ORBMINCO LIMITED — Interim / Quarterly Report 2013

Apr 29, 2013

30 April, 2013

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ASX Release, By e-lodgement

QUARTERLY REPORT FOR THE QUARTER ENDED 31 MARCH 2013

HIGHLIGHTS

• Drilling commences at Bluebell Arizona copper/gold/silver project

• 5,000 metres RC program commenced in the quarter and has recently been completed

• Significant copper, gold and silver results reported throughout the quarter from drilling program

• 15 of 17 holes have returned mineralisation in results received to date

• Mineralisation open at depth and along strike

• Possible discovery of new high grade lense in latest results

• Option to farm out San Marcos gold project granted

 VTEM Geophysical contracted awarded for VMS project

The Directors of Australian-American Mining Corporation Limited (“AusAmerican”, “AIW” or “Company”) are pleased to report the following activities occurred in the quarter ended 31 March 2013.

1. Drilling commences at Blue Bell VMS copper/gold/silver project

In January 2013 the company announced that it had commenced the maiden drilling program at the Blue Bell copper/gold/silver project. The 5,000 metres of reverse circulation (“RC”) drilling had been designed to test the potential of the stock work mineralisation which surrounds the known high grade massive sulphide lenses. A number of holes were also designed to examine the down dip extension of 12BBTR05; the surface channel sample which returned 38 metres @ 1.2% copper, 0.5 g/t gold and 22.1 g/t silver.

At the time of writing the company has concluded the drilling program. Approximately 5,000 metres was completed and the company drilled 26 holes. The company was delighted with the way in which the drilling program was completed and the performance of the drilling company National EWP. The program was completed on time, within budget and was accident free.

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 company is also very encouraged by the results received to date. As has been reported throughout the quarter and in the month of April, the drilling program has delivered significant high grade massive sulphide Cu/Au/Ag results both close to surface and at depth in 15 of the 17 holes reported to date.

Highlights include the following;

• 9 m@ 2.2% Copper equivalent * (CuEq) (1.8% copper, 0.3 g/t gold and 19.6 g/t silver ) from 8 m

• 8 m @ 0.8 % CuEq (0.7% copper, 0.1% gold and 3.3% silver) from 21 metres

• 40.4 m @ 0.8% CuEq (0.7% copper, 0.1 g/t gold and 5.5 g/t silver) from 14 metres

• 11 m @ 2.3% CuEq (0.3% Cu, 1.6 g/t gold, 39.5 g/t silver) from 283 metres

• 4 metres at 1.5% CuEq (1% copper, 0.2 g/t gold, 17 g/t silver) from 200 metres

• 17 metres @ 4.5 % CuEq (2.1% copper, 2.1 g/t gold, 38 g/t silver and 0.9% zinc) from 239 m

• 9 m@ 0.9% CuEq (0.8% copper, 0.1 g/t gold and 5.3 g/t silver) from 195 m

• 2 m @ 1.0% CuEq (0.7% copper, 0.2 g/t gold and 10.3 g/t silver) from 208 m

• 11 m @ 0.6% CuEq (0.4% copper, 0.1 g/t gold and 6 g/t silver)

• 4 m @ 3.2 % CuEq (0.7% copper, 2.2 g/t gold, 41.5 g/t silver and 1.1% zinc) from 195 m

• 17 m @ 0.9% CuEq (0.8% copper, 0.1 g/t gold and 5.3 g/t silver) from 158 m

• 17m @ 4.6% CuEq (3.3% copper, 1.3g/t gold and 31.2g/t silver) from 216m

• 17m @ 1.3% CuEq (1.0% copper, 0.2g/t gold and 9.9g/t silver) from 192m

• 15m @ 2.2% CuEq (1.9 copper, 0.2g/t gold and 11.0g/t silver) from 213m

• 10m @ 0.9% CuEq (0.6% copper, 0.2g/t gold and 11.9g/t silver) from 252m

These results, which are summarised in Table 1, also include high grade mineralisation components. The mineralisation remains open at depth and along strike.

In the most recent results, Drill hole BBRC13025 returned 3 intersections of mineralisation, including a high grade intersection of 3m @ 5.1% copper equivalent and this intersection could represent a new high grade lens as it is below the level of historical mining activity.

These drill results add further weight to the theory that significant amounts of high grade mineralisation remain at Blue Bell and that previous mining activity did not identify all of the high grade lenses.

