ORBMINCO LIMITED — Management Reports 2006

Jan 18, 2006

19/1/06

The Company Announcements Office Australian Stock Exchange Limited Level 6, 20 Bridge Street, Sydney NSW 2000

Dear Sir.

Review of Previous Exploration on NSW Mineral Properties

Highlights

Zinc and Lead Intercepts Beneath Lake George Mine Workings

• $\bullet$ 12.4% Zn and 5.4% Pb over 1.2 metres
• 3.9% Zn and 1.9% Pb over 2.44 metres

Lead assays up to 9% have been recorded in other intercepts. Target potential for 5-10 million tones at depth.

Copper and Zine Intercepts at Jerangle Prospect

• $\bullet$ 5.2% Cu over 2.25 metres
• $\bullet$ 4.3% Cu over 1.9 metres
• 6.3% Zn over 1.9 metres
• $\bullet$ 5.7% Zn over 3.0 metres

Low Grade Gold

A wide, low grade gold zone delineated at Vanderbilt Hill Prospect adjacent to Lake George Mine.

Tin Tungsten Resource

An inferred mineral resource of approximately 200,000 tonnes $\omega$ 0.35% tin and 0.51% tungsten at Mt Paynter has been confirmed, with a gold equivalent value in excess of 12 gpt.

Since listing in September 2005, Monaro Mining has undertaken a detailed study of its prospects located in southern NSW. This work has entailed the evaluation and compilation of data generated as a result of previous exploration programs by companies such as EZ Industries, Aztec Exploration, Amoco Minerals, Shell Minerals, Denehurst and others. The study has confirmed the highly mineralized environment contained within the Company's tenements, details of which are provide in the following sections.

$1.0$ Captains Flat Project: EL 6381, (MRO 100%)

This licence, which hosts the historic Lake George polymetallic mine, is prospective for base metals and gold associated with Volcanogenic Massive Sulphide (VMS) deposits. The main findings included the following:

$1.1$ Lake George Mine Deeps - high grade intercept of 12.4% zinc over 1.22 metres

This prospect area lies within the Kohinoor Volcanics and includes the Lake George Mine and extensions to the known lodes, including the Keatings South Prospect, and the nearby Federal Mine and Copper Shaft and Copper Dam prospects.

The Lake George Mine, originally developed at the turn of the 19^th century, was reopened in 1937. It was a sizeable producer up until 1962, supplying 406,418 tonnes of zinc, 243,851 tonnes of lead, 27,230 tonnes of copper, 236.4 tonnes of silver and 220,000 ounces of gold from over four million tonnes of ore.

Exploration drilling has tested the possibility of new ore shoots both along strike and at depth. The extent of this drilling and the position of the mined ore bodies is depicted in Figure 1. The possibility of a new lode development is evidenced by several deep drill holes. Drill hole T30 recorded an intercept of 1.22m at 12.4% Zn and 5.4% Pb, whereas T29 is recorded an intersection of 2.44m at 3.9% Zn and 1.9% Pb. Another drill hole, T57, assayed a grade of 9% Pb within close proximity. These holes are spaced over a 300 metre strike length. Further detailed assessment of the geology and geophysics is required, but at this stage, the area directly below and to the south of these three drill holes presents itself as a promising exploration target. There is good potential for a 5-10 million tonne polymetallic orebody. Testing of this potential will be a priority target.

Figure 1: Long Section of Lake George Mine at Captains Flat illustrating Exploration Target Area.

$1.2$ Vanderbilt Hill – wide low grade gold zone with potential for gold and base metals

This lead, zinc and gold prospect lies in the Kohinoor Volcanics adjacent to and east of the Lake George Mine. It was originally mined as a gold prospect to a shallow depth. Early drilling programs returned grades to 10.0% Zn and 5.4% Pb, but the exact position of these intercepts is yet to be determined. Later campaigns focused more on the gold potential of the prospect. A total of 15 percussion holes were completed over the prospect area during the late 1980's and early 1990's. The most significant intersections are tabled below:

Drill Hole	Total Depth (m)	Mineralisation $From -To$ (m)	Downhole Width (m)	Au (g/t)	Comments
$VB-4$	50	$4 - 30$	26	1.19	No base-metal assays
$VB-5$	50	$4 - 36$	32	1.04	No base-metal assays
$VB-6$	50	$26 - 50$	24	0.83	No base-metal assays
$VB-14$		$5 - 21$	15	1.07	Pb values vary between 0.32 and 3.45%
		$21 - 45$	24	0.35	over 5m from 5m down-hole.

The location of this drilling is illustrated in Figure 2. These drill holes established the presence of a relatively broad band of gold and base metal mineralisation (co-incident in part with a strong gold-in-soil anomaly), with many of the drill holes being terminated in anomalous to high gold values. It is clear that the Vanderbilt "Deeps" (the zone below existing drill holes VB-7 to BB-11) presents as a strong gold exploration target. addition. the strike In extension of the structure that hosted the original mineralisation also warrants further investigation.

