ORBMINCO LIMITED — Interim / Quarterly Report 2013

Mar 14, 2013

AUSTRALIAN-AMERICAN MINING CORPORATION LTD ABN 99 073 155 781

HALF YEAR FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2012

This Half Year Financial Report is to be read in

Conjunction with the financial report for the

Year ended 30 June 2012.

AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

The Directors of Australian-American Mining Corporation Ltd ("AusAmerican" or "Consolidated Entity" or "Company") submit herewith the interim financial report for the half-year ended 31 December 2012.

DIRECTORS

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

Jim Malone	$\sim$	Chairman (Appointed 30 July 2008)
Richard Holmes -		Managing Director (Appointed 14 March 2012)
Don Falconer	$\sim 100$	Non-Executive Director (Appointed 28 February 2012)
Mark Ceglinski	$\sim$ 10 $\pm$	Director (Appointed 14 March 2012 Resigned 30 Nov 2012)

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 \$2,656,007 (half-year ended 31 December 2011: loss of \$3,298,514).

REVIEW OF OPERATIONS

Overview

As at 31 December 2012, the Company owned a number of exploration assets located in low risk, mining friendly jurisdictions in the USA. They comprise:

• The Blue Bell and De Soto copper/gold/silver projects in Arizona.
• The Rio Puerco uranium brown field project in New Mexico; $\bullet$
• $\bullet$ The Apex/Lowboy uranium brown field project in Nevada;
• The Lone Star uranium JV (AIW 90%) in Texas, with a number of leases on prospective uranium $\bullet$ properties;
• The Apache Basin uranium exploration project in Arizona: $\bullet$
• The San Marcos gold project in Arizona; $\bullet$
• The Bernard gold project (AIW 90%) in Arizona, $\bullet$
• The La Paz REE project in Arizona and: $\bullet$
• The White Picacho pegmatite strategic metal project located in Arizona (lithium, rubidium, $\bullet$ tantalum, and niobium)

AUSTRALIAN-AMERICAN MINING CORPORATION I TD AND CONTROLLED ENTITIES

DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

The Directors of Australian-American Mining Corporation Limited ("AusAmerican" or "the Company") are pleased to report the following activities occurred in the half year ended 31 December 2012. BLM or state controlled land.

OPTION AGREEMENT FINALISED FOR THE PURCHASE OF ARIZONA COPPER/GOLD/SILVER PROJECTS

During the half, the company finalised an option agreement to purchase the Blue Bell and De Soto projects which are located in Yavapai County, Arizona, USA.

The Blue Bell and De Soto Mines

The Blue Bell Mine was operated from 1906 to 1926 and produced approximately 1.2 million tons at 3.2% copper, 1.7g/t gold and 42g/t silver. The operation had 5 operating shafts with the main shaft sunk to approximately 420m below the surface. Around 9.1km of underground workings were developed. The mining method used was shrink stoping where high grade lenses were selectively mined. Individual high grade lenses were up to 4m wide. The cut-off grade for the mine varied from 2 to 3% copper depending on the price of copper at the time.

The De Soto mine was discovered in 1890 and operated in the early 1900's. Production was approximately 280,000 tons at a grade of 3.7% copper, 1.4g/t gold and 34g/t silver. The mining operation utilised a number of adits and ore was extracted from several small high grade VMS bodies.

112 Figure 3: Location of Blue Bell and De Soto projects

Regional Geological Setting

The properties located are on the volcanogenic massive sulphide assembly in the Jerome Greenstone Belt of Middle Proterozoic age in Central North Arizona. The ore bodies of this region are hosted in submarine volcanogenic lithostratigraphies which are a steeply dipping rock sequence extending in a north-south direction over a distance of approximately 50km in length and of 2.4km in width.

Numerous ore bodies were mined historically in this region and ranged in size from less than 1 million tons to 25 million tons of high grade sulphide ores (see figure 3). Typically only the high grade copper core (>3.0% Cu) was extracted with gold/silver produced as smelter by-product. All mining ceased in the region during the 1930's.

