EL 9939 Battery Block, EL 10016 Gecko Road, EL 10052 Red Bluff, EL 22868 North Jubilee, EL 23073 Pump Station Second combined annual report 17 August 2002 to 16 August 2003

Abstract

Exploration Licences 9939 Battery Block, 10016 Gecko Road, 10052 Red Bluff, 22868 North Jubilee and 23073 Pump Station were acquired by Giants Reef Exploration Pty Ltd (Giants Reef) to search for Tennant Creek style ironstone-related gold-copper deposits. This combined report records the exploration work done on EL's 9939 10016, 10052, 22868 and 23073 during their second year of tenure. During the reporting period Giants Reef have undertaken a tenement rationalisation program to reduce the number of Claims and Leases held by the company. Consequently, a number of exploration targets have become available for review and exploration within the EL's since the relinquishment of numerous Claims and Leases within the past tenure year. During the 2002 field season a program of high-priority definition drilling of the Chariot gold deposit was the immediate focus for Giants Reef. Further exploration focus by Giants Reef for 2002 was on the drilling of the Bluebush Project Area, EL's 8882 and 8883, which came under an Alliance with BHP Billiton. The focus on the Bluebush area and the definition drilling at Chariot gold deposit prevented Giants Reef from undertaking onground exploration over the five Licences. EL 9939 Battery Block: The EL has been ranked by Giants Reef as a moderate priority exploration target with the potential to host shallow, high-grade oxide gold within haematite-magnetite ironstone. At present, the significant target areas within the Licence area are covered by Claims and Leases. A number of these Claims and Leases have been prioritised for immediate drilling by Giants Reef. Exploration success within the Claims and Leases will lead to further drilling, proximal to the targets, within EL 9939. EL 10016 Gecko Road: Giants Reef consider the location of the Licence area to be highly prospective, and recommend a detailed geophysical assessment of the blind magnetic Explorer 88 anomaly which appears not to have been tested by drilling. Its location, on a linear feature running SE from the Orlando mine, gives it a reasonable to high level of prospectivity. It is planned to carry out magnetic modelling, and if justified a drill program would follow. EL 10052 Red Bluff: The area west of the Navigator Fault appears to have the most potential for new exploration targets. Although work by previous companies involved a certain amount of drilling, Giants Reef?s view is that the magnetic anomalies in this area are not well tested or fully explained. EL 22868 North Jubilee: A number of expired Mineral Claims were subsumed by the EL, which displayed a number of geochemical anomalies, either through surface lag sampling or vacuum drilling to bedrock. Preliminary rotary air blast drilling at Jubilee, Mt Otto and Mary Lane failed to intersect economic mineralisation. Giants Reef consider these anomalies as not fully tested, and require detailed geophysical assessment and structural mapping. EL 23703 Pump Station: At the end of the second year of tenure the statutory relinquishment of 14 blocks was made leaving only the southern blocks of the EL which cover areas of Warramunga Formation.