Batchelor Project AN 515 year 1 annual report year ended 26 September 2006

Abstract

In February 2004, Ausmet Resources Ltd (Ausmet) entered in to an agreement with Savanna Mineral Resources Pty Ltd (Savanna) to earn an interest in EL's 9253 and 9501, ERL 134, MLN's 512 - 515, 542 and 543 and applications AN 495 and 515. Early in 2005, Ausmet shifted its corporate focus from mineral exploration to coal development in the eastern states, culminating with its change of name to Bounty Industries Ltd and relisting in March 2005. Most of its mineral exploration interests were assigned to Melrose Metals and Minerals Pty ltd, which later changed its name to Korab Resources Ltd (Korab) and sought listing on the Australian Stock Exchange. Korab listed on 31 August 2005 and was then able to commit positively to its exploration obligations. Korab is the manager and operator of a joint venture with Savanna over the above tenements.The work during the year consisted of geological and geophysical data review, analysis of the local geology, review of historical reports, an incomplete ground radiometry survey, site visits and mapping. An unfinished ground radiometry survey has produced a number of discrete radiometric anomalies which require further investigation by rock chip and soil sampling and then, if warranted by drilling and geochemical analysis.