Tasmania Mines

Tasmania Mines Limited (TMM) is a public company listed on the Australian Stock Exchange. It is involved in the mining, crushing and concentration of scheelite and magnetite from the Kara Mine in Tasmania. Scheelite is sold to customers in Europe who use it in the production of specialty steel and also to the United States where it is used in the lighting Industry. The Magnetite is sold to the Australian coal Industry where it is used as a dense medium to wash coal. The recent surge in Tungsten prices has motivated TMM to shift focus on Scheelite. The current production is modest however TMM has the capacity and reserves to produce 60,000 mtu's of high-grade scheelite a year which it intends to develop. TMM is also interested in developing a magnetite resource in either New South Wales or Queensland close its existing Coal Customers. TMM has recently acquired an exploration license in the Upper Hunter Region of NSW and it is intending to carry out a drilling program in the latter half of 2006.