Ann: NAD To Drill Test Extension To Lancelot Proj, page-2

re: Ann: NAD To Drill Test Extension To Lance... Curious announcement. No news about results of drilling done so far with half already tested, samples sent off for analysis, but they report stuff from this separate anomalous zone. Suggests no obvious visible stuff in the drilling to date - a smoke screen? I'd like to view the whole thing as positive but not sure with a mixed sort of announcement. The anomalous zone sounds interesting.

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NORTH AUSTRALIAN DIAMONDS TO DRILL TEST EXTENSION TO LANCELOT PROJECT AREA Highlights
• Recent sample results confirm extension to Lancelot project area.
• Five samples report positive for indicator minerals or diamonds.
• One loam sample reports 33 kimberlitic chromite, with nearby sample reporting two diamonds, one being 0.95mm.
• Drill testing of this area will be undertaken as part of the current Lancelot drill program.

North Australian Diamonds Limited (“North Australian” or “the Company”), recently identified a new priority indicator mineral and diamond target area situated some 10km from Lancelot. Loam sampling results for this area included a sample with 33 kimberlitic chromite and a nearby sample with two diamonds, one microdiamond and one 0.95mm irregular. The Company considers this a high priority target due to the isolated and discrete nature of the sample results. Plans are underway to mobilize a drill rig to test this new priority Lancelot target.

Lancelot Drilling Update
The Lancelot drill program is continuing with approximately half of the selected targets tested to date. The Company is testing a variety of geophysical and geochemical responses associated with a surface indicator mineral and diamond occurrence over 3km2. A total of 45 reverse circulation holes have been drilled to date for 1,600m, to a maximum depth of 50m. A further 35 holes are planned. Representative samples from selected holes are being sent to the Company’s laboratory in Perth for indicator mineral and microdiamond analysis.