Macquarie Harbour Mining Updates aluminum project

US Expansion;

1. Directors return from United States highly encouraged after meetings and site visits with Smelter Service Corporation and Alcoa Inc.

2. Tennessee State and local county officials express strong support for salt slag business expansion

3. Number of large single purpose landfills identified to be investigated for reprocessing. Also identified material from regional producers that may be viable as feedstock for a centralised processing facility

4. Executive Director Ben Mead to relocate to Tennessee in January to drive expansion of salt slag business

5. Pilot testing of the Spent Pot Lining technology likely in Tennessee due to the proactive and supportive approach of the State and local governments

6. Meetings with hedge funds, investment houses and brokers in New York, further roadshow planned in early 2011

Australian Operations;

1. Council approval for salt ponds still outstanding. Meetings to be held on week ending 26 November to try to determine timeline for approval

2. Large sections of the process commissioned and exceeding expectations. Full commissioning once salt ponds approval and construction completed

3. Salt ponds construction expected to take 3-4 weeks after approval granted

The directors of Macquarie Harbour Mining Limited have made progress in US salt slag processing planning after working on site in the US with Smelter Service Corporation, Alcoa and key regulatory officials. Objectives were achieved to facilitate project planning both for the feasibility study with Smelter Service Corp and more generally to assess regional and national opportunities in the US. There were also continuing contract discussions for salt slag processing and meeting State and local regulatory officials in Tennessee who can assist in MHM developing salt slag processing facilities in the US.

It is believed that a number of additional sources of salt slag in the region may provide further feedstock for what would become America’s first closed loop salt slag processing facility. A number of large single purpose landfills have also been identified which are now earmarked for further investigation.

While landfilling salt slag continues in the US, MHM’s technology is expected to recover substantial value from landfill and feedstock sources. MHM believes an economic incentive will result in the cessation of salt slag land filling in the US regardless of the regulatory position.

Mr Ben Mead ED of MHM will relocate to Tennessee early January 2010 to drive the expansion of the salt slag business by completing the feasibility study with Smelter Service Corp by the end of June 2011 and continuing assessments of other regional and national salt slag processing opportunities.

Pilot testing of the Spent Pot Lining Technology under development will most likely occur in Tennessee due to the proactive and supportive approach of the State and local government officials.

Mr Ben Mead also held a number of meetings in New York with hedge funds investment houses and brokers to build awareness and support for the roll out of the new processing technology. A further road show is planned early in 2011.

With respect to the Australian operations, approval for the construction of the salt evaporation ponds is still outstanding and meetings have been scheduled this week to try to determine an accurate timeframe for completion of this process. Once approval is granted the ponds will take 3 or 4 weeks to construct.

The Moolap technology upgrade is otherwise well advanced and on budget. Large sections of the plant have been commissioned and performance of these sections has exceeded expectations. Final commissioning of the closed loop process will not be possible until the evaporation ponds are operational.