ABN 52 007 626 575

Suite 12, 10 Jamieson St, Cheltenham, Victoria 3192, Australia Telephone: (03) 9583 0498 Facsimile: (03) 9583 0698

Email: admin@jervoismining.com.au www.jervoismining.com.au

31 October, 2012 ASX Code: JRV

QUARTERLY REPORT TO 30 September, 2012

Bullabulling Gold Project, WA

On 26th

September 2012, Bullabulling Gold Limited reported that total JORC gold resources for Bullabulling now exceeded

3.5 Million oz. This increase was foreshadowed by an announcement in June ‘that 3D data and geological modelling

provided clear evidence that the Bullabulling gold resource could be significantly expanded’.

The above is a significant outcome for Jervois and its shareholders, as the Company retains an ongoing Royalty provision

of $30.00 per oz for the first 400,000 oz of gold produced and then $20.00 per oz for unlimited gold production

thereafter. The pre – feasibility study for this project is reportedly due in early 2013.

EXPLORATION IN NEW SOUTH WALES – SEPTEMBER QUARTER 2012

Exploration Licences 5527, 5571, 5152 Young, NSW

100% Nico Young Pty Ltd (a wholly owned subsidiary of Jervois Mining Limited)

Nickel and Cobalt in Laterites JORC Resource Upgrade, 2012

In the last Quarterly Report (to June 30, 2012) details of the Young Nickel/Cobalt JORC resources upgrade were provided

(see a summary below). The report recommended a further 21 hole drilling program to bring the resource up to

indicated status. This is currently being planned for early next year.

Summary of JORC Resource Upgrade, 2012

• JORC Inferred Resource of 92.5Mt at 0.8% Ni, and 0.06% Co above a cut off of 0.6%Ni.

• The nickel and cobalt mineralisation remains open laterally to the east and west, and offers excellent potential

for extension of this resource.

• The resource comprises a higher grade than the previous estimate but at a marginally smaller tonnage.

Inferred Resource

AREA TONNES (Mt) NI % CO %

Ardnaree 27.0 0.80 0.05

Thuddungra East 34.6 0.77 0.08

Thuddungra West 20.5 0.81 0.07

Tyagong 10.4 0.88 0.03

TOTAL 92.5 0.80 0.06

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Exploration Licence 7281, Nyngan NSW

100% Jervois Mining Limited

Summervale Nickel Iron Laterite Project

Recent negotiations regarding exploration access with the land owner of part of EL 7281 Summervale, have been

finalised. A 30 plus drill hole program has been planned for early next year to further assess the extent and overall grade

of the deposit. The program planned for later this calendar year has had to be put back several months to allow for crop

harvesting.

Exploration Licence 7805, Syerston, NSW

100% Jervois Mining Limited

Scandium, Nickel, Cobalt and Rare Metal in Laterite

In October 2011, Jervois Mining Limited was granted Exploration License EL 7085 over 28 units in the Fifield area of NSW.

The area is approximately 10 km northwest of Fifield, 45 km north-east of Condobolin in the Central West Region of NSW.

The tenement abuts the Syerston Nickel Cobalt Project held by Ivanplats Syerston Pty Limited and currently under mining

lease application.

During the first 12 months a literature search and site visit were undertaken. A 10 hole drilling program was prepared

and drilling commenced on the 19th

of July 2012. The purpose of the program was to ascertain the direction for future

exploration, targeting scandium, platinum, nickel and cobalt. The drilling results, especially from hole SY10A, showed a

strong presence for Scandium (up to 700 g/t Sc2O3), Platinum (Pt 0.39 g/t), Gold (Au 0.17 g/t) and Vanadium (up to 2000

g/t V2O5) in a 5m interval (at shallow depths of 13 m to 17m) of this drill hole. Nickel (Ni) and Cobalt (Co) contents were

low, but possibly recoverable.

Initial preliminary attempts to determine whether the rare metal values can be upgraded by sizing, gravity and magnetic

separations, were encouraging. In some cases, the Au and Pt grades could be upgraded up to 0.85 g/t. The initial

encouraging findings of physical upgrading work are being assessed and the results will be released in the near future.

