Australian Bauxite Limited publishes Half Yearly Report

Australian Bauxite Limited is an emerging bauxite exploration and development company, which listed on the Australian Securities Exchange on 24 December 2009 with the ASX Code ABZ. This Review of Operations covers the period to 30 June 2012.

As at 30 June 2012, the Company through its wholly owned subsidiaries( ABx 1 Pty Ltd; ABx 2 Pty Ltd; ABx 3 Pty Ltd, ABx 4 Pty Ltd and ABx 5 Pty Ltd) holds 42 bauxite tenements in Queensland, New South Wales and Tasmania covering 8,960 km2.

Corporate

During the half year ended 30 June 2012:

- Mr Vincent Tan retired as a director at the Company's AGM in May 2012. Mr Ken Boundy was an alternate direct to Mr Tan.

- Mr Ken Boundy was appointed as a Director of the company on 6 June, 2012

- The Company raised $2.13 million in additional share capital during the first six months of 2012 though an issue to sophisticated and professional investors and also an offer to shareholders through a share purchase plan.

- Cash on hand as at 30 June 2012 was $2.8 million.

- The share purchase plan was completed after 30 June on 11 July 2012.

Projects

- A Pre Feasibility Study for the Goulburn Bauxite Project completed studies for low-capital cases for production commencing at 1.25 million tonnes per year and growing sequentially to full production as markets grow.

- Recent major changes at Port Kembla for future access to shipping in Panamax (+60,000 tonnes) or larger ships occurred shortly after the draft PFS was completed and these changes are being assessed and incorporated into the PFS during August.

- In conjunction with the Marubeni Group which has an option to purchase a 35% interest in the Goulburn Bauxite Project, a Stage 2 Pre Feasibility Study was commenced by GHD Engineers to assess the costs and practicality of commencing a 2.5 to 3 million tonne per year, larger-scale operation from the outset. This expanded study is due in September.

- Whilst the Goulburn PFS work was continuing, 3 project areas were identified in parts of Tasmania where there should be no socio-environmental constraints to early shipments of bauxite. Negotiations with various stakeholders, customers, contractors, ports and engineering firms are on-going and drilling is expected to occur during late August.

- The large Binjour project in central QLD was diamond-drilled to sample and identify the siliceous gel material that causes parts of the bauxite layer to appear subgrade when analysed by the company's standard lab procedure. This material has been identified as veinlets of pure hydrous Halloysite - a translucent suspension of clay and water in a gel. Testwork on various simple procedures to remove this gel material are proving successful and show potential to expand the size and continuity of resources substantially.