Annual exploration report ERL 97 Western Arm year ending 18 September 2007

Abstract

Resource modelling indicates that the Western Arm gold deposit contains a resource of 2,696,440 tonnes at 1.48 g/t. Due to low gold price in the last a few years, the Western Arm Gold deposit has ranked low against other deposits such as Fountain Head, Rising Tide and Zapopan. However, company regards it a strategic resource which will be brought into production at future date. In the reporting period, exploration activities conducted are technical review, reconnaissance visit, report writing and tenement administration. Proposed exploration activities for the next reporting period will include geological mapping, soil/rock chip sampling and air core drilling.