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Mining Group: Market and Exploration Update

Contributed by Fox-Davies Capital

Mining Group has announced that it has raised $2.5M from the previously announced rights issue and that it has received the assays from a drill hole, KCPDH0001, on the Kalamatan porphyry target.

The $2.5M was raised through the issue of 25M new shares issued at a price of $0.10/share. This is pursuant to the previously announced pro rata renounceable entitlement issue, announced on 31 July 2012.

The Kalamatan porphyry target is located approximately 2km north of the historic Tagpura open pit mine. Cadan had previously conducted tunnelling and drilling on this target which had identified an at surface copper oxide and gold mineralised diorite.

The hole was drilled below a previous hole which had a reported intercept of 108m grading 0.46% copper and 0.24g/t gold. This hole, KCPDH0001, was drilled to a depth of 233m and intercepted 130m of copper oxidised mineralised diorite. The hole intercepted four mineralised zones, with the first zone outcropping. Grades varied

from the outcropping zone, the best intercept was 30m grading 0.30% copper and

A systematic compilation of historic data has identified a number of highly prospective gold targets in the northern part of the project area. These are in addition to the Ugpo and Balajadia targets which were described in the Company's prospectus dated December 2011.