Australian Bauxite Limited First Tasmanian Mining Lease Granted

Sydney, Australia (ABN Newswire) - Australian bauxite explorer, Australian Bauxite Ltd. (ABx) (ASX:ABZ), has been granted its first mining lease, ML1961 at its Bald Hill Project in Northern Tasmania. Bald Hill is located 60 kms southwest of Launceston.

The Company's CEO, Ian Levy, said granting of the mining lease comes after 5 years of exploration along Australia's eastern seaboard. Tasmania provides an ideal environment to host the Company's first mine - good quality bauxite; near infrastructure connected to export ports; & free of socio-environmental constraints.

"Bald Hill is our first mining lease. We have delineated two more in Northern Tasmania and are actively investigating other prospective bauxite areas.

"Production at Bald Hill is planned to commence at the end of 2014. Discussions are well advanced with local mining and transport contractors, in line with our policy of creating economic opportunities that benefit the local community. Our expectation is at least 30 jobs will be created as a consequence.

"Contracts will be settled following the 28 days public display of the Development Proposal and Environmental Management Plan," said Ian Levy.

Spearheading the development of the Tasmanian projects is Leon Hawker, ABx's Chief Operating Officer, who said:

"This is the first new bauxite mine in Australia for over 35 years and will introduce a new bauxite supply into the seaborne bauxite market.

"We look forward to continuing and further developing the relationships that have been built in Tasmania. I particularly wish to acknowledge the work undertaken and the support of the Mineral Resources Tasmania, a division of the Department of State Growth and the EPA and recognise the strong community support we enjoy.

"ABx can only operate with a strong social licence and however modest our contribution to local jobs, industry and the economy may be, we will make every effort to meet the expectations of our diverse stakeholders."


About Australian Bauxite Limited:

Australian Bauxite Ltd. (ABx) (ASX:ABZ) holds the core of the newly discovered Eastern Australian Bauxite Province. Its 37 bauxite tenements in Queensland, NSW and Tasmania covering 8,500 km2 were rigorously selected on 3 principles: 1. good quality bauxite; 2. proximity to infrastructure connected to export ports; and, 3. free of socio-environmental or native title land constraints.

All tenements are 100% owned and free of obligations for processing and third-party royalties. ABx has already discovered many bauxite deposits and new discoveries are still being made as knowledge and expertise grows.

The company's bauxite is high quality and can be processed into alumina at low temperature – the type that is in short-supply globally. Global resources declared to date are 68 million tonnes. At the company's first drilling prospect in Inverell, northern NSW, an interim resource of 35 million tonnes has been reported from drilling 15% to 20% of the area prospective for bauxite and a resource of 25 million tonnes of bauxite has been reported at the Taralga project in southern NSW. 6 million tonnes maiden resource was declared at Guyra. Results from the Binjour Plateau in central QLD confirm that ABx has discovered a significant bauxite deposit including some bauxite of outstandingly high quality. Australian Bauxite Ltd. aspires to identify large bauxite resources in the Eastern Australian Bauxite Province which is emerging as one of the world's best bauxite provinces.

ABx has the potential to create significant bauxite developments in three states - Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.



Contact:

Ian Levy, CEO and MD
Australian Bauxite Ltd.
Telephone: +61 (0) 407 189 122