Commercial Robustness of Hellyer Gold Project

Dear All

Today Bass Metals reported to ASX the outcomes of extensive testwork evaluating process options to recover gold and silver from the Hellyer tails resource (ASX Release 9 Dec2011).  It is looking very encouraging, key points are:

• A study on tailings treatment options confirms Hellyer Gold Project (HGP) as a robust project utilising the Albion Process to recover gold and silver.
• Initial production forecast to recover 575,000 ounces of gold and 23 million ounces of silver over nine years.
• Cash Operating and Total Cash costs estimated at lower end of Australian primary gold production cost curve.
• NPV estimated at A$325 million at current metal price levels.
• Cash flow forecast to reach A$91 million per annum at current metal price levels.
• Company planning to progress detailed study in early 2012.

There is also an audio interview available on this link (http://www.brr.com.au/event/89932) providng further background information on the study.

It has been a challenging year for Bass employees, shareholders and other stakeholders; on behalf of the Board and the team thank you for your support; Merry Xmas and a Happy New Year.

Kind regards

Mike Rosenstreich

• For further information visit our website www.bassmetals.com.au
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