ORBMINCO LIMITED — Interim / Quarterly Report 2012

Jan 30, 2013

==> picture [146 x 81] intentionally omitted <==

31 January, 2013

ASX Release, By e‐lodgement

QUARTERLY ACTIVITIES REPORT FOR THE QUARTER ENDED 31 DECEMBER 2012

HIGHLIGHTS

• Exploration commences at Bluebell and De Soto Arizona copper/gold/silver projects

• High grade mineralisation discovered at Bluebell

• Ground holding increased at Bluebell and De Soto

• New Target identified at Bluebell North

• Results to date validate exploration model

• Drilling commences at Bluebell

• Option to farm out San Marcos gold project granted

• Mandate signed for Canadian listed spin‐out of US uranium assets

• Buy back of Convertible note completed

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 December 2012.

1. Bluebell and De Soto Copper/Gold/Silver Projects

Exploration commenced on the Bluebell and De Soto copper/gold/silver VMS projects located in Arizona, USA. During the 3 week mapping and sampling campaign conducted in September and October 2012, 440 surface samples were taken. Locations of individual channel sampling lines are shown in Map 1. The samples were submitted for analysis at the ALS Laboratory in Reno, Nevada.

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 initial exploration program returned wide zones of copper/gold/silver mineralisation including:

• 38m @ 1.2% copper, 0.51g/t gold and 22.9g/t silver (see Figure 1)

• o 22m @ 0.45% copper and 2.9g/t silver o 13m @ 0.86% copper and 4.6g/t silver

The intercepts of the sampling program are listed in Table 1.

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

1

==> picture [146 x 81] intentionally omitted <==

==> picture [452 x 196] intentionally omitted <==

Figure 1: 38m wide outcrop of copper/gold/silver mineralisation at Bluebell

Table 1: Intercepts Bluebell channel samples

Channel		Length
Sample	From(m) To(m)	(m)	Copper(%)	Gold(g/t)	Silver(g/t)
12BBTR01	No Significant Results
12BBTR02	No Significant Results
12BBTR03	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	2	nsa	25.9	16.9
12BBTR06	0 22	22	0.45	nsa	2.9
including	14 16	2	1.5	nsa	nsa
12BBTR07	No Significant Results
12BBTR08	0 3	3	2.1	nsa	nsa
12BBTR10	No Significant Results
12BBTR11	No Significant Results
12BBTR12	41 47	13	0.86	nsa	4.6
Including	41	47	6	1.39	5.0
12BBTR13	No Significant Results
12BBTR14	No Significant Results
12BBTR15	15 22	7	0.17	0.89	10.1

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

2

==> picture [146 x 81] intentionally omitted <==

==> picture [394 x 554] intentionally omitted <==

Map 1: Channel sample locations and results at Bluebell

The Company believes the results to date validate the exploration model of a lower grade stock work mineralisation surrounding higher grade massive sulphide lenses and support the initial exploration target for the project.

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

3

==> picture [146 x 81] intentionally omitted <==

New mineralised horizon identified

A total of 14 rock chip samples were taken on an outcrop of jaspilitic chert located north of Bluebell (sample location 12BBTR04; Map 1). The samples returned an average grade of 2.7 g/t gold and 38 g/t silver, with individual gold assays ranging from 0.42 g/t to 5.78 g/t. This horizon represents a new exploration target which warrants further work.

Ground position increased

During the quarter the Company increased its ground position at the Bluebell and De Soto copper/gold/silver projects in Arizona, USA by staking 156 unpatented mining claims. Staking this additional land has increased the size of the project area to over 14km[2] of similar geology to the historical mining areas.

The Company believes the staking of new ground at Bluebell and De Soto enhances the prospectivity of the combined projects, as we believe the stratigraphic horizon that hosts the VMS mineralisation at Bluebell and De Soto extends beyond the boundaries of the original projects.

In securing ‘the Gap’ between the two projects, the combined project area is a contiguous 5km band which contains favourable stratigraphy for hosting VMS mineralisation.

