QX RESOURCES LIMITED — Capital/Financing Update 2012

Nov 27, 2012

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28 November 2012

Manager of Company Announcements Australian Securities Exchange Level 6, 20 Bridge Street Sydney NSW 2000

By E-Lodgement

Project Development Update

Black Mountain Resources Limited (ASX | AIM: BMZ), the silver focused development company with interests in the US, is pleased to provide an update on the development of its Conjecture and New Departure silver projects located in Idaho and Montana respectively.

Highlights

• Development work at New Departure Silver Project, Montana has recommenced

• Federal health and safety regulatory approvals granted for development works

• o Equipment and personnel mobilisation underway

• Initial production on target for Q1 2013

• Drill program completed

• Positive progress made at Conjecture Silver Project, Idaho – on track for initial production in Q2 2013

• Portal installation at Graham Adit nearing completion

• Updated exploration programme for March 2013 following high grade intercepts near to surface from drilling

Black Mountain CEO John Ryan, said, “We are highly encouraged by the progress made at both our near term US production assets, Conjecture and New Departure. Development at both projects is focused on achieving high grade silver production from historically worked areas over the next six months. At Conjecture, with the re-opening of the Graham Adit nearly complete, we will soon start driving the decline to cross cut the historical workings, enabling us to commence low cost high grade silver production. At New Departure, having received sign off from the federal health and safety authorities, we will rapidly advance development work over the coming days with a view to commencing production early next year.

“As well as having near term production targets, both projects have demonstrated exciting exploration upside potential following recent drilling campaigns at each site. Although some delays have been experienced at New Departure due to a backlog at the assay laboratory, we recently announced the significant intercepts of high grade silver up to 1,106 grams per tonne near to surface at Conjecture. With this in mind, we are now planning a second phase of drilling and geophysical work for March 2013 onwards which will strengthen our understanding and scope of the mineralisation at the projects.”

Black Mountain Resources Limited Ground Floor Suite 1A, Princes House ABN 55 147 106 974 1 Havelock Street 38 Jermyn Street www.blackmountainresources.com.au West Perth WA 6005 London SW1Y 6DN info@blackmountainresources.com.au Tel: +61 (8) 9488 5220 Tel: +44 (0) 207 025 7040

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New Departure Silver Project

Black Mountain is pleased to advise that federal health and safety regulatory approvals have been granted for development works at New Departure. Operations have recommenced with equipment and personnel are being mobilised to site.

The development work will initially complete the rehabilitation of the Laczay Adit and Tunnel. A 335m decline will then be driven at a 15% decline to access historic workings below the historic blocks known as the Main Zone, additionally allowing access to the Quien Sabe Zones and the Bonanza Zones by way of secondary drifts off the main decline (depicted as numbers 5 and 3 respectively in Figure 1 below). Initial production is scheduled for Q1 2013.

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Diagram 1: New Departure Silver Project Work Programme

The 13 hole (3,000m) drill programme targeting potential down-dip extensions of the historic workings and IP anomalies identified through geophysical work is now complete. The Company is experiencing delays in receiving assay results due to a backlog at the laboratory. Assay results will be released as soon as they are available and the Company is looking at alternative services available going forward.

In addition, further geophysical and structural geological mapping was undertaken on the project. A number of further IP anomaly targets have been identified over the claims and an additional geophysical and geochemical programme is planned prior to drilling prioritised targets in Q2 2013.

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Drilling at New Departure Silver Project

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Laczay Tunnel at New Departure Silver Project

Black Mountain Resources Limited ABN 55 147 106 974 www.blackmountainresources.com.au info@blackmountainresources.com.au

Ground Floor Suite 1A, Princes House 1 Havelock Street 38 Jermyn Street West Perth WA 6005 London SW1Y 6DN Tel: +61 (8) 9488 5220 Tel: +44 (0) 207 025 7040

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Conjecture Silver Project

At Conjecture, the installation of culverts at the portal entry for the Graham Adit is almost complete. Following this, the Company will then commence work to construct a decline to cross cut and access historic working levels. Delays are anticipated over the next 3 months given typically heavy snowfalls over the winter months, initial production is anticipated in Q2 2013. Cross cuts from the decline to the vein zones are proposed to be driven approximately every 200 feet (61.2m). Additionally, planned i-drifting on the vein will enable bulk sample testing of the vein zone as well as delineation of additional potential resource blocks for eventual mining.

