Annual Exploration Report - Year 14 MLN 1154 Merlin 1 January 2011 to 31 December 2011

Abstract

Activities during the reporting period included commencement of a detailed desktop review of all available data by a Consultant Research Manager in Perth. Desktop work has commenced and it is likely that field work will be undertaken later in 2012 following preparation of appropriate exploration work programs. A total of 491 drill spoil samples from the 2010 reverse circulation drilling program were sent to the Company's Perth laboratory for processing for kimberlite indicator minerals and diamonds. The samples are currently being processed with results pending. A major review of the mineral resource estimate was completed resulting in the compilation of a JORC compliant Mineral Resource Estimate.