Annual exploration report Brocks Creek Group year ending 26 June 2006, MLN 1139, MLN 176, MCN 4689-4697, MCN 4701-4703, MCN 4863-4871, MCN 4895-4899

Abstract

During 2005-2006, GBS Gold 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 June 27th 2005 to June 26th 2006 included; mapping and rock chipping in the Lymberover prospect (north of John Bull), drilling within the Zapopan project area (2719.6m of core drilling for Five diamond holes and six wedge holes) It also included drilling within the Rising Tide gold deposit project area (161.2m of core drilling for two diamond holes, one failed hole and twenty one RC holes (824m)). Up until June 26th 2006 mining activities within the Leases were restricted to a care and maintenance programme in readiness for a decision to start operations. Mining is scheduled to commence September 2006 in both Rising Tide (open cut) and Zapopan (underground) for trucking to Union Reefs mill'. All work reported was within MLN 1139. Exploration was at a minimum on the remainder of the Brocks Creek tenement group.