WEST WITS MINING LIMITED — Interim / Quarterly Report 2011

Jul 28, 2011

ASX Announcement and Media Release 29[th] July 2011

ASX: WWI www.westwitsmining.com

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Quarterly Activities Report

Highlights

Fast Facts
Capital Structure	@ 29 July 2011
Shares on issue	293.9 million
Preference Shares	46.0 million
Options	59.4 million
Market Cap	A$14.9 million
Cash in Bank	A$ 3.6 million
Debt	Nil
Enterprise Value (EV)	A$11.3 million
Current JORC Reserve	59,000
Current JORC Resource	426,700
EV / Resource oz	A$191/oz
EV / Reserve oz	A$26/oz

Company Directors & Management Michael Quinert Exec Chairman Niel Pretorius Non-Exec Director Hulme Scholes Non-Exec Director Phillip Hains Non-Exec Director & Company Secretary

• West Wits signed definitive agreement to acquire majority interest in the Derewo River Gold Project situated in the Papua Province, Indonesia

• Derewo indicates similar characteristics to early stage Porgera, Edie Creek, Wau, Mt Kare in Papua New Guinea and represents an outstanding exploration prospect

• Freeport McMoRan’s world class gold and copper Grasberg Project is located 110km from Derewo

• West Wits received shareholder approval at General meeting to complete acquisition

• West Wits completed interim placement raising $300,000

Post Balance Day highlights

• West Wits completes acquisition of Derewo interest

• West Wits completes Private Placement to raise $3 million with BGF Equities

• West Wits’ Share Purchase Plan closes raising $500,000

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Contact Details Suite 1, 1233 High Street Armadale VIC 3143 T: +61(0)3 9824 5254 F: +61(0)3 9822 7735 E: info@westwitsmining.com W: www.westwitsmining.com

Corporate Advisor Peregrine Corporate Limited Tim Chapman T: +61 (0)3 9824 8166 E: tchapman@peregrinecorporate.com.au

• Exploration programs to proceed in Indonesia and South Africa

Review of Operations

West Wits Mining Limited (“West Wits” or “the Company”) during the quarter completed successful due diligence at the Derewo River Gold Project (“Derewo”), located in Papua Province, Indonesia, thus allowing the Company to proceed to the execution of a definitive agreement. The Company obtained shareholder approval to issue West Wits shares to the vendors at the General Meeting held on 2 May 2011.

This acquisition provides entry into a promising placer gold project based on evidence from existing artisanal operations, but the real opportunity and focus of this project is in the potential of discovery of the primary source of nuggets being found.

In conjunction with the acquisition of Derewo, the Company also announced its intention to complete a private placement with institutional and high net worth clients BGF Equities Pty Ltd (“BGF”) to raise $3 million. The placement, was a combination of 33.75 million existing ordinary shares at 5 cents per share (which will finalise the Mintails Limited’s loan repayment obligations), as well as a further 33.75 million new ordinary shares at 4 cents per share with an attaching 1 for 4 option exercisable at 8 cents per share on or before 1 February 2014. This combined offer meant new subscribers were being offered shares in the capital of West Wits at 4.5 cents per share with a 1 for 8 free attaching option exercisable at 8 cents per share.

As part of the Company’s capital raising program a share purchase plan (“SPP”) was also offered to existing shareholders to raise $500,000 through the issue of a further 12.5 million shares at 4 cents per share with an attaching 1 for 4 option exercisable at 8 cents per share on or before 1 February 2014.

The funds raised through the placement and SPP generated approximately $3.5 million. These funds will be used to establish a modern alluvial operation and undertake initial exploration for the primary hard rock source of the nuggets at Derewo as well as allowing the Company to complete its drill program at the existing Monarch Resource and ‘gap’ area both located along strike and directly south of the Emerald Gold Project in South Africa.