Further results from the remaining nine holes will be released as the company receives the results in the next four weeks.

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 1: Blue Bell Drill Hole Plan

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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Table 1: Drill Hole Intercepts to Date

Drillhole	Easting	Northing	RL	**Azimuth **	Dip	From	To	Interval(m)	Cu%	Aug/t	Ag g/t	Zn%	CuEq
BBRC13001	385,883	3,800,807	1,354	120	-45	8	17	9	1.8	0.3	19.6	0.0	2.3
including						11	12	1	11.2	0.6	93.2	0.0	13.0
and						21	29	8	0.7	0.1	3.3	0.0	0.8
BBRC13002	385,882	3,800,808	1,354	120	-70	10	11	1	1.6	0.2	11.8	0.0	1.9
and						31	38	7	0.4	0.1	2.3	0.0	0.5
BBRC13003	385,881	3,800,808	1,354	120	-90	14.4	55	40.6	0.7	0.1	5.5	0.0	0.9
including						16.2	20.7	4.5	2.0	0.3	7.0	0.0	2.3
and						31	34	3	1.4	0.3	19.8	0.0	1.9
and						68	77	9	0.3	0.0	1.1	0.0	0.4
BBRC13007	385,720	3,800,760	1,389	160	-45	200	204	4	1.0	0.2	17.0	0.0	1.5
BBRC13008	385,720	3,800,760	1,389	160	-60	No Significant Assays
BBRC13009	385,720	3,800,760	1,389	160	-80	283	294	11	0.3	1.6	39.5	1.1	2.3
BBRC13010	385,720	3,800,760	1,389	90	-65	195	204	9	0.8	0.1	5.3	0.0	0.9
and						208	210	2	0.7	0.2	10.3	0.0	1.0
BBRC13011	385,720	3,800,760	1,389	90	-80	239	256	17	2.1	2.1	38	0.9	4.5
including						245	253	8	3.2	3.4	50	0.8	6.6
and						287	295	8	0.4	0	4.8	0.0	0.5
BBRC13012	385,720	3,800,760	1,389	90	-45	179	190	11	0.4	0.1	6.0	0.0	0.6
BBRC13019	385,870	3,800,980	1,403	120	-45	142	146	4	0.8	0.1	5.3	0.0	0.9
BBRC13020	385,868	3,800,989	1,403	120	-65	No Significant Assays
BBRC13021	385,870	3,800,980	1,403	120	-75	195	199	4	0.7	2.2	41.5	1.1	3.2
BBRC13022	385,863	3,800,940	1,398	185	-70	216	233	17	3.3	1.3	31.2	0	4.6
including						216	225	9	4.5	1.1	43.6	0	6.0
and						240	245	5	0.5	0.1	4.8	0	0.6
BBRC13023	385,870	3,800,980	1,403	150	-45	158	175	17	0.8	0.1	4.6	0	0.9
including						167	175	8	1.3	0.1	6.0	0	1.4
BBRC13024	385,863	3,800,989	1,403	150	-65	192	209	17	1.0	0.2	9.9	0	1.3
including						200	203	3	2.2	0.3	16.3	0	2.7
BBRC13025	385,861	3,800,989	1,403	170	-45	181	190	9	0.6	0.3	8.3	0	0.9
and						201	203	2	0.9	0.5	15.6	0	1.5
and						213	228	15	1.9	0.2	11	0	2.2
including						218	221	3	4.5	0.4	22.6	0	5.1
BBRC13026	385,861	3,800,991	1,403	170	-65	244	247	3	0.4	0.2	7.9	0	0.6
and						252	262	10	0.6	0.2	11.9	0	0.9

2. Option to Farm Out the San Marcos Gold Project

In January 2013, the company announced that it had entered into an agreement with ASXlisted company Pelican Resources Limited (ASX: PEL). Pelican has been granted an option to enter into a farm in agreement (option agreement) with AusAmerican where PEL have 60 days to take up the option to formally enter the agreement in which PEL can earn 100% of the project. PEL can finalise the agreement at any time by paying AIW $25,000.

Under the formal agreement, PEL can earn 80% interest in the project by spending $475,000 on exploration over a three year period. Once this is achieved, PEL can achieve a further 15% by spending an additional $300,000 on exploration, at which point AusAmerican’s interest extinguishes and reverts to a 2% net smelter royalty. In the event that PEL do not spend the $300,000, a joint venture will be formed between the two companies with PEL retaining an 80% interest and AusAmerican a 20% interest.

