Quarterly Report
Period Ending 30 June 2009
FIRST QUARTILE CASH COSTS
HIGHLIGHTS:  Zinc C1 cash costs US$0.24/lb (after credits)  Improved copper concentrate grades  Zinc metal production up 22%  Silver production up 25%  Cash Reserves ~A$28M with no bank debt  Bentley project drilling yields additional high grade base metal sulphide intersections Jabiru Metals Ltd
Quarterly Report – June 2009
JAGUAR OPERATION UPDATE Overview Jabiru Metals Ltd (“Jabiru” or the “Company”) is pleased to advise that it has produced record copper and zinc in concentrate for the quarter, continuing to improve the operating cash flow from the Jaguar operation. Jaguar production improved significantly over the quarter, with production and revenue exceeding targets and unit cost expectations bettered. The Jaguar cash flow, together with a capital raising of $11.5M completed in June, sees Jabiru finish the quarter with no bank debt and cash reserves of approximately $28M, with which the Company can fast track the Bentley drill programme and feasibility studies. Concentrate production, grades and metal increased with copper concentrate grades improving to 23.5% Cu and zinc metal produced in concentrate increasing by 22% to 9,432t Zn. These improvements resulted from a combination of increased plant reliability, head grades and improved metallurgical recoveries. During the quarter: 
Jaguar’s production rate for the quarter exceeded the Company’s annualised metal in concentrate production targets of 8,000 tpa of copper and 28,000 tpa of zinc; 
The zinc C1 cost was US$0.24/lb (paid metal) against the average LME price during the quarter of US$0.67 ensuring Jaguar remained in the lowest quartile of the zinc cost curve; 
Jabiru finalised agreement with Minmetals Group (MMG) – the purchaser of the OZ Minerals assets ‐ to modify the concentrate sales arrangements between the parties to an agency agreement; and 
Jabiru agreed to purchase from MMG, the partly constructed Geraldton Port concentrate shed and transfer of Lease 27, thus securing long term & independent access to modern concentrate export facilities from the Geraldton Port. Concentrate Production & Metallurgy The Jaguar concentrator benefited from capital modifications completed in the previous quarter which were aimed at improving grind control, reagent pre‐mixing, metal recoveries and concentrate qualities. Over the quarter, record quantities of copper and zinc concentrate were dispatched to the Geraldton Port. Copper concentrate shipped totalled 15,021 dmt @ 22.5% Cu and zinc shipments totalled 15,039 dmt @ 48% Zn (non reconciled). Additional copper circuit cleaner and re‐cleaner flotation cells will be installed in the Jaguar concentrator during July and commissioned in August, which may reduce September quarter production during the installation. These modifications in the longer term however, are expected to further enhance both the copper and zinc circuits. Page 2 of 8
Jabiru Metals Ltd
Quarterly Report – June 2009
Table 1: Jaguar Operation Production Description Underground Development Mine Ore production Mine Ore grade # Copper Zinc Ore Treated in Concentrator Concentrator head grade Copper Zinc Copper Concentrate produced Cu concentrate Cu grade Cu Metal in Cons Zinc Concentrate produced Zn concentrate Zn grade Zn Metal in Cons Silver in Copper Concentrate produced Metal Recoveries in Concentrate* Cu in Cu concentrate Zn in Zn concentrate Cash Cost** † # * ** Unit metres tonnes % % tonnes % % tonnes Cu % tonnes tonnes Zn % tonnes oz % Rec. % Rec US$/lb Physicals † Q4 23 79,400 3.40 10.90 89,991 3.48 12.57 11,725 23.5 2,634 19,650 48 9,432 190,838 83 83 0.24 Full Year 08/09 1,785 357,606 2.98 9.25 364,549 3.06 10.76 39,636 23.3 9,217 61,361 47.9 29,390 615,437 82 75 0.29 The processing data in the table above is sourced from production records and has been reconciled to include shipments of concentrate to final customers from which final weights and grades have been received. Typically there is a 3‐4 month delay between mine site production and final reconciliation for that period. The mined data includes site ore stockpiles and is not therefore considered to be reconciled against final shipments. Recovery differentials are due to rounding head grade and concentrate grade C1 cash cost after copper and silver credits and excludes development but includes partial reconciliation of metal for YTD as above. Average LME zinc price for the quarter was US$0.67/Ib. Underground Mining The overall rate of underground mine production has been pleasing, achieving forecasts. The Jaguar geological resource is being remodelled based upon the results of the high density drill programme completed in January. The new model will reflect the re‐inclusion of a significant proportion of the high grade copper footwall lode that was downgraded to inferred status in 2008 pending re‐interpretation and modelling. The resource and ore reserve data will be published once the final reports are received. The Company remains focused on increasing the mine ore reserve beyond 5 years and has committed to drilling programmes over the next 12 months that are designed to achieve that objective. Jabiru Metals Ltd