Figure 2: Vanderbilt Hill Prospect showing soil and near surface gold zones and exploration targets

1.3 Jerangle Prospect – high grade copper and zinc intersections

The Jerangle Prospect is located approximately 30km south of Captains Flat. Past drilling programs intersected VMS style mineralisation with high grades of copper and zinc. Mineralisation occurs over a strike extent of 1.5km and is composed of chalcopyrite, sphalerite and galena. The prospect has been subjected to two main drilling programs and a total of 17 percussion and diamond drill holes have been completed. The drilling has revealed broad zones of base metal mineralisation over the entire strike length. Highlights of this drilling include:

Drill Hole	$From - To$ (m)	Downhole Width (m)	Assay Data (%)				Exploration work by:
			Cu	Pb	Zn	Ag
JRI	$212 - 214$	$\mathbf{2}$	0.4	0.4	1.8	9.5	Amoco Minerals (Aust), 1983
	228-230	2	2.95			6.5
JR 2	49-51	$\overline{c}$	2.7			7.5	Amoco Minerals (Aust), 1983
	207-208		2.75			3
JR3	113.45-114.5	1.05	4.3				Amoco Minerals (Aust), 1983
	$227.5 - 230$	2.25	5.25			19
	244.75-246.3	1.55			3.66
JR4	218-219		2.8			9	Amoco Minerals (Aust), 1983
	350-379.4	29.4	0.5		2.17	8
	Including	1.9	4.89		6.3	17
JR11	205.17-214.17	9.0		1.8	3.7	14.4	Amoco Minerals (Aust), 1983
	123-123.5	0.5	2.13	1.8	5.7	25
JRI7	80.5-80.9	0.4	4.34			9	Denchurst Ltd, 1993
	123-123.5	$0.5^{\circ}$	2.13			15.

Many of the above intersections have been derived from broad zones of mineralisation suggesting the presence of an extensive mineralised system. A number of holes failed to reach target depth and some suffered poor recoveries. Mineralisation is open both along strike and at depth in many instances.

Three exploration target areas have been tentatively identified at Jerangle, viz:

• Area 1: Northern and down dip extension of high zinc values intersected in JR11;
• Area 2: Down dip extension to high copper and zinc values intersected in JR1 and JR3; and
• Area 3: Magnetic outliers in the north-western sector of the mapped area $\bullet$

Figure 3 over the page illustrates the local geology, magnetic data and drill hole positions.

1.4 Other Project Areas – prospective for gold and base metals

A number of other Prospects have been identified as being prospective for gold and or base metals. These prospects will be followed up during the course of the ongoing exploration program.

Figure 3: Jerangle Prospect

$2.0$ Mount Paynter: EL 6356, (MRO 100%)

Exploration Licence 6356 contains the Mt Paynter tin and tungsten lode together with a number of smaller lodes all of which are hosted by an acid igneous intrusive. This lode mineralisation has been well defined by diamond and percussion drilling by previous explorers. A review of these data confirms previous estimates of an inferred mineral resource containing slightly over 200,000 tonnes of Sn (tin) and W (tungsten) mineralisation. Based on these tin and tungsten grades, a gold equivalent grade in excess of 12-15 $g/t$ is suggested for this prospect.

The most comprehensive exploration of the prospect area took place between 1969 and 1982, and included extensive diamond and percussion drilling in conjunction with IP surveys and costeaning. Twenty six drill holes (18 diamond, 8 percussion) for a total of 4,121 metres were completed during this phase. Twenty four of these explored the Main Lode and two the Hillside Lode. In addition, nineteen costeans were excavated and mapped at 1:100 scale and the Mt Paynter adit was extended by 254m to almost a kilometre to intersect the Main Lode. Cross cuts along the Main Lode were completed over a distance of 232m. An inferred resource of slightly over 200,000 tonnes was delineated.

Bulk sampling of the lodes for metallurgical purposes was also completed together with geostatistical analysis using assay data from drill hole intersections and channel assays. The results of the analyses gave mean grades of 0.35% Sn and 0.51% W respectively. Test plant recoveries of 74% tungsten and 69% tin were also achieved.

2.1 Assessment by Monaro Mining NL

Since listing, a review of the exploration data has been completed. Drill hole and lode assay data results have been plotted, which confirms the scale of the inferred resource as well as the Company's view that further drilling is warranted both down dip and along strike of the mineralised lode.

2.2 Wymah Tungsten - New Exploration Licence Application

Mindful of the buoyant tungsten market, the Company has lodged an application for a new exploration licence focused on the Wymah Tungsten prospect located approximately 35 kilometres to the west of Albury, southern NSW. This prospect reportedly consists of a number of quartz reefs up to 200m long and carrying varying quantities of tungsten, molybdenum and bismuth mineralisation. Some of these reefs have been worked in the past by adits and shafts, with a recorded production of approximately 3,630 tonnes of ore. Grades averaged 0.5% WO₂, 0.1%MoS₂ and 0.18% Bi.

