Strangways Project EL 10364 Mud Tank, EL 22443 Strangways, EL 22446 Alcoota, EL 22623 Phlogopite and EL 23592 Johnnies Reward Fourth combined annual report for the period 20 December 2004 to 19 December 2005

Abstract

In April 2005, Flinders Diamonds Limited (FDL) announced the sale of its non diamond rights in these tenements to Maximus Resources Ltd. The company will be undertaking evaluation of Johnnies Reward prospect as well as base metals, precious metals and vermiculite occurrences in the Strangways Project. Due to delay in listing of Maximus Resources and share holders approval of both companies, no field work was undertaken. Maximus Resources listed on the ASX on 26 October and raised $7 million for the exploration program including these tenements. No field work was undertaken on the Strangways Project over the report period. Johnnies Reward IOCG deposit, located within EL 23592, was not eventually farmed out to Tanami Gold NL as stated in last year's annual report. Alistair Mackie, the FDL Project Manager for the Strangways Project ceased operations with FDL. From mid 2006 MXR will undertake an intensive gold and base metal search over FDL's Strangways Project area primarily focussed on the Johnnies Reward copper-gold prospect on EL 23592 and including a regional appraisal of the base and precious metals and vermiculite potential of all project tenements. The areas of EL 10364 and EL 22446, and EL 22443 and EL 22623 have been incorporated into Substitution EL applications 25056 and 25055 respectively. Directors of, and consultants to, MXR undertook reconnaissance visits to the Strangways Project area during 2005.