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MANTLE MINING ASX: MNM & MNMOA

DIRECTORS

Mr Martin Blakeman

Non-Executive Chairman

Mr Ian Kraemer

Managing Director

Mr Peter Anderton

Non-Executive Director

Mr Stephen de Belle

Non-Executive Director

COMPANY SECRETARY

Mr Winton Willesee

PRINCIPAL PLACE OF

BUSINESS AND

REGISTERED OFFICE

Suite 25,

145 Stirling Highway

Nedlands, WA 6009

CONTACT DETAILS

Website:

www.mantlemining.com

Email:

admin@mantlemining.com

ph: + 61 (8) 9389 3130

fax: + 61 (8) 9389 3199

P.O. Box 3144

Nedlands, WA 6009

ASX Release 15 August 2012

Mantle Reports Maiden JORC Resource Mantle Mining Corporation Limited (ASX: MNM) “Mantle”, is pleased to announce a maiden Inferred Coal Resource, reported in accordance with the JORC Code, for the Bacchus Marsh Brown Coal Upgrade Project: Key Highlights: Mantle confirms an estimated 1.6 billion tonne Inferred Coal Resource, reported in accordance with the JORC Code for the Bacchus Marsh Project (Figures 1, 2 and Table 1). The depth of the Inferred Coal Resource extends from approximately 20m to 140m below surface. An in situ density of 1.14gm/cc and a maximum of 30% ash (db) have been used.

Figure 1: Bacchus Marsh Project location. Figure 2: Inferred Resource area.

Coal Seam Tonnes (Bt)

TM (%)

ASH (% db)

VM (% db)

FC (% db)

GDSE (MJ/kg)

TS (% db)

Maddingley 1.6 52.9 10.4 47.2 42.4 24.5 3.4

Table 1: JORC Inferred Coal Resource, with a maximum Ash (dry basis) of 30%.

Mantle recently announced an exploration Joint Venture Agreement (JVA) with Exergen Pty Ltd. Exergen has developed a breakthrough brown coal dewatering technology called Continuous Hydro-Thermal Dewatering (CHTD) and intends developing a $50million demonstration project to prove CHTD at commercial scale. Under the terms of the JVA, Exergen will now assume project management responsibility. Exergen CEO Trevor Bourne said the definition of the resource to JORC Code Compliant standard had confirmed a substantial deposit within the exploration area. “This is an important step forward in our aspiration to develop the Exergen CHTD technology which will increase the value of lignite resources while at the same time significantly reducing the environmental impact of lignites,” Mr Bourne said (Exergen Media Release attached). Further information: Media enquiries: Ian Kraemer Doug Macdonald Mantle Mining Capital Group 0407 758 722 0424 255 959

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Bacchus Marsh Coal Project (VIC): The Bacchus Marsh Project (Project) is located within the Bacchus Marsh Coalfield within the Port Phillip Basin, approximately 60km north-west of Melbourne. The township of Bacchus Marsh and the Werribee Gorge State Park both lie within Exploration License (EL) 5294 (Figure 1). The Project is comprised of EL’s 5294 and 5323, which cover an area of approximately 38,000 hectares. Brown coal occurrences within the Project are contained within the Maddingley Coal Seam which is of Early Miocene age forming part of the Werribee Formation.

Figure 1: Bacchus Marsh Project location.

Inferred Coal Resource: An Inferred Coal Resource of 1.6 billion tonnes, reported in accordance with the JORC Code, has been estimated within the Bacchus Marsh Coal Project, covering an area of approximately 4,300 hectares. A total of 72 drill holes were used to estimate the Inferred Coal Resource. Mantle completed 15 cored drill holes between September 2011 and June 2012, all of which were geophysically logged and analysed for coal quality, with the exception of MBM012 which did not intersect coal. A total of 57 historical drill holes supplemented the 2011/2012 dataset (Figure 2). The depth of the Inferred Coal Resource extends from approximately 20m to 140m below surface. An in situ density of 1.14gm/cc and cut-off of 30% ash (dry basis) have been used. Drill holes containing ash analysis for the Maddingley Coal Seam define a point of observation. A radius of 1,600m around a point of observation has been used to determine the extent of the Inferred Coal Resource. The following spatial constraints have been applied to the Inferred Coal Resource:

The boundary of EL 5294.

Coal within Mining License (MIN) 4701 has been excluded.

Interpreted boundary of the Rowsley Fault in the north-west is assumed to truncate the coal seam.

Maddingley Coal Seam interpreted pinch-out areas in the west-south-west and the north.

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Figure 2: Bacchus Marsh Project Inferred Resource area. * Drill holes labelled are those drilled by the Company in 2011 - 12.

Table 1 details the Inferred Coal Resource estimate and average coal quality values. All coal quality values, excluding total moisture are quoted on a dry basis.

