Aditya Birla Minerals Limited

ASX RELEASE

For the Quarter ended 30th June 2011

29 July 2011

Aditya Birla Minerals Limited Sunil Kulwal – Managing Director Umesh Goel – Chief Financial Officer Peter Torre-Company Secretary Telephone +61 8 9366 8800 Facsimile: +61 8 9366 8805 Email: investorrelations@adityabirla.com.au

For Further Information

Aditya Birla Minerals Limited ABN 37 103 515 037 Level 3 256 Adelaide Terrace Septimus Roe Square Perth Western Australia 6000 Australia PO Box 3074 Adelaide Terrace Perth Western Australia 6832 Australia T: +61 8 9366 8800 F: +61 8 9366 8805 www.adityabirlaminerals.com.au

For

per

sona

l use

onl

y

June Quarter 2006 Review

A D I T Y A B I R L A M I N E R A L S L I M I T E DA D I T Y A B I R L A M I N E R A L S L I M I T E D First Quarter Ended

30 June 2011

• Increase in Nifty Sulphide ore reserve tonnage by 4.3Mt

• Mt. Gordon obtained all necessary approvals to restart mining activities.

• Production ramp up has progressed at Mt. Gordon – mined 91,817 tonnes of Ore.

• Ore Mined at Nifty Sulphide Project – 549,847 tonnes during the quarter, an increase of 7% over the corresponding quarter last year.

• Ore Processed at Nifty Sulphide Project – 588,367 tonnes during the quarter, an increase of 2.6% over the corresponding quarter last year.

• YTD Ore Mined and Processed at Nifty is highest on record.

Production Summary Of ABML

Quarter Ended

30 June 11

Quarter Ended

30 June 10

Year to Date

Ended 30 June 11

Year to Date Ended 30 June 10

Ore mined tonnes 641,664 513,197 641,664 513,197 Grade % 2.12 3.05 2.12 3.05 Cu contained tonnes 13,585 15,648 13,585 15,648 Ore Processed tonnes 676,081 833,656 676,081 833,656 Cu contained tonnes 14,343 19,886 14,343 19,886 Contained Copper in Concentrate

tonnes 13,036 17,292 13,036 17,292

Copper Cathode tonnes - - - - Total Copper Produced

tonnes 13,036 17,292 13,036 17,292

Total Copper Sold tonnes 13,541 15,502 13,541 15,502

Production Overview

Highlights

For

per

sona

l use

onl

y

During the quarter ore mined increased by 25% mainly due to restart of Mt Gordon operations. Ore Milled was lower than the corresponding quarter last year as the corresponding last quarter included 259,989 tonnes of ore processed in the Esperanza Low Grade ore trials at Mt Gordon. Copper production was lower during Q1 FY12, mainly due to decline in the Nifty copper grade mined from 3.05% to 2.20%. This is in line with the mine plan for the quarter. The copper production is marginally affected due to copper production from ELG material processed in the corresponding quarter last year. The total site operating cash costs at Nifty and Mt. Gordon for Q1 FY12 were A$74.26M as compared to A$78.77M in the corresponding quarter last year. This does not include Tc/Rc, transportation and royalty costs.

Safety During the quarter two lost time injury incidents occurred, compared to six in the corresponding quarter last year. The 12 Month rolling LTIFR is now below 8 and is still displaying a downward trend which is encouraging.The Company is continuing reviewing and upgrading its Occupational Health and Safety policies and procedures with particular focus on training and embedding of a safety culture through continuous safety awareness initiatives. Environment Nifty site received a rainfall of more than 100 mm in April which caused some water imbalances and overflows. The issues were handled appropriately without any significant damage to the environment. The Company is working on fulfilling various requirements with regard to water balances, wild life surveys, mine closure plan, seepage analysis and recovery etc. The Company has sought permission to re-mine the tailings to use it in the Company’s paste fill plant and to dump underground waste in the pit.