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Conjecture Silver Project, Idaho

Following completion of recent drilling, which intercepted several shallow high grade silver zones and identified new mineralisation zones, further desktop and geological work has been undertaken. The Company is currently developing an exploration programme for March 2013 onwards. This second phase is expected to include further geophysical work together with a drill programme to test Induced Polarisation (‘IP’) anomalies identified.

High grade intercepts from drill result highlights (as released on

17 October 2012)

• 715g/t of Ag-eq intercept over 1.4m (depth of 101m)

• 363g/t of Ag-eq intercept over 3.9m (depth of 38m)

• 340g/t of Ag-eq intercept over 0.7m (depth of 17m)

• 157g/t of Ag-eq intercept over 3.0m (depth of 40m)

Diagram 2: Conjecture Silver Project Work Programme

Black Mountain Resources Limited ABN 55 147 106 974 www.blackmountainresources.com.au info@blackmountainresources.com.au

Ground Floor Suite 1A, Princes House 1 Havelock Street 38 Jermyn Street West Perth WA 6005 London SW1Y 6DN Tel: +61 (8) 9488 5220 Tel: +44 (0) 207 025 7040

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Diagram 3: Conjecture Silver Project Cross Section

For and on behalf of the Board

Peter Landau Executive Director

Black Mountain Resources Limited ABN 55 147 106 974 www.blackmountainresources.com.au info@blackmountainresources.com.au

Ground Floor 1 Havelock Street West Perth WA 6005 Tel: +61 (8) 9488 5220

Suite 1A, Princes House 38 Jermyn Street London SW1Y 6DN Tel: +44 (0) 207 025 7040

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Competent Persons Statement

The information included in this release that relates to historical mining data and exploration results is based on information compiled by Mr. Gregory Schifrin, a technical consultant to the Company. Mr. Schifrin has worked as a geologist in exploration and mine development for 29 years in precious and base metal exploration and is a professional member (SME Registered Member) of the Society of Mining, Metallurgy and Exploration (SME) #4053449, a ‘Recognized Overseas Professional Organization’ (‘ROPO’) included in a list promulgated by the ASX from time to time. Mr. Schifrin has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Schifrin has reviewed this release and consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

For further information please visit www.blackmountainresources.com.au or contact:

Black Mountain Resources Limited	Black Mountain Resources Limited
Shannon Robinson	Eva Bezruchko
Executive Director	Corporate Relations	Investor Relations
T: +61 (8) 9488 5220	T: +44 (0) 207 025 7040
Broker (Australia)	Broker (UK)
708 Capital	Xcap Securities
Matthew Lumb	Jon Belliss
T: +61 (2) 9112 2552	T: +44 (0) 20 32162630
Media (Australia)	Media (UK)
PPR	St Brides Media & Finance Limited
David Tasker	Elisabeth Cowell
T: +61 (8) 9388 0944	T: +44 (0) 20 7236 1177
Nominated Advisor (UK)
RFC Ambrian Limited
Stuart Laing
T: +61 (8) 9480 2500

About Black Mountain Resources Limited

Black Mountain Resources Limited is a dual listed (ASX | AIM: BMZ) silver and gold focused development company focussed on the advancement of three highly prospective previously operating assets located in two of the world’s most developed and proven silver and gold mining regions of Idaho and Montana, USA.

The Company holds a 70% interest in the New Departure Silver Project, the Conjecture Silver Project and the Tabor Gold and Silver Project. It plans to implement low cost production and development programmes across all three assets, targeting first production from New Departure and Conjecture by Q1|Q2 2013. It is also implementing exploration programmes to capitalise on the exploration upside potential apparent across its portfolio.

Black Mountain Resources Limited was incorporated on 29 October 2010 and is listed on the Australian Securities Exchange and London’s AIM Market (BMZ).

Black Mountain Resources Limited ABN 55 147 106 974 www.blackmountainresources.com.au info@blackmountainresources.com.au

Ground Floor 1 Havelock Street West Perth WA 6005 Tel: +61 (8) 9488 5220

Suite 1A, Princes House 38 Jermyn Street London SW1Y 6DN Tel: +44 (0) 207 025 7040