SINGIDA

Drilling at new targets in the Singida belt has intersected highly encouraging shear hosted gold mineralisation in shallow reverse circulation drill holes. Continued RC and diamond drilling of the previously announced Singida discoveries has confirmed grade and depth continuity of well-mineralised shear structures at Gold Tree, Jem, and Corn Patch. A detailed aeromagnetic and radiometric geophysical survey has been completed over the Singida greenstone belt revealing numerous new drill targets. Strong gold in soil anomalism has been identified at one location. a total of 66,000 metres of RC drilling and 3,028 metre of diamond drilling was completed during 2006 with some 40,000 drill samples assayed for Au and As. Three of the new targets referred to as Kaiser Chiefs, Gustav and Tembo, are located in separate geological and structural setting to the results reported last year at Gold Tree, Jem and Corn Patch(Londoni 2 target area). They are situated approximately 5km east of the Gold Tree. The fourth target, Maria is located 11 km south east of Gold Tree along the regional structural trend (Londoni 3 target area). At Kaiser Chiefs, drilling has intersected a mineralised subvertical, east-west trending shear zone with best intersections averaging 3 metres at 10.43 g/t in KR011 and 7 metres at 7.21 g/t in KR031 and 2 metres at 24.40 g/t in KR059. Broad zones of mineralisation up to 14 metres wide averaging 1.66 g/t have also been intersected in KR030. The drilling, so far, has confirmed continuity along an initial 500 metre zone which remains open along strike and at depth.

A new greenstone belt was discovered. A total of 34,000 metres of drilling at five identified targets have been completed within the Londoni 1 region, all of which lie within a 5.75 kilometre strike length. Some of the highlights of the drilling programme completed to date are the intersections of some very high gold grades, particularly at the targets known as the Gold Tree, the Jem and the Corn Patch, where gold grades of up to 45 grammes per tonne have been recorded.

Exploration effort consisted of a detailed first phase programme carried out over the initial 2,954 km2 claim area. The first phase work comprised an airborne magnetic survey along 1,450 km lines, regional geological mapping using satellite imagery, and the collection and analysis of 1,312 stream sediment and 4,309 soil samples. Results from the first phase work identified a large geochemical anomaly in a new greenstone belt. Anomalous gold concentrations have been recorded at several locations along a 5 km strike, with a 1,500 metre section containing gold (Au) levels of above 100 parts per billion (ppb). In the core of the anomaly, which is up to 400 metres wide, gold concentrations of up to 1,225 ppb were recorded. Highlights of the programme were mineralised intersections averaging 16 metres at 5.54 g/t Au in SC12, 9 metres at 4.68 g/t Au in SC25, and 5 metres at 23.90 g/t in SC43.