nr...june quarterly , page-3

AUSTRALIAN ALUMINIUM OPERATIONS UPDATE
* Gross Quarterly Cash Receipts of $1,133,000
* Gross Quarterly Operating Cash Surplus of $46,851 with trade receivables of $1.2 million at 30 June
* Closed-loop salt slag operations underway
* Landfill mining to commence once current stockpile of partly-processed salt slag reduced
* First shipment of AL80 awaiting departure
* Salt crystalliser under construction
* Engagement with Federal Government regarding carbon tax benefits for MHM's recycling operations
US ALUMINIUM OPERATIONS UPDATE
* MHM progressing with expansion into the US, targeting commencement of operations in 2012
* Processing throughput for the first plant expected to be 200,000 to 250,000 tonnes per annum
* Appointment of Senior US Executive Director of Operations, North America
* Salt slag supply contract discussions well advanced
* Engagement with parties showing interest in supplying a second salt slag recycling facility
* Decision for location of first US salt slag plant is imminent
* Testing program of 350,000 salt slag mono-fill completed, awaiting feedback from Government
regarding reprocessing
* Permitting and engineering consultants have commenced project planning activities
* Positive meetings with senior government officials for project support, incentives and concessions
* Preliminary discussions with parties regarding non-dilutionary financing mechanisms
SILICA PROJECT UPDATE
* Drilling program over Cape Sorell completed, awaiting assays
* Continued negotiation for offtake, silicon smelter discussions positive and ongoing
TASMANIAN EXPLORATION UPDATE
* Highly encouraging first-stage drilling at Hill 99 VHMS copper-gold project
* Assays expected by end of August 2011
* Drill core studies showing stratigraphy, alteration and age of the rocks at Hill 99 comparable with
Hellier-Fosse-Roseberry group of mines further to the north.