Dear All,

Today Bass Metals provided ASX with the following highlights with a general update report:

• 1.7 metres at 21.9% zinc, 14.7% lead, 1.0% copper, 182 g/t silver and 2..3 g/t gold.
• Positive production progress at Hellyer Project �?" 6th Milling campaign.
• LN Metals concentrate marketing arrangement extended to include potential bulk lead-zinc concentrate production from retreatment of the Hellyer Tails.
• Fundraising in progress with shareholder entitlement offer closing at 5..00pm (Perth time) on Wednesday, 26 October 2011.

Please refer to the attached announcement for further details.  (ASX_20 Oct_New High Grade McKay drill intercept.pdf).

I consider the announcement significant for several reasons; it shows continuing exploration success at McKay, with a narrow but super high grade intercept which is validating a very prospective new exploration target model for finding new large scale deposits.  At the Hellyer Project, whilst the figures should be regarded as "work in progress" it demonstrates a sound operating performance with the technical issues of June now clearly behind us.  As well, the extension of the relationship with LN Metals demonstrates we are looking to the future to exploit additional resources and more fully utilise the mill and with LN Metals' expertise in China it will be exciting to see what opportunities eventuate there for possible bulk lead-zinc production emanating from the Hellyer tails.

The fundraising process has seen Kim Denwer and I travelling extensively around Australia and overseas to update shareholders on the Company's activities and the opportunity to invest in Bass through the current Rights Offer.  My apologies to those shareholders in Adelaide where we have not been able to schedule an investor forum due to time constraints and the relatively low number of shareholders there.  This omission also got me into trouble domestically as my wife hails from SA �?" however, very happy to take any calls and answer any questions!  I was surprised in my recent discussions with shareholders at the number of people who did not appreciate that they can apply for extra shares above their entitlement amount if they wanted too.  So please note this opportunity at the base of the application form.  Also note the new closing deadline of 5:00 pm (Perth Time) Wednesday 26 October, 2011.

Kind Regards

Mike Rosenstreich

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