.2 g/t.

5. Natural occurrences in the Pacific region, including earthquakes and tsunamis, most significantly in Japan, have cast some doubt over the outlook for the nuclear industry and the demand for uranium going forward. These events are potentially material and significant, but the full effect of these events on the nuclear industry and demand for uranium going forward is uncertain at the date of this report.

Exploration Overview

APEX Uranium Project

A NI 43-101 has been finalised which has increased the former JORC inferred resource of 950,000 pounds @ 770ppm (0.07%) U3O8 to a NI 43-101 inferred resources outlined in the table below:

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

A drilling programme was completed in December 2010 and a NI 43-101 was prepared and finalised and released in March 2011.The NI 43-101 did increase the resource estimation by 52% to 1.452 million pounds grading 700ppm. The resource remains in the inferred category.

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2010

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AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS’ REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Apex has an exploration target of 3 million pounds (*).

• The NI 43-101 recommends more drilling to further increase the resource.

• Further, 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 (*).

• A full copy of the NI 43-101report is posted on the Company’s website www.ausamerican.com

• “potential to increase the resource exists along strike of the meta-sedimentary-intrusisive 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 deposit 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”.

• The Company intends carrying out this recommended work immediately and has received all approvals for a drilling programme to test the Lowboy targets. This drilling programme is expected to take place at the conclusion of the Rio Puerco and Lone Start drilling programmes towards the middle of 2011 year.

• The Company anticipates increasing the resource to at least 3 million pounds U3O8 with the recommended drilling at Apex (). The drill program will target historical high grade areas and extensions of these areas, with the goal of increasing the overall size and economic grades of the resource. Additionally, the Company hopes to add between 2 million and 15 million pounds of U3O8 at the Lowboy project by carrying out the planned drill program ().

• Scoping studies have commenced. A study (in house) completed in 2007 demonstrated that by using heap leach extraction methods and economic mining programme could produce 500,000 lbs per annum for three years at a cost of $22 per lb.

• The capital expenditure is expected to be approximately $10-12 million because it would only include the cost of the leach pads, and the ion exchange plant as we intend to transport U3O8 on resign beads to an existing plant (Denison’s Utah plant was used in the scoping study and remains the preferred plant option). There is an excellent video demonstrating the ion exchange process on the UEC website (www.uraniumenergy.com/Uranium101/ISR)

• The lead time for permitting is roughly three years but the Company has commenced this process.

Lowboy

Although there has been some historic drilling done at Lowboy there is no current JORC/43-101 resource. A planned drilling programme is planned for the middle of 2011 and has been permitted. Examination of the old drilling has shown that the drilling ended in mineralisation at greater than 800 feet which is exciting. The extent of the strike is 1 km long and approximately 100 metres wide so depending on the depth it could be a significant deposit. At this stage our exploration target is 2 million-15 million lbs (*) (large discrepancy is because it depends greatly on the extent of the depth and grade of the ore body).

Should this project be viable it would be mined in conjunction with Apex and would be considered the one project. Based on our regional exploration, potential exists for further discovery along the 12 km zone between Apex and Lowboy. Several anomalies were detected during the flying conducted by our staff and these require further investigation.

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2010

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AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS’ REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Rio Puerco uranium project - New Mexico

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.

The project was developed as a mine in the 1970/80s by Kerr McGee and over $17 million worth of development was expended at the property including a fully developed room and pillar mine with over 1 km of drives and a concrete lined 800 foot shaft and on ground infrastructure much of which could be reused if we were to reopen the mine for conventional mining.

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) Much of the historic data is owned by Strathmore and we have not had access to this information to use in any resource calculation; and

• (iii) 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 (i.e. drop the cut off grade to include the lower grade ore) and indications are this could add and additional 25% to the resource.

Our exploration target for this project is approximately 2 to 5 times the existing resource (*).

The Company anticipates that test-work being carried out by Hazen on old pre development surface dumps and also on the core samples from this next round of drilling will verify that the ore is amenable to ISR extraction. If this is so then we would look to develop an ISR mine and again use a low capex ion exchange circuit and ship resin to an existing plant. If the ore is not amenable to ISR, we do have advantages over other potential properties in the area as we have a large portion of the existing underground mine infrastructure in place already but we would either have to build our own mill or rely on another company building one close to the Company’s project.

The other positive characteristic of this project is its location. The Grants Mineral belt hosts a number of projects owned by various companies ranging from 2-3 million pounds up to 100 million pounds in resource. There is obviously a need for some form of rationalisation in this area and that is why we will continue to talk with the Strathmore’s, Laramide’s, URI’s, Pluton Energy’s etc. who are project owners in the area.

