ORBMINCO LIMITED — Interim / Quarterly Report 2013

Oct 31, 2013

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31 October 2013

ASX Release, By e-lodgment

Quarterly Report for the Period Ending 30 September 2013

Highlights

• Maiden Mineral Resource at Blue Bell

• Updated Exploration Target at Blue Bell

• VTEM Conductor at Blue Bell Returns 12m @ 4.9% Copper Equivalent* From Recent Drilling

• Acquisition of Victoria Copper Mine

• Term Sheet for US$10m Debt Facility Received From US Lender

• Letter of Intent from Major Copper Producer to Purchase Victoria Mine Ore

The Directors of Australian-American Mining Corporation Limited (“AusAmerican”, “AIW” or “Company”) are pleased to report the following activities occurred in the quarter ended 30 September 2013.

Maiden Resource Announced At the Blue Bell Copper Project

During the quarter the company announced a maiden JORC compliant resource for the Blue Bell VMS project in Arizona.

Details of the maiden inferred resource are presented below in table 1:

		Resource at 0.5% Copper Equivalent Cut Off	Resource at 0.5% Copper Equivalent Cut Off	Resource at 0.5% Copper Equivalent Cut Off	Resource at 0.5% Copper Equivalent Cut Off	Resource at 0.5% Copper Equivalent Cut Off
	Grade				Metal
**Tonnage **	Cu %	**Aug/t **	**Ag g/t **	*Cu Eq **	Cu(T)	Au(oz)	Ag (oz)
6,037,100	0.84	0.41	12.5	1.21	50,500	79,500	2,424,000

Table 1: Maiden Inferred Resource

NB: Figures rounded to the nearest 100

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

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The initial inferred resource is based upon 26 RC drill holes, for a total of 5,358m. The drilling covers approximately 750m of strike length of the Blue Bell mineralised system; a further 900m remains to be tested (see Figure 1). The deposit is drilled on sections with an average of 70 – 100m spacing and each section contains 2 to 3 drill holes.

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Figure 1: Location of resource and VTEM conductors

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

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The Blue Bell deposit is located 100km North West of Phoenix, Arizona. Hosted in the Mesoproterozoic Jerome Greenstone belt, a prolific producer of copper in the early part of the 20[th] century, the Blue Bell deposit is a classic VMS deposit.

The mineralisation in the Jerome Greenstone Belt is hosted in a volcanic sequence with a northsouth strike that dips steeply towards the northwest. The sequence is around 50km long and 2 to 2.4km wide. The Blue Bell mine sits within a highly altered volcanic sequence of the Yavapai Schist and the sulphide mineralisation is hosted in anastomosing veins at the base of a silicified felsic sequence.

Refer to ASX announcement dated 14[th] August 2013 for further information.

Updated Exploration Target at Blue Bell

Due to the success of the initial drilling program and maiden resource at Blue Bell, a revised exploration target for Blue Bell open pit has been estimated. The company believes the project has the potential for an additional 7.5 – 12.5 million tonnes @ 0.7 – 0.9% copper, 0.3 – 0.5g/t gold and 10 – 20 g/t silver.

A separate exploration target has been developed for the underground potential of the Blue Bell project and is 1 – 3 million tonnes @ 2 – 4% copper, 2 – 4 g/t gold and 30 to 60g/t silver. This target is based upon a review of historical mining information and recent drilling results.

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

VTEM Conductor at Blue Bell Returns 12m @ 4.9% Copper Equivalent* from Recent Drilling

During the quarter the company announced results from the VTEM survey that was carried out earlier this year over the Blue Bell and De Soto projects. The VTEM survey outlined four conductors at the Blue Bell project. The highest priority is Conductor 1 which is a significant VTEM anomaly with a coincident magnetic high (see figure 1). The VTEM and magnetic high have excellent definition over a strike length of 900m. Modelling of the conductor by the independent geophysicist indicates that it occurs ~25m below the surface and extends to a depth of least 300m. The dip of the conductor is ~70 degrees towards the west, comparable with mineralisation identified at Blue Bell. The conductor is at its strongest immediately to the north east of the Blue Thunder shaft.

