Quarterly Report – March 2011

Home , Mount Read Volcanics, The Unconformity

Highlights

Exploration During the March quarter the Company acquired 100% of Mt. Owen Resources Pty Ltd from Pangean Resources Ltd and commenced field work on the Mt. Owen Project near Queenstown in Western Tasmania. No field work was conducted on Murphy or North Maureen due to an extended wet season in Northern Australia.

Mt. Owen - Tasmania  A definitive agreement was signed between Bondi Mining Ltd and Pangean Resources Pty Ltd on acquiring 100% of Mt. Owen Resources Pty Ltd, which is the holder of the Mt. Owen project.  An induced polarisation (IP) survey is in progress at Mt Owen. This is designed to detect buried disseminated pyritic mineralisation in the alteration zone around a possible copper- gold deposit (Fig 6).

 Structural mapping was conducted to help construct more detailed geological sections, which will aid the interpretation of the IP data on the completion of the survey.

Namibia  Bondi has submitted 10 tenement applications covering approximately 8000 square kilometres in north-eastern Namibia (Fig 8);

 The applications contain multiple target zones which are highly prospective for sediment- hosted copper mineralisation similar in age and style to Discovery Metals’ Boseto copper project, in Botswana (Fig 11);

 The target zones, located under thin Kalahari sand cover, have been recently recognised on the basis of detailed analysis of recent high resolution airborne magnetic data, and have had little previous exploration;

 The applications were submitted in December 2010, and are expected to be granted in the second quarter of 2011.

 Bondi has planned an aggressive 2011 program of airborne electromagnetic surveying, geochemical sampling of target zones, and drilling of resultant targets;

 The company has established a Namibian subsidiary and has engaged the services of an experienced Namibian Exploration Geologist to direct its Namibian activities.

Murphy - NT  The final technical report and processed data was received from Fugro Airborne Services in early March 2011. A report describing the results and interpretation of further modelling of the Murphy West area was completed by John Coggon in late March.

 An interpretive structural map, showing the depth to the conductive sandstone, west- south-west trending basinal faults and folds, and north-west trending faults coincident

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with shallow conductors were identified at Murphy West. This interpretation will be used to identify target for follow-up ground EM surveys (Fig 15).

 Prospective targets for uranium mineralisation are near the base of the Westmoreland, at faults that have fractured the basement as well as overlying sediments, and adjacent to dykes that also have penetrated the basement and cover.

 At UC19 the AEM survey defined a buried zone of relatively weak conductivity near MURD002. An RC / diamond drilling program is planned to test the target areas for uranium mineralisation (Fig 17).

North Maureen - QLD  No field work due to the on-going wet season. Field operations are planned to resume in May 2011.  Tenement reductions were made on EPM 15422 and 15434 as required by government regulations. Tenement application EPM 18676 is still pending. Corporate  During the March quarter the company reached agreement to raise up to $3million by placement of up to 30 million shares at $0.10 per share. The heavily oversubscribed placement was made to a number of sophisticated and/or professional investors in accordance with section 708 of the Australian Corporations Act 2001 (Cth). The issue of the second tranche of shares is subject to shareholder approval at a general meeting to be held on 28 April 2011.  Bondi’s highest current priority continues to be the acquisition of a transformative resource-stage project, and the company is continuing to review potential projects fitting these criteria including a range of commodities and jurisdictions.  Bondi will continue to look for high quality green fields and advanced copper–gold and uranium projects in well mineralised belts, in countries with low sovereign risk.  Bondi continues to search for additional copper–gold and uranium projects in eastern Australia, focusing on mining fields which host several large historic deposits.  Cash $2.67 million as at 31 March 2011, not including the proceeds of the second tranche of the Q1 placement, expected to bring in an additional $1.76 million after costs.

Planned Activities for the June Quarter 2011 The exploration program on the Murphy and North Maureen projects will be determined in consultation with our joint venture partner JOGMEC, who will be sole funding exploration. The exploration program has been delayed due our Japanese Joint Venture partner, JOGMEC reviewing their worldwide exploration budget as a result of the earthquake and tsunami in Japan on 11th March. The budget and exploration program is expected to be finalised in the June Quarter 2011. Acquisition of an advanced project remains a high priority and there are currently a number of projects in active review.