Coal Seam Tonnes (Bt)

TM (%)

ASH (% db)

VM (% db)

FC (% db)

GDSE (MJ/kg)

TS (% db)

Maddingley 1.6 52.9 10.4 47.2 42.4 24.5 3.4

Table 1: Inferred Coal Resource below 30% Ash (dry basis).

Notes:

1. TM is total moisture 2. VM is volatile matter 3. FC is fixed carbon 4. GDSE is gross dry specific energy 5. TS is total sulphur

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Schematic Cross Section

Figure 3 shows a typical west – east cross-section through the Inferred Coal Resource area. Refer to Figure 2 for section location.

Figure 3: Schematic Cross Section. * Vertical Exaggeration of 10x, section width +/- 150m.

Seam Isopach Figure 4 shows seam thickness contours in 5m increments for the Maddingley Coal Seam. Description of Estimation Parameters The structural modelling of the Maddingley Coal Seam was completed in Mincom MineScape software using Finite Element Method interpolation for surfaces and Planar interpolation for thickness. Structural grids were transferred to Datamine software to generate a coal quality block model. Coal quality values were estimated into the block model using an inverse distance squared interpolation method.

Figure 4: Maddingley Coal Seam Thickness Contours. Competent Persons Statement (JORC Inferred Resource): Information in this report that relates to Coal Resource estimates prepared by AMC Consultants Pty Ltd is based on information compiled by Ms K Zunica, who is a Member of The Australasian Institute of Mining and Metallurgy and is a full-time employee of AMC Consultants Pty Ltd. The estimates are based on exploration data provided by Mantle Mining Corporation Ltd. Ms Zunica has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ms Zunica has provided written consent to the inclusion in the report of the matters based on her information in the form and context in which it appears. Competent Persons Statement (Exploration Results): The information in this report that relates to Exploration Results is based on information compiled by Mr Callum Lamont, who is employed by King Coal Mining Services. Mr Lamont is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Lamont consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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MANTLE MINING CORPORATION LIMITED’s COMPANY PROJECT PORTFOLIO:

Granite Castle Gold & Silver (QLD)

Charters Towers Gold & Copper (QLD)

Haunted Stream Gold & Copper (VIC)

Ashford Gold & Silver (NSW)

Trafford Coal & Coal Bed Methane (QLD)

Latrobe Valley Black & Brown Coal (VIC)

Bacchus Marsh Brown Coal (VIC)

Texas Black Coal (QLD)

Barkly Phosphate (NT)

QLD Gold Projects The Granite Castle Project area contains a JORC Measured, Indicated and Inferred gold and silver Resource

1. Mineralisation occurs in a 600m long

portion of a single shear. Over 14km of additional shears have been located, most with drill holes and/or rock chip samples at similar grades to the JORC Compliant shear. The Charters Towers Project area contains the Great Britain JORC Inferred gold Resource

2 as well as a number of historic

mines, including Day Dawn West, immediately west along strike of Citigold’s (ASX: CTO) proposed “City” mining area. The Gromac/Puzzler area is prospective for deposits of copper, gold, silver and molybdenum. VIC Gold Projects The Haunted Stream Project area is prospective for gold and copper including many historical, high-grade, gold mines along the Haunted Stream fault corridor. Deep drilling at centrally located Anomaly 4, a major target for possible deep vein gold or porphyry copper-gold mineralisation, intersected multiple shear zones with visible base metals. NSW Gold Projects The Ashford Project area is prospective for precious and base metals and a number of other minerals. The company has been granted three tenements for an initial three year period and is currently undertaking a detailed study of historical mining activity and regional prospectivity. The area represents Mantle’s first work in NSW, a state where the company believes future access for mineral exploration will be expanded. QLD Coal Projects The Trafford Project area contains a large Exploration Target

3 of black coal. Mantle has recently reached agreement with the traditional custodians of

Mt Mulligan who have Authorised an Indigenous Land Use Agreement (ILUA), a prerequisite to undertaking initial exploration activities. The Texas Project area is prospective for thermal and coking coals of similar quality to Surat and Bowen Basin coals. The tenements are along strike from known coking coal deposits and thermal coal drill intercepts located to the south and north. VIC Coal Projects The Bacchus Marsh Project area contains a JORC Inferred Brown Coal Resource

4 surrounding the Maddingley mine. Mantle has executed a JVA with

Exergen Pty Ltd to develop the deposit utilising Exergen’s patented Continuous Hydro-Thermal Dewatering (CHTD) technology. Exergen’s partners include Tata Power, Itochu, Thiess and Sedgman. The Latrobe Valley Project area is prospective for both black and brown coal deposits including many historical mines within the Gippsland Basin. The tenements immediately abut the main Latrobe Valley depression. There is a high level of prospectivity that the historic Wonthaggi Black coal seams exist at depth within the project area. NT Phosphate Project The Barkly Project area sits in the Georgina Basin between Minemaker’s (ASX: MAK) Wonarah deposit and Phosphate Australia’s (ASX: POZ) Highland Plains deposit. Historic phosphate rock intercepts exist within the tenements and Mantle is undertaking a series of annual drilling programs to more closely define the potential for covered deposits. 1, 2, 3 & 4: Mineral Resource and Exploration Target tables and associated Competent Persons Statements on next page.

