Albidon Limited : 2012-10-12 Resource Update Progress

ALBIDON LIMITED

12 October, 2012
The Manager Companies Company Announcements Australian Securities Exchange Ltd Leve! 8 Exchange Plaza
2 The Esplanade
Perth WA 6000
Dear Sir,

RESOURCEUPDATEPROGRESS

12 WALKER ST WEST PERTH 6005

WESTERN AUSTRALIA

ARBN 107 288 755

TEL : [phone]

FAx : [phone]

EMAIL : · INFO@ALBIDON . COM ASX CooE: ALB WWW . ALBIDON . COM

The Company would like to acknowledge the concerns communicated by some shareholders at the delay in updating the market with respect to the work being done to determine the economie status of the Munali ore body.
The Company is continuing to work with its technical advisers and significant progress has been made on re-interpreting the resource classification from the extensive geologica! and resource modelling work that has been done over recent months. Mining consultants Snowden Group have been commissioned to prepare a revised resource estimate that will comprehensively explain the results in accordance with the JORC assessment and reporting criteria. This work is progressing and we are aiming to have the full report available for release later this month.
Preliminary results indicate that a significant resource downgrade is anticipated. What this may mean for the continued operation of Munali mine is currently the focus of further detailed investigation.
This task has proven to be complex and has taken more time than anticipated. We therefore thank shareholders for their forbearance during this lengthy review process.
As there remains ongoing uncertainty as to the Company's financial future, the Company's securities will remain in voluntary suspension.
The Board will make further announcements in due course.
Mr Yimin Zhang
Executive Director
For and on behalf of the Board of Directors