Annual exploration report MLN 13, MLN 1130, MCN 317, MCN 523, MCN 1054, MCN 1055, MCN 4072, and MCN 4074 for period ending 15 July 2009 Pine Creek Group, Burnside Project

Abstract

The Pine Creek Group of tenements covers 8 tenements (MLN's 13, 1130, and MCN's 317, 523, 1054, 1055, 4072, 4074) which are located approximately 220 km SE of Darwin. GBS Gold Australia acquired the tenement group in 2005 by a friendly take over of Northern Gold NL (50%) and Buffalo Creek Mines Pty Ltd (50%). Historically, the tenements have been the focus of alluvial and hard rock gold mining activity since 1869. More recently, Pine Creek Goldfields mined its flagship deposit 'Enterprise' until late 1994, producing 744,000oz Au from open pit operations. In 2007-08 reporting period Geostat Services Pty Ltd prepared an updated resource to comply with CIM Definition Standards of Mineral Resources and Reserves. Current Indicated Mineral Resource above a cut-off of 0.7 g/t Au is 731,760 tonnes, grading 2.51 g/t Au for a total of 59,120 ounces Au, with the current Inferred Mineral Resource being 84,233 tonnes grading 2.36 g/t Au for 6,404 ounces. On 15 September 2008 GBS Gold Australia was declared under voluntary receivership and all assets were placed under Care and Maintenance. As a result of that only a peripheral review of the tenements was undertaken and work completed during the reporting period included reconnaissance visit, technical review of the tenement, planning for up-coming field season and report writing and tenement management activities. Recently, Forbes Manhattan, a Canadian investment bank through its subsidiary Crocodile Gold Australia, has acquired all GBS Gold Australia assets with the intention to commence gold production in an immediate future. Currently, registration of all assets against Crocodile Gold is underway, and it is expected that within a few weeks this process will be completed. In 2009-10 reporting year, project area will be explored for gold and base metals mineralisation. For this purpose, area identified during this review will undergo soil/rock chip sampling along with geological mapping. If encouraging results received, some RAB/RC drilling may also take place.