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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3. VTEM Geophysical Contract Awarded for Arizona VMS

In April the company announced that it had signed a contract with Geotech Ltd (“Geotech”) to undertake VTEM geophysical survey at the Blue Bell and De Soto VMS projects. Geotech are a Canadian based company and are recognised as one of the world leaders in geophysical surveys.

The purpose of the VTEM survey is to identify anomalies at Blue Bell, De Soto and the prospective, but until now, unexplored Gap area, which runs 5 km’s between the two projects. Of the seven high grade lenses that were mined at Blue Bell, only one outcropped, so the company is hopeful that undiscovered lenses exist in the area of the old mines as well as in the Gap.

The company expects the program to commence in early May. Interpretation and results of the geophysical survey should be available in late May.

4. Financial Summary and Equity Structure

The company announced in April that it completed a $1.6 million capital raising to sophisticated clients of Peloton Capital and DJ Carmichael. The company also raised $905,000 in February. These funds were raised to fund the drilling and exploration programs at the Blue Bell and De Soto copper/gold/silver projects in Arizona.

The current number of ordinary shares on issue follow the completion of this capital raising will be 240,292,669. At the time of the report the company shares last traded at 2.5 cents giving it a market capitalisation of approximately $6 million.

Competent Persons Statement

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

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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*** 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 in the region.

Copper Equivalent Formula = Cu% + Au (ppm) x 0.7292 + Ag (ppm) x 0.0146 + Zn% x 0.3

Price Assumptions Cu (US$3/lb), Au (US$1500/oz), Ag (US$30/oz), Zn (US$0.90/lb )

About Australian American Mining Corporation

AusAmerican Mining is a multi-commodity international exploration company led by a proven technical team that is focused on discovering and defining high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. All of its projects are currently located in the United States of America (“USA”).

The company’s copper/gold projects are:

• Bluebell (option to purchase 100%) - Arizona

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

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

• Bernard (90%) - 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

• Apache Basin (100%) – Arizona

The company’s REE/speciality metals projects:

• La Paz - Arizona.

• White Picacho – 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	Name of entity
Australian-American Mining Corporation Limited
ABN	Quarter ended (“current quarter”)
99 073 155 781	31 March 2013
Consolidated statement of cash flows

Name of entity	Name of entity	Name of entity	Name of entity
Australian-American Mining Corporation Limited
ABN Quarter ended (“current quarter”) 99 073 155 781 31 March 2013 Consolidated statement of cash flows	Quarter ended (“current quarter”)
	31 March 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
		- (989) - - (308) - 2 (5) - 127	- (2,455) - - (806) - 7 (61) - 127
		(1,173)	(3,188)
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		(34) (2) - - - - - (9) -	(55) (34) (56) - 324 - - - - (9) -
		(45)	170

1.15 Total operating and investing cash flows (brought forward)	(1,218)	(3,018)
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) Net financing cash flows	1,247 - 100 (100) (62)	3,405 - 100 (450) 350 (202)
	1,185	3,203
Net increase (decrease) in cash held 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	(33) 330 (18)	185 227 (133)
	279	279

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 1.26	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to theparties included in item 1.10	Current quarter $A'000
		(123)
		-
1.27	Explanation necessaryfor an understandingof the transactions
	Payments to directors for services to the group.

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
	500
	-
	-
	250
	750

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.	Current quarter $A’000	Previous quarter $A’000
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)	173	224
	106	106
	-	-
	-	-
	279	330

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

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	182,792,669	182,792,669	-	-
	21,560,759
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 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11Performance Rights (totals only) 7.12Unsecured notes (totals only)	1,600,000 61,729 37,037 55,556 60,000 600,000 19,350,000 300,000	- - - - - - - -	Exercise price $0.231 $0.2105 $0.2105 $0.2105 $0.325 $0.0595 $0.09 $0.059	Expiry date 15 September 2013 6 October 2013 13 October 2013 20 October 2013 16 November 2013 1 March 2015 1 March 2015 2 July 2015
	22,000,000	-
	- -	- -

*Note: A 1 for 5 share consolidation was completed on 28 September 2011

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: 30 April 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.