Annual report on mineral tenement EL 27965 25 October 2011 to 24 October 2012

Abstract

In the second year, this company has made an effective progress in conducting geological survey, data collections and research, field prospecting, sample collections and geochemical analysis. These progresses have prepared AMI for significant geological exploration work in the EL 27965 tenement in the forthcoming years. The major progresses made in the second year included: Completed further desktop studies, data search and literature research on the EL 27965 tenement area, including open files, GIS, amass databases, and gained better knowledge of the geological settings and mineralisation of the licensed area and potential deposits of minerals; Conducted fieldwork including ground reconnaissance and prospecting on the tenement field, performed rock and soil sampling and completed geochemical assays of the samples by Australian Laboratory Services (ALS); Building up strategic partnership and joint work projects with Australian and Asian companies, both in geological exploration and investment programs. This is expected to be a main driving force for AMI Resources' growth in the next 3-5 years and also a key for successful completion of exploration programs. Assays confirm the presence of lead-silver mineralisation in quartz veining at the Silver Valley occurrences and historic minor old workings. Visible mineralisation with grades over 1 % lead and over 100 ppm silver are indicated. Gold is an accessory, with grades up to 0.43 ppm Au obtained. Gold mineralisation may be a separate event from the lead-silver, however, possibly related to the gold and tungsten mineralisation seen elsewhere in the region. If so, separate (and/or coincident) structures may host gold mineralisation and lead-silver mineralisation. The Silver Valley mineralisation is in basaltic rocks exposed in the core of a large domal structure. The host rocks - and possible further mineralisation - might be expected to extend to depth and possibly laterally beneath the younger rocks (i.e. overlying stratigraphy) away from the core of the dome. Minor elevated gold assays (up to 0.07 ppm Au) obtained several kilometres south of the Silver Valley occurrences might be an indication of possible richer mineralisation in the underlying rocks in this area. Alternatively, they may result from secondary weathering-related ferruginous enrichment, scavenging trace gold from the surrounding or underlying rocks.