15 March 2013 Black Mountain Resources Ltd Interim Results Black Mountain Resources Limited (ASX | AIM: BMZ), the silver focused development company with interests in the US, is pleased to announce its interim results for the six months ended 31 December 2012. Highlights
· Excellent progress made towards imminent commencement of low cost high grade silver production at the New Departure and Conjecture Silver Projects in Q1 and Q2 2013 respectively
· High grade drill results from New Departure (up to 365 g/t Ag) and Conjecture (up to 1,106 g/t Ag) highlights value upside potential through exploration – further programmes planned in Q2 2013
· Low capex refurbishment programme undertaken at Lakeview Mill, which has a replacement cost of US$8m, to process ore from the Conjecture Project
· Successful listing on London’s AIM market in July 2012 – one of only two pure silver plays in London
· Bolstered board through appointment of Shannon Robinson as Executive Director
· Successful raising of A$2.3 million via placing to advance to production status Black Mountain Executive Chairman, Peter Landau, commented, “Black Mountain’s transformation into a high grade low cost silver producer is imminent with New Departure due to come online in the coming weeks and Conjecture to follow swiftly in Q2 2013.

This milestone has been made possible by the successful completion of development programmes during the last six months that were specifically targeted to take advantage of the near term production potential available at both projects and so generate considerable cash flow for the Company.” “Exploration is a focal point for the Company and recent high grade drill results have underpinned our confidence in the significant value upside potential available across our portfolio as well as confirming historic data.

With further campaigns planned for Q2 2013, we have a highly active period ahead of us as we broaden our understanding of the mineralisation outside of the historic zones and form the basis of a JORC compliant resource.” “I believe that Black Mountain’s blend of near term production and strong exploration upside from projects located in a proven and stable jurisdiction forms a compelling investment case and I look forward to reporting regularly to shareholders as we deliver on milestones during the next six months of the year.” Black Mountain has made rapid progress towards first production at both the New Departure and Conjecture silver projects over the past six months in order to exploit the significant near term extraction potential of the historic mines on the sites.

The Company is now ideally positioned to commence low cost high grade production at New Departure in Montana in the coming weeks with production from Conjecture expected to follow swiftly after in Q2 2013.

In tandem, drill programmes conducted at both sites have added significant value to the projects having successfully identified high grade silver zones outside of the historic workings which will be further explored in Q2 2013. During the period, the Company successfully dual listed and commenced trading on the London Stock Exchange’s AIM market.

The Company also completed a placement which successfully raising approximately A$2.3 million (before costs) and appointed Ms Shannon Robinson as an executive director of the Board.

Additionally the Company is in advanced negotiations with potential prepaid offtake and financing parties as part of the Company’s next stage funding strategy. Review of Operations for the Half Year ended 31 December 2012 The consolidated statement of comprehensive income shows a consolidated net loss for the half-year ended 31 December 2012 to members of ($1,185,020) (2011: net loss of $243,300). Black Mountain has made rapid progress towards first production at both the New Departure and Conjecture silver projects over the past six months in order to exploit the significant near term extraction potential of the historic mines on the sites.

The Company is now ideally positioned to commence low cost high grade production at New Departure in Montana in the coming weeks with production from Conjecture expected to follow swiftly after in Q2 2013.

In tandem, drill programmes conducted at both sites have added significant value to the projects having successfully identified high grade silver zones outside of the historic workings which will be further explored in Q2 2013. Black Mountain’s assets are de-risked through their location in two of the world’s most developed and proven silver and gold mining regions of Idaho and Montana, USA. The Company holds a 70% interest in the New Departure Silver Project, the Conjecture Silver Project and the Tabor Gold and Silver Project pursuant to 45 year leases from Chester Mining Company, Lucky Friday Extension Mining Company and Brush Prairie Minerals respectively.

The Company also secured the Lakeview Mill post period end which will be used to process ore from Conjecture, Idaho.

This was a highly strategic addition to the Company and for a relatively low capital outlay Black Mountain will hold the rights to the only permitted mill in the region. New Departure Silver Project, Montana The New Departure project includes a previously producing high grade silver mine and will be Black Mountain’s first producing project.

With this in mind, mine development at the New Departure Silver Project in Montana recommenced during the period with the widening of the Laczay portal and tunnel now almost complete, as well as the steel set structure being set in the portal entry.

The Company will drive a 335m decline at a 15% decline to access historic workings below the existing blocks known as the Main Zone over the coming week.

