Combined annual report for the period ending 31 July 2004 EL 9976, EL 9979, EL 22168

Abstract

AKD Limited holds tenure over exploration licences 9976, 9979 and 22168 which cover the Wonarah phosphate project, located on the Barkly Highway 260km east of Tennant Creek in the Northern Territory, Australia. The Wonarah phosphate project was until recently a joint venture between Rio Tinto and AKD Limited. Rio Tinto was the manager and operator of the JV and from March 1999 to December 2002 spent AUD$2.5 million on exploration. Drilling by Rio Tinto in 2000 delineated an Inferred Resource of 115Mt @ 22% P2O5 for the Wonarah phosphate deposit. After further drilling in 2001, the resource was recalculated to 72Mt @ 23% P2O5 (at a cut-off grade of 15% P2O5). Drill intercepts as high as 37% P2O5 have been recorded. During this reporting period, AKD continued a review of the Wonarah data base and the economic feasibility studies undertaken by Rio Tinto. AKD also actively sought the participation of a new joint venture partner to replace Rio Tinto. Several major companies have been approached and a number are reviewing the data.