great potential

Early results from the Akwatia Diamond Project, in the African State of Ghana, are
particulary encouraging. Some 111 diamonds, weighing a total of 4.97 carats, and alluvial
gold, were recovered from small pits excavated as part of the initial Phase 1 work programme
in the Akwatia Diamond Project, Ghana, following the signing of a Heads of Agreement in July
2005 to acquire an 85% equity interest in the project. Akwatia is a major project targeting
alluvial deposits along the Birim River and its tributaries at a location around 110 kilometres
northwest of the capital city of Accra. An Independent Geological Report estimates the
project’s potential to be in the range of 13.8 to 15.65 million carats of diamonds and 2,430 to
2,970 kilograms of gold (“Target Ranges”).

During the September 2005 quarter, expert interpretation of field data from a high
resolution aeromagnetic survey carried out over all four Ellendale Project tenements in
Western Australia was completed. The specialist report suggests that some known
lamproite targets at Ellendale may be considerably larger than anticipated from previous
work.