Ann: Fourth Quarter Activities and CashFlow Repor, page-3

re: Ann: Fourth Quarter Activities and CashFl... A good ann..first time we have had more than a "one liner".

No CONFIRMED coal projects yet..previous qtrly noted "Early stage discussions have commenced about a joint venture on a Queensland coal resource" so we have yet to hear outcome..and 2 different applications made in NSW..one now confirmed unsuccessful.

GUL has spent over $400k on exploration this yr alone..getting close to 2 yrs in Nth Parkes .. looking forward to seeing the results due during current qtr..particularly when you view GUL's tenements in relation to existing mines (copper/gold)

Yes..looks like they've picked up the AGM geothermal licences, only 1 other in Tas and that's Kuth

we still have $9.7 in the bank..sp getting close to the 52 wk high of 7c..ATW Gold are cranking up the Gullewa gold project (they've rec'd extra funding for "their flagship" so the 1% royalty GUL has in place looks like coming about late 2009

All in all..I'm excited and looking forward to regular updates and the new website that was being worked on sometime ago

http://cleantech.com/news/1132/west-tasmania-to-be-explored-for-geoth
power
May 7, 2007

The company's subsidiary Geothermal Energy Tasmania has applied for a 3,000 sq km Special Exploration License for areas of western Tasmania which it believes may be underlain by hot granitic rocks capable of meeting the necessary criteria for hot rock geothermal energy production.

The company says it's found abnormally high thermal gradients in several deep West Coast mining operations which are known to lie above deeply buried granites.

Geothermal Energy Tasmania will initially be assessing all available relevant data on the area, and undertaking preliminary studies and surveys to validate the concept and demonstrate the potential for hot rock geothermal power generation.

The exploration area is close to infrastructure (roads, power lines, etc.)

Geothermal power is rapidly emerging around the world as a potential major source of base load electrical energy, with operations in several countries now in commercialization.

The energy so produced is environmentally friendly and emissions-free.

The process involves pumping water 3-5 kilometers down drill holes where it is heated up in an area of very hot (200-300 degrees Celsius) fractured rocks. The heated water then returns under pressure to surface up a second set of drill holes where it is used to generate electricity in a heat exchanger-power station complex. The cooled water is then returned into the cycle.