MT KAKOULIMA

A 5,000 metre diamond drilling programme to test several targets has commenced.

Reported that phase 3 exploration drill program has been completed. Highlights include from 168.5 to 173.4m (4.9m) at 1.23% S, 0.18% Ni, 0.38% Cu, 1.05 g/t Pt plus Pd plus Au (0.22 g/t Pt, 0.78 g/t Pd); and from 241.8 to 256.5m (14.7m) at 1.49% S, 0.35% Ni, 0.39% Cu, 0.99 g/t Pt plus Pd plus Au (0.17 g/t Pt, 0.77 g/t Pd). On the north grid holes AF0021, AF0022 and AF0023 intersected disseminated sulphides, with up to 4% pyrrhotite plus chalcopyrite in AF0022. The resulting assay yielded 0.30% S, 0.09% Ni, 0.13% Cu and 0.5 g/t Pt plus Pd plus Au over 0.45m (from 34.15m to 34.6m depth), again reflecting high metal tenors for the disseminated sulphide. The resulting phase 3 drilling on the north grid reduced the distance between drill sections to between 500 and 1,000m.

Reported that drilling on the south grid as part of the Project phase 3 exploration program has been completed. The objective of the drilling was to establish the geometry of the basal contact of the Kaloum igneous complex (KIC) and further explore for Ni-Cu-PGE (platinum group elements) sulphide mineralization. Drill targets were designed as a follow-up to the two holes (AF0014 and AF0015) drilled during the phase 2 program in late 2004 that intersected disseminated sulphides. Drill Holes AF0016, 17, 18, 19 and 20 all intersected the KIC basal contact and all intersected disseminated pyrrhotite, chalcopyrite, pentlandite, and pyrite sulphides at or within a few metres of the contact. Assays are pending. Pulse EM borehole surveys were completed in each hole. The drill has now been moved to an area between the west and north grids to test a target that may represent a large block in an embayment-like feature at the base of the KIC, and interpreted from historical surface geophysics and 2004 drilling. Depending on results, drilling will continue from areas to the east along the contact to test targets generated during 2004 exploration for the remainder of the program.