A large $1 million, 5,000 metre, 20 hole drilling programme is permitted and planned to commence in late March 2011. The aim of this programme is to validate old drilling, expand the resource, increase the confidence from inferred to measured and indicated, provide core for further metallurgical test work and to assist with a radon gas survey for the more grass roots targets of the next round of exploration drilling. This will take place over a few months and will be followed by a resource update in JORC and 43-101. It will be a mixture of RC to a depth and then diamond drilling.

ABOUT THE RIO PUERCO URANIUM PROJECT, NEW MEXICO, USA.

A detailed, independent review of the Rio Puerco mine data-set took place in October 2009.. The following table outlines “inferred” JORC compliant resource estimates based on several differing eU3O8 cut-off grades.

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

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2010

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AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS’ REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

This resource upgrade was based on the evaluation of 764 drill holes and using a block modelling program and validated using the cross sectional method. Confirmatory drilling will now be required to validate the historical drilling, define the disequilibrium and assess the potential for other metals such as molybdenum and vanadium. The project is considered to hold potential for either conventional underground or in-situ leach (ISL) mining. The Company believes that confirmatory drilling has the potential to convert the resource into a “measured’ category relatively quickly. This drilling will take place in late March 2011.

A distinct advantage of the Rio Puerco project is that there is significant mining infrastructure already in place, including a 260 metre, 4 metre diameter concrete lined shaft and multiple drives. This work was completed by Kerr McGee in the 1970s for the purposes of mine development and bulk metallurgical sampling and processing. This infrastructure will save the Company millions of dollars in mine development costs, should it be found that conventional mining is the preferred method of extraction.

As part of the re-evaluation study, the potential to increase the extent of uranium resources was also assessed as the host uranium formation extends across to other nearby claims held by the Company. Previous drilling by the Company and other published data, indicates that further work is warranted to test for potential extensions.

The Rio Puerco mine area is secured by 32 claims over Sections 18 (Betty Claims) and Section 24 (Syncline Claims). The Company also holds a number of claims to the east and west of the prospect, the positions of which are outlined in Figure 1.

That the Company’s Rio Puerco uranium project is located in one of the world’s greatest uranium provinces is unquestioned. The Grants Mineral Belt has produced approximately 340M lbs of uranium and is set to resume its mantle of a premier world producing region. The Company’s deposit is located only 55 kms east of the Mt Taylor uranium deposit and 65 kms from the Roca Honda uranium deposit. The Mt Taylor uranium mine has produced approximately 8M lbs of U3O8 before it was shut down in the late 1980s. This deposit is now owned by Rio Grande Resources Corporation and a recent company release indicates that this deposit now contains over 100 M lbs of U3O8 with an average grade of 0.15% to over 2.0%. The deposit is currently being evaluated for development as an in-situ leach operation. The Roca Honda deposit is owned by Strathmore Minerals Corporation and based on their published company information, contains approximately 33M lbs of U3O8 with grades varying from 0.17% to 0.23%

Previous exploration reports indicate that the Rio Puerco deposit was discovered in 1968 on Section 24, when uranium mineralisation was intersected by drilling to a depth of 254.5m. Between 1970 and 1980, Kerr-McGee reportedly spent US$17.5million in proving up and developing a resource of approximately 7 million pounds U3O8 on land in and around the Rio Puerco mine. A total of 815 holes were drilled for 183,604m on Section 18 and 271 holes for 55,259m were drilled on Section 24 (Figure 2). These two sections contain the bulk of the Rio Puerco Resource which has been previously reported by the Company to contain 1.93 million tonnes of ore with an average grade of 0.12% U3O8 (4.6M lbs contained U3O8 ).

The surface geology at Rio Puerco is dominated by the Upper Cretaceous Mancos Shale, which is flat-lying and deeply dissected. The Mancos Shale consists of a series of shale and sandstone beds. Underlying the Mancos Shale is the LowerUpper Cretaceous Dakota Sandstone and the Upper Jurassic Morrison Formation, which actually outcrop outside of Sections 18 and 24. In descending order, the Morrison Formation comprises of:

• The Jackpile Sandstone Member.

• The Brushy Basin (mudstone) Member with lenses of sandstone.

• The Westwater Canyon Member comprising the ‘A’, ‘B’, ‘C’ and ‘D’ sandstone horizons and interbedded with variable thickness hale beds.

From the down hole wireline logs it appears that most of the uranium mineralisation occurs within the Westwater Canyon Member near or at the contact between sandstone and shale units. Aerial photo interpretation indicates that the structure around the project area is generally flat-lying or gently warped along E-W and N-S oriented fold axes. The folds are tighter locally and deflect into major N-S striking faults (e.g. Rio Puerco Fault).