Preview of Operations: Next Quarter

West Wits intends to use $2 million of the capital raised at Derewo River to commence exploration work and develop a hydraulic gold mining project by introducing modern mechanised production methods. These activities are expected to enhance the Company’s knowledge of the regional geology and assist with targeting the primary hard rock source of the gold nuggets. The development strategy will consist initially of mapping and sampling for alluvial assessment and development of the long term mining plan, which would include the construction of an access road, dam and pipeline to enable commencement of commercial scale mining.

The planned exploration program will involve extensive mapping and sampling work as well as the mechanisation and ramp-up of gold mining operations. This project area exhibits favourable geology with significant gold deposits nearby, including Wabu and Grasberg. The exploration target is a Porgera Zone 7 and Wafi/Gobu type deposit.

The Company believes that Derewo River exhibits many similarities consistent with the early stages of several large gold projects on the PNG side of New Guinea. Whilst many well known discoveries have been made on the PNG side of the border relatively few have been made on the Indonesian side until recently for a variety of historical reasons; including political environment and physical isolation. Derewo River provides a promising setting for the pursuit of a well known pattern for development of placer style deposits established over several decades in PNG but not yet undertaken on the Indonesian side.

With regards to its South African prospects, the Company plans to spend up to $1.2 million on exploration aimed at expanding its resource and reserve base. That focus will be initially implemented through a drill program at the 1km ‘gap’ which lies between the 74,000oz Au Monarch Mineral Resource and the 59,000oz Au Reserve which forms the current Emerald Gold Project.

The Company is confident that mineralisation should continue along strike through the current 1 km ‘gap’. This confidence is based on the Monarch Mineral Resource estimate, the known continuity of the Reef over 9kms within the Company’s leases, and historic underground mining data.

The Monarch Resource was achieved at a discovery cost of $3.50 per ounce and confirmed the potential for additional near surface gold resources along strike from the Emerald Gold Project. West Wits is confident that additional drilling will enable an upgrade in the resource category for the Monarch Mineral Resource.

West Wits also plans to complete an initial drill program at the Company’s LIP Target. On 4 November 2010 West Wits announced it received assay results from its sampling program with significant values including a 15.03g/t Au from selected exposed outcrop within the pit as well as a peak value of 3.34g/t Au from samples within an area that had been prepared in anticipation of mining, but which had never commenced. These initial results were seen as very encouraging by the exploration team and warranted following up through an initial drilling program. The LIP Target could potentially provide additional near surface open cut material to the proposed Emerald Gold Project.

The Company looks forward to completing this acquisition and beginning work at Derewo River. The Company will also be recommencing exploration work on its’ South African assets and expects both projects to provide increasing news-flow and, potentially, shareholder value. With an already strong and developing resource base in South Africa and a promising new exploration project in Papua West Wits is poised to provide its shareholders with a stable value proposition coupled with the potential upside of an exciting New Guinea exploration story.

For And On Behalf Of The Board

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Michael Quinert Chairman West Wits Mining

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B – 4th Quarter

Mining Exploration Entity Quarterly Report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

