Annual report on exploration activities year two of tenure, 20 September 2008 to 19 September 2009

Abstract

Since its first involvement, considerable work has been carried out by Gravity on the group of tenements that includes EL 25859 including prior tenements that have been relinquished. Follow-up of the original geophysical survey flown in the area upgraded its potential led to the EL application and granting. Based on results in the Cox area to the west the company fully intended to follow-up the encouraging results achieved in the area historically and unfortunately fires severely limited the first year's program. Due to a change in the circumstances of Gravity's parent company, Mwana Africa plc, the Australian based management of the company sought an alternative source of funding. This was made considerably more difficult by the circumstances surrounding the global financial situation during the latter half of 2008 and early 2009. In early 2009 the company signed a sale contract with Legend International Holdings Inc for the sale of all of its Australian based properties and rights to tenements held by third parties namely companies owned by Rio Tinto. It is intended that this sale will see the exploration continue. Although this contract is binding, its completion is subject to a particular condition precedent involving the owners of the tenements not held directly by Gravity and this has unexpectedly held up its completion limiting planning for the current field season. Work during the year essentially involved a re-evaluation of previous results and reporting.