Future Work:

The following proposals to confirm the preliminary work are required to be addressed.

1. Further drilling needs to be planned and executed to define the potential of EL 7805

2. Further physical upgrading work on the existing and new drill core samples will be performed.

Potential for Acid Recovery using Membrane Distillation:

Jervois has been experimenting with the Direct Sulphuric Acid and Hydrochloric Acid Leach processes, proposed by the

late Dr Mal Jansen, for the treatment of the Company’s Sc and Ni/Co resources. The economic viability of the direct acid

leach processes hinges on the recovery of recyclable acid for reuse. The possible reuse of acid would substantially reduce

the cost of producing mixed Ni/Co hydroxide and scandium oxide.

Recently, there has been some significant advancement by third parties in recovering acids from spent acid streams by

using hydrophobic membranes; the Membrane Distillation method. The existing methods such as thermal evaporation

require enormous amounts of heat to evaporate the water component of the spent acidic water. On the other hand, the

Membrane Distillation method operates at temperatures around 40 to 80oC, and such low-grade heat could often be

available from other parts of the treatment plant or solar heating. Membrane Distillation is a method based on the

difference in vapour pressures of water and acids. With direct hydrochloric acid leach, the pregnant leach liquor could be

treated to increase the concentration of Ni, Co,and Sc by volatilizing free hydrochloric acid and water. Hydrochloric acid

would be volatilized through the hydrophobic membrane at a lower temperature (40-50oC) than water vapor (60-80

oC)

allowing the concentration of acid first and then water as permeate. The acid will be recycled to the leaching circuit and

reused. The photograph below demonstrates testing of the bench scale membrane distillation process at Victoria

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Bench-size membrane distillation rig at Victoria University

Using the membrane distillation process waste water containing sulphuric acid, iron, aluminum, magnesium, scandium,

nickel, cobalt and manganese sulphates can be fractionated into (1) pure water (permeate) and (2) a thick concentrate

containing sulphuric acid and sulphates at a temperature of 60-80oC. In this way, it is often possible to separate 70-80%

of the water and make a concentrate to recover the valuable components such as Sc2O3 or Ni/Co hydroxide by known

methods. The photograph below shows the results of the bench scale process at Victoria University.

Thick ‘honey-like’ concentrate containing all the metals

Jervois provided Victoria University with a sample of HCl leach liquor processed from drill hole samples taken from its

Young Ni/Co tenements. These samples underwent Initial test work at Victoria University’s Werribee Campus (Institute

for Sustainability and Innovation), under the supervision of Dr Hal Aral. Results were encouraging and showed that

hydrochloric acid can be recovered from the pregnant leach liquor. The fractionation of the direct hydrochloric acid leach

liquor is shown in the table below.

Membrane distillation results on hydrochloric acid leach liquor.

Feed Concentrate Permeate

Fe2+

and Fe3+

30.2 67.6 0

Free Acid 100.4 51.1 27.4

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Future Work:

The following proposals to confirm the preliminary work are required to be addressed.

1. Perform further Membrane Distillation tests on sulphuric and hydrochloric acid leach or waste liquors to

determine the performance on diverse Jervois samples.

2. Determine the cost of acid concentration and recovery

EXPLORATION IN WESTERN AUSTRALIA – SEPTEMBER QUARTER 2012

Project Locations, WA

EXPLORATION LICENCES 77/1440 AND 77/1441

LAKE BARLEE CENTRAL PROJECT

100% JERVOIS MINING LIMITED

Reconnaissance and spectrometer survey work was undertaken over the now dry lake surface during the Quarter.

The work confirms the presence of uranium, potassium and thorium minerals on the lake surface. Lake brines and

sediments below the surface need shallow drill testing.

Geochemical sampling of the lateritic residuum and lag was undertaken on Exploration Licences 77/1440 and 77/1441 in

areas where previous samples indicated anomalous rare earths and base metals.

Sampling in sandy areas requires residual lateritic residuum, which is sieved from the smaller sand particles.

