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Current Highlights:

• Under the variation to the development agreement announced by the Company on 21 October 2014, Callabonna may earn (subject to conditions) a 51% controlling interest in Ansongo Limited. This move increases the original earn in from 17.2% to 51% and also gives the Company a pre-emptive right over the remaining 49% of Ansongo Limited. Ansongo Limited is the majority (70.4%) indirect owner of Mali Manganese SA which owns the mining lease PE2011/15 (the “Project”).
• During the September quarter 2014 Mali Manganese working closely with the Company achieved some important milestones. The Mali Minister of Mines approved in writing a re-start of the operation on the mining lease and reviewed proposed development plans. Geologists have re-mapped the area and tendered a drilling program for commencement late November 2014. This is anticipated to lead into a mine scoping study during 2015.
• The Project was presented for the first time in Australia at the Resource Rising Star Conference on the Gold Coast on 2 October and was very well recieved (see above).
• The Company has kept the market informed with material announcements about a successful bulk sample shipment (ASX 28 July), the release of an Exploration Target (ASX 15 September) and an investor presentation on the Gold Coast (ASX 1 October).
• Eastern Frome Embayment north of Broken Hill NSW - The Company has fully rehabilitated it’s drill sites and intends to withdraw from further exploration in this area so it can focus on Ansongo.
• Georgetown Gold Projects QLD - these are being divested.

Ansongo was high on the list of the Company's investment criteria: being low cost operations with preferred commodities including manganese and copper; potential for direct shipping, low capital expenditure, able to repay significant capital in two years and therefore may be financed with minimal dilution to existing share-holders.

For exploration, where there is more risk, this will be managed by clear and affordable steps leading to a proof of the concept.

The board is committed to running on very low overheads and to remain focused on the main development.

Callabonna derives its name from the Callabonna Sub-basin home to several profitable uranium mines in the Frome Embayment area in South Australia. The basin straddles the South Australia-NSW border near Broken Hill.

• [Editor:Sophie]