New Copper VMS target identified at Bluebell North

During the quarter a new copper VMS target was identified on the recently staked ground, 1km north of the Bluebell mine.

The Bluebell North target was identified during the ongoing interpretation of the data package acquired by AusAmerican in October 2012. The data recovered and interpreted includes:

• 339 soil samples on a 15‐30m by 120m grid, 1km north of Bluebell (1990)

• 120m line‐spaced magnetic survey covering 5km[2] around Bluebell (1989)

• Interpretation of EMP survey covering 5km[2] around Bluebell (1989‐1990)

The soil samples show a 700m long copper anomaly over a threshold of 100ppm copper (Map2). 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 Bluebell North sits on the eastern edge of a prominent magnetic ridge, a similar setting to the Bluebell mine.

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

4

==> picture [146 x 81] intentionally omitted <==

==> picture [398 x 71] intentionally omitted <==

==> picture [398 x 71] intentionally omitted <==

==> picture [398 x 71] intentionally omitted <==

==> picture [398 x 70] intentionally omitted <==

Map 2: Soil sample locations and rock samples (AusAmerican, 2012) on simplified geology

Bluebell 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 Bluebell and De Soto mines.

The soil anomaly at Bluebell North shows the potential for copper mineralisation outside of the mine area.

The Company plans to follow‐up in the field to confirm the soil anomaly and complete a soil sampling program over a wider area in the first quarter of 2013.

Data package on Bluebell and De Soto projects purchased

During the quarter, a data package containing maps, reports, and cross sections of previous work was obtained.

The data obtained from the data package includes:

• 83 drill holes for 3747.8m (75 underground and 8 regional)

• 799 soil samples

• Ground magnetic surveys

• EM profiles and interpretations

• Geological mapping

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

5

==> picture [146 x 81] intentionally omitted <==

Drilling commences at Bluebell

The company has commenced its 5,000 metre first phase, reverse circulation drilling programme at the Bluebell project.

Drilling commenced on 21[st] of January 2013. To date four holes totalling approximately 600 metres have been completed. Samples from the first three holes have been received by the ALS Laboratory in Reno, Nevada for analysis. The company expects the first results to be available in two to three weeks.

The 30 hole, 5,000 metre program is designed to test the potential of the stock work mineralisation which surrounds the known high grade massive sulphide lenses. A number of holes will 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% silver.

The program is anticipated to take six to eight weeks and assay results are expected to be progressively available from mid‐ February.

Summary

The company is delighted at the progress that has been made at the Bluebell and De Soto copper/gold/silver VMS projects in Arizona during the quarter. The Company has commenced drilling on the project which, with the option only commencing in September 2012, shows the dedication of our team to deliver our exploration program.

The favourable Arizona climate facilitates the exploration and development of resource projects, and we anticipate, subject to adequate funding, that the rapid progression of this project will continue in 2013.

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

6

==> picture [146 x 81] intentionally omitted <==

2. Option to Farm Out the San Marcos Gold Project

In January 2013, the company announced that it had entered into an agreement with ASX‐ listed 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.

3. Agreement signed with Toronto based advisor for spin‐out option for uranium assets

Towards the end of January 2013, the company entered into an agreement with Toronto based Jennings Capital Inc (“JCI”) whereby JCI will provide corporate advisory regarding the disposition of AusAmerican’s US‐based uranium assets into a Canadian listed vehicle.

At this stage the company plans to examine all options but the preference is for AusAmerican to “spin out” the assets into a Canadian listed entity. AusAmerican would aim to have a significant equity stake in the entity, appoint a new uranium focused management team and have ongoing Board representation. At the appropriate time, we would endeavour to distribute the shares “in specie” or return value back to our AusAmerican shareholders through the most appropriate means.

