the announcement

The Company is pleased to announce that a recent RC drilling program at the Khan North
Prospect (Yamarna Joint Venture Project) has returned a high grade gold intersection which
may have a significant bearing upon the future prospectivity of the project area.
Eight RC holes were drilled on three lines spaced 100 metres apart to test a 1300 ppb Au
RAB anomaly defined in 2003. Four metre composite samples were collected from the RC
holes and submitted for analysis.
YARC 303 was drilled on the central traverse and returned an intercept of 33 metres
averaging 9.7 gpt Au from 40 metres to end of hole. This includes a section of 20 metres
averaging 13.6 gpt Au from 52 metres. (No top cut was applied to the assays.)
The Yamarna Project has reported a resource base of 12.5 million tonnes at an average grade
of 1.82 gpt Au for 737,907 ounces (1 gpt cut-off). The new drill results significantly exceed
any results released to date from the project area. The Joint Venture has been seeking areas of
high grade ore to enhance the commercial prospectivity of the project.
The composite sample results should be considered preliminary. The anomalous sections of
the drill holes will be re-sampled at one metre intervals and analysed by fire assay as soon as
possible.
The gold mineralization is hosted in sheared porphyry close to a contact with basalt. The
shear zone is interpreted to be dipping steeply to the west and given that the RC holes at Khan
North are inclined to the west the true width of the mineralization in YARC 303 could be less
than the down-hole width. Additional drilling is required to determine the mineralization’s
orientation and extent.