Ann: Assay results from Isthmus Region, Irvine Is, page-2

re: Ann: Assay results from Isthmus Region, I... Cheers for the update Tony, keep em spinning.

CK

Said Managing Director, Mr Tony Schoer, ?We are pleased with the initial results that have been
returned from the first hole in the current program at the Isthmus Region. It is our expectation
that results from the metallurgical test work will prove positive given the only significant impurity
is silica and all other impurity levels remain universally low.

While silica within the sandstones is on the higher side, it is our expectation that we can either
blend these sandstones with tonnages containing lower silica found elsewhere at the Isthmus or
sell the ore as-is to a steel mill for blending with other ores to meet their requirements. A big
positive from these results is the very low phosphorous levels which will be attractive to the end
user.

The conglomerate ore found in hole 10DDH026 looks to be of excellent quality for beneficiation,
along with the Hardstaff ore, into a high grade concentrate?.