KIRKALOCKA

Mount Magnet South NL advise that a Heads of Agreement has been executed with Tianda Resources (Australia) Pty Ltd to develop a joint venture for the exploration for gold on the Kirkalocka Project tenements. Tianda is a subsidiary of Hong Kong based Tianda Group Limited.

Reported drill results from phase 1. Highlights: • Comprised 10 holes: 5 RC holes and 5 diamond tailed-RC pre-collared holes; • Results from inside the pit include 33m at 7.8 g/t Au, 5m at 9.4 g/t Au and 3m at 7.6 g/t Au; • Results from the northern edge of the pit include 20m at 9.0 g/t Au from 75m. • Hole 08CWDD001 intersected 17m @ 1.8 g/t Au from 128m. • The holes were aimed in a southwest direction targeting a wide gap where historically there has been a lack of drilling, with the intention of determining what mineralisation may be included with a open pit cut-back in this direction

The Kirkalocka plant treated its last ore on 14 August before ceasing operations. The plant was then placed into care and maintenance on 12 September. In its final production quarter the Kirkalocka plant milled 150,025 tonnes at 1.26g/t for 5,422 ounces, for a life of mine total of 7.2 million tonnes @1.53g/t or 307,618 oz. Profiling and rehabilitation of waste dumps, spreading and ripping of top soil on all exposed areas with exception of the plant, tails storage facility, air strip and access roads has been completed during the quarter.