Ann: Sconi Project in Due Diligence Phase for NAIF funding, page-3

Sconi Project in Due Diligence Phasefor NAIF fundingHIGHLIGHTS:

• Sconi project currently under assessment by Commonwealth entity,Northern Australia Infrastructure Facility (NAIF) for potential projectfinancing

Australian Mines Limited (“Australian Mines” or “the Company”) (Australia ASX: AUZ; USAOTCQB: AMSLF; Frankfurt Stock Exchange: MJH) is pleased to advise that the NorthernAustralia Infrastructure Facility (NAIF) Board has indicated it will move to investigating thepotential for providing NAIF support for Australian Mines’ 100%-owned Sconi Cobalt-NickelScandiumProject located in Queensland.

The NAIF is a major long-term initiative of the Australian Government and provides access toup to $5 billion of finance, which may be on concessional terms to support infrastructuredevelopment that generates public benefit for northern Australia. It also seeks to encourageand complement private sector investment to further that objective.

Australian Mines’ Sconi project has been under consideration by NAIF for possible financialassistance and has progressed through the Enquiry, Preliminary Assessment, and StrategicAssessment Stages and is now in the Due Diligence Phase. The next step for Australian Minesis to provide detailed due diligence materials to NAIF for review and to then submit its formalInvestment Proposal.

NAIF has not made any decision to offer finance or made anycommitment to provide any financial accommodation and there is no certainty that anagreement will be reached between the parties.

Australian Mines Managing Director, Benjamin Bell, commented: “I am pleased that theNAIF Board is considering potential funding support for Sconi, our flagship cobalt-nickelscandiumproject in Northern Queensland. The project has the potential to provide significantupgrades of existing infrastructure located within the Greenvale region within NorthernQueensland and 90% of its ongoing annual operational expenditure is expected to be withlocal businesses.”

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