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

AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

Local Geology and Mineralisation

The ore bodies at both the Blue Bell and De Soto mines are hosted in the Yavapai schist; an altered magnesium-chlorite schist with an anastomosing veinlet pattern which suggests a stock work zone. This unit varies in thickness from 30m - 40m and is believed to extend for the length of both properties (~2.7km at both Blue Bell and De Soto).

The tabular strata bound high grade massive sulphide bodies are often located at the foot and hanging wall contacts of the Yavapai schist. Seven massive sulphide lenses were mined at the Blue Bell and only one lens outcropped.

Although the massive sulphide lenses had a relatively short strike (~140m max) they displayed excellent down dip continuity, with some lenses mined to more than 400m below the surface. At least 4 of the massive sulphide lenses are open at depth.

The Yavapai schist is also host to lower grade stock work mineralization containing copper, gold and silver. This unit has significant exploration potential and forms the exploration target below.

Exploration Target

The project is viewed as highly prospective for Cu/Au/Ag mineralisation with an exploration target at the Blue Bell mine of $15 - 20$ million tonnes @ 0.6 - 0.8% copper, 0.2 - 0.4 g/t gold and $15 - 30$ g/t silver. The exploration target is based upon a combination of historical mining information (geological plans, sections and limited underground drilling/sampling) and surface geological mapping of the prospective horizon.

The potential quantity and grade stated in the Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.

The De Soto project is considered equally prospective however due to the limited amount of information available, further work is required to establish an exploration target.

During the half the company announced that a considerable geological data package was purchased for the Blue Bell and De Soto VMS projects.

The data package contains information from the original operators of the Blue Bell and De Soto mines; it includes the original underground mine plans, limited underground sampling information and operational memos/reports. The package also includes geological data from limited modern exploration completed in the 1980's and 1990's.

During the half the company commenced exploration fieldwork on the Blue Bell copper/gold/silver project in Arizona.

AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

This program included detailed geological and structural mapping complimented by surface geochemical sampling and a 5,000 metre RC drilling program, which commenced in January 2013.

The results of the initial exploration program returned wide zones of copper/gold/silver mineralisation which include a number of high grade sections.

• Initial exploration program returns wide zones of mineralisation including:
• 38m @ 1.2% copper, 0.51g/t gold and 22.9g/t silver
• 22m @ 0.45% copper and 2.9q/t silver $\Omega$
• 13m @ 0.86% copper and 4.6g/t silver $\cap$
• Mineralisation includes significant high grade intersections including:
• 8m @ 1.1% copper, 1.47g/t gold and 28.4g/t silver
• 9m @ 1.9% copper, 0.36g/t gold and 27.0g/t silver $\circ$
• $\Omega$ 3m @ 5.6% copper, 0.86g/t gold and 104.6g/t silver

During a 3 week mapping and sampling campaign conducted during September and October, 440 samples were taken. The samples were submitted for analysis at ALS Reno, Nevada. Surface rock chip samples were collected throughout the Blue Bell project area and locations of individual channel sampling lines are shown in Figure 1. Locations of channel sampling lines were dictated by available rock exposure and therefore systematic coverage was not achievable.

The focus of the program was to determine the geochemical characteristics of the Yavapai schist, the host rock of the known VMS mineralisation and to identify the surface expression of the stock work mineralisation. The information gained has aided in planning the drill holes for the current (Q1 2013) drill program which will is focussed on identifying a resource amenable to open pit extraction.

AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS' REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

Channel sampling results were as follows:

Channel Sample	From	To	Length	Copper (%)	Gold (g/t)	Silver(g/t)
12BBTR01	No Significant Results
12BBTR02		No Significant Results
12BBTR03	No Significant Results
12BBTR04	No Significant Results
12BBTR05	49	87	38	1.2	0.51	22.9
Including	49	57	8	1.1	1.47	28.4
	71	80	9	1.9	0.36	27.0
	84	87	3	5.6	0.86	104.6
	113	115	$\overline{2}$	nsa	25.9	16.9
12BBTR06	$\mathbf 0$	22	22	0.45	nsa	2.9
Including	14	16	$\overline{2}$	1.5	nsa	nsa
12BBTR07	No Significant Results
12BBTR08	$\mathbf 0$	3	3	2.1	nsa	nsa
12BBTR10	No Significant Results
12BBTR11		No Significant Results
12BBTR12	No Significant Results
12BBTR13	No Significant Results
12BBTR15	15	22	7	0.17	0.89	10.1

The Company believes the results returned to date validate the exploration model of a lower grade stock work mineralisation surrounding higher grade massive sulphide lenses and support the recently published exploration target for the project (see ASX announcement dated 13^thAugust, 2012).

During the half year the company announced that it had significantly increased its ground position at the Blue Bell and De Soto copper/gold/silver projects in Arizona, USA.

The Company staked and additional 156 unpatented mining claims. The new claims significantly strengthen the ground position at the Blue Bell and De Soto projects (see figure 1). The company believes that the newly staked unpatented claims contain extensions of known mineralisation at both the Blue Bell and De Soto projects. The field program completed in October identified prospective stratigraphy in an area located between the projects ('the Gap') and the Company has staked claims in this area.

AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

During the half the company announced that a new copper VMS target has been identified on the recently staked ground 1km north of the Blue Bell mine.

The Blue Bell North target was identified during the ongoing interpretation of the data package acquired by AusAmerican in October this year. The data recovered and interpreted includes:

• 339 soil samples on a 15-30m by 120m grid, 1km north of Blue Bell (1990) $\bullet$
• 120m line-spaced magnetic survey covering 5km² around Blue Bell (1989) $\bullet$
• Interpretation of EMP survey covering 5km² around Blue Bell (1989-1990) $\bullet$

The soil samples show a 700m long copper anomaly over a threshold of 100ppm copper. The average copper grade within the anomaly is 413ppm with a highest value of 1,262ppm. The anomaly is open towards the south. The newly identified copper anomaly at Blue Bell North sits on the eastern edge of a prominent magnetic ridge a similar setting to the Blue Bell mine.

Blue Bell North is located north of the recent mapping completed by AusAmerican. The recently acquired data package indicates that the anomaly sits within the Yavapai Schist; host to both the Blue Bell and De Soto mines.

Corporate

During the half, the company finalised a Share Purchase Plan ("SPP") and a Placement which has raised \$1,578,000 before costs.

The placement, which was made to sophisticated clients of Peloton Capital and DJ Carmichael and was subject to shareholder approval at the General Meeting held on Thursday 27 September, 2012, was done at 3 cents as was the SPP. Peloton Capital had agreed to underwrite \$1 million of the SPP. Both the full amount of the placement and the SPP was taken up.

Funds will be used for exploration primarily at the Blue Bell and De Soto VMS gold/copper/silver project in Arizona. The company will drill both these projects in the next three months.

Funds will also be used to continue to develop the company's New Mexico uranium projects including the recently acquired Grants Ridge, Northern and Kit Carson projects.

Subsequent events

Subsequent to the end of the half year the company commenced drilling at the Blue Bell project. Results to date have been highly encouraging.

To date all six of the holes assayed have returned mineralisation both at shallow depths and at depth.

Below is a table with a summary of the results to date (March 12^th 2012). Further results are due in the next month. The company is approximately 20 holes into a 30 hole drilling program to test the open pit concept at the Blue Bell project.

AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS' REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

Drillhole	Easting	Northing	RL	Azimuth Dip		From	To	Interval (m)	Cu%	Aug/t	Ag g/t	2n%	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		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		1.6	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	$\overline{3}$	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
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	0.5

COMPLETION OF THE ACQUISITION OF NEW MEXICO URANIUM PROJECTS

During the half year the company announced that it had has finalised the agreement with Kaboko Mining Limited ("KAB") to purchase 100% of KAB's subsidiary New Mexico Investments Limited, which via its wholly owned subsidiary Grants Ridge Inc has an interest in three uranium projects in New Mexico.

The acquisition was first announced to the market on 22nd May 2012 and the addition of the Kaboko projects, which are strategically located close to AusAmerican's Rio Puerco uranium project, enables the company to increase its asset base in the Grants Mineral Belt, a prominent uranium region. The combination of these projects adds scope for increasing the potential size of the company's uranium resource in the area and enabling a critical mass to be reached. Furthermore the addition of private land at Kit Carson offers a strategic alternative for potential milling sites as permitting is more favourable on private land than on BLM or state controlled land.

AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

Details of the three projects are as follows:

The Grants Ridge Joint Venture ("GRJV")

The GRJV holds 2270 hectares of mining claims, freehold land and leased mineral rights covering numerous historical uranium mines in the Grants Mineral Belt, New Mexico, USA (outlined in green in figure 1). The Grants mineral belt produced over 340,000,000lbs $U_3O_8$ (154,545 tonnes) prior to 1986 and was the largest producing uranium field in the USA in the previous production cycle. The deposits within the belt are located in the Jurassic age Morrison formation and are hosted in sandstone (mainly the Westwater Canyon, Poison Canyon or Jackpile units) or limestone (the Todilto limestone unit). The area is well known for historical high-grade production and there were 15 uranium processing plants operating in the area during the 1980s.

Recent focus in the GRJV has been on the Mesa Montanosa project. This project was previously drilled by Homestake and Mid-Continent Uranium and the GRJV has logged records for approximately 640 drill holes. Other projects in the GRJV include the Armijo and F33 projects.

AusAmerican is earning 65% in the JV and has completed the expenditure requirements of the JV. To crystallise the interest AusAmerican must deliver a feasibility study.

AUSTRALIAN-AMERICAN MINING CORPORATION I TD AND CONTROLLED ENTITIES

DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

Kit Carson project (100%)

Kit Carson abuts the Mesa Montanosa project and covers 1230 hectares. The area includes a number of historical open pit and underground mines which extracted uranium mineralisation hosted in the Todilto limestone. Previous drilling comprising 87 holes within the project demonstrates that mineralization continues through the project. The area is private land and will be a favourable location for any future infrastructure due to simpler permitting requirements.

Northern projects (100%)

The Northern projects (see figure 2) cover mineral claims over 518 hectares close to Mesa Montanosa and contains the Poison Canyon sandstone of the Morrison formation. Mines hosted in this stratigraphic unit include the Jackpile (production of over 46 million lbs $U_3O_8 \text{ @ } 0.24\%$ ), the Marquez (3.7m lbs $U_3O_8$ @ 0.26% produced) and the Poison Canyon (1m lbs $U_3O_8$ @ 0.23% produced). The presence of the same host unit within the acquired projects underpins their prospectivity.

The claims include the historic Gossett mine, which was hosted in the Poison Canyon sandstone and operated in the 1950s. It produced approximately 166,000lbs $U_3O_8$ at an average grade of 0.21% $U_3O_8$ .

AusAmerican's Uranium Strategy

Uranium is an important component of AusAmerican's multi commodity portfolio. The company is focussed on building a portfolio of high quality uranium assets in the USA; a location with low sovereign risk, excellent infrastructure, increasingly co-operative regulative and legislative environment.

The addition of the Kaboko projects, which are strategically located close to AusAmerican's Rio Puerco uranium project, enables the company to increase its asset base in the Grants Mineral Belt, a prominent uranium region. The combination of these projects adds significant scope for increasing the potential size of the company's uranium resource in the area and enabling a critical mass to be reached. Furthermore the addition of private land at Kit Carson offers a strategic alternative for potential milling sites as permitting is more favourable on private land than on BLM, State or Forestry land.