Quarterly Report – June 2009
At the end of the quarter, Jabiru elected to recommence capital development of the Jaguar ore body in line with the new mine plan. This development will allow: 
Timely access to the ore body below the 3980 mRL which will then form the basis for production in the 2010/11 financial year; and 
Access to preferred drill platforms that allow strategic underground drilling of the Jaguar ore body at depth (below the existing ore reserve) where a number of historical drill intersections of potentially economic widths and grades occur. Access is planned to allow drilling of the ‘deeps’ from April 2010. During the next quarter, Jabiru will be placing continued emphasis upon: 
Further reduction in mine dilution and the overall quality and grade of the material presented to the concentrator for treatment; 
Improvements in concentrator metal recoveries; 
Maintenance of saleable concentrate grades and quality; 
Emphasis on maintaining and improving existing mining production rates; and 
Further improvements in operating efficiencies and decreases in overall unit costs. Teutonic Bore Scoping Study Late in the March quarter the Company commenced scoping level work focussed on the potential to recommence mining at the historic Teutonic Bore mine, which was last mined in the mid 1980’s. A scoping study has begun to examine the potential to access the existing remnant high grade massive sulphide and stringer ore via the existing Teutonic Bore decline. It is envisaged that any mining at Teutonic Bore would be managed by the existing Jaguar staff with any production treated at the Jaguar concentrator. Teutonic Bore is conveniently located on the Jaguar access road and has a haulage distance of approximately 1.2km to the Jaguar concentrator. This study is expected to take some months to complete and the outcomes will be used as the basis of a full feasibility study in the 2009/10 year. COMPETANT PERSON STATEMENT The information in this report that relates to Production Results is based on information compiled by Mr Scott Donaldson who is a Member of the Australasian Institute of Mining and Metallurgy and is a full‐time employee of the Company. Mr Donaldson has sufficient experience which is relevant to the style of the mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Donaldson consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. Jabiru Metals Ltd
Quarterly Report – June 2009
XPLORATION PROJECTS EXPLORATION UPDATE Teutonic Bore Exploration Project: Bentley (Jabiru 100%) Diamond drilling at the Bentley Prospect commenced during the quarter and there were two diamond rigs operating on site at the end of the period. Results of the initial stages of the programme are extremely encouraging with the intersection of additional zinc and copper‐
rich massive sulphides in all holes completed (09BTDD002‐007) (Figure 1: Bentley Long Section). On the basis of visual estimates, the intercept grades are expected to be in the range of 0.5‐5% Cu and 5‐20% Zn. Analytical results for the current drilling programme are pending. The Bentley mineralisation is interpreted to have originally comprised of a single lens of massive sulphide that is now divided into two massive sulphide lenses by the intrusion of a post‐mineralisation dolerite sill (Figure 2: Bentley Cross Section). The shallower Arnage Lens is located on the footwall side of the sill and the deeper Brooklands Lens on the hanging wall side of the same sill. The Arnage Lens extends upward to ~250m vertical depth with the shallowest intersection (09BTDD004) comprising zinc‐rich massive sulphide over ~5m (true width). The massive sulphide mineralisation appears to be reasonably predictable, with drilling to date identifying ~200m vertical extent and ~150m strike extent (c.f. ~300x300m extent of Jaguar and Teutonic Bore ore bodies). There is at least 100m dip extent above the Arnage lens that remains untested, and the mineralisation remains open both along strike and down‐dip from current drill intercepts. Figure 1: Bentley Long Section ‐ NQ diameter diamond core: quarter core cut sampled at 0.3m to 1.3m intervals adjusted for geology. Samples crushed and pulverized and subjected to four acid digest with AA finish for Cu, Zn, Pb and Ag and FA for Au. Jabiru Metals Ltd
Quarterly Report – June 2009
