Annual exploration report Brocks Creek Group year ending June 26 2006 (sic 2007) MLN 1139, MLN 176, MCN 4689 to 4697, MCN 4701 to 4703, MCN 4863 to 4871, MCN 4895 to 4899

Abstract

The Brocks Creek Project comprises a group of mining tenements centred 140 km south east of Darwin, NT. Brocks Creek has historically been the focus of alluvial and underground gold mining and the 1990's featured gold production from open pits along the Brocks Creek-Zapopan (BKZ) structure. GBS Gold Australia Pty Ltd has now 100% of the Burnside Project as of 1 April 2006. The project area encloses a sequence of Palaeoproterozoic meta-sedimentary rocks of the South Alligator Group and Finniss River Group, intruded by the Burnside Granite. This rock sequence has been tightly folded on axes that trend north westerly, and have been subjected to phyllitic - middle greenschist facies metamorphism. Thermal effects from the post orogenic Burnside Granite that lies to the north of the group has imparted hornfelsing and porphyroblastic spotting of garnet, biotite and andalusite/cordierite depending on lithology and proximity to the contact. Reporting year 2006-07 was eventful year when mining re-commenced at Rising Tide and Brocks Creek (underground) mines in September 2006. The current Rising Tide Indicated Mineral Resource above a cut-off of 0.7 g/t Au is 2.06 million tonnes grading 1.62 g/t Au for a total of 107,200 ounces Au. At the same Au cut-off grade, the Inferred Mineral Resource is defined as 0.92 million tonnes at 1.33 g/t Au for 39,300 ounces. The current Zapopan Measured Mineral Resource above a cut-off of 0g/t Au is 84,800 tonnes grading 20.59 g/t Au for a total of 56,100 ounces Au, with the current Indicated Mineral Resource being 180,100 tonnes grading 16.16 g/t Au for 93,500 ounces. At the same Au cut-off grade, the Inferred Mineral Resource is defined as 138,200 tonnes at 5.14 g/t Au for 22,800 ounces.