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

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Recent drilling (BBRC13004 and BBRC13005, see figure 2) appears to have tested the very northern weaker portion of Conductor 1 and returned significant copper/gold/silver/zinc results, which were:

• 12m @ 4.9% Copper Equivalent (CuEq) (1.5% copper, 3.0g/t gold, 50.3g/t silver and 1.6% zinc) from 53m7m @ 2.3% Copper Equivalent (CuEq) (1.2% copper, 0.7g/t gold, 16.0g/t silver and 1.2% zinc) from 29m

• 8m @ 1.7% Copper Equivalent* (CuEq) (0.4% copper, 1.0g/t gold, 18.7g/t silver and 1.2% zinc) from 59m

Conductor 1 is located in an area that has had minimal underground mining activity; a number of shafts were sunk at Blue Thunder and some underground development/exploration was undertaken. During the 1920’s the operators of the Blue Bell mine connected the underground workings at Main Shaft to Blue Thunder via a 500m long tunnel. It was reported that they encountered low grade copper horizons in a pyritic zone. Several underground drill holes were completed from the tunnel and from the workings at Blue Thunder. AusAmerican possesses incomplete records of the workings and underground diamond drill holes.

Conductor 2 is hosted in the mafic sequence and is considered prospective for BIF hosted gold mineralisation. Conductor 3 and 4 are hosted with the Yavapai Schist, the known host of VMS mineralisation. The company intends to undertake follow up work on these conductors to further refine the exploration targets.

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

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Figure 2: Cross section showing drilling and VTEM conductor

Acquisition of Victoria Copper Mine

During the quarter the company announced that it had entered into a letter of intent to acquire a 50% interest in the Victoria Copper Mine located south east of Elko in the state of Nevada, USA.

The acquisition, with financing approved pending completion of due diligence, represents a significant milestone for the company. The company plans to rehabilitate the mine and bring it back into production by the mid-2014. The revenue from this production will allow AusAmerican to be a self-funded mining and exploration Company.

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

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The Project

The Victoria copper mine is located in an established mining region 120km south east of Elko in the east of the state of Nevada, USA (see figure 3).

The mine was discovered and explored underground by Anaconda Copper in the 1940’s. It was operated by Anaconda from 1975 to 1977, producing ore from both an open pit and an underground mine. The mine closed due to declining copper prices in 1977. The mine briefly started again in 1980 and closed a short time later as the operator, Day Mines, was taken over. When producing, the underground operation at the Victoria copper mine operated at 1,000 tpd via sub level caving. Production statistics are shown below in Table 2

				Concentrate Grade
Period	Tons Milled	Copper Grade	Silver Grade
Anaconda Open Pit (Feb 1976 – August 1976)	526,000	2.51%	~10g/t	29.9%
Anaconda Underground (Sept 1976 – August 1977)	297,000	1.84%	~10g/t	30.4%
Day Mines Underground (June 1980 – Feb 1981)	166,961	1.45%	~10g/t	28.8%
Total	989,961	2.1%	~10g/t	29.8%

Table 2: Production Statistics for the Victoria Copper Mine (Figures are Reported in US Short Tons)

The project has core infrastructure in place; a power line, which powered the original mine and milling operation is still operational and provides power to a local telecommunication station. The project is located 17 km from State Highway 93 on unsealed road.

The underground workings are in excellent condition and are readily accessible; a decline measuring ~5m x 3.5m is in place down to the 6990 level. The two lowest levels, the 6990 and the 7030 are partially developed through a series of extraction drives. A schematic cross section is shown in Figure 4.

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

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Figure 3: Location of the Victoria Copper Mine, Nevada

Mineralization at the Victoria copper mine is localized at the western margin of an elongate, elliptically- shaped breccia pipe formed on the nose and south limbs of an east-west-trending anticline. The ore body forms a crescent-shaped deposit roughly 75m by 90m in plan and plunges to the west at 45 to 55 degrees. From exposures on the lower levels and limited drilling, it appears that mineralization is migrating south and south easterly around the crescent with increasing depth. The ore mineralogy consists of pyrite, chalcopyrite and bornite, chalcocite and bismuthinite occurring both in the matrix of the breccia and as veins and disseminations along bedding in the clasts.

The project consists of five patented mining claims and 121 unpatented claims (10.5km[2] ). The project also includes 2.5km[2] of private land which includes significant water rights. AusAmerican has a first right of refusal on a further 389 unpatented claims in the Dolly Varden Mining district.

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

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Figure 4: Cross Section Showing Underground Mine Workings.

Refer to ASX announcement dated 9[th] September 2013 for further information on the project including historical resource statement and applicable JORC 2012 disclosure.

Term Sheet for US$10m Debt Facility Received from US Lender

During the quarter the company reported that a term sheet for US$10m debt finance has been received from a debt provider, based in Utah, USA.

