Altjawarra Craton Diamond Project Combined annual report for the period ending 30 April 2006

Abstract

A corporate decision was made to drastically rationalize Elkedra?s tenement holdings within Australia to allow focusing of exploration funds on the most prospective ground for both diamond and other mineral commodities. To this end, ten tenements were relinquished and two SEL applications were made to cover partially relinquished tenement areas. Compilation of historic data focusing on all mineral commodities with the project areas was initiated and continues. A review of the base metals potential of the remaining Altjawarra Project tenements was conducted in the light of assay results from old drill holes and surface samples collected in September 2005. Further interpretation of existing data is required prior to design of work programmes for the coming field season. Surface sampling included collection and processing of three bulk samples of approx. 4 tonnes each. No macrodiamonds have been recovered to date but final results are pending. A review of the direction of further diamond exploration will be undertaken following evaluation of the completed bulk sample results.