Nifty Copper Operation

For

per

sona

l use

onl

y

Mining and Production

Particulars

Quarter Ended

30 June 11

Quarter Ended

30 June 10

Year to Date Ended 30 June 11

Year to Date Ended 30 June 10

Nifty Sulphide - Ore mined tonnes 549,847 513,197 549,847 513,197 - Grade % 2.20 3.05 2.20 3.05 - Cu contained tonnes 12,084 15,648 12,084 15,648

- Ore Processed tonnes 588,367 573,667 588,367 573,667 - Cu contained tonnes 12,907 16,773 12,907 16,773 - Cu in Concentrate Produced

tonnes 11,888 15,665 11,888 15,665

Nifty Sulphide Operation Ore production increased to 549,847 tonnes in the current quarter, an increase of 7% over the corresponding quarter last year. However, due to the decline in the average copper grade mined from 3.05% to 2.20%, the copper production in the quarter, though remained marginally above the plan, declined by 24% over the corresponding quarter last year. The concentrator plant throughput improved by 2.6% over the corresponding quarter last year. However the recovery fell to 92.11% from 93.39% in the corresponding quarter last year mainly due to the fall in head grade. The sand filling plant operations remained suspended during the quarter due to better performance by the paste fill plant. A recent update of Nifty’s underground ore reserve has resulted in an increase in reserves by 4.3 million tonnes (Mt) after allowing for depletion. The 31 March 2011 ore reserve estimate was prepared in accordance with the JORC Code1 guidelines and is provided below.

Reserve  Classification   Tonnes  (Mt)   Grade  (%Cu)   Cu  Metal  (kt)  

Proved                                    16.8    

                                     2.17                                            363    

Probable                                        3.2    

                                     1.98                                                63    

Total                                    20.0    

                                     2.14                                            426    

For

per

sona

l use

onl

y

Significant work was undertaking during the year by AMC Consultants Pty Ltd (AMC) to produce a new detailed Life of Mine Plan for the Nifty sulphide operation. This detailed work incorporated additional areas together with the existing “Checker Board” production centre. The ore reserve calculation is based on a copper price of US$3.63/lbs and cut-off grade of 1.2% Cu. The March 2011 ore reserve for the sulphide portion of the operation is 20.0Mt at 2.14% Cu for 426kt of contained copper metal. There has been a net increase in sulphide mining reserve tonnage of 4.3Mt when compared to the March 2010 ore reserve of 17.9Mt allowing for depletion of the FY11 mine production of 2.2Mt. Nifty Cathode Operation The Nifty Cathode operations continue to be under care and maintenance. With the increase in commodity prices, work to evaluate the status of the current infrastructure and suitable treatment options has commenced.

For

per

sona

l use

onl

y

Safety During the quarter no lost time injury incident occurred at MGO, compared to one in the previous quarter. Due to an influx of new operators, contractors and sub-contractors the emphasis onsite is on reviewing, re-training and upgrading the Emergency Response area, OHS policies and procedures, with particular focus on inculcating a safety culture through continuous safety awareness initiatives. Environment

Environmental projects and groundwater and surface water monitoring program was carried out in accordance with Environmental Authority (EA). The water levels in the pit and seepage due to increased water load pressure continue to be outside site’s Environmental Authority parameters.

The Board of Directors of ABML has formed an Environmental Committee to exercise oversight on environmental compliance at site.

The purpose of the Committee is to:

• Periodically monitor and evaluate compliance and provide the strategic direction to the Company’s MGO environmental related programs and associated activities;

• Conduct periodic meetings with senior management of the Company regarding environmental management related activities;

• Perform such other functions as may have been expressly delegated to by the Board over matters relating to environment management.

The Committee visited and reviewed activities on site on 3 June and was satisfied with the achievements of the MGO team, so far, on the environmental front.

Contaminated water reduction for the quarter exceeded the targets agreed upon between DERM and Birla Mt Gordon. Since April 2011, a reduction of 114,750 cubic metres of contaminated water was achieved, placing the site 22% ahead of target of 94,000 cubic metres agreed with DERM. The graph below depicts performance for the quarter.