3.0 Michelago: EL 6376, (MRO 100%)

Exploration Licence 6376 contains a typically volcanogenetic environment which is host to a number of base metal and gold prospects. Assessment of previous exploration work has so far identified two main areas of interest.

3.1 Cosgrove Hill-Billilingra Gold Prospects - anomalous gold-barite zone

Rock chip sampling of barite-gossan lenses highlighted a 1,200m long section with gold values of 0.5 to 16.4 g/t. Named the Billilingra Prospect, drill testing of the 200m long high grade zone intersected widespread disseminations and stringers of pyrite with traces of galena and sphalerite and several narrow zones of auriferous massive barite. An airborne geophysical survey in 1986 delineated discrete magnetic lows and potassium anomalies co-incident with the Billilingra Prospect and the nearby Cosgrove Hill. Drainage BLEG sampling in 1994, and more recent soil sampling, has delineated a number of gold anomalies in this areas which have yet to be followed up. In order to consolidate the Company's ground position in this area, an exploration licence application was lodged to cover additional prospective ground associated with the Billilingra Prospect.

3.2 Woolshed South Prospect $-zinc$ soil anomaly vet to be drilled

This prospect is a lead-zinc soil anomaly with a strike length of approximately 1.200m and delineated by a 200ppm threshold for lead and zinc. Moderate to strong geophysical (IP) anomalies were delineated on or to the west of the zone. This anomaly is yet to be drill tested.

$4.0$ Mayfield Project : EL 6358, (MRO 80%)

Work has commenced on the Mayfield Project which initially is focused on digitizing all of the available geological and drilling data into a useable format. This will provide a basis for estimating the tenor and extent of the known mineralisation as well as provide guidance to further exploration. Results of this work are expected during the next reporting quarter.

$5.0$ Proposed Activities:

5.1 Captains Flat

The current exploration program is focused on completing the data compilation including the assessment of all geophysical and geochemical data. This will be an on-going activity, given the large volume of data generated over the past 4-5 decades. However, as indicated above, the early work has clearly delineated three exploration targets, including:

• $\bullet$ Lake George Deeps (lead and zinc);
• Vanderbilt Hill Deeps (gold, copper and lead/zinc); and
• $\bullet$ Jerangle (copper/zinc).

5.2 Mt Paynter

As the land on which the prospect is located is Crown Land, there is a need to undertake certain assessments in regard to Native Title issues. Completing a compensation and access agreement will require the agreement of the administrator of Crown Lands as well as possible Native Title claimants. This process will be undertaken in the coming months. Following the successful completion of this process, a drilling program will be considered to test the extensions of the currently known mineralisation with the view to significantly increase the size of the known mineralised lode.

5.3 Michelago

Determination of the gold potential of the area has not yet been completed and large sections of the gossan-barite zone to the north and south have not been drill tested. The potential for blind deposits associated with intrusives which may be structurally controlled remains to be tested. The Woolshed South anomaly has a significant strike length and ground based surveys will be necessary to confirm targets suitable for drill testing. A high resolution fixed wing or heli-magnetic and radiometric survey of the entire Michelago licence area is being considered to fast track the delineation of areas prospective for subsurface massive sulphide (London Bridge-Collector style), Billilingra barite-gold and skarn deposits. A decision on this aspect of the program will be considered shortly.

5.4 Mayfield

Following the interpretation of the geological, geophysical and geochemical data now being completed, plans for the drilling of the Mayfield Prospect will be reviewed. It is anticipated that the interpretation of these data will generate a number of exploration drilling targets.

6.0 Overview

The Chairman of the Company, Mr Warwick Grigor, has said that:

"The review has confirmed that the prospects demonstrate good potential for attractive zinc and copper resources, particularly when the Captains Flat Deeps potential is considered; a resource target of 5-10 million tonnes is considered realistic. The Mt Paynter tin/tungsten resource is quite interesting at current metal prices but repeats or extensions of the resource need to be located before a development can be considered. We will continue to advance these projects at a sensible pace whilst concentrating on our extensive uranium portfolio in the Kyrgyz Republic".

Mart Rampe

Mart Rampe Executive Director

Competent Person

The review of exploration activities and results contained in this report is based on information compiled by Mr Mart Rampe, a Member of the Australasian Institute of Mining and Metallurgy.

He is a director of the Company and a full time employee of Harvest Exploration Pty Ltd. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results. Mineral Resources and Ore Reserves (the JORC Code).

Further Information

For further information please contact Mart Rampe, Executive Director, on (02) 46479566 or Warwick Grigor, Chairman, on (02) 92470077.