Beta Hunt

Reported temporarily suspended all underground operations after a rockfall fatality at Kambalda on Friday afternoon with due consideration for the well-being of other employees. Operations at the Mine will resume on Sept 26/06.

During the quarter, ore production continued to increase at East Alpha, the Company’s second underground mine at Kambalda, with ore extraction to date in line with resource modeling expectations. Production is on track to reach a target level of 5,000tpa, on an annualised basis, by the end of 2006.

Consolidated Minerals has announced the commencement of ore production from East Alpha, the second underground mine at its Kambalda nickel operations in Western Australia. Development of the 800-metre development/exploration decline from the nearby Beta Hunt mine to access the upper levels of the East Alpha ore body commenced in May 2005 and was completed on 28 March 2006 with mining intersecting a 3.3m wide zone containing 3.5% Ni. Strike drive development into the East Alpha ore body is now underway and has successfully accessed the upper portion of the hanging wall load of the ore body. Mining operations will progressively ramp up over the coming months with the objective of achieving full production of 5,000 tpa by November 2006. As at 31 December 2005, the total indicated and inferred resource for East Alpha was 551,000 tonnes @ 4.48% Ni for 24,700 tonnes of contained nickel metal, with this upgraded resource enabling estimation of an initial probable reserve of 387,000 tonnes at 3.11% Ni (12,000 tonnes of contained nickel).