MT BUNDEY

Previous exploration work in the Mt Bundey area has focused primarily on the Koolpin, Mt Bonnie, Golden Dyke and Burrell Creek formations. During 1979 and 1982, detailed airborne radiometric surveys located a number of favourable targets, but these were not followed up by detailed active groundwork or drilling.

In January 2007, the Company carried out detailed airborne radiometric and magnetic surveys, which identified a large number of targets. By January 2008 an additional 7,000km of aeromagnetic and radiometric surveying had identified numerous new targets in the Mt Bundey area. Drilling of these targets is scheduled for the current field season.

Gold discovery has long been associated with the discovery of uranium, and is well established as a result of the Jabiluka and Rum Jungle deposits. At Mt Bundey, the Company's detailed airborne survey located several new radiometric anomalies that occur alongside the major faults bounding the western and eastern margins of the Tom's Gully quartz sulphide gold vein. These areas have provided the Company with primary exploration targets.

The company has an important joint venture with GBS Gold International which has provided the uranium rights to Rum Jungle in exchange for an issue of shares to GBS. The scope of the GBS joint venture is depicted in the attached diagram.

The company is also negotiating additional joint ventures covering known uranium anomalies in the area.