Mt Owen  The Induced Polarisation (IP) / CSAMT survey will continue into the June quarter and is expected to be completed by late April. The geophysical data will be modelled and interpreted and follow-up exploration targets will be defined and, weather permitting, tested in the September quarter 2011.  A geological model will be constructed based on mapping traverses conducted in March this year. Murphy  The exploration program will be formulated by the end of May to mid-June and is likely to include follow-up of conductors defined by the AEM, with ground electromagnetic (EM) surveys. If significant conductors are indentified they will be drill tested. RC drilling is also planned to test conductors defined at the UC19 prospect.  The ‘Goblin’ copper/uranium target is also scheduled for drill testing. It is a ‘bulls eye’ magnetic anomaly situated on a major NW trending fault zone and remains a priority target. North Maureen  Bondi intends to carry out follow-up of the encouraging results received from the Native Creek soil-sampling program completed in August 2010. The exploration program has not yet been finalised but is likely to include extensions to soil sampling and evaluation of targets using electrical geophysics, such as ground EM. Any identified significant geophysical and geochemical anomalies will be drill tested with a program of shallow RC drilling.

Project Generation Namibia After undertaking extensive regional prospectivity analysis and conducting a detailed geological interpretation of airborne magnetics, a series of high quality, sediment hosted, stratiform copper targets have been identified in north-eastern Namibia. Exploration applications were submitted to the relevant statutory authority in December 2010. The copper targets are similar in age and style to Discovery Metals’ Boseto copper project, in Botswana. Bondi continues to monitor the status of the applications and will be ready to commence exploration when they are granted. Eastern Australia Bondi continues to look for high quality copper–gold and uranium projects focusing in well mineralised mining fields in Eastern Australia, which host several large historic deposits. The acquisition of the Mt. Owen project is an outcome of our generative program.

Exploration Mt Owen Project (Mt Owen Resources Pty Ltd -100% Bondi Mining Ltd) The Mt Owen project is located in central western Tasmania, 6 km west of the Queenstown (Fig 3). The project comprises EL 39/2005 which covers a 19 km2 area on the edge of the Mt Lyell Cu-Au district. The tenement was acquired on signing a Definitive Agreement with Pangean Resources Ltd (Pangean) in March 2011 whereby Bondi Mining Ltd earns 100% of Mt Owen Resources Pty Ltd, the holder of EL 39/2005, by payment of shares and cash to 3

