Third and final annual report for EL 23676 'Warramana East', for the period ending 26 May 2006

Abstract

This report is the third and final exploration report for exploration licences EL 23676 Warramana East, located within the McArthur Basin of northern Australia, approximately 44 km northwest of Borroloola, on the Bauhinia Downs and Mt Young 1:250,000 map sheets, Northern Territory. North Mining Limited (North) and Anglo American Exploration (Australia) (AAE) signed the Batten Trough Farm In and Joint Venture Agreement, which includes EL 23676, on 29th September 2003. North Mining is a subsidiary of Rio Tinto Ltd and for the purposes of the joint venture was being represented by Rio Tinto Exploration Pty Ltd (RTE). AAE withdrew from the joint venture and handed the tenements back to North on 24th March 2006. North relinquished EL 23676 on 26th May 2006. Exploration activities for the year ending 26th May 2006 consisted of the following:

A review of exploration data by RTE failed to identify any exploration targets worthy of additional work. There are no remaining exploration targets for large-scale Zn-Pb-Ag deposits within EL 23676 that provide sufficient encouragement for further exploration expenditure by RTE. Three years of exploration activities by RTE and AAE did not identify any significant Zn-Pb-Ag mineralisation within EL 23676. No rehabilitation is required in respect of exploration activities undertaken within the tenements.