Name of the Project
Sconi scandium/cobalt/nickel project – Phase 1.

Location
The project is located 250 km west of Townsville, in Queensland, Australia.

Client
Metallica Minerals.

Australian Mines can earn a 75% interest in the project. The first 50% interest will be subject to the completion of a definitive feasibility study (DFS), or a A$10-million spend within a four-year period, with a further 25% to be acquired after Australian Mines arranges suitable finance or the development of the project, within 18 months of completing the Stage 1 earn-in.

Project Description
The Sconi project encompasses two scandium/cobalt-rich, and three nickel/cobalt deposits.

The total scandium resource at Sconi is 12-million tonnes, at 162 parts per million of scandium for 2 989 t of scandium oxide.

The combined nickel and cobalt mineral resource for the project is 89-million tonnes at 0.58% nickel and 0.06 % cobalt for 514 000 t of contained nickel metal and 54 000 t of contained cobalt metal.

A prefeasibility study on the Sconi project has confirmed that it could potentially produce an estimated 5 250 t/y of nickel, 700 t/y of cobalt and 68 t/y of scandium for at least the next 20 years

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Not stated.

Latest Developments
The Queensland government has granted Australian Mines an environmental licence for the project, enabling the company to advance development plans for a mining operation.

With the environmental approval in place, and anticipating a positive DFS at Sconi, Australian Mines has started discussions to secure the necessary construction funding for the project.

Using funds from a recent capital raise, Australian Mines will also process a bulk tonnage sample of ore material from Sconi as part of the definitive feasibility to generate samples of scandium oxide powder, and nickel and sulphate products to advance discussions with potential offtake partners.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Metallica Minerals, tel +61 7 3249 3000 or fax +61 7 3249 3001.
Australian Mines, tel +61 8 9481 5811 or email office@australianmines.com.au.