The following release was posted to members (15/6/2009) and forwarded to NSX today.

All members of the Company have been provided by mail with a copy of the Replacement OIS. In the event of mail disruption, the document is available on this website and on the NSX.

Members have an Entitlement. If it happens your Personalised Entitlement has gone astray in the mail, please contact the Company.

The Directors of Mount Rommel believe they are setting the scene by this preference share issue to continue using shareholder assets (cash or gold) wisely. One way to achieve this outcome is to give the Members of the Company an opportunity to participate directly in the ownership of gold found at Glenfine South. Where members decide to not take advantage of this Entitlement, Directors have extended the Offer to the public generally

Further, the plan is to progress Company growth by maintaing a focus for other discovery in areas where the potential is seen as "high". Glenfine South is also such a location.

The "Outlook" today is set out in the current two-page Newsletter, (see below) which is enhanced by:

1. A site plan of MIN 5492; and
2. Glenfine South geophysical inferences.

COMPANY NEWSLETTER 15 June 2009

Some items relevant to the Meeting next Saturday should be shared with everyone currently considering their own entitlement.

HOW MEMBERS ARE RESPONDING TO THE RESOLUTIONS ON THE NOTICE PAPER
A recent unaudited proxy status report (11/6, at 2.37 p.m.) shows 12,746,000 votes for the first Resolution and 10,004,000 votes for the second Resolution.  Add to those the votes of Directors and known supporters – the trend is clearly that these Resolutions will be passed.

The above votes are the responses from 60 members, only 3 of whom chose to either vote against or abstain.  Members intending to vote should note the closing time for voting is 10.30 a.m., 18th June next.  Fax it back!

CLARIFYING RESOLUTION 2
The paragraph, top page 3 the Offer document, confirms Members passing this Resolution are allowing Directors to participate in the purchase of preference shares – but only in the strictly limited way described.  Be assured there is no way that Directors could take some extra advantage of any shortfall in this Offer.

CLARIFYING THE OFFER CLOSING DATE
The date as now is 22nd June, 2009, subject to Directors’ discretion and right to extend this time, in accordance with the NSX listing rules.

Directors have no way of knowing (at present) what the greater proportion of Members will collectively decide to do in response to this entitlements Offer.  The facts will emerge by the Meeting date.  The stated closing date is the following Monday, unchanged from that in the original Offer document.

Heritage Victoria have a statutory 60 day response period.  The present closing date might turn out to be in advance of formal issue by Heritage Victoria of a permit for works on site.  Some Members may regard that situation as a risk.  Others might feel disadvantaged if a short period of time (the difference between “risk” and “fact”) were to curtail the Offer.

Risks going forward are not seen to be technical, nor about the presence of gold, but are to do with the time it takes to deal with government.  The Offer deals clearly with this situation – page 31 of the Offer document, Clause 8.

On Meeting day, after Resolutions pass, Directors will discuss with those present what Closing Date appears most sensible, given the facts then available.

CURRENT ACTIVITY (MOVING ALONG)
Two (2) plus 20 kg samples of tailings – of the kind intended to be treated – are in Perth, for various investigatory work.  Analyses by another laboratory, of the head grade of those same two samples of original untreated first pass tailings, showed gold at more than satisfactory levels.  In each case these results are consistent with historical values reported by the Department of Mines in those early years, when tailings across Victoria were first cyanided.

The procedures of Work Plan Approvals (DPI) require us to identify (disclose) the likely residue minerals.  Some minerals are to be given close scrutiny.  We have begun this necessary work.

The DPI also require site layout details of various kinds, all based on field surveys.  This too is under way.

THE GOLD IN THESE TAILINGS – WHY IS IT THERE?
It appears a mineralogy change took place in quartz as mined which resulted in gold-rich residues passing to the original tailings dam (and is thus still there).  The table overleaf shows this mineral change took place in late February 1901.  I leave you to ponder the size of the loss to that original Company.

DATA FROM 1901 OPERATIONS AT GLENFINE SOUTH MINE TO EXPLAIN WHY THE GOLD IS BEING FOUND IN THESE RESIDUAL SANDS TODAY

First 6 calendar months, 1901

Total crushed                14,063 tons                   Yield                 9,990 oz   9 dwt
(excluding bagged concentrates)                       average            14.2 dwt/ton  (21.7 g/t)

For the whole year, 1901
Crushing reduced          29,743 tons       Reported quartz yield    17,066 oz  18 dwt
                                                                        average            11.4 dwt/ton  (17.5 g/t)

While it is evident the value it seemed was not maintained – today, the tailings residues from above operations are frequently returning analyses of above 3 g/t.This ore structure has been intersected 800 metres to the south, and 1,200 metres to the north.  The workings that produced the above tons were at depths 50 to 70 metres below-surface, in a zone working as a continuous body of length at least 150 metres.  So far as can be determined from records, there has been no geophysics and no drilling over the mineralised bedrock location since closure in 1908.  Mount Rommel does not hold exploration title, but is holder of the mining title to surface sands, and has a comprehensive landowner access agreement sufficient to anticipate a permit will issue from Heritage Victoria, to enable site works to proceed.

GLENFINE SOUTH GEOPHYSICAL INFERENCES

• Background data
  The Glenfine South mine, the centre of interest at present, is located at the south end of the Pitfield Plains, at a position co-incident with a very clear ground gravity geophysical expression – see plan below.
  
  The authors of the  Geological Survey Report 94, (Year 1992) have instanced the Avoca Fault zone as important for deformation, gold emplacement and granite intrusion events.  Greenstones have been reported from the mine dumps of the Glenfine South Company. (Ramsay et al, 1992).  A major fault structure is suggested (GSV Report 94) stretching northwards from Pitfield for some 120km.
  
  These geological considerations are dated before the release of VIMP gravity data for this area (circa 1997)
  
  
• Current data
  Below is an extract of publicly available current GeoScience Australia ground gravity data.  Although not in great detail, the collected ground gravity on which the gravity contours of this map are based, is sufficient to indicate something quite anomalous has occurred at or near the apparent junction of the southern extension, the Avoca Fault, and a NNE trending gravity high (yellow on the illustration) together with an evident E-W structure.  The Glenfine South mine is centrally positioned within this (yellow) anomalous zone, where marked.
  
  Speculative observation
  The analyses of residual untreated battery sands at Glenfine South is continuing to reveal the presence of elements in addition to gold which direct attention to the prospect of an alternative style of mineralisation for Victoria.  Evaluation (with this alternative in mind) is continuing.
  

Fred Hunt
Chairman
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Previous Chairman's Outlooks

25 May 2009
15 May 2009
28 April 2009
22 April 2009
09 April 2009