agm highlights

On Peter's recommendation this Board determined to focus upon an exploration program at Bingara just to the
west of Inverell over the past several months. The exact location of the famous Captain Roger's mine which had
th
been recorded as producing hundreds of thousands of carats of diamonds in the later 19 century has never been
re-discovered. Peter re-examined all the data in Cluff's possession and determined to examine different areas of
the tenement not previously examined in detail in many years. The results of the past three weeks are testament
to the success of this analysis and work over the previous months. We still cannot confirm that we may have re-
discovered the old Captain Rogers mine but we have certainly obtained grades of rough diamonds that indicate a
major find and a potential economic project. We still need to do substantial additional work before large scale
production could be justified, but because of Cluff's existing infrastructure already located nearby we have been
able to test, sample and process numerous sites to which Peter had directed our crews. The results over the past
month are very encouraging. I hesitate to say exciting until we have undertaken some more work but I am excited
by the prospects to date....
....

The new Board has resolved to further support the company's efforts in India. But we have established time lines
and strict budgets and strategies and plans. Ian has assumed some of these roles and indeed travelled to India
with Peter Kennewell in early March to further these goals. The opportunities remain and I remain confident but
cautious that some of these will be converted into ventures in the near future. We have nothing to say today but
let me assure you we are all working hard to produce a viable venture in India this year.....

Peter Kennewell, Ian Johns and our consultants are actively pursing these opportunities and we hope to have
some further positive news in relation to these matters over the next 3 months.

...We cannot also not escape from the obvious problems of Cluff and that is a lack of sufficient working capital to
realise the opportunities I have spoken about. The company is also considering some funding options which we
will subsequently be putting to you.