Annual exploration report Elizabeth Tenement Group Union Reefs Project year ending December 31st 2007 MCN 506, 507, 734, 735, 738 MLN 135, 779, 780, 822, 856

Abstract

The Elizabeth Group of tenements is approximately 7km north west of the Union Reefs Gold Mine and 168km south east of Darwin, NT. This report summarises exploration work completed within the Elizabeth Group tenements for the year ending 31st December 2007. In 2005, GBS made a successful takeover of Northern Gold, and entered an agreement to purchase Harmony's 50% share of the Burnside JV, giving GBS 100% of the project by April 2006. During 2007 work completed over the Elizabeth MLNs and MCNs consisted of: - Review previous work including geochemical sampling, drilling and mapping - Basic rock chip and mapping program - Gridding in preparation for an infill surface sampling program - Planning for the upcoming field season - Report preparation - Administrative duties In view of its close proximity to the Union Reef gold processing mill and a significant rise in the price of gold, exploration in the Elizabeth region plays an integral part in GBS Gold's plan to sustain a long term gold processing operation.