FAIR ADELAIDE

Announced that a soil sampling program had identified new gold in soil anomalies at the Puzzle Bear Prospect. A 900 metre long +10ppb gold-in-soil anomaly has been outlined that includes a RAB drill hole intersection of 1m @2.38g/t Au. The anomaly is similar to the setting of a gold anomaly at the nearby Fair Adelaide prospect.

Quarter, exploration and research carried out during the quarter has identified three gold targets requiring detailed exploration. 1. A previously reported gold in soil anomaly located adjacent to, but separate from the historical Fair Adelaide gold workings. The anomaly is well defined over a 200 metre strike length with a peak gold in soil value of 2,460 ppb gold. Air photo and Aero Magnetic interpretation indicate that the anomaly is coincident with an extensive fault related shear zone, the majority of which is obscured by over burden. Exploration will continue to asses the full extent and source of the anomaly. 3. Results from two (historical) holes 100 metres apart reported intercepts of 17 metres at 1.1 g/t gold from 17 metres and 5 metres at 1.1 g/t from 22 metres.Work undertaken during the quarter including surface mapping, Air Photo and Aero Magnetic interpretation have identified a major structural feature that appears to be coincident with the two reported intercepts. Detailed exploration will be undertaken to assess the source of the reported gold mineralisation.