2007 Annual combined report on EL 10096 and EL 10097 Mistake Creek Area, period ending 12 December 2007

Abstract

The Kajeena Mining Company Pty Ltd holds exploration licences 10096 and 10097 in the Mistake Creek area which are considered to have excellent exploration potential for lead - zinc, copper, gold and diamond deposits. In December 2006 Kajeena entered into a Joint Venture Agreement with Dingo Resources Pty Ltd. Dingo is focussed on gold mineralisation in the Inverway Metamorphics and follow up of copper and lead - zinc anomalies identified by GeoPeko during previous exploration. Dingo completed an orientation trip and sampling programme in December 2006 and a further field trip in October, 2007 during which further stream and soil sampling was undertaken (33 stream sediment, 62 soil samples, 5 rock chips). Soil and stream sampling has failed to delineate clear gold geochemical anomalies over prospective magnetic features - postulated to represent basement BIF. Stream sampling in the area of previously drill tested copper mineralisation shows a low order anomaly which is not considered to be culturally derived. It is proposed to conduct further sampling, several 3D IP surveys and drill testing in the next year of tenure.