Annual exploration report on MCN 3839 to 3844 for the period ending 31 December 2008 Eva Valley Yeuralba Group

Abstract

In the reporting year ending on 31 December 2008, GBS Gold's attention remained focused in developing projects such as Chinese South Extended (Big Pit), Toms Gully, Cosmo Deeps and Maud Creek with a budget of 10's of millions dollars. Chinese South came on-line in April 2008, whereas Toms Gully commenced production in July 2008. In the reporting period only a peripheral review of the group was undertaken. It appears that during 2009, much attention will remain focused on the development of closed-by project- the Maud Creek with a budget of several millions of dollars. The Yueralba Group of tenements will remain on ranking exercise and due to their strategic significance, will be important for future ore supply to the new company's processing operations. With the Maud Creek project coming on-line in the future, the Yeuralba project will undergo fully blown field exploration program. It will include geochemical sampling and drilling to evaluate gold-copper mineralisation for further development.