During the 5-year period 2005-2010, intensified exploration undertaken at Menninnie Dam was focussed on the discovery and delineation of structurally controlled hydrothermal Pb-Zn-Ag mineralisation. Carbonate-rich Hutchison Group metasediments forming an inlier to much younger Gawler Range Volcanics rocks were found to contain the bulk of such mineralisation which has subsequently been discovered. MMG Australia now believes that there is strong potential for discovering skarn-related Cu-Pb-Zn, Sn-W and epithermal Au deposits on the tenement, besides magnetite iron ore co-products spatially (but not genetically) associated with the Menninnie Central prospect style of Pb- Zn-Ag mineralisation and possibly genetically associated with Viper prospect styles of Pb-Zn-Ag mineralisation. During 2006-2007, 27 diamond cored holes were drilled into the Menninnie Central lodes for the purpose of delineating an initial JORC Code - compliant mineral resource estimate, which later was made public by Terramin on behalf of the Joint Venture. The information release made to the Australian Stock Exchange in January 2008 summarised Inferred ore resources existing at the Menninnie Dam Project as at 31/12/2007, which related to the Menninnie Central deposit only, and in total was 3.79 Mt @ 7.2% Pb+Zn and 34 g/t Ag. [Note: The only other 'potential resource' estimate, previously prepared by Aberfoyle Resources (Part B and Central Zone Assessment Menninnie Dam Prospect, Eyre Peninsula, South Australia, June 1992) was 20 Mt @ 7% Pb+Zn, including 7 Mt @ 17% Pb+Zn (13 Mt @ 1.6% Pb+Zn). This was considered by Aberfoyle to be a low confidence estimate which did not conform to JORC guidelines]. The Menninnie Central resource estimate was derived within a mineralisation model defined by a 1% Pb+Zn outline, and was reported at a 3.5% Pb+Zn cut-off. The initial resource is contained within four mineralised zones named Kimba, Boss North, Boss South and Caesar lodes. The JV stated that due to the nature of the deposit geology, significant additional drilling would be required to upgrade this resource to Indicated status. As revealed by 2008, the lead-zinc mineralisation related to the Menninnie Central deposit is present over a total strike length of 5 km, with the Menninnie Central Inferred resource occurring over a strike length of 900 m within this. Sphalerite and galena occurrences in the drilled lodes are structurally and/or lithologically controlled, and can be present as very fine disseminations or as coarser-grained sub-massive to massive sulphides. The bulk of the mineralisation occurs as infill and replacement styles in discrete breccia horizons commonly flanked by silicification halos within dolomitic marbles. Minor thin veinlet-style mineralisation occurs in the underlying gneiss. Spatially, the highest grade mineralisation at Menninnie Central is located between a major fault (Western Fault – hosting a matrix supported sulphidic breccia) and the keel of a syncline defined by a banded iron formation. The host dolomitic marble within the western limb of the syncline dips steeply to the east. The host rock sequence is weathered to depths of 150-200 m. Well-mineralised zones are locally weathered and partially leached to depths of 450 m or more. It is thought that the mineralising fluids are likely to have been discharged from shallow cupolas located to the south and south-east of the tenement, that arose from the Wilcherry Batholith which more deeply underlies the tenement and the areas to the east and south. Emplacement of this pluton and its apophyses possibly post-dated that of the basal Gawler Range Volcanics (GRV), and so may have been responsible for the doming, tilting, alteration and sulphidic mineralisation of the basal GRV and of the underlying basement rocks. In accordance with this model, the tenement should host a spectrum of mineralisation styles ranging from proximal skarns to more distal and/or higher level lower temperature fault-related epithermal vein and breccia systems. After 2007, the JV drilled additional diamond cored holes stepping out from the Menninnie Central deposit in order to extend the known resource. By the end of 2010, 11 such holes had been completed to test ground to the south, while 10 holes had been drilled to the north likewise, and stepout drilling was still in progress. This drilling targeted IP anomalies and was successful in finding similar epithermal lead-zinc mineral occurrences at the Viper, Cassius and Cracker prospects. Viper lies closest to Menninnie Central and is of a similar tenor, with lodes extending for 350 m north-south and persisting downward to >300 m depth adjacent to the Western Fault structure. Geophysical exploration of the Menninnie Dam district continued during 2005-2010, with the following work completed: - September-October 