Fourth Combined Annual Report 25 September 2004 to 24 September 2005, EL 10077 Whippet East, EL 10101 Binary, EL 22165 Copernicus, EL 22583 Morning Star, EL 22589 Whippet Hill, EL 22590 Stuart Highway

Abstract

Exploration Licenses (EL's) 10077 Whippet Hill, 10101 Binary, 22165 Copernicus, 22583 Morning Star, 22589 Whippet Hill and 22590 Stuart Highway, were acquired by Giants Reef Exploration Pty Ltd (Giants Reef) to search for Tennant Creek style iron oxide copper-gold deposits. This combined report records the exploration work done on EL's 10077, 10101, 22165, 22583, 22589, and 22590 during their fourth year of tenure from the 25th September 2004 to the 24th September 2005. Exploration work carried out during the year included: compilation and review of historic vacuum and surface geochemistry sample data over the License areas; assessment and implementation of work programs on known prospects with shallow oxide gold resource potential; detailed ground gravity survey over prospective parts of 4 of the licenses; assessment and modelling of deeper magnetic targets; a geological review and economic assessment of the Marathon, Troy, Thrace and Macedon and North Star Group prospects as part of a larger study of the copper-gold resources and prospects in tenements held by Giants Reef in the Tennant Creek Goldfield. The compilation and review of vacuum geochemistry and surface geochemistry for the license areas has defined a number of anomalies, notably within EL 22583, which warrant further investigation. As the majority of geochemical surveys undertaken in the past were aimed at base metal exploration and did not include gold analysis, much of the licenses remain untested by gold geochemical surveys. Three high priority oxide gold prospects were defined for drill testing in the license areas. Reconnaissance RAB drilling was carried out at Golden Slipper North with a number of anomalous intercepts being returned, but these do not warrant follow-up. Planned drilling programs at the more highly rated Golden Slipper and Jasper Hills Shallows prospects had to be withdrawn after discussions with the traditional owners. The detailed ground gravity survey covering approximately 7km2 on a 100 x 50m grid revealed several promising anomalies, which require follow-up work. Review of historical exploration data and geophysical modelling of magnetic data using SI and model dimension settings approximating higher hematite contents of ironstones at depth has highlighted the need to revisit several of the magnetic targets in the area. The copper - gold study has indicated additional resources are required at the known but poorly drilled prospects in the area such as in the Marathon trend and the North Star group.