In addition, secondary drifts will be driven from the main decline to enabling access to the Quien Sabbe Zones and the Bonzana Zones. Importantly, the projected production levels for the project have been increased to between 200-250 tonnes per day (previously 100 tonnes per day). Exploration Programme The Company completed a 13 hole drill programme (3,000m) during the period targeting the projected downward dip extension of historic ore shoot and induced polarised (‘IP’) anomaly targets previously identified.

This was the first exploration drilling undertaken at the New Departure Silver Project.

Initial assay results for holes 3 and 5 intercepted high grade silver intercepts of up to 365g/t Ag confirming mineralisation zones and the down-dip extension of the historic workings.

These intercepts indicate the potential for a projected strike length of approximately 670m.

With the identification of the extended mineralisation zone, the Company intends to drill the extension area further as part of its exploration programme scheduled for Q2 2013. Full details on the drilling results, including drill hole locations and assumptions for calculating Ag equivalent grades are contained in the Company’s previous releases on 25 January 2013 and 1 February 2013. Conjecture Silver Project, Idaho With production targeted for Q2 2013, during the period the Company advanced mine development at the Conjecture Silver Project, completing the re-entry and rehabilitation the Graham Adit (adjacent to the previously targeted Morris Adit) to provide access to historic workings.

The portal and initial tunnel were extended and the decline will now be constructed to cross cut and access historic working levels.

Cross cuts from the decline to the vein zone are proposed to be driven approximately every 200 feet (61.2m).

Additionally, planned i‑drifting on the vein will enable bulk sample testing of the vein zone as well as delineation of additional potential resource blocks for eventual mining.

Again, the projected production levels for the project have been positively revised and the Company now plans to produce between 300-400 tonnes per day (previously 150 tonnes per day). The Company will focus on the development of the mine plan and exploration programme for the project with site access anticipated early Q2 2013 , weather permitting.

A detailed mine model is almost complete using Vulcan incorporating the data from historic production and mapping at the project. An important milestone for the Company was the acquisition of a long term (45 year) lease for the Lakeview Mill which is 3km from the Conjecture Project.

This has a replacement cost of US$8 million and as the only permitted mill in the region, provides the Company with a strong competitive advantage.

By way of consideration, 11 million ordinary shares were granted to the mill owner. The Company recently upgraded the facilities at the Lakeview Mill and its key items, including an additional ball crusher and flotation circuit.

As a result, the mill is now capable of processing over 300 tonnes of ore per day. Exploration Programme The Company completed its maiden exploration campaign during the period and released drill results with high grade silver intercepts up to 1,106g/t from its maiden 16 hole (1,800m) diamond core drill programme.

This was the first exploration drilling undertaken at the Conjecture Silver Project since the 1980s.

The results successfully confirmed the presence of 50,000 – 60,000 tons at 350-375 grams Ag per ton within historic mining block originally identified by previous sampling, exploration and mining undertaken at the property1.

In addition, new areas have been earmarked for further exploration. The historic map in figure 4 shows the historic workings for the Conjecture Silver Project including the Conjecture mineralisation zone and projected extension to this zone across the property.

The 2012 drill programme targeted confirmation of the historic mining block 31.

Holes 1-7 from drill pads 1 and 2 confirmed the grades and presence of this historic block identified by previous sampling, exploration and mining undertaken at the property.

Drilling undertaken from the Rainbow drill pad (holes 8 to 16) targeted an area which had not previously been explored or tested to the east of the historic ore shoot.

Positively the mineralised structure identified is much closer to the surface than anticipated with high grade silver intercepts.

The Company intends to evaluate this area further as part of its 2013 mine development and exploration programmes at the Conjecture Silver Project.
Full drill results confirm high grade silver zones and have identified new mineralisation structure – best intercepts include: - 715g/t Ag equivalent intercept over 1.38m (depth of 101m) - 363g/t Ag equivalent intercept over 3.91mm (depth of 38m) - 340g/t Ag equivalent intercept over 0.73m (depth of 17m) - 157g/t Ag equivalent intercept over 3.04m (depth of 40m) Full details on the drilling results, including drill hole locations and assumptions for calculating Ag equivalent grades are contained in the Company’s previous releases on 17 October 2012 and 1 February 2013. The prospectivity of the project prompted the Company to stake 20 additional mining claims in the Lakeview Mining District at the Conjecture Silver Project.

The Company now holds a total of 59 mining claims that form the project and extend over 700 acres in a prolific silver region.

The resulting land staking continues to assure Black Mountain’s position for continued exploration and resource expansion at the property.

This area, along with additional potential resources identified from the 2012 drilling campaign, will be evaluated for the 2013 exploration programme. Tabor Silver and Gold Project Preliminary development activities for the Tabor Silver and Gold Project in Montana are scheduled for Q3 2013 including securing access, general portal repair and development.