Mineralisation at Rio Puerco is postulated to be of the Peneconcordant sandstone hosted type, characteristic of the Grants Uranium District. These deposits are irregular in shape, are roughly tabular and usually elongated. They range from a few metres in width and length to several tens to hundreds of metres long and occur within humate rich sandstone. The uranium is sourced from nearby volcanics as well as from the devitrification of tuff deposited within the sandstones. The uranium is concentrated within humic acid percolating through the aquifer from the surface, to be eventually trapped by changes in lithofacies or structures and converted to humate during diagenesis and changes in groundwater salinity.

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2010

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AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS’ REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

The dominant ore mineral is reported to be Coffinite which is associated with the humate found within the sandstone layers. Uraninite and uranium-organic complexes associated with the humate is not uncommon. The humate is also enriched in a number of other metals including vanadium, selenium and molybdenum. However, none of these elements appear to have received any attention by past explorers. The ore deposits are in general lenticular, tabular masses of interstitial humate and uranium minerals that are roughly parallel to the bedding and generally elongated in the direction of sediment transport of the host rock. Although two general types of deposits are recognized in the area, the Rio Puerco Deposit is believed to be a primary deposit.

Based on the re-evaluation, the Rio Puerco ore body appears to extend into adjacent sections 17, 19, and 20, with a number of historical drill holes apparently striking ore grade mineralisation. Whilst summary results of drilling have been reported, drill logs to support the data have yet to be found. As a consequence previous reporting of resources within these areas can only be considered as exploration targets.

Lone Star uranium project-Texas

This project was bought to us 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). There are a number of projects that will fall under this agreement; primarily they are old Union Carbide projects that were drilled but not mined. They are located primarily in Lafayette County in Texas near the city of Corpus Christi. We have leased the first project which we refer to as the “Northern trend project”. Based on the knowledge of Chet Nicols, who was the geologist who drilled these projects for Union Carbide and is part of the Lone Star LLC team, this project contains approximately 2M lbs (*), is shallow and amenable to ISR recovery. Drilling permits are being sought and it is expected we can drill this project by the end of March/early April 2011.

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 which are currently pending the outcome of negotiations.

Apache Basin Joint Venture: Arizona, USA (AusAmerican reducing to 40%)

The prospectively of the 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. The Company is confident that this potential will unfold during the coming months as a drilling program is planned for mid 2011 to test a number of newly defined uranium anomalies.

White Picacho strategic metals project (Arizona)

This project was discovered by the company and is located north west of Phoenix, AZ. We have staked/secured approximately 28 known pegmatites in the area and these have been mapped and a number of them were initially sampled and returned high returns of Lithium and Tantalum as well as number of other rare metals.. Previous work had been performed by a US company many years ago who mined the area for feldspar and had delineated a small tantalum exploration target.. Following on from the initial sampling programme, a more consistent, large channel sampling programme (approximately 1,300 samples were collected) was carried out on a number of the 28 pegmatites and the results of these have been sent to an accredited laboratory in Arizona for assaying. . We expect to receive the results from all of the samples by the end of March 2011.

The mineralisation is spodumene in pegmatites and this is commonly associated with lithium and tantalum deposits (the Western Australian lithium projects Greenbushes is the largest and best known spodumene in pegmatite hosted lithium/tantalum project in the world; as are Galaxy’s and Reed Resources projects in WA).

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2010

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AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS’ REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Gold projects

Both Bernard and San Marcos projects are located in Arizona. Mineralisation associated with both projects is through a series of layered detachment faults.

Bernard project was 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 $750k was spent which meant Cristol earnt a 10% interest in the Bernard property. They consequently failed to fund the second part of their commitment and as a result we are conducting further exploration on this project ourselves..

A seismic survey was undertaken and identified some new drilling targets. A small drilling programme will take place on the seismic targets in the next couple of weeks. Should these prove unsuccessful, this project will be downgraded to low priority.

San Marcos was discovered by the Company and is 100% controlled by AusAmerican.

The Company recently completed a mapping programme and also conducted a sampling programme. 86 samples were taken. Results form that sampling contained some interesting high grade returns, the highest of which was 98 g/t. 24 of 86 samples returned grades of > than 1 g/t. A release on this project was made to the ASX on 1 March 2011.

(*) It should be noted that in this case, the potential quantity and grade is conceptual in nature, and that there is insufficient exploration data to define a mineral resource and that it is uncertain if further exploration will result in the determination of a mineral resource.

Auditor’s independence declaration

The lead auditor’s independence declaration under section 307C of the Corporation Act 2001 is set out on page 9 for the half-year ended 31 December 2010 which forms part of this report.

Signed in accordance with a resolution of the Directors made pursuant to Section 298(2) of the Corporations Act 2001.

