2nd Annual exploration report EL 24018 Hayes Creek East year ending 9 August 2006

Abstract

EL 24018 is located 140km SE of Darwin, NT and 4km east of the Hayes Creek Inn. The tenement is contiguous with and south of the Golden Dyke Dome (covered by EL 10347). This domal structure in Koolpin Formation anoxic metasediments and concordant dolerite sills, hosts several gold deposits that were open pit mined in the mid 1980s. During 2005-2006, GBS Gold Australia Pty Ltd successfully made a takeover of Northern Gold NL and has purchased Harmony Golds (through subsidiary Buffalo Creek Mines) 50% share of the Burnside Project as of 1st of April 2006. Work during the period August 10th 2005 to August 9th 2006 was minimal due to the acquisition of the Burnside Joint Venture by GBS Gold Australia Pty Ltd. Work within the region has concentrated on the recommencement of mining in the Brocks Creek district.