Pangean on the completion of exploration milestones (refer to ASX press release 1011-02 dated 9th February 2011). Geology The Mt Lyell deposits are hosted in the Cambrian Mt Read Volcanics in an intensely altered and structurally complex zone around the Great Lyell fault (Fig 3). The Mt Read Volcanics include the Central Volcanic Complex, comprising submarine rhyolite and dacite lavas, tuffs and intrusives, which host the majority of the Mt Lyell deposits, and the overlying Tyndall Group composed of volcaniclastic and marine sediments. Late Cambrian to early Ordovician coarse conglomerates, sandstone and siltstones of the Owen Group were deposited, on top of the Mt Read Volcanics. The Owen Group is overlain by Ordovician shallow marine clastic and carbonate rocks of the Gordon Group. In Mt. Owen tenement area, the Lower Owen Conglomerate, Tyndall Group and Mount Read Volcanics are exposed, with Middle and Upper Owen Group exposed in the north of the tenement (Fig 3). Exploration Previous exploration in the Mt Owen area in the last twenty years has been limited to a regional airborne magnetic/radiometric survey and reconnaissance mapping and sampling by Copper Mines of Tasmania (CMT). CMT mainly focussed on exploration in the Mt Lyell area 3 km to the NW of Mt. Owen as they believed the mineralisation was only hosted in the Central Volcanic Complex and this was too deep in the Mt. Owen area. Recent structural and stratigraphic mapping has shown that north-west trending, folding and reverse faulting, during the Mid Devonian, has brought the Mt Read Volcanics closer to the surface and data from an airborne hyperspectral survey (HYMAP, reprocessed by Pangean) located phyllic and argillic alteration similar to that surrounding the Mt Lyell deposits in the Mt Owen area (Fig 4). Pangean completed a ground traverse across the main alteration zone to confirm the HYMAP results using a PIMA (Portable Infrared Mineral Analyser) and collected several rock chips and stream sediment samples. These samples were not anomalous in copper, however one rockchip of quartz veining returned 0.62g/t Au. Bondi believe that the surface alteration at Mt Owen potentially represents an alteration halo surrounding concealed copper – gold mineralisation similar to Mt Lyell, which has been faulted over shallow Owen Group cover (Fig 4 & 5). IP / CSAMT Survey Bondi commenced an IP survey in late March which will comprise approx 14.4 line kilometres covering an area of about three square kilometres, above and surrounding the main target zones as defined by the ‘HYMAP’ alteration mapping. The geophysical crew is collecting Pole -Dipole IP and CSAMT (Controlled-source Audio-frequency Magnetotellurics). Refer Fig 6 for the IP survey area and Fig 7 for a photo of the survey area. The combination of these techniques is hoped to be effective in detecting the disseminated pyrite halo surrounding the Mount Lyell orebodies (5% pyrite), as well as the highly conductive sulphides associated with any potential high grade copper orebodies. The IP survey should be completed by late April 2011. Any targets identified after modelling of the IP and CSAMT data will be tested by infill geophysical surveys and then diamond drilling. Namibia Projects (Bondi Namibia 100%) Bondi Mining Ltd, through its wholly owned subsidiary Bondi Mining Namibia (Pty) Ltd, currently holds 10 tenement applications covering 7980 km2 in the Grootfontein and

Hereroland districts of central western Namibia, approximately 200km north-west of the capital Windhoek. The tenure covers two main project areas; Otjinene and Otavi. The areas comprise flat to gently undulating savannah with good access via graded roads and tracks around the townships of Otjinene and Grootfontein (Fig 8 & 9). Bondi aims to explore for and identify large sediment hosted, stratiform copper deposits of the Zambian copper belt style (e.g. Fungurume deposit; 1370Mt @ 2.6%Cu, 0.3%Co in the DRC) or breccia hosted Cu-Pb- Zn-Ag deposits of the Kapushi style (e.g. Kapushi deposit; 60Mt @11% Zn, 6.8% Cu, 1% Pb, and 160g/t Ag in the DRC). The Otjinene and Otavi project areas are highly prospective for concealed sediment hosted, Zambian Copper Belt style, Cu deposits and breccia hosted Pb- Zn-Ag deposits. Refer to Fig 10 & 11 for models of sedimentary hosted Cu deposits and breccia hosted Cu-Pb-Zn-Ag deposits.

Geology The Otjinene and Otavi projects are at located the SW portion of a large tectonic rift zone, termed the Pan-African Belt, which extends through north eastern Namibia, northern Botswana into Zambia, Zimbabwe and the DRC. A series of Proterozoic extensional basin developed along the rift zone and host both the well known Zambian Copper Belt and lesser developed Kalahari Copper Belt in which the project is located (Fig 12). The Proterozoic rocks in the project areas are covered by recent Kalahari sands. Magnetic data indicate that the cover is relativity shallow in the project areas and this is supported by the presence of outcrop and subcrop to the west, north and north-east of the project areas. Jurassic aged Karoo basalt also occurs under the Kalahari sands in the region but magnetic data shows that it is absent in the project areas (Fig 13 &14).