On behalf of the Directors:

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James Malone

Executive Chairman

Perth, 16 March 2011

COMPETENT PERSON

The review of exploration activities and results contained in this report is based on information compiled by Mr. D Geldard,Executive Director of Australian-American Mining Corporation Ltd. Mr. Geldard is a Member of the Australasian Institute of Mining and Metallurgy He has significant experience 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).

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2010

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Grant Thornton Audit Pty Ltd ABN 94 269 609 023

10 Kings Park Road West Perth WA 6005 PO Box 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E admin.wa@au.gt.com W www.grantthornton.com.au

Auditor’s Independence Declaration To The Directors of Australian - American Mining Corporation Ltd

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Australian - American Mining Corporation Ltd for the half-year ended 31 December 2010, I declare that, to the best of my knowledge and belief, there have been:

• a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b no contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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J W Vibert Director - Audit & Assurance

Perth, 16 March 2011

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

CONTINUING OPERATIONS NOTE Interest Income Other income 9 Foreign exchange gain/(loss) Depreciation and amortisation Insurance Occupancy & administration expense Project expenditure Salary, wages, professional fees Travel Share based payments expense 11 Loss before income tax Income tax expense Loss from continuing operations Loss from discontinued operations Loss for the period attributable to members of Australian-American Mining Corporation Ltd Other Comprehensive Income Revaluation of available for sale securities Foreign currency translation Total comprehensive income attributable to members of Australian-American Mining Corporation Ltd EARNINGS/(LOSS) PER SHARE: Basic earnings/(loss)per share (cents per share) Diluted earnings/(loss) per share (cents per share) Continuing operations Basic earnings/(loss)per share (cents per share) Diluted earnings/(loss) per share (cents per share) Discontinued operations Basic earnings/(loss)per share (cents per share)	CONSOLIDATED ENTITY 31 DECEMBER 2010 $ 31 DECEMBER 2009 $
	31,937 2,194 615,742 96,961 - (428,159) (16,715) (9,403) (2,215) (65,994) (297,915) (89,417) (1,728,204) (659,590) (726,786) (518,952) (124,878) (24,394) (1,841,467) -
	(4,090,501) (1,696,754)
	- -
	(4,090,501) (1,696,754)
	- (3,220,276)
	(4,090,501) (4,917,030)
	2,040,000 - (672,103) (441,993)
	(2,722,604) (5,359,023)
	(2.00) (4.24)
	(2.00) (4.24)
	(2.00) (1.5)
	(2.00) (1.5)
	- (2.74)

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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C[ONSOLIDATED STATEMENT OF FINANCIAL POSITION ] AS AT 31 DECEMBER 2010

CURRENT ASSETS NOTE Cash and cash equivalents Trade and other receivables Other TOTAL CURRENT ASSETS NON-CURRENT ASSETS Other financial assets Property, plant and equipment Mineral properties Available for sale securities TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES 9 Trade and other payables Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Deferred Tax liability TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 7 Reserves Accumulated losses TOTAL EQUITY	CONSOLIDATED 31 DECEMBER 2010 $ 30 JUNE 2010 $
	7,127,227 849,044 193,919 122,710 21,541 91,596
	7,342,687 1,063,350
	34,565 - 119,057 148,725 6,971,423 7,508,916 2,640,000 -
	9,765,045 7,657,641
	17,107,732 8,720,991
	756,847 466,121 33,137 31,489
	789,984 497,610
	771,756 771,756
	771,756 771,756
	1,561,740 1,269,366
	15,545,992 7,451,625
	51,817,280 42,592,222 4,128,194 1,168,384 (40,399,482) (36,308,981)
	15,545,992 7,451,625

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Consolidated entity Balance at 1 July 2009 Total comprehensive income Transactions with owners in their capacity as owners: Shares issued during the period Options granted Balance at 31 December 2009 Balance at 1 July 2010 Total comprehensive income Transactions with owners in their capacity as owners: Shares issued during the period Share issue costs Options granted Balance at 31 December 2010	SHARE CAPITAL OPTIONS RESERVE FOREIGN CURRENCY TRANSLATION AVAILABLE FOR SALE SECURITIES ACCUMULATED LOSSES TOTAL
	38,962,174 1,571,581 291,299 - (29,714,079) 11,110,975
	- - (441,993) - (4,917,030) (5,359,023)
	2,850,000 - - - - 2,850,000 - - - - - -
	41,812,174 1,571,581 (150,694) - (34,631,109) 8,601,952
	42,592,222 1,571,581 (403,197) - (36,308,981) 7,451,625
	- - (672,103) 2,040,000 (4,090,501) (2,722,604)
	9,472,732 - - - - 9,472,732 (497,228) - - - - (497,228) 249,554 1,591,913 - - - 1,841,467
	51,817,280 3,163,494 (1,075,300) 2,040,000 (40,399,482) 15,545,992

