Annual exploration report on EL 23178 AuQuest Project Area year ending 7 March 2008

Abstract

During the reporting period, exploration activities included a peripheral review of the project area, reconnaissance visit, tenement administration and report writing. An in-depth review is underway to assess the full potential of Toms Gully Group of tenements including EL 23178. The main purpose of this program will be to understand, geological and structural setting of the area to elucidate mineralising processes for gold, uranium, base metals and iron ore. A detail geophysical interpretation of the area is also underway to provide assistance in targetting areas of possible mineralisation. It is anticipated that selected areas will be mapped in detail, and a program of soil/rock chips sampling will be undertaken. In areas of black soil cover, aircore drilling will be conducted to retrieve bed rock samples.