Addendum to the technical report entitled Independent Technical Review of the Burnside, Union Reefs, Pine Creek and Maud Creek Gold Projects, Northern Territory, Australia - Resource Update, Maud Creek Gold Project, February 2006

Abstract

Snowden Mining Industry Consultants (Snowden) was engaged by GBS Gold International Inc. (GBS) to prepare an updated resource estimate for the Maud Creek Project, Northern Territory, Australia. The project is at an advanced stage of exploration and is not yet considered a development or production property. Resource estimation was undertaken in compliance with CIM Mineral Resource and Mineral Reserve definitions that are referred to in National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. This Technical Report has been prepared in accordance with the requirements of Form 43-101F1. GBS' request to update the resource estimate follows on from a review undertaken by Snowden of the previous Maud Creek estimates prepared by Terra Gold Mining Ltd (a wholly owned subsidiary of GBS) as part of the Technical Report ,dated October 2005 prepared by Independent Engineers Australia Pty Ltd (IEA). The Maud Creek Gold Project gold mineralisation occurs in a meso - to hypothermal gold-arsenopyrite-pyrite quartz vein system that formed in the contact aureole of a magmatic intrusive (Maud Creek Dolerite). The favoured depositional site occurred at the contact between more competent, siliceous footwall sediments and ductile, chlorite-haematite altered hangingwall tuffs of the Tollis Formation. Gold occurs both as free gold and as refractory gold in pyrite and arsenopyrite. Common gangue minerals are quartz, pyrite and arsenopyrite, with minor graphite. Surrounding alteration assemblages variously consist of silica, chlorite, sericite, carbonate, fuchsite and haematite. An extensive database of previous metallurgical testwork indicates that primary mineralisation at Maud Creek is refractory. Testwork has included pilot scale flotation and BIOX (bacterial oxidation) programs. Mineral Resources at Maud Creek have been estimated in accordance with CIM Definition Standards of Mineral Resources and Reserves (CIM 2004). Three dimensional (3D) modelling methods and parameters were adopted in accordance with best practice principles accepted in Canada. A geological volume model was created from the drillhole logs and interpretations supplied by GBS. Statistical and grade continuity analyses were completed to characterize the mineralisation and subsequently used to develop grade interpolation parameters. These were applied to the recognised mineralised units. Datamine mining software was used for generating the 3D block model and subsequent grade estimates. Grade capping was used to restrict the influence of statistical outliers during ordinary kriging of block grades. A bulk density model was generated by Snowden using data collected by GBS. A Mineral Resource classification scheme consistent with CIM guidelines (CIM 2004) was applied. The estimates are categorised as Indicated and Inferred mineral resources and reported above a grade cut-off that is appropriate for a potentially bulk mineable deposit. At a cut-off grade of 1 g/t Au the currently defined Maud Creek Indicated Mineral Resource is 9.29 million tonnes grading 3.1 g/t Au for a total of 935,000 ounces of Au. At the same Au cut-off grade, the currently defined Inferred Mineral Resource is 1.08 million tonnes grading 2.4 g/t Au for a total of 82,000 ounces of Au.