Mt Gordon Copper Operation

For

per

sona

l use

onl

y

Production Ramp Up

Particulars

Quarter Ended

30 June 11

Quarter Ended

30 June 10

Year to Date Ended 30 June 11

Year to Date Ended 30 June 10

Mt Gordon Sulphide

- Ore mined tonnes 91,817 0 91,817 0 - Grade % 1.64 0 1.64 0 - Cu contained tonnes 1,501 0 1,501 0

- Ore Processed tonnes 87,714 259,989 87,714 259,989 - Cu contained tonnes 1,436 3,113 1,436 3,113 - Cu in Concentrate Produced

tonnes 1,148 1,627 1,148 1,627

During the quarter, all required approvals to commence full mining operations were obtained and the mining contractor has commenced mining. Production ramp up is progressing satisfactorily on all fronts except for mining where slower than expected performance is being registered due to challenges with regards to availability of skilled personnel and equipment mobilization. During the quarter 91,817 tonnes ore was mined and 87,714 tonnes ore was milled. Copper in concentrate produced was 1148 tonnes. New contracts are being finalized to transport concentrate from site to Townsville port.

For

per

sona

l use

onl

y

Exploration Activities

For

per

sona

l use

onl

y

Nifty Near-Mine Exploration Reserve Definition drilling continued throughout the quarter utilizing two (2) surface diamond drilling rigs. Activities were focused on the Nifty Southern Limb, Western Extension and Northern Limb Eastern Extension drill programmes. A total of 3,830m of drilling was completed encompassing 15 holes.

Southern limb A total of 1,822.1m was drilled encompassing 6 holes. This completed the surface drilling requirements and brings the data density down to a 40m(X) by 25m(Y) spacing – this appears suitable for modelling purposes.

Western Extension A total of 1,861.2m was drilled encompassing 6 holes. Ongoing assessment of drilling requirements is being conducted, however work completed during the quarter brings the average data density down to a 50m(X) by 25m(Y) spacing for the targeted mineralisation. Northern Limb Eastern Extension Limited work was conducted in this prospective zone immediately east of proposed mine development. A total of 146.6m was drilled encompassing one (1) hole – which remained incomplete at the close of the quarter.

Core logging, cutting, sampling and assaying continues throughout the quarter for the above areas. Indications to date suggest that the drilling is broadly confirming the modelled tonnes and grade as exhibited in the existing Sulphide model.

Drilling Programmes

In the Nifty/Maroochydore region, in principle agreements are in place to provide a multi-purpose drill rig (RC and Diamond drilling capable) and also a slim-line RC drill rig which will be capable of accessing difficult terrain to carry out scout geochemical drilling. At Nifty/Maroochydore a total of 10,000 metres of RC drilling and 2,500 metres of diamond drilling is planned for 2011. Drilling programmes will commence late July/early August. In principle agreements have been signed with drilling companies to carry out programmes at Mt. Gordon. Drilling programme involves both diamond drilling as well as reverse circulation (RC) drilling. The diamond rig is expected to arrive at Mt. Gordon late July/ early August to commence a 3,600metre programme at the Greenstone Prospect and in the vicinity of Mick`s Fault and Portal Fault. RC drill is expected to arrive at site late August/early September to carry out the drilling at Hueco and Mt. Jeanette.

For

per

sona

l use

onl

y

Geophysics

At Nifty, final interpretation and reporting of the AMT geophysical data for the Nifty mine area is now in progress. Also first pass sorting of all Maroochydore data, held in archives, has been completed. In view of Geophysics consultant, the existing aeromagnetics coverage at Maroochydore is of quite low resolution. Geophysics consultant has made the recommendation that the data should be upgraded. Similarly the existing ground EM for Maroochydore is considered by the consultant not to be to` state of the art’ standards. Acquisition of more sophisticated ground-based or airborne EM may be warranted. Gravity coverage for the Maroochydore area is considered to be quite adequate. The geophysics consultant engaged by the Company has completed the VTEM interpretation for Mt. Gordon with the majority of the strong anomalies being related to conductive stratigraphic horizons in the sequence. Magnetics, radiometrics and gravity compilation and imaging is now in progress.