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JORC MINERAL RESOURCES, EXPLORATION TARGETS and COMPETENT PERSONS STATEMENTS:

1. Granite Castle Gold & Silver Project:

Granite Castle Gold and Silver Resource Estimate (@ 0.2 g/t Au lower cut-off)

Class Tonnes Au (g/t) Au (oz) Ag (g/t) Ag (oz)

Measured 122,614 3.99 15,727 53.3 209,941

Indicated 264,021 3.44 29,198 67.6 574,182

Inferred 460,443 2.32 34,375 50.4 746,680

Total 847,078 2.91 79,301 56.2 1,530,803

Granite Castle Gold and Silver Exploration Target

Target Tonnes Au (g/t) Au (oz) Ag (g/t) Ag (oz)

Below JORC Resource 300,000 – 400,000 2.5 – 3.5 55 - 70

Total 300,000 – 400,000 2.5 – 3.5 55 - 70 Statements in this report relating to the Granite Castle Gold and Silver Resource Estimate are based on a report provided to the Company by Hellman and Schofield Pty Ltd, dated 16

th May 2008 and first released to the ASX by Mantle on 28

th May 2008. “The information in this report that relates to Mineral Resources is based on

information compiled by Dr William Yeo, a full time employee of Hellman and Schofield Pty Ltd. Dr Yeo is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Yeo consents to the inclusion of the matters based on his information in the form and context in which it appears in this report.” The report also covered mineralised structures below the resource and quantified a contained exploration potential (Exploration Target) within those structures. Dr Yeo notes that the potential quantity and grade of the Exploration Target is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource, and that it is uncertain if further exploration will result in the determination of a Mineral Resource”

2. Charters Towers Gold Project:

Great Britain Gold Resource Estimate (@ 0.5 g/t Au lower cut-off)

Class Tonnes Au (g/t) Au (oz)

Inferred 2,128,000 1.8 125,000

Total 2,128,000 1.8 125,000 Statements in this report relating to the Great Britain Gold Resource Estimate are based on a report provided to Glengarry Resources Ltd by Resource Evaluations Pty Ltd dated August 2004 and independently confirmed by Ravensgate Minerals Industry Consultants and included in Mantle’s 2006 Prospectus as released to the ASX by Mantle on 2

nd October 2006. The Resource Evaluations Pty Ltd report was compiled by Mr Mark Drabble, a Member of the Australasian Institute of Mining and Metallurgy and Mr

Gerry Fahey, also a Member of the Australasian Institute of Mining and Metallurgy: “This report was completed under the overall supervision and direction of Gerry Fahey and the 3D modelling and Mineral Resource estimation was carried out by Mark Drabble both of whom are Competent Persons as defined by the Australasian Code for the Reporting of Mineral Resources and Ore reserves (JORC Code) 1999 edition and who consent to the inclusion in this report of the matters based on his information in the form and context in which it appears.”

3. Trafford Coal Project:

Mt Mulligan Black Coal Exploration Target

Target Tonnes (Mt) TM (%) Ash (% adb) VM (% daf) FC (% daf) TS (% adb) SE (Mj/Kg)

Mulligan Sub-basin 100 – 500 2 – 3 11 – 42 29 – 39 60 – 71 0.14 – 0.43 16 – 28

Total 100 – 500 2 – 3 11 – 42 29 – 39 60 – 71 0.14 – 0.43 16 – 28 Statements in this report relating to the Mt Mulligan Coal Exploration Target are based on data provided to the Company by the vendors of the project, as first released in a report to the ASX by Mantle on 25

th September 2007: “Under the Guidelines for the Estimation and Reporting of Australian Black Coal Deposits (1999), Mount Mulligan

had an identified Class 1 deposit of 144m tonnes and an identified Class 2 deposit of 507m tonnes”. Upon review of the geological data in consultation with Mantle’s consultant geologists, it was considered appropriate that the range of the Exploration Target be considered as 100M to 500M tonnes. Information in this report that relates to Exploration Results is based on information compiled by Mr Ian Kraemer an Executive of Mantle Mining Corporation Ltd. Mr Kraemer is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Kraemer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. In addition, Mr Kraemer notes that the potential quantity and grade of the Black Coal Exploration Target is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource, and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

4. Bacchus Marsh Coal Project:

Bacchus Marsh (Maddingley Seam) Brown Coal Resource Estimate (@ 30% Ash upper cut-off)