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

	CONSOLIDATED
CASH FLOWS FROM OPERATING ACTIVITIES NOTE	31 DECEMBER 2010 $ 31 DECEMBER 2009 $
Payments to suppliers and exploration	(2,656,910) (2,323,987)
Other receipts	58,003 -
Net cash (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES	(2,598,907) (2,323,987)
Interest received	31,937 11,041
Interest paid	- (1,788)
Proceeds from sale of property, plant equipment	- 12,000
Contributions from joint venture	- 217,000
Payments for joint venture operations	- (478,691)
Payment for property, plant equipment	(7,329) -
Proceeds from refund of security deposits	31,477 -
Net cash (used in) / provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES	56,085 (240,438)
Proceeds from issue of shares and other equity securities	8,763,332 3,000,000
Proceeds from share auction	159,400 -
Proceeds from borrowings	200,000 -
Repayment of borrowings	(200,000) (5,306)
Proceeds from issue of convertible notes	400,000 -
Payment for share issue costs	(497,229) (150,000)
Net cash provided by / (used in) financing activities NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	8,825,503 2,844,694
	6,282,681 280,269
Cash and cash and cash equivalents at the beginning of the year	849,044 1,692,580
Effects of exchange rates on cash and cash equivalents Cash and cash equivalents at the end of the period	(4,498) (5,676)
	7,127,227 1,967,173

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

13

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2010

1. Basis of preparation

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standard AASB 134 Interim Financial Reporting , Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting .

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2010 and any public announcements made by Australian-American Mining Corporation Ltd during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 .

The half-year financial report does not include full disclosures of the type normally included in an annual financial report.

Except where indicated otherwise, all amounts are presented in Australian dollars.

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements except for the adoption of the new and revised Accounting Standards, as set out in note 2 below.

2. Reporting basis and conventions

The half-year report has been prepared on an accrual basis and is based on historical costs, except where applicable, for the revaluation of certain financial instruments. The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the company’s 2010 annual financial report for the year ended 30 June 2010, unless otherwise described herein.

New or revised Standards and Interpretations that are first effective in the current reporting period

The Group has adopted the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current period.

Impact of new and revised Standards and amendments thereof and Interpretations effective for the current period that are relevant to the Group include:

AASB 9 Financial Instruments, AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9

In December 2009, the AASB issued AASB 9 Financial Instruments which addresses the classification and measurements of financial assets and is likely to affect the Group’s accounting for its financial assets. The standard is not applicable until 1 January 2013 but is available for early adoption. The Group is yet to assess its full impact. However, initial indications are that it will have no impacts on the Group’s financial statements. The Group has yet to decide when to adopt AASB 9.

Amendments to AASB 5, 8, 101, 107, 117, 118, 136 and 139 as a consequence of AASB 2009-5 Further Amendments

to Australian Accounting Standards arising from the Annual Improvements Project

AASB 2009-5 Introduces amendments to Accounting Standards that are equivalent to those made by the IASB under its program of annual improvements to its standards. A number of the amendments are largely technical, clarifying particular terms, or eliminating unintended consequences. Other changes are more substantial, such as the current/non-current classification of convertible instruments, the classification of expenditures on unrecognized assets in the statements of cash flows and the classification of leases of land and buildings.

The adoption of these amendments, have not resulted in any material changes to the Group’s accounting policies and have no effect on the amounts reported for the current or prior periods.

14

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2010

AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project

Amends a number of pronouncements as a result of the IASB’s 2008-2010 cycle of annual improvements to provide clarification of certain matters.

The key clarifications include:

• The measurement of non-controlling interests in a business combination;

• Transition requirements for contingent consideration from a business combination that occurred before the effective date of the revised AASB 3 Business Combinations (2008); and

• Transition requirements for amendments arising as a result of AASB 127 Consolidated and Separate Financial Statements.

The adoption of these amendments, have not resulted in any material changes to the Group’s accounting policies and have no effect on the amounts reported for the current or prior periods.

3. Dividends

There have been no dividends paid or declared in the period or in the previous reporting period.

4. Operating segments

Segment Information

Identification of reportable segments

The Company has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.

The Company’s principal activity at this point of time is mineral exploration.

Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar economic characteristics.

Basis of accounting for purposes of reporting by operating segments

Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with respect to operating segments are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Company.

(i) Segment performance

During the six months ended 31 December 2010 the Group’s principal activity is mineral exploration. The group operates in Australia, United States of America and Niger. Offices are maintained in Australia and the USA where operations comprise the operations of Uranium King Corporation and its subsidiaries. Segment results are classified in accordance with their economic characteristics regardless of legal Entity ownership. The continuing segment includes USA and Australian operations.

