Mt Todd Project annual report for the period ended 12 March 2008

Abstract

The three tenements, EL25669, 25576 & 25670 comprise a significant portion of the Mount Todd Project area and cover 1 062.23 square km (90% of the project area). The tenements are situated approximately 42 km north of the town of Katherine. This annual report documents the work completed on the tenement group comprising EL 25669, 25576 & 25670 for the period March 15, 2007 to March 14, 2008. The licences were granted to Vista Gold Australia Pty Ltd. by the Northern Territory government on March 15, 2007. Vista Gold Australia Pty Ltd. is the operator and managing the exploration work. Work on the project during 2007-2008 included soil sampling, prospecting and sampling on tenement EL 25576. There was no field work carried out on EL's 25669 and 25670 during Year 1 as work was concentrated on the larger EL 25576 as well as ongoing drilling on the Mount Todd Mineral Leases. Work on EL's 25669 and 25670 covered general research on previous exploration activities. Results from the soil survey at the RKD prospect show gold, copper, arsenic and bismuth soil anomalies corresponding with the drilled portion of the RKD mineralized zone. These soil anomalies continue south of the RKD mineralized zone an additional 150 meters in an area of limited drilling. Further field work is recommended to trace the RKD mineralized zone along strike, including mapping, rock sampling and further soil sampling. Approximately 1100 meters due west of the RKD prospect, a 600 meter long arsenic anomaly was outlined from the soil survey. This anomaly also coincides with spot anomalies of gold, bismuth and copper. Historical rock samples assayed up to 17.37 gpt gold within the anomaly. No known drilling has been conducted on the anomaly, although two historical drill holes are collared 200 meters south (DN-RC-4 and DN-RC-5). Further field work is recommended including mapping, rock sampling and further soil sampling to investigate the anomaly. At the Emerald Creek prospect, the 2007 soil survey outlined a broad 300 meter wide, north trending, arsenic anomaly with coincident bismuth and copper anomalies. As well, weak sodium depletion and a spot gold soil anomaly of 0.2 gpt both occur within the anomaly. Previous exploration in the area includes a historical grab sample assay of 8.36 gpt gold located 40 meters north of the anomaly and two drill holes, EC-RC-06 and EC-RC-07, located within the centre of the anomaly. Further work is warranted and additional soil sampling along strike of the anomaly, as well as mapping and rock sampling is recommended.