The US lender is a private lender based in Alpine, Utah USA and has been active in providing asset-backed lending for a number of years. The debt provider has indicated that funds would be made available promptly once due diligence, which is ongoing, concludes. The directors of AusAmerican believe this debt facility is competitive in the current economic climate.

The company is also in advanced discussions with a number of other potential financiers. Discussions will continue until such time that due diligence has concluded to ensure that options remain open and the best available debt package is secured by the company.

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

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Ore Purchase Agreement for Victoria Mine

During the quarter the company announced that the company’s joint venture partner has received a Letter of Intent from KGHM International Ltd to purchase ore from the Victoria Copper Mine. KGHM, one of the world’s largest copper and silver producers, is the owner of the Robinson Copper Mine located in Nevada.

The Letter of Intent indicates that KGHM wishes to purchase a minimum of 1,000 tonnes a day of ore from the Victoria Mine. This approach to ore sales is consistent with AusAmerican’s strategy of taking the most cost effective, rapid path to commencement of mining and revenue generation coupled with an approach to project finance that minimises dilution for shareholders.

Corporate

During the quarter the company announced Mr Peter Landau and Mr Ben Mead had joined the company’s Board of Directors.

Mr Ben Mead has joined the company as an Executive Director; effective 9[th] September 2013. Mr Mead has had considerable experience in the management of ASX-listed and private companies in the mineral, energy and aluminium sectors. Mr Mead, who resides in Park City, Utah, in the USA, was instrumental in introducing the transaction to the company and in assisting the company in its negotiations with the project’s owners. Mr Mead will continue to assist with the due diligence, development, financing and on-going management of the project in his role as US based Director residing close to the project.

Experienced corporate advisor, mining executive and company director Mr Peter Landau has agreed to join the Board of AIW. Mr Landau brings with him many years of experience in managing resource companies. Especially important for the company is Mr Landau’s recent experience in capital raising for and development of, USA silver developer Black Mountain Resources Limited and their New Departure Silver project in Montana. Mr Landau’s appointment as a non-executive Director was effected on 1 August 2013.

The company announced on 21[st] October 2013 that it had placed 36 million shares to sophisticated investors to raise $360,000 before costs. In that announcement it also announced it was in advanced discussions with a group regarding arranging a $2.5 million convertible note facility. At the date of this report those discussions were continuing and had yet to be finalised.

Sincerely

Richard Holmes Managing Director

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

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Competent Persons Statement

The information in this document that relates to exploration targets and exploration results is based on information compiled by Richard Holmes, Managing Director, AusAmerican Mining who is a Member of the Australian Institute of Mining and Metallurgy. Mr Holmes is a full-time employee of AusAmerican Mining and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2012 edition of the “Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Holmes consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Information in this report that relates to the Blue Bell Mineral Resource estimates reflects information compiled by Mr Alexey Zharnikov a full time employee of CSA Global Pty Ltd, who is a member of the Australian Institute of Geoscientists (AIG). Mr Zharnikov has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is reporting to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.” Mr Zharnikov consents to the inclusion in the report of the matters based on the information compiled by him, in the form and context in which it appears.

*Copper Equivalent Calculation

Copper Equivalent (CuEq) represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed as equivalent copper percentage. These results are exploration results and no allowance is made for recovery losses should mining eventually occur. However it is the company’s opinion that the elements considered here have reasonable potential to be recovered as evidenced by production records from previous mining activity at the project and comparable polymetallic projects in the region.

Copper Equivalent Formula = Cu% + Au (ppm) x 0.6076 + Ag(ppm) x 0.0097 + Zn% x 0.3

Price Assumptions Cu (US$3/lb), Au (US$1250/oz), Ag (US$20/oz), Zn (US$0.90/lb)

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

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About Australian American Mining Corporation

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

The company’s copper/gold projects are:

• Victoria Mine (option to purchase 50%) -Nevada

• Bluebell (option to purchase 100%) - Arizona

• De Soto (option to purchase 100%) - Arizona

• San Marcos (100%, Pelican Resources earning up to 100%) - Arizona

The company’s uranium projects are:

• Rio Puerco (100%) - New Mexico

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

• Kit Carson (100%) - New Mexico

• Northern project (100%) - New Mexico

• Apex/Lowboy (100%) – Nevada

• Lone Star JV (90%) – Texas

The company’s REE/speciality metals projects:

• La Paz - Arizona.