Class Tonnes (Bt) TM (%) Ash (% db) VM (% db) FC (%db) TS (% db) GDSE (Mj/Kg)

Inferred 1.6 52.9 10.4 47.2 42.4 3.4 24.5

Total 1.6 52.9 10.4 47.2 42.4 3.4 24.5 Statements in this report relating to the Bacchus Marsh Brown Coal Resource estimates are based on a report provided to the Company by AMC Consultants Pty Ltd, dated August 2012: “Information in this report that relates to Coal Resource estimates prepared by AMC Consultants Pty Ltd is based on information compiled by Ms K Zunica, who is a Member of the Australasian Institute of Mining and Metallurgy and is a full time employee of AMC Consultants Pty Ltd. The estimates are based on exploration data provided by Mantle Mining Corporation Ltd. Ms Zunica has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms Zunica has provided written consent to the inclusion in the report of the matters based on her information in the form and context in which it appears.”

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August 15, 2012 BACCHUS MARSH JORC RESOURCE IN-LINE WITH EXPECTATIONS

Clean coal technology group Exergen and ASX-listed explorer Mantle Mining Corporation (ASX: MNM) are pleased to confirm that the maiden Inferred Coal Resource, reported in accordance with the JORC Code, at its Bacchus Marsh Coal Upgrade Project in Victoria is in line with previous guidance.

Exergen CEO Trevor Bourne said the definition of the resource reported in accordance with the JORC Code, had confirmed a substantial deposit within the exploration area.

“This is an important step forward in our aspiration to develop the Exergen CHTD technology that significantly reduces the impact of lignites,” Mr Bourne said.

“In conjunction with our proposed projects in the LaTrobe Valley and in Bacchus Marsh, this will help unlock the value of Victoria's energy reserves in a carbon constrained market.”

The depth of the 1.6 billion tonne Inferred Coal Resource extends from approximately 20m to 140m below surface. An in situ density of 1.14gm/cc and cut-off of 30% ash (db) have been used.

Any future development of the tenement will be subject to a stringent approvals process, including strict environmental compliance obligations and comprehensive community engagement.

Mr Bourne said Exergen’s breakthrough technology had the potential to bring significant benefits to both the local and global community.

“This technology will be good for the world by replacing higher emitting coals with lower emitting coals, and good for Victoria which is hoping to improve the use of its coal resources,” Mr Bourne said.

“It will also be good for local communities who can aspire to the jobs and social investment that our technology can bring in conjunction with a modern resources sector.”

Exergen’s patented Continuous Hydro-Thermal Dewatering (CHTD) technology provides a unique opportunity to transform historically uneconomic coal deposits into viable domestic and international export quality product which will provide a real economic boost for Victoria.

Exergen and Mantle Mining recently announced an exploration Joint Venture Agreement (JVA) in relation to EL 5294.

The JVA and TLD provide a framework for the potential future development of the exploration tenement which is located at the north-western end of the coal-rich Parwan Sub-Basin.

Under the terms of the agreements Exergen will assume management responsibility for the tenement now that the JORC Inferred Resource base is finalised.

EL5294 is located approximately 50km to the west of Melbourne and a similar distance to the north of the port of Geelong. The joint venture partners’ area of focus within the tenement contains a large, historically mined, deposit of coal.

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The Maddingley Mine, which has been mined continuously since 1948, is operated under a separate Mining Licence owned by a third party but situated within EL 5294.

Exergen is currently finalising a location and plans for the construction of a $50 million demonstration plant intended to confirm viability of its CHTD technology at commercial scale.

The company’s cornerstone investors include TATA Power, India’s largest private power utility, Leighton Holdings subsidiary Thiess, the world’s largest supplier of outsourced mining services, Itochu, Japan’s third largest trading house with extensive coal trading experience, and Sedgman, a global specialist provider of mineral engineering solutions.

CHTD coal is a transformed coal giving a cleaner burning product with lower emissions than its originally mined feed coal. The CHTD process “decarboxylates” high moisture coals, changing their molecular structure and liberating inherently bound water in the process. Water is separated in the liquid state, eliminating the need to evaporate the water typical in competing technologies. Recovered water becomes available for agricultural or industrial use.

Exergen expects that its CHTD coal would be used in state of the art power stations of the type that can already meet new emissions standards for future power stations announced by the Victorian Government. Exergen is also working towards demonstrating the use of CHTD fuel in a Direct Injection Coal Engine (DICE), which may match gas-fired power station emissions and also enable future CO2 capture.

CHTD has been proven at 4 tonnes per hour scale on Victorian and Indonesian coals with moisture contents ranging between 35% and 65% having already been successfully trialled.

ENDS

Media enquiries to:

Duncan Macfarlane

0435 092 936

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