Ann: Cayley Lode New Wide Copper-Gold Intercepts, page-38

In the latest announcement CC states on page 2:

“While the drill hole is believed to be oblique to the mineralisation strike orientation, and the true width is unknown, SMD159 is an important drill hole as it provides definitive proof that high-grade copper-gold-silver mineralisation does extent at depth below the low-angle structure in the southern area.

This is an important result which together with other encouraging drill intercepts in the southern portion of the deposit, highlights the significant growth potential to the south – where we hope to be drilling as soon as we finalise access.”

To illustrate the potential for the southern area to contain significant mineralisation I have summarised below the drilling results to date near the border to that area and underneath it.

Results of holes (the best but excluding higher grade within the intersections) in the northern area on the border with the southern area (I have excluded Ag results):

· 57 – 58m @0.29% Cu (depth 186m)

· 65 - no significant results

· 94 - 4.9m @2.14% Cu and 0.33g/t Au from 347m (608m)

· 95 – 10m @2.33% Cu and 0.45 g/t AU from 224m (305m)

· 96 – 15m @ 3.26% Cu and 0.62g/t Au from 220m (288m)

· 97 – 4.8m @3.56% Cu and 0.46g/t AU from 256m (299m)

· 102 – 4.9m @1.54% Cu and 0.29g/t AU from 248m (351m)

· 107 – 8m @1.37% Cu and 0.18g/t Au from 45m (233m)

· 109 – 11.5m @ 2.74% Cu and 0.35g/t Au from 284m (399m)

· 151 – 117m @ 0.48% Cu from 77m and 8m @ 1.04% Cu and 0.10g/t Au from 410m (901m)

There are some good grades close to the border, but they are not particularly long intersections.

The results for holes drilled under the southern area are:

· 71 (way to the south and not into the area they are waiting to access) – no significant results

· 81 (way to the south and not into the area they are waiting to access – further to the northeast of hole 71) – 85m @0.82% Cu

· 83 – 12m @ 0.29% cu from 29m (depth 433m)

· 85 – 23m @ 1.07% Cu and 0.11g/t Au from 339m (depth 522m)

· 159 (on border of northern area drilled under southern area) (latest ASX announcement) – assays pending

They are awaiting assays for hole 158 on the eastern side of the south area near the northern border of the southern area and holes 160-162 near the eastern side of the southern area (hole 160 is near the border of the northern area and the other two a long way south).

Overall I am encouraged by the above results – how much mineralisation the south contains is unknown at this stage, but the potential is there. It is important to note that half the surface area that makes up the old resources estimate (i.e. the near surface resource defined prior to SVY taking ownership of the tenement) is in the southern area (and half is in the northern area they have drilled).