Group Annual Report EL 8602, EL 8825, EL 10139, EL 22178, EL 22228, EL 22848, EL 22850, EL 23208, EL 23659, EL 23661, EL 24344, EL 24436, EL 24437 Bonanza Project GR164/10 from 16 November 2010 to 30 December 2011

Abstract

Exploration during the reporting period included diamond and RC drilling, trench sampling, surface sampling, a Deep Penetrating Geochemistry (DPG) techniques orientation study, geological mapping, petro graphic investigations, resource estimates and metallurgical testing. ABM focused their activities on the Twin Bonanza Gold Camp (EL 23661) and did desktop studies plus re-evaluation of targets on the other tenements of the project. Most of the rock chip sampling was associated with the field mapping and the soil sampling was associated with the second part of the Deep Penetrating Geochemistry Techniques Orientation Study a pH combined with a weak leach field analysis study. This second part of the study helped to lead to the discovery of mineralisation on the sediment side of the sediments to Buccaneer Porphyry contact. The best and the only significant rock chip assay result was 2.1ppm gold from a quartz sample with hematite breccia (sample ID OPRK200082) which was collected south east of the Old Pirate prospect area on EL 23661. The trenching program at the Old Pirate and Old Pirate South resulted in 2,296.9 kilograms of surface quartz vein material sampled with a combined total strike length of 582 metres and a weighted average of 23.98g/t gold. The 645 square metres of quartz veins exposed indicating average vein width of 1.2 metres. It established the confidence that a future resource drill hole spacing of 15m would be sufficient. The majority of the geochemical targets follow up RC drilling confirmed the existence of anomalous gold mineralisation. At the Buccaneer Porphyry the stepping out RC drilling discovered mineralisation on the sediments side of the porphyry/sediments contact on the western as well as on the eastern side of the porphyry and extends the existence of the mineralisation to the north west (Caribbean to Cypress Zone) and to the east (Empress and 'Eastern' Zone). At the Buccaneer prospect the twinning of select reverse circulation holes with diamond core drilling for the purpose of future upgrades of the resource estimates and classification status confirmed the magnitude and extended the zone of previously encountered mineralisation. The drilling at the Old Pirate returned numerous significant intersections and confirmed the large anticlinal dome structure. It extended the mineralisation to the north for approximately 300m and underneath the limits of previous drilling to a true vertical depth of approximately 200m. At the Buccaneer Porphyry prospect the resource estimation by SRK Consulting (Australasia) Pty Ltd classified and estimated the gold mineralisation as an inferred resource of 65.8 million tonnes grading 0.79g/t gold for a total 1.67 million ounces of gold when using a 0.2g/t cut-off.