BUCIUM

The company intended to make an application to the NAMR for conversion of the license into an exploitation concession license. Proposed activities for the Bucium project in 2007 include the completion of a preliminary assessment report, or scoping study, on the Tarnita deposit, together with possible drill programs at Rodu Frasin and Tarnita designed to up-grade and extend the current known inferred resources. The Bucium exploration license obligates the company to spend US$3.4 million over the term of its three year extension, which is expiring on May 19, 2007. As at September 30, 2006, the company has met its commitment (September 30, 2005 – US$1.0 million remaining).

A scoping study was completed to determine whether it contains economic reserves. It was determined that the most economic option for Bucium is to have the ore processed through the Rosia Montana facilities. As part of the study a resource estimate over the Tarnita deposit was also initiated. During 2005, completed a preliminary assessment study of the Rodu and Frasin depositsbased upon the updated resource estimate completed in 2004 and additional metallurgical sampling comprised of nine composite samples. Other targets within the license area were also evaluated and sampled including the Magulicea, Arama, Volcai-Corabia, Botes and Contu target areas.

It was undergoing a scoping study to determine whether it contains economic reserves.