2010 Revenue Interest income Other Total segment revenue Segment result	CONTINUING $ DISCONTINUING $ TOTAL $
	31,937 - 31,937 615,742 - 615,742
	647,679 - 647,679
	(4,090,498) - (4,090,498)

15

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2010

2009 Revenue Interest income Joint venture revenue Other Total segment revenue Segment result	CONTINUING $ DISCONTINUING $ TOTAL $
	2,194 8,847 11,041 90,395 - 90,395 6,566 - 6,566
	99,155 8,847 108,002
	(1,696,754) (3,220,276) (4,917,030)

(ii) Major customers

Due to the nature of its current operations, the Company does not provide products and services.

5. Contingent liabilities and contingent assets

i ) Contracts for services of key management personnel

Details of service contracts with executives have been included in the Remuneration Report section of the Directors’ Report in the 30 June 2010 Financial Statements. In the event that service contracts are terminated early the Company may become liable for payments in lieu of notice.

There is a written contract with the Executive Director Mr Denis Geldard. In the event that the contract is terminated early then the Company will be liable for three months salary or approximately $49,198.

	CONSOLIDATED
	31 DECEMBER 2010 $ 31 DECEMBER 2009 $
Contingent liabilities	49,198 45,144
Contingent assets	- -

ii) Pursuant to an Agreement to acquire uranium and gold exploration licences in the Kyrgyz Republic settled on 30 January 2006 a further 2,000,000 fully paid ordinary shares will be issued upon the grant of a mining licence and all mining, environmental and export approvals for a uranium mining operation on one of the projects. The Company applied for and was granted a waiver from Listing Rule 7.3.2 as the shares would not be issued within three months of the General Meeting of Shareholders but will be issued no later than 36 months after the date of the meeting.

iii) The Rio Puerco, Apex, Lowboy and Church Rocks projects areas carry a yellow cake royalty, to a maximum equivalent of a 5% on a claim by claim basis. In all cases the royalty does not exceed 5% over any project.

iv) Jim Malone, Mike Duncan, Directors of Australian-American Mining Corporation Ltd, Uranium King Pty Ltd, and subsidiary companies of Australian-American Mining Corporation Ltd domiciled in the USA were defendants in a rescission action brought by Dean Coleman, a shareholder in Aus-Am’s largest shareholder, METCO. This action sought to rescind the transaction between METCO and UKL. This action was filed in the Supreme Court of New Mexico and was dismissed on 8 January 2009 against UKL and METCO. An Appeal has been filed against the Dismissal of the Coleman case by Ms Ostrochovsky. Preliminary legal advice received by the Company is that the Appeal is without merit. The case has been submitted to a three judge panel for decision without argument.

v) Jim Malone, Mike Duncan and a range of other parties are defendants in a RICO action brought by persons purporting to be minority shareholders in METCO. The United States Court of Appeals 10th Circuit issued an Order on 22 February 2010 affirming the decision of the United States District Court in New Mexico last year to dismiss the claims brought by the minority shareholders of METCO.

16

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2010

6. Events subsequent to the reporting period

There have been no significant events since the end of the period other than:

• The Company announced it is intending to apply to have its ordinary shares listed for trading on the TSX and is hopeful to be trading by Easter 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.

• Natural occurrences in the Pacific region, including earthquakes and tsunamis, most significantly in Japan, have cast some doubt over the outlook for the nuclear industry and the demand for uranium going forward. These events are potentially material and significant, but the full effect of these events on the nuclear industry and demand for uranium going forward is uncertain at the date of this report.

7. Issued capital

331,709,607 fully paid ordinary shares (30 June 2010: 157,354,563) Nil partly paid ordinary shares (30 June 2010: 5,000,000) Share issue expenses	CONSOLIDATED
	31 DECEMBER 2010 $ 30 JUNE 2010 $
	53,289,605 43,562,320
	- 5,000
	(1,472,325) (975,098)
	51,817,280 42,592,222

The company does not have a limited amount of authorised capital and issued shares do not have a par value.

Fully paid ordinary shares Balance at beginning of financial year Shares allotted during the year Share issue costs Ordinary fully paid shares at end of year	CONSOLIDATED AND COMPANY 31 DECEMBER 2010 NUMBER 31 DECEMBER 2010 $ 30 JUNE 2010 NUMBER 30 JUNE 2010 $
	157,354,563 42,587,222 103,371,230 38,957,174 174,355,044 9,727,285 53,983,333 3,833,000 - (497,227) - (202,952)
	331,709,607 51,817,280 157,354,563 42,587,222

Fully paid ordinary shares carry one vote per share and carry the right to dividends. Partly paid ordinary shares entitle the holder to vote, participate in dividends and proceeds on a winding up in proportion to the number of and amounts paid on the shares held.