AUSTRALIAN-AMERICAN MINING CORPORATION LTD AND CONTROLLED ENTITIES

DIRECTORS' REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

AUDITOR'S INDEPENDENCE DECLARATION

The lead auditor's independence declaration under section 307C of the Corporation Act 2001 is set out on page 12 for the half-year ended 31 December 2012 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:

$\sqrt{6}$

Jim Malone Chairman Perth, 15 March 2013 COMPETENT PERSON

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.

Grant Thornton Audit Pty Ltd ACN 130 913 594

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

Auditor's Independence Declaration To The Directors of Australian-American Mining Corporation limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Australian-American Mining Corporation limited for the half-year ended 31 December 2012, 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
• $\mathbf b$ no contraventions of any applicable code of professional conduct in relation to the review.

Gront Thornton

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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Perth, 15 March 2013

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

		CONSOLIDATED ENTITY
	NOTE	31 DECEMBER 2012 S	31 DECEMBER 2011 S
CONTINUING OPERATIONS
Interest Income		4,652	30,070
Other income		17,755	118,856
Unrealised foreign exchange gain/(loss)		(5)	87,595
Depreciation and amortisation		(10, 200)	(17, 509)
Insurance		(20, 506)	(21, 231)
Occupancy & administration expense		(201, 710)	(225, 832)
Project expenditure		(649, 958)	(2, 118, 971)
Marketing and promotion		(127, 152)	(32, 103)
Salary, wages, professional fees		(695, 764)	(712, 924)
Travel and Accommodation		(165, 274)	(218, 085)
Share based payments expense	8	(714, 489)	(144, 320)
Bad debts written off			(2,610)
Property, plant and equipment written off			(41, 450)
Finance Expenses		(93, 356)
LOSS BEFORE INCOME TAX		(2,656,007)	(3, 298, 514)
Income tax expense
LOSS FOR THE PERIOD		(2,656,007)	(3,298,514)
OTHER COMPREHENSIVE INCOME
Revaluation of available for sale securities		(240,000)	(105,000)
Foreign currency translation		(173, 685)	102,297
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO MEMBERS OF AUSTRALIAN-AMERICAN MINING CORPORATION LTD		(3,069,692)	(3,301,217)
EARNINGS/(LOSS) PER SHARE:
Basic earnings/(loss)per share (cents per share)		(2.39)	(4.90)
Diluted earnings/(loss) per share (cents per share)		(2.39)	(4.90)

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2012

		CONSOLIDATED
	NOTE	31 DECEMBER 2012 $\mathbb{S}$	30 JUNE 2012 S
CURRENT ASSETS
Cash and cash equivalents		330,008	226,698
Trade and other receivables		81,302	39,074
Financial Assets		360,000
Other		97,557	923,965
TOTAL CURRENT ASSETS		868,867	1,189,737
NON-CURRENT ASSETS
Financial assets
Property, plant and equipment		109,757	73,775
Mineral properties in exploration and evaluation phase		6,871,484	7,029,887
TOTAL NON-CURRENT ASSETS		6,981,242	7,103,662
TOTAL ASSETS		7,850,108	8,293,399
CURRENT LIABILITIES
Trade and other payables		212,045	195,826
Provisions		31,319	24,122
Interest bearing loans and borrowings			185,000
TOTAL CURRENT LIABILITIES		243,364	404,948
NON-CURRENT LIABILITIES
Deferred Tax liability		771,756	771,756
TOTAL NON-CURRENT LIABILITIES		771,756	771,756
TOTAL LIABILITIES		1,015,120	1,176,704
NET ASSETS		6,834,988	7,116,695
EQUITY
Issued capital	$\sqrt{7}$	54,278,204	52,204,708
Reserves		3,026,339	2,725,535
Accumulated losses		(50, 469, 555)	(47, 813, 548)
TOTAL EQUITY		6,834,988	7,116,695

