Australian Bauxite Limited: Quarterly Report to 30 June 2016

Sydney - Australian Bauxite Ltd. (ASX:ABX) Quarterly report & activities statement dated 24 July 2016 for 3 months to 30 June 2016.

PRINCIPAL POINTS

Corporate

- Current group available cash plus R&D incentive due is in the order of $2.9 million

- Annual general meeting held, all resolutions passed

- Approval given by shareholders to issue 662,423 shares to the directors in lieu of cash consideration for their services

- ABx welcomes 100 new shareholders over the last month, bringing the total to 2,794 shareholders.

Operations: Bald Hill mine to produce new shipments

- Strong sales totalled 40,000 tonnes of cement-grade bauxite stockpiled at Bell Bay port from ABx's Bald Hill mine - the first new bauxite project in Australia for more than 35 years. Sale prices are satisfactorily profitable & commercial in confidence ? Fertiliser-grade bauxite sales continued at moderate tonnages

- New markets are emerging for both cement-bauxite and metallurgical bauxite for the aluminium industry with its marketing partner, Rawmin Mining Industries

- R&D by ABx achieves proof of concept that an all-weather technology (dubbed "TasTech") can produce 3 bauxite product types at good tonnages all year round, namely:

1. high grade metallurgical-grade gibbsite bauxite exceeding 45% Al2O3 for the aluminium industry

2. cement-grade bauxite for the production of cement

3. fertiliser-grade and other bauxite-types.

Bauxite Markets

- Markets for metallurgical bauxite may have bottomed in May-June 2016. Prices have risen in recent weeks.

Assessment of Binjour Bauxite Project, Queensland

- Binjour project, centred on the large Binjour resource, 115km inland from Bundaberg Port in central Queensland.

ABx is re-assessing the optimum way to develop this statesignificant new bauxite province with potential to become the flagship project for ABx over the next few years.

- A staged development commencing with cement-grade production at 150,000 to 550,000 tonnes per annum, using existing infrastructure appears to be an attractive, low-risk option for the Binjour project.

- Testwork of "TasTech" will be conducted on Binjour bauxite samples in coming months

- Discussions have begun with companies holding adjacent bauxite-bearing tenements to determine if additional economies of scale can be achieved.

Tenement status

- All tenements are in good standing and 100% owned.

To view the report, please visit:
http://abnnewswire.net/lnk/0BZQF5D9


About Australian Bauxite Limited:

Australian Bauxite Ltd. (ABx) (ASX:ABX) has started its first bauxite mine in Tasmania and holds the core of the Eastern Australian Bauxite Province. ABx's 37 bauxite tenements in Queensland, New South Wales and Tasmania exceed 5,000 km2 and were rigorously selected for (1) good quality bauxite; (2) near infrastructure connected to export ports; and (3) free of socio-environmental constraints. All tenements are 100% owned, unencumbered & free of third-party royalties.

ABx's discovery rate is increasing as knowledge, technology and expertise grows.

The Company's bauxite is high quality gibbsite trihydrate (THA) bauxite and can be processed into alumina at low temperature.

ABx has declared large Mineral Resources at Inverell and Guyra in northern NSW, Taralga in southern NSW, Binjour in central QLD and in Tasmania confirming that ABx has discovered significant bauxite deposits including some of outstandingly high quality.

In Tasmania, at Bald Hill, the Company's first bauxite mine commenced operations on schedule on 9 December 2014 – the first new Australian bauxite mine for more than 35 years.

ABx aspires to identify large bauxite resources in the Eastern Australian Bauxite Province, which is emerging as a globally significant bauxite province. ABx has created significant bauxite developments in 3 states - Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.

ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.



Contact:

Ian Levy CEO and MD
Australian Bauxite Ltd.
T: +61-2-9251-7177