The main host sequence for copper mineralisation in the project areas is the Nosib Group at the base of the Neo-Proterozoic Damaran Supergroup. The Nosib Group contains extensive basal oxidised sandstones and conglomerates with overlying reduced phyllites and greywackes. The Nosib Group is thought to be a geological equivalent to the Ngwako Pan Formation in the Ghanzi Group which host known sediment hosted, stratiform redox Cu deposits to the north east, over the border in Botwsana. The Nosib Group is overlain by platform carbonate rocks of the Swakop Group and its northern equivalent the Otavi Group. The Otavi Group is also mapped to the north of the project areas, where it is a carbonate dominated sequence. The Swakop Group and potential Tsumeb sub-group carbonates are the target for breccia hosted Cu-Pn-Zn-Ag mineralisation in the Otavi Project and also in the Otjinene area.

The Otjinene and Otavi project areas are structurally complex and irregular. The complex structure within the Otavi and particularly the Otjinene area is analogous to the higher grade copper mines within the Zambian Copper Belt (Fig 13 &14). An interpretation of the aeromagnetic data in the Otjinene area defines a concealed, inverted evaporate basin under the Kalahari cover with areas of intense folding, inverted anticlines, or diapir structures, possible basement highs and younger intrusives bodies. North - west trending lineaments appear to control folding and emplacement of the diapers and intrusions. Potential redox boundaries are traceable in the magnetic stratigraphy around these features at both the Otavi and Otjinene project areas (Fig 13 &14).

Exploration Limited historical exploration has been carried out in the project areas due to the presence of Kalahari sand cover. Previous and current exploration in the region for sediment hosted, 5

stratiform, redox Cu deposits has concentrated to the south, along the exposed southern edge of the belt which extends into Botswana. To the north, where the Otavi Group is exposed, exploration has focused on breccia hosted Cu-Pb-Zn-Ag deposits. Exploration for these deposit types and massive sulphide systems, associated with the Matchless Pyritic Shale, has also occurred in outcropping areas to the south-west.

Exploration by Bondi to date has involved the acquisition of detailed government airborne magnetic and regional gravity data. These data along with geological mapping in the outcrop areas were used in a detailed interpretation focusing on stratigraphic and structural mapping under cover. The results of this work highlighted a concealed evaporate basin with complexly deformed stratigraphy, basement highs and diapiric features and obvious redox horizons along with regional re-activated extensional structures. Several target zones were selected and have been covered by Bondi’s tenement applications. Further exploration will include wide spaced, low detection, multi-element soil geochemistry, after conducting a careful orientation survey, and airborne electromagnetic surveys to test the target zones and define drill targets.

Murphy Project (Bondi 49%)

The Murphy Project in the Northern Territory comprises 12 tenements (Fig 15), which cover approximately 5,600 km2 in the southern extension of the Alligator Rivers Uranium field and has identical geological ingredients to the district that hosts 750 million lbs of high-grade uranium mineralisation further to the north. In the March quarter EL 24694 was reduced by approximately 50% as per statutory requirement.

Further modelling of the data from the AEM survey was completed in March. The modelling more clearly defines the basin structure and the depth to the conductive sandstone, at Murphy West. West-south-west trending basinal faults and folds, and orthogonal north-west trending faults coincident with shallow conductors were identified. North-west trending faults which have fractured the Murphy inlier metasediments as well as overlying Proterozoic sediments are considered prospective for uranium mineralisation near the Westmoreland conglomerate unconformity. This new structural interpretation of the margin of the Murphy inlier and the unconformity of the Southern McArthur basin will be used to define target areas for follow-up EM surveys in 2011(Fig 16). Recent modelling has indentified subtle conductors near the main NW trending fault at the UC19 area with potential for hosting uranium mineralisation. A drilling program to test these targets is being planned for the September Quarter 2011 (Refer to December Quarterly 2010 for details).

The ‘Goblin’ uranium – copper target, located approximately 8km NE of Walhallow station homestead, is a strong ‘bulls-eye’ magnetic target situated within a major NW trending fault zone. A collaborative drilling grant of $30,000 has been received from the NT Government, as part of ‘Bringing Forward Discovery’ initiative. The joint venture will consider drilling drill this target, which has been modelled to lie at a depth of 230 metres, in the September quarter 2011 (Refer to December Quarterly 2010 for details).

