Dear All

Today your Company lodged its September 2011 quarterly report indicating a strong recovery from recent mine issues and an excellent outlook for further exploration success underpinned by robust production (Sept. 2011 ASX Quarterly Report).

In regard to the entitlement offer to shareholders which is currently open - in response to several common questions from many shareholders:

1. Recent research is available on the Bass Metals web site (12 September Helmsec Flash Report).
2. Shareholders can apply for extra shares above their entitlement; Box B on the Subscription form is for entitlement shares and Box C is for extra shares.
3. Closing date was extended to 5pm (WST) 26 October, 2011.
4. When will shares resume trading? - Based on the current timetable for the entitlements issue (released to ASX on 10 October 2011) the Company will apply for re-quotation of the Company's ordinary shares on 4 November 2011.
5. How is the capital raising progressing? Getting close, not quite there yet but still two days to go.
6. How is the Company travelling? Please note the following points from the September Quarterly.

September Quarterly �?" Highlights

• Safety �?" excellent performance with no lost time injury (LTI) period on the Company's leases extended to 410 days and the Fossey Mine development continuing an LTI free run of 614 days.
• Record development metres achieved in the Fossey mine, with close to budgeted levels of ore production.
• Revised Fossey Ore Reserve and mine plan reconciling closely with the mill feed grades during the quarter.
• Successful mill campaign in August, with concentrate quality significantly improved on  June quarter.
• Operating costs for mine at budget and mill below budget at $90/t and 48/t respectively.
• Infill drilling at Fossey East completed to 25 metre spacing, confirming high grade potential; e.g. 9.4 metres at 16.4% zinc, 10.3% lead, 1.1% copper, 75 g/t silver and 1.2 g/t gold.
• 7.0 metre drill intersection assaying 22.3% zinc, 9.9% lead, 3.4 g/t gold, 181 g/t silver and 0.7% copper highlights the new McKay discovery.
• Final phase of capital raising process underway with an entitlements offer to raise up to $10.7 million in progress.
• Mining operations continue normally, with 2 milling campaigns (#6 and # 7) planned for the December quarter. The mill is currently half way through campaign #6 with good quality concentrates of zinc and lead being filtered and transported to Burnie.

Thank you to all of those share holders and interested parties who attended the Investor Forums-it was good to meet with you and hear your views and questions in regard to the Company.

Kind regards

Mike Rosenstreich

• For further information visit our website www.bassmetals.com.au
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