Figure 2 : Bentley Cross Section Drilling undertaken during the period is part of the first phase of drilling at Bentley aimed at delineating an initial JORC‐compliant resource. A second phase of drilling will then be aimed at determining the overall scale of ore grade mineralisation at Bentley through a more aggressive step‐out drilling programme. A third phase of drilling will then aim to test several base metal targets located between the Bentley Prospect and the Jaguar Mine with a view to optimising mine design options. The drilling programmes are expected to extend into the first quarter of 2010. Stockman (Jabiru 100%) Resource estimation work at Wilga and Currawong is ongoing, with a revised resource estimate now expected in the September quarter due to the focus on work at Bentley. Progress on Jabiru’s Stockman Project scoping study continued with further work aimed at refining the projects’ design parameters. In addition, the development of geotechnical programmes aimed at confirming stope design parameters and metallurgical test programmes aimed at refining current flotation circuit designs were also conducted. This work is not yet complete and will continue in 2009/10 as part of Jabiru estimating the initial Stockman Project ore reserve. Concurrent with the above scoping study, Jabiru continued with community consultation. Page 6 of 8
Jabiru Metals Ltd
Quarterly Report – June 2009
Twin Peaks Exploration Project: Barloweerie (Jabiru 100%) A programme of surface geochemical sampling was completed across the Barloweerie tenement E89/1244; successfully delineating gold in soil anomalism over approximately 6km of strike (Figure 3: Barloweerie Soils Location Map). The results include a coherent +50ppb gold anomaly over ~300m of strike. A similar anomalous response was returned over the Sanford prospect along the eastern part of the tenement where copper‐zinc‐lead‐silver‐gold mineralisation had been discovered in historical drilling. Heritage surveys are planned for the next quarter to facilitate planning and implementation of a drilling programme aimed at testing targets on the Twin Peaks Project. Figure 3 : Barloweerie Soils Location Map ‐ Lag Samples: pulverised, aqua regia, AAS to 1ppb Au
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Jabiru Metals Ltd
Quarterly Report – June 2009
CORPORATE The Jaguar operation continued to perform strongly during the final quarter of the 2009 financial year. Whilst the operating environment for all resource companies has improved somewhat over the quarter with increases in LME prices for both copper and zinc; the Company is conscious that there is still a diversity of views regarding the timing and direction of the world economy over the next 12 months. The steady improvement in performance at Jaguar over the past year does however provide Jabiru with a significant degree of confidence for the future. The Company has taken a number of initiatives to complement Jaguars lowest quartile position on the zinc cost curve and ensure that Jaguar remains cash flow positive even if a period of weakness in global metal prices does occur. This includes a prudent level of hedging that offers a degree of surety in an uncertain market. The discovery of Bentley plus the Stockman project provide Jabiru with a strong pipeline of exploration and development projects. The existing cash flow from Jaguar and the absence of any bank debt provides a solid foundation for further work on these projects. During the quarter, Jabiru raised $11.5M from institutional shareholders for exploration and development at Bentley. This will ensure that the exploration and feasibility activities can be expedited whilst maintaining a strong cash component to the Company’s balance sheet over the next 12 months. Whilst the Jaguar project does enjoy low operating costs, Jabiru will continue to maintain a pragmatic approach to expenditures in the prevailing economic climate. This will allow Jabiru to endeavour to sustain its current strong financial position and enable it, in a measured manner, to take advantage of new opportunities as they arise. Yours sincerely JABIRU METALS LTD Gary Comb Managing Director DISCLAIMER This report may or may not contain forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. Jabiru has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Jabiru makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. COMPETANT PERSON STATEMENT The information in this report that relates to Exploration Results is based on information compiled by Dr Neil Martin who is a member of the Australian Institute of Geoscientists and is a full‐time employee of the Company. Dr Martin has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources & Ore Reserves”. Dr Martin consents to the inclusion in the report if the matters based on his information in the form and context in which it appears
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