Annual report on exploration licence EL 10382 AuQuest Project period ending 22 October 2007

Abstract

Exploration Licence 10382 is located about 90 SE of Darwin in a close proximity of Arnhem Highway near the Toms Gully Gold mine. The tenement was granted to Renison Consolidated Mines NL on 23 October 2003 and will expire on 22 October 2009. This Tenement was applied for in 1999 and has been held up in Native Title until recently. The tenement comprises 49 blocks covering 124 km2 and is located west of Tom's Gully. On 25 July 2007, GBS Gold Australia Pty Ltd acquired all tenements and Toms Gully gold mine held by Renison Consolidated Mines NL, including EL 22206 in the Toms Gully area, Northern Territory. This tenement package is in the process of being registered in the name of GBS Gold Australia. During this transferring period, GBS Gold Australia also has the obligation of statutory reporting on these tenements. Work during the period ended 22 October 2007 on tenement included literature search, reconnaissance visit, administration and report writing by GBS gold Australia Pty Ltd. This was due to the acquisition of the tenement package by GBS Gold Australia Pty Ltd. Renison Consolidated Mines NL has informed that during the reporting period no on ground exploration activity was undertaken. GBS Gold Australia is committed to pursue effective exploration program and re-commence the mining operation at Toms Gully after the transfer of tenement package. In this regards an exploration and mining strategy is being established. The proposed work programme for the tenement would include a review of historical data compiled by Renison Consolidated to identify if any areas of anomalism had previously been detected by other explorers in the region, ground-truthing by GBS Gold staff, and a technical review of the exploration potential of the area.