MOUNT CARBINE EXTENSION

KML will undertake a field survey at Socialist Scheelite and the region surrounding Mt Carbine in early August with a view to fully map the geology, including geophysical mapping, extending south-east of Carbine, to identify the likely carriers of tungsten in the form of scheelite. A visit to Mt Holmes is also expected to determine the extent of tungsten mineralization in the form of Wolframite on the southern slopes of Mt Holmes. A ground survey of the alluvial tin ground along Little Plum Tree Creek and Skull’s Lagoon will also be undertaken to define the sampling program expected to commence in 2-3 months time.

Initiating work at Mt Holmes, Station Creek and additional tin, tungsten and gold targets. Mineralization at Little Plum Creek, Rifle Creek and Lustre Creek are expected to add to the projects metal inventory. KML will be mapping and performing site preparation in the third quarter of 2007 to supplement the currently held data, with follow-up programs of 1500-3000 metres expected in the fourth quarter of 2007. Soil and stream geochemistry will also be performed across the eastern zones, Station Creek, Lustre Creek, Rifle Creek, Holmes Creek and Little Plum Creek to determine the economics of tin, scheelite and gold recovery from these sites.

Two targets, Mt Holmes and Station Creek, which have 1999 JORC compliant resources already defined, will have additional drilling performed to reassess the resource under the current JORC code. Utilisation of resources in the southern tenements, however, may see this drilling programme deferred to early 2008.