4. Financial Summary and Equity Structure

As at the end of January 2013 the company has cash and cash convertibles of approximately $500,000. During the quarter the company continued liquidating investments to assist with overall funding requirements. This process is expected to net the company approximately $600,000. This has continued in 2013 and we expect the process to be completed by the end of January, with proceeds received during January and early February. In addition to this, the Company has received approximately $150,000 in redeemed environmental bonds in January 2013.

The company has requested a trading halt as of 31 January 2013 pending an announcement on a capital raising. Details of this will be made available when the company resumes trading in the first week of February 2013.

The current number of ordinary shares on issue for the company is 161,234,136. At the time of the report the company shares last traded at 5.1 cents giving it a market capitalisation of approximately $8.3 million.

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

7

==> picture [146 x 81] intentionally omitted <==

During the quarter the company announced it had agreed to buy back the remaining $350,000 of convertible securities A & B on issue under the agreement announced on 29[th] February 2012 with the Australian Special Opportunity Fund (“ASOF”). The consideration payable for the buyback was $402,500 and this was repaid to the ASOF in December 2012 and the company now has no convertible securities on issue to the ASOF.

In order to facilitate the buyback, AusAmerican placed 15,000,000 shares at 3 cents per share to exempt investors pursuant to its placement capacity under listing rule 7.1.

At the end of the quarter AusAmerican had 35,355,250 quoted options on issue that were exercisable at 50 cents on or before 31 December 2012.

2,226 ordinary shares were issued as a result of the exercise of 2,226 options. 35,353,024 options expired unexercised on 31 December 2012.

The company also has decided not to continue trading its ADRs on the OTCQX market in New York. This decision was made based on the small number of trades that had taken place since the company commenced trading on the OTCQX in January 2012.

During the quarter Mr Mark Ceglinski resigned from the Board and as Chairman. Executive Director Mr Jim Malone was appointed Chairman of the company. He remains an Executive Director and Company Secretary.

5. About Australian American Mining Corporation (“AusAmerican”)

AusAmerican is a multi‐commodity internationally focused exploration company. All of its projects are currently located in the United States of America.

The company’s gold projects are the San Marcos (100%) and Bernard (90%) gold projects which are both located in the state of Arizona.

The company’s uranium projects are as follows;

• 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 project is La Paz which is located in Arizona.

The company’s specialty metal (Lithium, rubidium, niobium and tantalum) project is the White Picacho project which is located in Arizona.

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

8

==> picture [146 x 81] intentionally omitted <==

6. Competent Person’s 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.

Further information:

For further information please contact Richard Holmes or Jim Malone or on +61 8 94810799

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

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

9

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	Name of entity	Name of entity
Australian-American Mining Corporation Limited
ABN Quarter ended (“current quarter”) 99 073 155 781 31 December 2012 Consolidated statement of cash flows	Quarter ended (“current quarter”)
	31 December 2012
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
		- (998) - - (240) - 3 (56) - -	- (1,466) - - (498) - 5 (56) - -
		(1,291)	(2,015)
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		- - (35) - 25 - - - - - -	(55) - (54) - 324 - - - - - -
		(10)	215

1.15 Total operating and investing cash flows (brought forward)	(1,301)	(1,800)
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	1,028 - - (350) - (140)	2,158 - - (350) 350 (140)
	538	2,018
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	(763) 1,104 (11)	218 227 (115)
	330	330

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
		(140)
		-
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
	400
	-
	-
	200
	600

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)	330	1,104
	-	-
	-	-
	-	-
	330	1,104

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.

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	161,234,136	161,234,136	-	-
	83,808,395	83,808,395
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 13,000,000 6,350,000	- - - - - - - -	Exercise price $0.231 $0.2105 $0.2105 $0.2105 $0.325 $0.0595 $0.09 $0.09	Expiry date 15 September 2013 6 October 2013 13 October 2013 20 October 2013 16 November 2013 1 March 2015 1 March 2015 1 March 2015
	10,350,000 2,336 35,353,024		$0.09 $0.50 $0.50	1 March 2015 31 Dec 2012 31 Dec 2012
	22,000,000	-
	- -	- -

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 January 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.