SummaryINSTITUTIONAL PLACEMENT & RIGHTS ISSUE TO RAISE UP TO $15...

Summary

INSTITUTIONAL PLACEMENT & RIGHTS ISSUE TO RAISE UP TO $15 MILLION

• $10 million placement to institutions and professional investors.

• Rights Issue to raise up to $5.3 million also planned to complete the $15 million equity leg of the funding strategy.

• Placement and Rights Issue price to be 23 cents, a 20% discount to the 5 day volume weighted average price.

• A further $10 million banking/off-take finance facility is planned ensuring sufficient funds to commence development of the Hellyer Mine project and accelerate exploration drilling of new


Placement

The Company intends to raise $10,000,000 (before costs) through the issue of 43,478,261 shares at 23 cents to a range of Australian and overseas institutions and professional investors. Element Capital is managing the placement process which was oversubscribed.

The Placement will be completed in two tranches:

• Tranche A comprising 15,207,320 shares will be issued under the Company’s existing 15% capacity by early December; and,

• Tranche B comprising 28,270,941 shares is subject to shareholder approval and therefore is not expected to be issued until late January 2010. The Company plans to convene a General Meeting of Shareholders for mid January 2010 to approve the issue of the Tranche B shares. A Notice of Meeting will be issued to shareholders in due course.


Rights Issue

Bass Metals also plans to raise up to a further $5.3 million (before costs) through a pro rata entitlement offer (Rights Issue) to current shareholders at the same price of 23 cents as the Institutional placement. The Rights Issue will comprise an offer of 2 shares for every 9 shares held by shareholders registered in Australia or New Zealand at the record date.