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

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

	SHARE CAPITAL	OPTIONS RESERVE	FOREIGN CURRENCY TRANSLATION	AVAILABLE FOR SALE SECURITIE S	ACCUMULATED LOSSES	TOTAL
CONSOLIDATED ENTITY
Balance at 1 July 2011	52,018,704	3,193,494	(1, 207, 707)	720,000	(43, 163, 036)	11,561,455
Total comprehensive income			102,297	(105,000)	(3, 298, 514)	(3,301,217)
Transactions with owners in their capacity as owners:
Shares issued during the period	1					$\mathbf{1}$
Share issue costs
Share based payments		144,320				144,320
Balance at 31 December 2011	52,018,705	3,337,814	(1, 105, 410)	615,000	(46, 461, 550)	8,404,559
Balance at 1 July 2012	52,204,708	3,701,291	(1, 275, 756)	300,000	(47, 813, 548)	7,116,695
Total comprehensive income			(173, 685)	(240,000)	(2,656,007)	(3,223,362)
Transactions with owners in their capacity as owners:
Shares issued during the period	2,228,422	٠	۰			2,228,422
Share issue costs	(154, 926)		×,			(154, 926)
Share based payments		714,489	à.			714,489
Balance at 31 December 2012	54,278,204	4,415,780	(1,449,441)	60,000	(50, 469, 555)	6,834,988

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

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

		CONSOLIDATED
	NOTE	31 DECEMBER 2012 S	31 DECEMBER 2011 S
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers for operating and exploration expenditure		(1,917,736)	(3, 337, 399)
Other receipts		1,511
Net cash (used in) operating activities		(1,916,225)	(3, 337, 399)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received		4,651	30,070
Interest paid		(64, 500)
Payment for property, plant equipment		(18, 181)	(17, 493)
Proceeds from refund of security deposits
Payment for other investments		(157, 317)
Net cash (used in) / provided by investing activities		(235, 347)	12,577
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares and other equity securities		2,323,729	1
Proceeds from borrowings		300,000
Repayment of borrowings		(650,000)
Proceeds from issue of convertible notes		350,035
Payment for share issue costs		(157, 729)
Net cash provided by / (used in) financing activities		2,166,035	1
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS		14,463	(3,324,821)
Cash and cash and cash equivalents at the beginning of the year		226,698	4,265,078
Cash acquired from purchase of controlled entity		116,496
Effects of exchange rates on cash and cash equivalents		(27, 649)	72,818
Cash and cash equivalents at the end of the period		330,008	1,013,075

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

$\overline{\mathcal{L}}$

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2012

$1₁$ 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 2012 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.

Going concern

The financial statements have been prepared on a going concern basis which contemplates the continuity of normal business activity, realisation of assets and settlement of liabilities in the normal course of business. The consolidated entity incurred a net loss of \$2,656,007 and had a net cash outflow from operating activities of \$1,915,742 for the half year ended 31 December 2012. The directors are confident that the group, subject to capital raising or further funding, will continue as a going concern and will be able to meet existing commitments as they fall due. The directors will also carefully manage discretionary expenditure in line with group's cashflow. Should a capital raising or other funding not be obtained then there is significant uncertainty whether the group will continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial reports.

$\overline{2}$ . Significant Accounting Policies

The accounting policies applied by the consolidated group in this consolidated interim financial report are the same as those applied by the consolidated group in its consolidated financial reports as at and for the year ended 30 June 2012.

3. Dividends

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

CONDENSED NOTES TO THE FINANCIAL STATEMENTS CONTINUED

FOR THE HALF YEAR ENDED 31 DECEMBER 2012

$4.$ 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 2012 the Group's principal activity is mineral exploration. The group operates in Australia and the United States of America. 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.

