Annual exploration report Rhodes Tenement Group MLNs 414 to 418 year ending December 31st 2007

Abstract

GBS Gold Australia Pty Ltd considers the Rhodes Group of tenements an important asset and its significance is highlighted due to the group's close proximity to the Burnside project area where mining is taking place since August 2006. Previous exploration programs and recent work has highlighted the significance of the area for gold mineralisation. It is expected that in future, Rhodes group of tenements will provide feed stock to the Union Reefs gold mill. During 2007 work completed over the Rhodes Tenement group consisted of a reconnaissance visit, planning for the upcoming field season, report preparation and data integration and validation for the Data Shed database. Currently company resources are focused in bringing on-line projects such as Toms Gully, Cosmo Deeps and Maud Creek in 2008 and 2009 respectively with a budget of several million dollars. As a result, Rhodes project has been placed on low ranking and its exploration and development has been delayed. Exploration and consolidation in the Rhodes tenements will be an important part of the company plan. Therefore, Rhodes project is considered important for GBS Gold Australia to take into account the favourable gold price.