Partly paid ordinary shares Balance at beginning of financial year Movements Balance at end of financial year	CONSOLIDATED COMPANY 31 DECEMBER 2010 NUMBER 31 DECEMBER 2010 $ 30 JUNE 2010 NUMBER 30 JUNE 2010 $
	5,000,000 5,000 5,000,000 5,000
	(5,000,000) (5,000) - -
	- - 5,000,000 5,000

17

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2010

a) The following shares were issued during the reporting period:

(i) On 16 August 2010, 5,000,000 partly paid shares were auctioned as fully paid ordinary shares, raising $159,400.

(ii) On 27 August 2010, 2,522,800 fully paid ordinary shares were issued at $0.04 per share as part of a placement.

(iii) On 15 September 2010, 8,050,123 fully paid ordinary shares were issued at $0.031 per share to assist in securing a convertible note agreement.

(iv) On 15 September 2010, 2,077,200 fully paid ordinary shares were issued at $0.04 per share as part of a placement.

(v) On 12 October 2010, 3,086,420 fully paid ordinary shares were issued at $0.0324 per share to pursuant to the conversion of a convertible note under the convertible note agreement.

(vi) On 14 October 2010, 1,851,852 fully paid ordinary shares were issued at $0.0324 per share to pursuant to the conversion of a convertible note under the convertible note agreement.

(vii) On 29 October 2010, 2,777,778 fully paid ordinary shares were issued at $0.0324 per share to pursuant to the conversion of a convertible note under the convertible note agreement.

(viii) On 10 November 2010, 94,097,328 fully paid ordinary shares were issued at $0.06 per share as part of a placement.

(ix) On 18 November 2010, 3,000,000 fully paid ordinary shares were issued at $0.05 per share to pursuant to the conversion of a convertible note under the convertible note agreement.

(x) On 18 November 2010, 3,000,000 fully paid ordinary shares were issued at $0.05 per share as part of the consideration to acquire mineral properties.

(xi) On 13 December 2010, 16,391,611 fully paid ordinary shares were issued at $0.06 per share per a Share Purchase Plan.

(xii) On 17 December 2010, 32,499,932 fully paid ordinary shares were issued at $0.06 per share pursuant to the shortfall of the Share Purchase Plan.

a) The following share options to take up ordinary shares were issued during the reporting period:

(i) On 31 August 2010, 43,461,400 share options were issued with exercise prices of $0.10 and expiry dates of 31 December 2010.

(ii) On 15 September 2010, 8,000,000 share options were issued with exercise prices of $0.0462 and expiry dates of 15 September 2013.

(iii) On 21 September 2010, 1,038,600 share options were issued with exercise prices of $0.10 and expiry dates of 31 December 2010.

(iv) On 12 October 2010, 308,642 share options were issued with exercise prices of $0.0421 and expiry dates of 6 October 2013.

(v) On 14 October 2010, 185,185 share options were issued with exercise prices of $0.0421 and expiry dates of 13 October 2013.

(vi) On 29 October 2010, 277,778 share options were issued with exercise prices of $0.0421 and expiry dates of 20 October 2013.

(vii) On 18 November 2010, 10,000,000 share options were issued with exercise prices of $0.10 and expiry dates of 31 December 2010.

(viii) On 18 November 2010, 300,000 share options were issued with exercise prices of $0.065 and expiry dates of 16 November 2013.

(ix) On 17 December 2010, 95,325,825 share options were issued with exercise prices of $0.10 and expiry dates of 31 December 2010.

(x) On 17 December 2010, 23,950 share options were issued with exercise prices of $0.10 and expiry dates of 31 December 2012.

The options are exercisable on issue, hold no voting or dividend rights and are not transferable.

18

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2010

8. Controlled Entities

Incorporation of Controlled Entity

During the period under review, the Group incorporated Uranium Company of Texas, LLC (“UCTX”). UCTX is a 90% owned subsidiary, incorporated in the state of Nevada in the United States of America.

9. Available for Sale Securities

As at balance date, the Company holds 3,000,000 fully paid ordinary shares in Forge Resources Limited (ASX: FRG and “Forge”). These shares were acquired during the period under review upon the successful listing of Forge on the ASX. The 3,000,000 shares were initially recorded in the financial accounts of the Company at the initial public offer price of $0.20 per share, resulting in the recognition of $600,000 in the profit or loss for the period.

As at balance date, the value of the shareholding in Forge was marked-to-market using the closing price of Forge shares on the ASX at 31 December 2010 of $0.88 per share. The 3,000,000 shares were valued at a total of $2,640,000 at balance date. The difference between the initial value of $600,000 and the value at balance date of $2,640,000, being $2,040,000, has been recorded and is shown in the Available for Sale Securities Reserve in the Consolidated Statement of Financial Position.

