EAST ALPHA

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).

Ore production commenced on East Alpha, the second underground nickel mine at Kambalda, after the ore body was accessed on 28 March 2006. East Alpha mining operations to ramp up to full production of 5,000tpa by November 2006, increasing production from the Kambalda complex to an annualised rate of 10,000tpa by the end of 2006. Surface drilling north of East Alpha deposit was completed, with results of the drilling of 5.83% Ni over 0.65m to be incorporated in a revised June 2006 resource statement.

A total of 1 parent hole, 9 daughter holes and 3,519m of drilling were completed. The results from drill holes RBD007 and RBD008 have now extended the East Alpha mineralised system to 1.2km in length, with the latest drilling results not yet incorporated into updated resource estimates. Drill hole RBD007 intersected 1.90 m grading 2.15% Ni and drill hole RBD008 intersected 2.76 m grading 4.09% Ni. The surface drill rig has now commenced a new drill section, 544100, which is designed to extend the East Alpha resource north towards the southern limit of the Lunnon Shoot (Silver Lake mine).