During the 12 months to 30 June 2013 the Company and its joint venture partners has completed drilling programs on high priority targets to rapidly delineate bauxite mineralisation and build a significant resource base.

A total of 9,950 vacuum drill holes were drilled during the year for 52,411m, with a further 19 diamond drill core holes completed for 152m. Exploration success has resulted in combined JORC resource estimates at June 2013 of 243.7Mt @ 39.7% total alumina, 30.1% available alumina and 2.4% reactive silica. (refer Mineral Resources Table 1 on page 17 for the current combined mineral resources). The Company is well positioned to capitalise from its portfolio of high quality bauxite resources, and is exploring a range of domestic and export opportunities.

An Exceptional Period of Resource Growth

The Company has experienced strong growth in total mineral resources with bauxite resources of BRL and its joint venture partners increased to 243.7Mt during the financial year. This represents an increase of 96% over the previous year. BRL considers the increase achieved to be an excellent result that significantly improves the opportunity for the Company and its joint venture partners to develop a bauxite mining operation in the south west of Western Australia. Subsequent to year end the Fortuna resource increased from 26.8 million tonnes to 39.5 million tonnes through further drilling and reinterpretation of existing resources. Global resources now stand at 256.4Mt. Critically, the Company has moved a portion of known resources into the Measured Mineral Resource category.

Maintaining a Portfolio of High Quality Bauxite Resources

The Company remains committed to the identification and development of high quality bauxite resources, with focus during the year on two key projects, namely Fortuna and Felicitas. Both resources, located in the northern Darling Range, display low reactive silica and very high available alumina to reactive silica ratios, making them extremely attractive for refining. The majority of alumina present is the tri-hydrate mineral gibbsite. Alumina from these types of deposits is readily extracted at lower temperatures than mono-hydrate alumina found in other bauxite regions, and as such refining costs are significantly reduced. For this reason the Darling Range of Western Australia remains the largest alumina producing region in the world. BRL resources are on large private land holdings (cleared farmland), with good road and rail infrastructure nearby. The bauxite is shallow, typically with less than 2m of loose overburden, requiring limited prestripping. All attributes indicate potential for the Company’s projects to support long life, low cost bauxite production.

Fortuna (BRL100%)

The Fortuna bauxite resource is located on private farmland near the regional town of Wundowie, Western Australia, with excellent road access to Perth, existing heavy rail approximately 12km away, and Kwinana Port approximately 120km from the project area. BRL retains 100% beneficial interest in the resource.

The deposit extends across an area of 658Ha (6.58km2) with the resource based on 510 vacuum holes drilled for 5,146m on a nominal 160m x 80m drill pattern. The bauxite horizon is up to 13m in thickness with loose overburden typically less than 2m thick. The resource displays low reactive silica, and a high available alumina to reactive silica ratio, properties desirable for alumina refining.

The lateral extent of mineralisation has not yet been tested by drilling and therefore is not considered to be closed off. Additional drilling is planned with a view of adding to the resource base.

Felicitas (BAJV)

The Company announced two resource upgrades during the year for the Felicitas bauxite deposit in the Darling Range Western Australia. The project is within the Company’s joint venture with Yankuang Resources (BAJV). The resource offers the advantages of being located on a small number of large private landholdings (farms), readily accessible by road, less than 5km from existing rail infrastructure, and approximately 120km by rail to the nearest bulk handling port (Kwinana). The area is bounded to the west by state forest, and to the north and east by existing quarry operations. BRL’s Fortuna bauxite resource lies immediately to the south east.

The deposit comprises a bauxite horizon of 2m to 16m thickness that is typically covered by 0.5m to 2m of loose overburden. The resource estimate was based on data from 6,947 vertical holes drilled for 47,610m on a nominal 80m x 80m drill pattern. The available alumina and reactive silica results quoted are based on low temperature bomb analysis (148°C), and the results indicate that the majority of alumina present is as the tri-hydrate mineral gibbsite. The resource displays attributes desirable for alumina refining, namely low reactive silica and a high available alumina to reactive silica ratio. Close spaced drilling (5m hole spacing) conducted at two locations within the resource, and the twinning of holes, has verified continuity of mineralisation. This combined with the use of a bulk density determined from the resource from diamond core drilling in March and April 2013, has enabled a portion of the resource to be classified in the measured mineral resource category.

The deposit is considered to have further resource growth potential as drilling programs to date have yet to fully test the lateral extent of the mineralisation and it is therefore not considered to be closed off. Additional drilling is planned with the view of adding to the resource base.

Figure 2: Bauxite Resources northern Darling Range tenements and resource location map.

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