Once the portals and tunnels are secured, the Company intends to access the mine openings and commence exploration by way of an initial sampling and assay programme.

The Company currently continues to focus on obtaining necessary permitting and access for operations for the project as well as desktop planning, initial geological work and mapping. Corporate During the period, the Company successfully dual listed and commenced trading on the London Stock Exchange’s AIM market.

The Company also completed a placement which successfully raising approximately $2.3 million (before costs) and appointed Ms Shannon Robinson as an executive director of the Board.

Additionally the Company is in advanced negotiations with potential prepaid offtake and financing parties as part of the Company’s next stage funding strategy.
1.

This estimated mineralisation is an Exploration Target only and does not respresent JORC Code compliant Mineral Resources.

The potential quantity and grade of the Conjecture Exploration Target is conceptual in nature.

There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Subsequent Events In January 2013, the Company satisfied its earn-in obligations to acquire the 70% interest in each of the Conjecture Silver Project, the New Departure Silver Project and the Tabor Silver and Gold Project.

The Company continues its focus on the development of these projects targeting initial ore production in Q1 | Q2 2013 from its two silver projects. In February 2013, the Company completed the acquisition of the Lakeview Mill and nearby mining claims, including the historic Webber Mine and Keep Cool Mine claims.

In consideration, the Company issued 11 million ordinary shares to Shoshone Silver / Gold Mining Corporation and its nominees. Overview Having rapidly laid the groundwork to facilitate near term production at two projects, the coming weeks will see the Company transform into a producer of high grade silver at low costs, signalling an exciting time for Black Mountain and its shareholders.

The Company’s ability to generate cash sets it apart from its peers and I look forward to reporting on our progress over the coming weeks and months as we appoint mining contractors and receive preliminary production figures in line with our strategy of becoming a significant producer of high grade silver. Exploration is a key part of the Black Mountain strategy and further drill programmes are planned at both New Departure and Conjecture in Q2 2013 to extend the team’s knowledge of the wider area and the strong value add potential it provides as well as to add JORC resources to our inventory.

The projects are located in a proven area of high grade mineralisation, and the patented claims facilitate rapid development of the Company’s assets. I would like to take this opportunity to thank our shareholders and highly experienced team for their support over the past six months. Set out below is a summary of the half year accounts for the period ended 31 December 2012 as extracted from the Half Year Report, being: · Consolidated Statement of Comprehensive Income · Consolidated Statement of Financial Position · Consolidated Statement of Changes in Equity · Consolidated Statement of Cashflow A copy of the full Half Year Report is available on the Company’s website www.blackmountainresources.com.au and also the Australian Securities Exchange website www.asx.com.au (ASX code: BMZ). For and on behalf of the Board [cid:image003.png@01CE214C.347E0BF0] Peter Landau Executive Director
Competent Persons Statement The information included in this release that relates to historical mining data and exploration results is based on information compiled by Mr.

Gregory Schifrin, a technical consultant to the Company.

Mr.

Schifrin has worked as a geologist in exploration and mine development for 29 years in precious and base metal exploration and is a professional member (SME Registered Member) of the Society of Mining, Metallurgy and Exploration (SME) #4053449, a ‘Recognized Overseas Professional Organization’ (‘ROPO’) included in a list promulgated by the ASX from time to time.

Mr.

Schifrin has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

Mr.