The 3,000,000 shares are escrowed for a period of two years from the date of Forge’s listing on the ASX.

10. Related Party Disclosures

Details of executive share options have been disclosed at note 11.

Key management personnel shareholdings

Fully Paid Ordinary Shares

						BALANCE	BALANCE
					RECEIVED ON	AT DATE OF	31
	BALANCE	PURCHASES	NET OTHER		EXERCISE	CESSATION	DECEMBER
2010	1JULY 2010	/ (SALES)	CHANGE		OFOPTIONS		2010
Directors
J Malone	1,844,962	200,000		-	-	-	2,044,962
D Geldard	1,030,000	-		-	-	-	1,030,000
G Barns	-	172,600		-	-	-	172,600
M Duncan	33,142,857	-		-	-	-	33,142,857

19

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2010

11. Share Based Payments

A total of $1,841,467 has been recorded for the six months ended 31 December 2010 as a Share Based Payments Expense, and is comprised of the following:

Issue of 32,000,000 options with exercise prices of $0.10 and expiring 31 December 2012 issued to advisors and directors on 31 August 2010. Issue of 8,000,000 options with exercise prices of $0.0462 and expiring 15 September 2013 issued to SpringTree Special Opportunities Fund, LP to secure convertible note agreement on 15 September 2010. Issue of 8,050,123 fully paid ordinary shares at $0.031 per share to SpringTree Special Opportunities Fund, LP to secure convertible note agreement on 15 September 2010. Issue of 308,642 options with exercise prices of $0.0421 and expiring 6 October 2013 to SpringTree Special Opportunities Fund, LP on 12 October 2010, upon conversion of notes into fully paid ordinary shares. Issue of 185,185 options with exercise prices of $0.065 and expiring 13 October 2013 to SpringTree Special Opportunities Fund, LP on 14 October 2010, upon conversion of notes into fully paid ordinary shares. Issue of 277,778 options with exercise prices of $0.0421 and expiring 20 October 2013 to SpringTree Special Opportunities Fund, LP on 29 October 2010, upon conversion of notes into fully paid ordinary shares. Issue of 10,000,000 options with exercise prices of $0.10 and expiring 31 December 2012 to advisors on 18 November 2010. Issue of 300,000 options with exercise prices of $0.065 and expiring 16 November 2013 to SpringTree Special Opportunities Fund, LP on 18 November 2010, upon conversion of notes into fully paid ordinary shares. Issue of 22,000,000 options with exercise prices of $0.10 and expiring 31 December 2012 to advisors, directors and management on 17 December 2010. Issue of 1,950,000 options with exercise prices of $0.10 and expiring 31 December 2012 to advisors on 17 December 2010.	CONSOLIDATED 31 DECEMBER 2010 $
	585,600
	217,600
	249,554
	17,346
	9,574
	12,083
	210,000
	12,810
	484,000
	42,900
	1,841,467

The fair values of options granted during the period were calculated using either the Black-Scholes option pricing model or determined by reference to market price if available. The fair values of options calculated using the Black-Scholes option pricing model were calculated by applying the following inputs:

Weighted average exercise price:	$0.0887
Weighted average life of the option:	2.15 years
Expected share price volatility:	115% - 125%
Risk-free interest rate:	4.69% - 5.19%

Historical volatility has been the basis for determining share price volatility as it is assumed that this is indicative of future movements.

The weighted average fair value of those equity instruments, determined by reference to market price, was $0.0217.

20

DIRECTORS DECLARATION

The directors of the company declare that:

1. The financial statements and notes as set out on pages 10 to 20 are in accordance with the Corporations Act 2001 including:

2. (a) Complying with Accounting Standard AASB 134: Interim Financial Reporting; and

3. (b) Giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and of its performance for the half year ended on that date.

4. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

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James Malone Director

Dated this 16[th] day of March 2011

21

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Grant Thornton Audit Pty Ltd ABN 94 269 609 023

10 Kings Park Road West Perth WA 6005 PO Box 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E admin.wa@au.gt.com W www.grantthornton.com.au

Independent Auditor’s Review Report

To the Members of Australian-American Mining Corporation Limited

We have reviewed the accompanying half-year financial report of Australian-American Mining Corporation Limited (“Company”), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2010, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration of the consolidated entity, comprising both the Company and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of the Company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410: Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001. As the

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation

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auditor of Australian-American Mining Corporation Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Australian-American Mining Corporation Limited is not in accordance with the Corporations Act 2001, including:

• a giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and of its performance for the half-year ended on that date; and

• b complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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J V Vibert Director – Audit & Assurance

Perth, 16 March 2011