2012(Half Year)	AUSTRALIA S.	UNITED STATES \$	ELIMINATIONS	TOTAL \$
Revenue
Interest income	4,652	٠	۰	4,652
Other	17,755	٠		17,755
Total segment revenue	22,407	٠		22,407
Segment result	(1,995,420)	(837, 745)	(177, 158)	(2,656,007)
2011(Half Year)	AUSTRALIA s	UNITED STATES \$	ELIMINATIONS	TOTAL \$
Revenue
Interest income	30,070		٠	30,070
Other	55,003	63,853	×.	118,856
Total segment revenue	85,073	63,853	۰	148,926
Segment result	(653, 203)	(2,341,670)	(303, 641)	(3, 298, 514)

ii. Major customers

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

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2012

5. Contingent Liabilities

Contingent liabilities

The Rio Puerco project carries a bond payable amount which has yet to be confirmed. This bond i. payable will be paid later in 2013.

6. Events Subsequent to the Reporting Period

During the month of January the company commenced its maiden drilling program at the De Soto copper/gold/silver project in Arizona. This program is intended to drill approximately 30 Reverse circulation (RC) holes for a proximately 5,000 metres of drilling and is designed to test the "open pit" exploration target identified by the company (see ASX announcement made on 21 January 2013).

On 5^th February the company announced it had raised \$985,000 through the issue of 21,558,533 shares at 4.2 cents per share. Funds will be used to for on-going exploration costs at Blue Bell and for working capital purposes.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2012

$7.$ Issued Capital

	CONSOLIDATED
	31 DECEMBER 2012	30 JUNE 2012
161,231,910 fully paid ordinary shares (31 December 2012)	55,929,029	53,700,607
Share issue expenses	(1,650,825)	(1,495,901)
	54,278,204	52,204,706

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

		CONSOLIDATED AND COMPANY
	31 DECEMBER 2012 NUMBER	31 DECEMBER 2012	30 JUNE 2012 NUMBER	30 JUNE 2012
Fully paid ordinary shares Balance at beginning of financial year	75,767,021	52.204.708	336,709,607	52,018,704
Consolidation of shares		۰	(269, 367, 279)	$\sim$
Shares allotted during the year	85,464,889	2.228,416	8.424.695	186,004
Share issue costs		(154, 920)	$\blacksquare$	$\sim$
Ordinary fully paid shares at end of year	161.231.910	54,278,204	75,767,021	52,204,708

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. The company does not have any partly paid shares.

• The following shares were issued during the reporting period: a)
• i. On 5^th July 2012, the company announced that 408,720 shares had been issued to Australian Special Opportunity Fund, LP ("ASOF") in lieu of a \$15,000 commencement fee. In addition 1,250,000 shares were issued at \$0.04 per share for a \$50,000 placement to ASOF.
• On 5^th October 2012, the company issued 52,613,861 shares at \$0.03 per share as a ii. result of a share placement and an underwritten share purchase plan. The company also issued 2,884,615 shares at \$0.026 per share as part conversion of the convertible security with ASOF. The company also issued 10,000,000 shares for nil consideration for the conversion of performance rights upon satisfaction of the second performance hurdle as passed at the General Meeting of the company held on 28^th May 2012.
• On 15^th October 2012, the company issued 1,000,000 at nil consideration to Mr David iii. Rogers in consideration for the purchase of the data package for data on the Blue Bell and De Soto copper/gold/silver projects in Arizona, USA.
• On 7^th November 2012, the company issued 2,307,693 shares at \$0,026 cents per share iv. as part of the conversion of \$60,000 of the convertible security with ASOF.
• On 30^th November 2012, the company issued 15,000,000 shares at \$0.03 per share as a V. result of a share placement.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2012

8. Share Based Payments

A total of \$714,489 has been recorded for the six months ended 31 December 2012 as a Share based payments expense, and is comprised of the following:

