Abra Mining Limited (“AML”) listed on the Australian Stock Exchange in April 2005 to explore and develop substantial base metal lead-silver-(zinc) and copper-gold mineralisation at the Company’s 100% owned Abra Deposit and surrounding Mulgul Project area. This project is located within a Proterozoic sedimentary basin province in central Western Australia that shares many characteristics with Proterozoic clastic, sediment-hosted, base metal terrains worldwide.

Since listing on ASX the Company has expanded its tenement holding in the Mid-West region and AML now holds title to or is earning interests in tenements with an area of more than 2,720 km2 (the South Bangemall Projects and Havelock Project). Positive results from AML’s drilling programmes at the Mulgul Project during 2005-2008 reinforce the potential for the definition of a significant base metal mine at Abra and for the region to emerge as a new major Proterozoic base metals (lead-silver-zinc-copper-gold) province.

Based on the results of drilling to 25 April 2008 (40 effective  drill holes) AML has identified an Indicated and Inferred Resource estimate in the Abra deposit of 93 million tonnes at 4.0% lead and 10 g/t silver (2.5% lead cutoff) and 14 million tonnes at 0.6% copper and 0.5 g/t gold (0.4% copper cutoff) within 100%-owned mining lease M52/776. Further to the resource study, drilling confirmed that the Abra deposit remains open in most directions, representing the most significant minerals discovery in the region to date.

Mineralisation intersected at drillholes at Genie and Hyperion prospects, each more than 2 kilometres distant from the Abra deposit, suggest that Abra represents only part of a major base metals mineral system. As there is no surface expression of this extensive mineralised system, geophysical surveying has proved to be the most effective technique for drill target generation, especially at Abra where the deposit is characterised by coincident magnetic, gravity and electrical geophysical anomalies.

A 2008 scoping study into mine development at the Abra deposit indicated that the project holds potential for development using large scale underground cave mining and the production of lead-silver and copper-gold concentrates.

Therefore, to most practicably realise early metal production from mining at the Abra deposit the Company signed a Letter of Intent to enter into a Joint Venture with Hunan Nonferrous Metals Holdings Group Co., Ltd (“HNG”) over Mining Lease 52/776 (“M52/776”) which covers the 100% owned Abra lead-silver-(zinc)-copper-gold deposit.

The Letter of Intent signed with HNG was an important step towards the development of the Abra base metal deposit.  It was subsequently determined that Hunan Nonferrous Metals Corporation Limited ("HNC"), rather than HNG, would adopt the intentions attributed to HNG in the Letter of Intent.

HNC is a joint stock company incorporated in the People´s Republic of China ("PRC") and listed on the Hong Kong Stock Exchange.  As at 7 May 2008, it had a market capitalisation of approximately A$1.48 billion.

HNC (together with its subsidiaries) is the largest integrated producer of nonferrous metals, excluding aluminium, in China, as measured by production volume.

HNC has a vertically-integrated and centralised production chain that includes upstream exploration, mining and ore processing as well as midstream smelting and downstream refining and value-added processing.  It is the largest producer of cemented carbides, zinc and antimony in the PRC (as measured by production volume), as well as a major producer of products such as lead, silver, indium, tantalum and niobium.

HNC completed due diligence by 30 April 2008 and it was agreed that:

• Abra and HNG would enter into an unincorporated Joint Venture with respect to the Mining Lease 52/776.
  
• HNG would fully fund all requisite feasibility study works and programmes. The final study is to be to a standard reasonably acceptable to Abra.
  
• If the study is positive HNG will fund the project through to production and HNG will recover a portion of the cost from Abra’s share of production in an amount and at a rate yet to be agreed.
  
• The capital costs will be for a plant and associated infrastructure capable of producing at a rate of 6 million tonnes per annum or other throughput rate mutually agreed.
  

On 13 May 2008 HNC announced that it intended to make a proportional takeover offer for 70% of the shares in AML which HNC did not then own.  At that date HNC owned 17.8% of the Abra shares.

Under the Offer, HNC offered $0.83 cash per Abra share for 7 of every 10 Abra shares not held by HNC.  On 19 May 2008 HNC´s Bidder´s Statement was submitted to the Australian Stock Exchange.

On 11 September 2008 the offer became unconditional and closed on 19 September 2008.  Shareholders received payment for their shares from 10 October 2008, at which point HNC held 74.28% of the Company.

As of May 2009, joint venture negotiations are continuing.