EUREKA DYKE - SOUTHERN CROWN PROJECT

Received all the reports for the Eureka Feasibility Study, confirming the technical viability of the Eureka Project. The processing facility originally proposed for Eureka already has a design capacity for 400,000 tonnes per annum (tpa) in the crushing and grinding circuits, assuming typical dyke bulge feedstock. The rest of the circuit is a modular 200,000tpa format that can be readily upgraded to 400,000tpa with the addition of appropriate gravity and concentrate modules.

Completed the underground diamond drilling programme at Eureka, comprising a total of 28 holes for 588.8 m for the quarter. The results support the tonnage and average grade range estimates returned from the Eureka Pre-Feasibility Study. Better intersections include hole EU037, which returned 2.6 m of 6.93 average g/t Au from 12.7 m. The Definitive Feasibility Study (DFS) on the Eureka Project with all major elements is either at or near completion by the end of calendar 2007.

Released pre-feasibility study and drilling results. A full feasibility study to follow. Several diamond core samples received from recent underground drilling contained visible gold, with significant assay results received to date, including hole EU004, returning 4.6m @ 9.2g/t Au, including, 0.45m @ 57g/t Au from 278.8m along hole EU012, returning 0.6m @ 71.75 g/t Au from 47.07m along hole. Pre-Feasibility Study confirms viability of Eureka: - 860,000 tonnes of mineable ore to 550m - Grade range 8-12g/t Au - Milling capacity 150,000 to 200,000 tonnes per annum - Process recovery 90-96% - Gravity gold component 40-60% - Preliminary Opcost A$120-A$145/tonne