	CONSOLIDATED 31 DECEMBER 2012
	S
Issue of 26,000,000 performance options expiring 28 May 2015 issued to directors on 5 June 2012	616,993
Issue of 14,000,000 performance options expiring 3 December 2017 issued to directors on 3 December 2012	14,031
Issue of 3,250,000 options to consultants with an exercise price of 9 Cents expiring 1 March 2015 issued on the 29 October 2012	8,391
Issue of 900,000 options to Lind Partners LLC with an exercise price of 5.595 Cents expiring 1 March 2015 issued on the 29 Feb 2012	13,470
Issue of 1,000,000 options to DJ Carmichael with an exercise price of 9 Cents expiring 1 March 2015 issued on the 15 October 2012	13,400
Issue of 1,000,000 options to Peninsula Investments with an exercise price of 9 Cents expiring 1 March 2015 issued on the 15 October 2012	40,200
Issue of 3,100,000 employee share options with an exercise price of 9 cents expiring 1 March 2015 issued on the 29 October 2012	8,004
Total share based payments expense 31.12.12	714,489

The fair value of the equity settled share rights granted under the plan is estimated as at the date of the grant using either the Black-Scholes valuation model for rights with non-market based performance conditions or the Monte-Carlo simulation model for rights that contained a market based performance condition.

The following table lists the inputs to the models used for the period ended 31 December 2012.

	2012		2011
Dividend yield (%)	$0\%$	$\frac{1}{2}$
Expected volatility (%)	140%	¥,
Risk-free interest rate (%)	2.70%	$\overline{\phantom{a}}$
Expected life of right (years)	5yrs	$\equiv$
Value per right (\$)	$$0.033 - 0.0326$	$\overline{\phantom{a}}$
Closing share price at grant date (\$)	\$0.035	$\overline{\phantom{a}}$

9. Acquisition of New Mexico Investments and Grants Ridge Inc

On the 24 August 2012 the group acquired the controlling interest in Kaboko Mining Limited ("KAB") subsidiary New Mexico Investments Limited, which contains a 100% wholly owned subsidiary Grants Ridge Inc. The cost of the acquisition totalled an amount of \$162,317 AUD which was paid to KAB. On acquisition a previous loan that existing between KAB and New Mexico Investments, totalling an amount of \$1,844,347 AUD, was written off as part of the acquisition agreement. On acquisition KAB transferred the share capital it held in its subsidiary New Mexico Investment to the group, this comprised a total of 1,000 share with a par value of \$1.00 USD per share.

As part of the acquisition KAB has right to receive from the company a future payment equal to 2% of any net smelter return generated upon commercial production being commenced on the permits to the extent of the interest in the permits held by the company.

DIRECTOR'S DECLARATION

The directors of the company declare that:

1. The financial statements and notes as set out on pages 13 to 22 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 2012 and of its performance for the half year ended on that date.

In the directors' opinion there are reasonable grounds to believe that the company will be able 2. 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.

James Malone

Director

Dated this 15^th day of March 2013

Grant Thornton Audit Pty Ltd ACN 130 913 594

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 info.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 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement or description of accounting policies, other explanatory information and the directors' declaration of the consolidated entity, comprising both the Company and the entities it controlled at the halfyear's end or from time to time during the half-year.

Directors' responsibility for the half-year financial report

The directors of Australian-American Mining Corporation Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

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 half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Australian-American Mining Corporation Limited consolidated entity's financial position as at 31 December 2012 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 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.

Liability limited by a scheme approved under Professional Standards Legislation

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

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:

• $\mathbf{a}$ giving a true and fair view of the consolidated entity's financial position as at 31 December 2012 and of its performance for the half-year ended on that date; and
• $\mathbf b$ complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

Material uncertainty regarding continuation as a going concern

Without qualifying our conclusion, we draw attention to Note 1 in the financial report which indicates that the company incurred a net loss of \$2,656,007 during the half year ended 31 December 2012. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern and therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report.

Grant Thornton

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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I W Vibert Partner - Audit & Assurance

Perth, 15 March 2013