Quarterly Report – March 2011 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 96 Stephens Rd South Brisbane QLD 4101 | PO Box 8012 Woolloongabba QLD 4102 | T 07 3844 0982 | F 07 3844 0154 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. 2 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).