The WA Government Geology Survey undertook a program using this geochemical technique, covering the western part

of the Yilgarn Block, which allowed statistical comparison of exploration areas with areas of known mineralisation.

The work undertaken on the tenements has shown gold to be in anomalous amounts, along with rare earths, barium and

molybdenum. The molybdenum was found to occur in one sample location which was also anomalous in barium, sulphur

and gold. Platinum, palladium and silver were anomalous in some samples; however the level of detection of the broad

spectrum analysis requires that these samples be re-assayed to a higher level of accuracy.

A number of magnetic features were defined by the Government Geology Survey work, including faults and Proterozoic

dolerite dykes. These may be associated with the mineral occurrences. Further work using this technique is warranted.

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E77/1440 and E77/1441 showing locations of Au occurances, Lake Barlee Central WA

E77/1440 and E77/1441 showing location of mineral occurances, Lake Barlee Central

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E77/1440 and E77/1441 showing location of mineral occurances, Lake Barlee Central

Sampling on E77/1440 Barlee Central Project WA

Exploration Licence 59/1257, WA

Nalbarra Project

100% Jervois Mining Limited

Exploration on the Companies Nalbarra tenement (Exploration Licence 59/1257) consisted of mapping the trunk valley

calcrete and a further spectrometer survey at Nalbarra Station in the state’s Midwest. The results have been

superimposed on the radiometric map of the tenement shown below.

The radiometric map shows radioactive uranium mineralisation in a blue colour, radioactive thorium in a green colour

and radioactive potassium in a red colour.

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Radiometric map of Exploration Licence 59/1257 at Nalbarra

Uranium mineralisation in blue, radioactive thorium in green and radioactive potassium in red

The drainage channels, which are mainly subsurface, are shown in the cadastral map, and are indicated by blue coloured

lines.

Exploration Licence 59/1257 at Nalbarra. Cadastral map showing drainage channels (blue lines) and associated mineralization.

Results have shown anomalously high background uranium counts, and eU ppm (spectrometer results) have been

encountered.

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The work done has expanded the uranium target zone to one kilometre wide and six kilometres long.

Better results have occurred where the drainage channel pinches, as shown when comparing the maps below.

The exploration model for this project is the Yeelirrie Deposit which had similar surface eU ppm results and background

counts to those at Nalbarra, although the Yeelirrie Deposit is four kilometres longer than the exploration target zone

currently identified at Nalbarra.

A drilling program has been planned for this section of the drainage channel.

Exploration Licences 6095, 6009, 7664, Nyngan NSW

100% Jervois Mining Limited Scandium Project

Jervois Mining Limited (Jervois or the Company) previously announced (on 31 August 2012, in its preliminary final report

for the year ended 30 June 2012) the status of the Nyngan Scandium project and the participation of EMC Metals

Corporation (EMC) in the project. The Company previously advised that on 27 September 2012, an unsuccessful

mediation was held. The matter will now return to the Supreme Court for further directions.

Significant Events in early October 2012 – just after the Quarter closed

On 11th

October 2012, Jervois Mining Limited received and rejected an offer of $4.0 million, for the outright purchase of

100% of the Nyngan Scandium project, including freehold land, mining tenements and the scandium resource itself. The

offer was conditional and was considered inadequate in any event.

On 17th

October, 2012, the Board was pleased to announce the result of the Jervois non-renounceable rights Issue.

Shareholders subscribed for a total of $456, 806.73 worth of new fully paid ordinary shares, including applications for

Additional Shares. This is equivalent to an acceptance rate of 38%. In the current investment climate, worldwide, this

acceptance rate is viewed as an excellent outcome.

Expenditure for Quarter Ended 30 September 2012

Expenditure on sole risk and jointly controlled exploration and evaluation assets for the Quarter was $100,487.

DUNCAN C. PURSELL

MANAGING DIRECTOR

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by D.C. Pursell (MAusIMM)

and Mr D. Foster, (MAusIMM). D.C. Pursell and D. Foster have sufficient experience which is relevant to the style of mineralisation and type of

deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the

‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. D.C. Pursell and D. Foster consent to the inclusion.

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