Ann: Further High Grade Results from Ridge deposit, Sandstone, page-2

• New hole MSRC544 intersected 4m @ 50.5g/t Au (from 3m depth),including 1m @ 198g/t Au in initial Phase 2 RC drilling at the new Ridgedeposit at Middle Island’s 100%-owned Sandstone gold project in centralWA.

• A further new hole, MSRC545, drilled 20m directly behind and down dipfrom MSRC544, includes a confirmatory intercept of 9m @ 5.41g/t Au(from 22m depth).

• MSRC544 and MSRC545 are infill RC holes drilled towards the southernend of Sandstone’s new Ridge satellite deposit.

• These new intersections closely follow a bonanza grade intercept of 4m@ 99.5g/t Au (from 13m depth), including 1m @ 390g/t Au, announcedlast week and from the northern extremity of the Ridge deposit.

• Being derived from a very shallow depth (3-7m), the new intercept inMSRC544 may partially reflect gold in nugget form, but grades reportingover a 4m interval and the confirmatory down-dip intercept in MSRC545suggest otherwise.

• Assay results derived from infill and extension RC drilling at the Ridgeprospect are still incomplete and, as such, it is not yet possible toestablish the full significance of these initial high grade intersections incontext.

• Some 12,000m of the Phase 2 drilling campaign have now beencompleted and the program continues on schedule.

• Oxide diamond coring of all of Sandstone’s new satellite deposits, forbulk density, metallurgical and geotechnical purposes, is planned tocommence on schedule next week.

• The Sandstone Feasibility Study update is progressing well, simultaneouswith the current Phase 2 drilling campaign.

• Middle Island is fully funded to complete the current aggressive drillingcampaign and study work, and remains debt free.