North Maureen Project (Bondi 100%, JOGMEC earning 51%)

The North Maureen Project comprises a package of nine tenements, covering approximately 500 km2 in north-east Queensland. The project contains a number of untested targets, beneath shallow cover, which display similar geological characteristics to the Maureen and Ben Lomond uranium deposits. Mega Uranium Ltd’s Maureen uranium deposit, which lies 2 km to the SE of the Bondi tenements, contains an NI43-101 compliant Indicated Resource of

3.1 million tonnes at 0.09% U3O8 (5.95 Mlbs U3O8) and an Inferred Resource of 0.15 million tonnes at 0.11% U3O8 (0.38 Mlbs U3O8). (Fig 17)

No field work was completed during the March quarter due the wet season in Northern Queensland. The planned follow-up of the U-Cu-Ag-Pb mineralisation defined on the NW trending Native Creek fault zone is expected to occur in May – June 2011.

Future exploration will include extensions to the current geochemical survey to determine the extent of the mineralised system follow-up ground geophysical surveys (e.g. Electo- magnetics) and eventually drilling of targets in 2011. The U308 values in soil and rockchips at Native creek are shown in Fig 18.

About Bondi Mining

Bondi Mining Ltd is a Brisbane-based exploration company with a focus on high-grade cycle- proof uranium targets and also high quality copper – gold targets with the potential for hosting a world-class deposit. Bondi’s Australian uranium portfolio is focused on the Murphy project in the Northern Territory and the North Maureen Project in Queensland, and the company continues to monitor tenure position and evaluate high quality uranium plays in South Australia and the Northern Territory.

Bondi’s highest priority is to acquire a resource-stage project, and the company is making good progress toward this objective.

BONDI MINING LIMITED All queries to be directed to Dr Rick Valenta or David Sasson (Fundamental Investor Relations Strategies) (07) 3369 4000 0411 468 966 [email protected]

The exploration data and results contained in this report are based on information reviewed by Dr Rick Valenta, a fellow of the Australian Institute of Mining and Metallurgy. He is Managing Director of the Company and has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Valenta has consented to the inclusion in this release of the matters based on his information in the form and context in which it appears.

Figure 1 – Regional location of Bondi Mining’s exploration projects.

Figure 2 – Mt Owen project location in Western Tasmania (colours show topography)

Figure 3 – Geology and structural architecture at Mt Owen and Mt Lyell, with orebodies in red.

Figure 4 – Section line ‘A –B’ at Mt Owen on top of local geology and alteration

Figure 5 – Interpretive geological section through Mt Owen showing alteration and target zones for copper – gold mineralisation.

Figure 6 – Proposed IP and CSAMT survey with alteration and geology as background. Red circles represent target zones

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Figure 7 – Mt Owen, view east along IP line 5,339,300mN to Lake Burbury

Figure 8 – Location of the Otjinene and Otavi tenements on a country scale

Figure 9 – Photo of landscape near Otjinene

Figure 10 – Sediment hosted, redox copper model (by Hitzman et al, 2010)

Figure 11 – Cu-Pb-Zn-Ag breccia hosted deposit model (by Hitzman, 1986). Note- copper orebodies are black

Figure 12 – Otavi and Otjinene projects within the Pan-African mobile belt, showing major basemetal mines in the Zambian and Kalahari Copper belts

Figure 13 – Otavi project area with tenement applications EPL 4645, 4647 and 4648 on grey scale magnetics

Figure 14- Otjinene project with tenement applications EPL 4640, 4641, 4642, 4643, 4644, 4646 and 4649 on grey scale magnetics

Figure 15 – Current tenure at the Murphy project.

Figure 16. Airborne EM survey – Murphy West Area: Depths to buried conductive layer. Orange – shallow, blue – deep.Contour interval 17m.

Figure 17. Regional location of the North Maureen project, superimposed on regional magnetics

Figure 18. . Rock chip eU308 and soil uranium assay values for the Native Creek Fault Breccia