2005, Kimba and Kimba Infill airborne magnetic/radiometric/DTM survey of 2661 line km flown along east-west lines spaced 50 m apart, using a 20 m mean sensor height above the ground surface. - August-September 2008, Menninnie Dam ground gravity survey of 857 stations read on spatially variable 50 m-400 m station spaced irregular grids covering two areas (Area 1 - 438 stations; Area 2 - 463 stations). - 2006, 2007 and 2008, three campaigns of ground dipole-dipole IP surveying in all totalling 289.4 line km, using 100 m (initially) then 200 m transmitter dipoles. The gravity and some of the IP coverage was made over more distal prospects recognised from previous ground geophysical and geochemical surveys, such as the Cassius, Phone Hill, Spare Rib, Mannequin and Tank Hill anomalies. During 2011, work done on the licence included prior data integration, resource estimation, reprocessing of geophysical data, metallurgical test work, preliminary scoping assessments and soil sampling. Consultant Montana GIS reprocessed all 289.4 line km of previous IP survey data for EL 3640, and generated 3D inversion models at regional and prospect scale using decreasing iteration mesh sizes. Examples of the model outputs (depth slices and 3D chargeability and resistivity shells) are included herein. An orientation program of testing soils using an INNOV-X portable X ray fluorescence spectrometric analyser was commenced in an attempt to locate and map surface geochemical expressions of chargeable bodies delineated by the IP data 3D inversion modelling. 709 bulk samples plus 1275 minus 2 mm, 80 to 150 mesh, and minus 150 mesh grainsize fraction samples were collected from six prospect areas and analysed, and the assay results are presented as contour images for lead, zinc and copper. Terramin commenced a preliminary scoping study on the Menninnie Zinc Project in December 2010 to assist with the prioritisation of future exploration and longer-term development planning. This work included a review of the Menninnie Central Inferred resource in the light of 2008 drilling. The study was interrupted by interactions with several potential Joint Venture partners early in 2011, that continued throughout the year. An extended JORC - compliant Inferred resource incorporating drilling data from both Menninnie Central and Viper deposits (from 65 and 18 holes respectively) was estimated: 7.7 Mt @ 3.1% Zn, 2.6% Pb and 27 g/t Ag in 8 lodes, based on a 2.5% Pb+Zn cut-off. The included Viper Inferred resource (currently 2.46 Mt @ 2.3%Zn, 2.4% Pb and 24 g/t Ag) was preliminary, based on the limited drilling, because the size and intensity of the Viper IP chargeability anomaly suggested to Terramin that mineralisation at this prospect may be more extensive than currently delineated. Mining options for exploiting the Menninnie Central – Viper Inferred resource were assessed in a very preliminary desktop modelling exercise, which highlighted the need for further infill and lode definition drilling and additional geotechnical information to optimise underground mine development and to minimise ore dilution. Twenty drillholes were resampled to obtain a representative blend of Menninnie Central lodes and Viper lodes' material to undergo preliminary metallurgical test work. Samples were carefully selected to reflect average Pb and Zn grades of the lodes and typical textural types. This test work indicated that conventional milling and flotation treatment of Menninnie Dam lodes will produce favourable recoveries of Pb and Zn in marketable concentrates. The work also suggested it is likely that acceptable recoveries can be achieved without regrinding. Work performed on renewed Menninnie Dam EL 5039 during 2011-2012 comprised the reprocessing and reinterpretation of geophysical data, drillhole planning and preparations for a 60-hole RC drilling programme, assaying of three drill cores, soil sampling and analysis, in-situ analysis of flora, intensive discussions and reviews with potential joint venture partners, and finalisation of a JV Heads of Agreement with Musgrave Minerals Ltd. 2690 size fraction subsamples of soil and 174 biogeochemical pilot samples of dry tree limbs from two sites were assayed using portable XRF equipment. Pb results are generally consistent across the three size fractions from each soil sample, and the distributions are consistent with historical geochemistry, geophysical modelling and geological interpretations. Results for soil Zn and Cu are constrained and their distributions are less definitive. In the tree study, contained Fe and S values did not show any obvious correlations with lead in soil. Additional IP survey resistivity data and 3D inversion model results for prospective areas on the tenement were received from consultant Montana GIS during the period and are included herein.