Database Management Verification of the Exploration Division database continues. Printing is in progress for drill cross-sections and hole location plans for all historical drilling completed at Maroochydore. These plans and sections will greatly assist in the ongoing planning of drill hole locations for the July –October 2011 RC and diamond drilling programmes

Exploration at Mt. Gordon

At Gunpowder South (EPM15909) 119 soil samples were collected in an area located at the footwall of the Portal Fault, south of the Mt. Gordon mine site. Assay results have been received for all samples submitted with only 2 samples returning greater than 100ppm Cu and with a maximum value of 253ppm Cu. In addition, 141 soil samples have been collected from the Bluff West and Umdum Prospects. Results are awaited. In July at Mt. Gordon, access tracks for drill rigs will be re-established and drill pads and drill sumps will be created at proposed drill sites

In July 2011, the Australian Government announced a proposed carbon tax on selected businesses of $23 per tonne of carbon dioxide equivalent (CO2-e). It is proposed that the tax will apply from 1 July 2012 and will increase at 2.5

Carbon Tax For

per

sona

l use

onl

y

percent plus inflation annually until 1 July 2015 when an Emissions Trading Scheme is introduced.

The proposed tax will be incurred by individual facilities that have direct annual greenhouse gas emissions of 25,000 tonnes CO2-e a year or more (excluding emissions from transport fuels and some synthetic greenhouse gases).

While details of implementation of the carbon tax are yet to be released, it appears that ABML will indirectly pay a carbon tax on its scope 1 emissions through a reduction in the fuel tax credit or additional levy on the fuel.

It also appears most likely that a further indirect cost to ABML from the carbon tax on scope 2 and scope 3 emissions will be passed on by suppliers.

• ABML’s greenhouse gas inventory in 2010 (CO2-e t)

• Direct (Scope 1) (fuel) 83,787

• Indirect (Scope 2) (power) 26,550

• Total 110,337

• Greenhouse gas inventory in the future is expected to be higher as Mt Gordon operations were under care and maintenance during 2010.

• The total cost to ABML of the indirect costs of the carbon tax is estimated to be in the range of $5-7 million per year.

Macro concerns continue to dominate short-term price action, with the uncertainties created by sovereign debt issues. Latest Chinese commodity trade data for June continues to present a solid picture of commodity demand and provide somewhat of a contrast to recent indicators suggesting that the economy is slowing. June’s highlights include strength in several metals, notably palladium, tin and copper where total imports of copper in all forms rose to their highest since January. Due to tight credit conditions, volatile commodity prices and uncertainty over future demand growth, earlier in the year many Chinese raw materials consumers cut inventory levels to save on working capital, lead to significant de-stocking of copper over H1. De-stocking now looks like is coming to an end, and therefore the Chinese may be required to increase import of copper , even with lower economic growth forecast for H2. Notwithstanding all these factors, the copper prices are still hovering at a robust level. The copper demand is expected to increase in the second half of 2011 with China resuming its imports. In addition, the continued weaker-than-expected mine supply performance this year, could support copper prices.

Market Outlook

For

per

sona

l use

onl

y

Competent Person Statement:  

The information in this report that relate to exploration results is based on information compiled by Mr. Peter Sampson, a full time employee of the Company and a member of the Australian Institute of Geoscientists. Mr. Sampson has sufficient experience which is relevant to the style of mineralization and the types of deposits under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 edition “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr. Sampson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this release that relates to Nifty Sulphide Ore Reserves is based on information compiled by Mr Andrew Robb, an employee of AMC Consultants Pty Ltd, and reviewed by Mr. Ric Jose an employee of Aditya Birla Minerals Limited. Mr. Andrew Robb and Mr. Ric Jose are Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Andrew Robb and Mr. Ric Jose have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Andrew Robb and Mr. Ric Jose consent to the inclusion in the release of the matters based on their information in the form and context in which it appears.

For

per

sona

l use

onl

y