Schifrin has reviewed this release and consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.
Statement of Comprehensive Income For the half-year ended 31 December 2012
Note Consolidated
Half Year 31 Dec 2012 $
Half Year 31 Dec 2011 $
Interest revenue
2
23,600
69,987
Foreign exchange gain
-
12,427
General and administrative expenses
(194,473)
(30,542)
Compliance and regulatory expenses
(409,065)
(30,397)
Consultancy costs
(95,591)
(74,712)
Director fees
(98,833)
(77,680)
Investor relations and legal expenses
(83,127)
(33,685)
Travel expenses
(141,377)
(66,827)
Interest expense
-
(8,866)
Other expenses
(186,154)
(3,005)
Loss before income tax expense
(1,185,020)
(243,300)
Income tax expense
-
-
Loss for the half-year attributable to owners of the company
(1,185,020)
(243,300)
Other comprehensive income
-
-
Total comprehensive income for the half-year attributable to owners of the company
(1,185,020)
(243,300)
Basic and diluted loss per share (cents per share)
(1.64)
(1.28)
The above statement of comprehensive income should be read in conjunction with the accompanying notes. Statement of Financial Position As at 31 December 2012 Consolidated
Note
31 December 2012 $
30 June 2012 $
ASSETS
Current Assets
Cash and cash equivalents
1,399,607
3,254,072
Trade and other receivables
84,608
79,427
Other assets
308,297
8,603
Total Current Assets
1,792,512
3,342,102
Non-Current Assets
Other assets
531,023
-
Exploration and evaluation expenditure
14,075,317
12,004,660
Total Non-current Assets
14,606,340
12,004,660
TOTAL ASSETS
16,398,852
15,346,762
LIABILITIES
Current Liabilities
Trade and other payables
127,127
163,938
Total Current Liabilities
127,127
163,938
TOTAL LIABILITIES
127,127
163,938
NET ASSETS
16,271,725
15,182,824
EQUITY
Issued capital
4
17,817,376
15,596,011
Reserves
1,161,244
1,108,688
Accumulated losses
(2,706,895)
(1,521,875)
TOTAL EQUITY
16,271,725
15,182,824
The above statement of financial position should be read in conjunction with the accompanying notes. Statement of Changes in Equity For the half-year ended 31 December 2012 Consolidated
Issued Capital Accumulated Losses Option Reserve Total
$ $ $ $ Balance at 1 July 2011
3,677,619 (167,870) 24,000 3,533,749
Loss for the half-year
- (243,300) - (243,300) Total comprehensive loss for the half-year
- (243,300) - (243,300) Balance at 31 December 2011
3,677,619 (411,170)
24,000 3,290,449
Balance at 1 July 2012
15,596,011 (1,521,875) 1,108,688 15,182,824
Loss for the half-year
- (1,185,020) - (1,185,020) Total comprehensive loss for the half-year
- (1,185,020) - (1,185,020) Transactions with owners, recorded directly in equity:
Issue of shares
2,328,664 - - 2,328,664 Share issue costs
(107,299) - - (107,299) Issue of options
- - 52,556 52,556 Total transactions with owners
2,221,365 - 52,556 2,273,921 Balance at 31 December 2012
17,817,376 (2,706,895)
1,161,244 16,271,725
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of Cash Flows For the half-year ended 31 December 2012 Consolidated
Half Year 31 Dec 2012 $
Half Year 31 Dec 2011 $
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
(1,336,309)
(346,760)
Finance and interest costs
(738)
(60)
Interest received
23,600
69,987
Net cash (used in) operating activities
(1,313,447)
(276,833)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation
(2,154,790) (115,703) Payment for Lakeview Mill
(531,023)
- Payments for tenement acquisition
-
(477,633)
Net cash (used in) investing activities
(2,685,813)
(593,336)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of shares (net)
2,144,795
660,000
Net cash provided by financing activities
2,144,795
660,000
Net (decrease) in cash held
(1,854,465)
(210,169)
Cash and cash equivalents at the beginning of the half-year
3,254,072
3,466,366
Cash and cash equivalents at end of half-year
1,399,607
3,256,197
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
For further information please visit www.blackmountainresources.com.au or contact: Black Mountain Resources Limited Shannon Robinson Executive | Corporate Relations T: +61 (8) 9488 5220
Black Mountain Resources Limited Eva Bezruchko Investor Relations T: +44 (0) 207 025 7040
Media (Australia) PPR David Tasker T: +61 (8) 9388 0944
Media (UK) St Brides Media & Finance Limited Elisabeth Cowell T: +44 (0) 20 7236 1177
Nominated Advisor (UK) RFC Ambrian Limited Stuart Laing T: +61 (8) 9480 2500 Broker (UK) Xcap Securities Jon Belliss T: +44 (0) 20 32162630
About Black Mountain Resources Limited Black Mountain Resources Limited is a dual listed (ASX | AIM: BMZ) silver and gold focused development company focussed on the advancement of three highly prospective previously operating assets located in two of the world’s most developed and proven silver and gold mining regions of Idaho and Montana, USA. The Company holds a 70% interest in the New Departure Silver Project, the Conjecture Silver Project and the Tabor Gold and Silver Project pursuant to 45 year leases from Chester Mining Company, Lucky Friday Extension Mining Company and Brush Prairie Minerals respectively.

Black Mountain plans to implement low cost production and development programmes across all three assets, targeting first production from New Departure and Conjecture by Q1|Q2 2013.

It is also implementing exploration programmes to capitalise on the exploration upside potential apparent across its portfolio. Black Mountain Resources Limited was incorporated on 29 October 2010 and is listed on the Australian Securities Exchange and London’s AIM Market (BMZ).
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