ENDS

For further information, please contact: Richard Holmes Managing Director +61 8 9481 0799 rholmes@ausamerican.com

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

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APPENDIX 5B

Mining Exploration Entity Quarterly Report

(Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001).

Name of Entity

Name of Entity
Australian-American Mining Corporation Limited
ABN 99 073 155 781 Consolidated Statement of Cash Flows	Quarter Ended (“current quarter”)
	30 September 2013
Cash Flows Related to Operating Activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current Quarter $A’000	Year to Date (12 months) $A’000
		- (349) - - (186) - - - - 4	- (349) - - (186) - - - - 4
		(531)	(531)
Cash Flows Related to Investing Activities 1.8 Payment for purchases of: (a) prospects (b) investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Contributions from joint venture 1.13 Payments for joint venture operations 1.14 Movement in security deposits Net Investing Cash Flows		- - (1) - - - - - - - -	- - (1) - - - - - - - -
		(1)	(1)
1.15 Total operating and investing cash flows (brought forward) Cash Flows Related to Financing Activities 1.16 Proceeds from issues of shares, options, etc. 1.17 Proceeds from auction of partly paid shares 1.18 Proceeds from borrowings 1.19 Repayment of borrowings 1.20 Proceeds from convertible notes 1.21 Other (share issue costs)		(532) 21 600 - - (11)	(532) 21 600 - (11)

Net Increase (Decrease) in Cash Held	78	78
Net Financing Cash Flows 1.22 Cash at beginning of quarter/year to date 1.23 Exchange rate adjustments to item 1.20 1.24 Cash at End of Quarter	103 (8) 173	103 (8) 173
	610	610

Payments to Directors of the Entity and Associates of the Directors Payments to Related Entities of the Entity and Associates of the Related Entities

• 1.25 Aggregate amount of payments to the parties included in item 1.2

• 1.26 Aggregate amount of loans to the parties included in item 1.10

• 1.27 Explanation necessary for an understanding of the transactions

• 1.28 Payments to directors for services to the group.

Current Quarter $A'000 (106) -

Non-Cash Financing and Investing Activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

None.

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

None.

Financing Facilities Available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount Available $A’000	Amount Used $A’000
	- -	- -

Estimated Cash Outflows for Next Quarter

Estimated Cash Outflows for Next Quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration Total	$A’000
	350 - - 150

Reconciliation of Cash

Reconciliation of Cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Commercial Bills 5.4 Other Total Cash at End of Quarter(item 1.22)	Curent quarter $A’000	Previous quarter $A’000
	173 - - -	103 - - -
	173	103

Changes in Interests in Mining Tenements

Changes in Interests in Mining Tenements
6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement Reference	Nature of Interest	Interest at Beginning of Quarter	Interest at End of Quarter
	ARMER 22 ARMER 25 ARMER 26 PEG #1 to #113 CAT 6 CAT 70 CAT 78 CAT 79 CAT 134 JIM #1 to #15 OAK #3 BULL #21 PINE #40 PINE #41 PINE #46 PINE #47 PINE #53 PINE #54 PINE #56 PINE #57 PINE #65 PINE #66 PINE #72 BERNARD #1 to #222	Mining Claims	All the claims listed in 6.1 were owned by the company at the beginning of the quarter and were relinquished during the quarter

Issued and Quoted Securities at End of Current Quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total Number	Number Quoted	Issue Price Per security (see note 3)	Amount Paid Up Per Security (see note 3)
7.1 Preference+Securities(description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions	- -	- - -	- - -	- - -
7.3 Ordinary Securities Fully Paid 7.4 Changes during quarter (a) Fully paid Increases through issues	227,848,811 3,750,000	227,848,811	-	-
7.5 Convertible Debt Securities(description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities converted	-	-	-	-
7.7 Options Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter			Exercise Price	Expiry Date
	1,600,000 61,729 37,037 55,556 60,000 600,000 64,607,338 300,000 15,000,000 15,375,000	- - - - - - - - -	$0.231 $0.2105 $0.2105 $0.2105 $0.325 $0.0595 $0.09 $0.059 $0.03	15 September 2013 6 October 2013 13 October 2013 20 October 2013 16 November 2013 1 March 2015 1 March 2015 2 July 2015 30 June 2016
7.11Performance Rights (totals only)	22,000,000	-
7.12Unsecured notes (totals only)	- -	- -

Compliance Statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Date: 31 October 2013

Print name: Jim Malone

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and Quoted Securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows applies to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.