	Name of entity WEST WITS MINING LIMITED (ASX: WWI) ABN Quarter ended (“current quarter”) 89 124 894 060 30thJune, 2011 Consolidated statement of cash flows	Name of entity WEST WITS MINING LIMITED (ASX: WWI) ABN Quarter ended (“current quarter”) 89 124 894 060 30thJune, 2011 Consolidated statement of cash flows	Name of entity WEST WITS MINING LIMITED (ASX: WWI) ABN Quarter ended (“current quarter”) 89 124 894 060 30thJune, 2011 Consolidated statement of cash flows	Name of entity WEST WITS MINING LIMITED (ASX: WWI) ABN Quarter ended (“current quarter”) 89 124 894 060 30thJune, 2011 Consolidated statement of cash flows	Name of entity WEST WITS MINING LIMITED (ASX: WWI) ABN Quarter ended (“current quarter”) 89 124 894 060 30thJune, 2011 Consolidated statement of cash flows	Name of entity WEST WITS MINING LIMITED (ASX: WWI) ABN Quarter ended (“current quarter”) 89 124 894 060 30thJune, 2011 Consolidated statement of cash flows	Name of entity WEST WITS MINING LIMITED (ASX: WWI) ABN Quarter ended (“current quarter”) 89 124 894 060 30thJune, 2011 Consolidated statement of cash flows	Name of entity WEST WITS MINING LIMITED (ASX: WWI) ABN Quarter ended (“current quarter”) 89 124 894 060 30thJune, 2011 Consolidated statement of cash flows	Name of entity WEST WITS MINING LIMITED (ASX: WWI) ABN Quarter ended (“current quarter”) 89 124 894 060 30thJune, 2011 Consolidated statement of cash flows
	WEST WITS MINING LIMITED (ASX: WWI)
	ABN 89 124 894 060 Consolidated statement of cash flows
							30thJune, 2011
1.1 1.2 1.3 1.4 1.5 1.6 1.7		Cash flows related to operating activities Receipts from product sales and related debtors Payments for (a) exploration & evaluation (b) development (c) production (d) administration (e) contract services (f) staff costs (g) other working capital Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other (provide details if material) NetOperating Cash Flows				Current Quarter $A’000			Year to Date (12 months) $A’000
						- (29) - - (246) (44) (10) - - 6 - - (4)			- (390) - - (1,241) (127) (129) - - 54 - - (7)
						(327)			(1,840)
1.8 1.9 1.10 1.11 1.12 1.13			Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material) Net investing cash flows Total operating and investing cash flows (carried forward)			- - - - - - - - -			- - - - - - (300) 265 -
						-			(35)
						(327)			(1,875)
1.13 1.14 1.15				Total Operating and Investing Cash Flows (Brought Forward) Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares					(1,875) 536 -
						(327)			(1,875)
						536 -			536 -

• See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	Current Quarter $A’000	Year to Date (12 months) $A’000
	- - - -	- - - -
	536	536
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	209 262 (1)	(1,339) 1,826 (17)
	470	470

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Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current Quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 93
-
1.24 Aggregate amount of loans to the parties included in item 1.10
1.25 Explanation necessary for an understanding of the transactions
Salaries, directors’ fees, corporate advisory and consulting fees at normal commercial rates
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
-
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
-
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• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Financing Facilities Available

Add notes as necessary for an understanding of the position.

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

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration 4.5 Contract Services 4.6 Staff Costs	$A’000
	390
	-
	-
	300
	50
	10
Total	**750

(** Expenditure is subject to shareholder approval with regards to capital raising) Reconciliation of Cash

Reconciliation of Cash
Reconciliation of cash at the end of the quarter (as	Current Quarter	Previous Quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank	198	262
5.2 Deposits at call	272	-
5.3 Bank overdraft	-	-
5.4 Other (provide details)	-	-
Total: Cash at End of Quarter(item 1.22)	470	262

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

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 (note (2))	Interest at beginning of Quarter	Interest at end of Quarter
	Nil
	Nil

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B Mining exploration entity quarterly report

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 (cents)(see note 3)	Amount Paid up per Security (cents) (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	129,472,340	129,472,340	-	-
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	7,500,000	7,500,000	$0.04 per ordinary share	$300,000
7.5	+Convertible debt securities (description)	-	-	-	-
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted	-	-	-	-
7.7 7.8 7.9 7.10	Options (description and conversion factor)	17,862,032	-	Exercisable @ $0.20 to $0.30	-
	Issued during quarter	1,150,000	1,150,000	Exercisable @$0.10	-
	Exercised during quarter	-	-	-	-
	Expired during quarter	(2,099,268)	(2,099,268)	Exercisable @ $0.20 to $0.30	-
7.11	Debentures (totals only)	-	-	-	-
7.12	Unsecured notes (totals only)	-	-	-	-

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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.

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Sign here: ............................................................ Date: 29 July 2011 (Director/Company secretary)

Print name: Michael Quinert

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 apply 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.

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• See chapter 19 for defined terms.

Appendix 5B Page 6

30/9/2001