FALKLAND ISLANDS

The Board has decided that unless the remaining work programme identifies deposits likely to be of commercial interest, it will cease exploration activities in the Falklands.

Reported that a drill rig was relocated to West Falklands. The rig was sited on target 20 and drilling has already commenced. Several other areas have been selected for review in West Falklands and these include radiometric anomalies. Further work, involving geological mapping and soil sampling is planned to check their mineral potential.

Drilling continues with two skid mounted diamond core drills in operation along with 15 operational staff on the Islands. In total, Falkland has drill tested eleven of the original twenty three targets being T1N, T2N, T5, T6, T7, T8W, T8E, T9N, T10, T12, and T15E. As a result of this work four further targets have been identified - T22, T23, T24 and T25 some of which have already been partially drilled. By the end of 31 July 2006, a total of 16,042 metres of predominantly HQ core had been drilled and 7,093 samples had been sent for assaying.