2006 Annual report on EL 23174 AuQuest Project period beginning 19 September 2005 and ending 18 September 2006

Abstract

Renison Consolidated Mines NL has been developing an exploration strategy in the Northern Territory since 1999. This strategy includes targeting dislocations that host economic gold mineralisation within regional structures that intersect known stratigraphical and structural features of the Pine Creek Geosyncline. EL 23174 forms a part of a regional package of tenements (AuQuest Project) that have a northwest trend, covering what the Company has called the Noonamah-Corroboree trend. Processing of Northern Territory Government supplied 400m spaced aeromagnetic and radiometric data has significantly enhanced the detail of the underlying geology and the subsequent interpretation of the prospectivity of that area. Over the past three years, the Company's focus in the Northern Territory has been the development and subsequent operation of Stage 3 of the Quest 29 dump leach operation during 2003-04, and the completion of the resource drilling, feasibility study and start of underground mine development at Tom's Gully which will produce approximately 40,000ozpa of gold. Approximately $2.5m has been spent on ground at Tom's Gully and other tenements within the AuQuest Project, as part of the company's exploration strategy, over the previous 18-month period. The Feasibility Study on Tom's Gully Underground has been completed and underground development started in September 2005 with the mill currently undergoing final commissioning. Quest 29 and Tom's Gully are part of the AuQuest project, which covers approximately 1000 square kilometres of exploration licenses including EL 23174. It is expected that exploration on these EL's will find additional open cut ores which can be treated through the Tom's Gully plant and exploration has focused on these EL's and targets during 2005.