ann. drilling update nc, page-2

DRILLING UPDATE FROM THE CAPE LAMBERT IRON ORE PROJECT (the “Project”)
KEY POINTS
Infill and extension reverse circulation (“RC”) drilling program commenced at the
Project on 9 May 2007;
To 30 June 2007, 11 RC holes have been completed for an advance of 4,425
metres;
Davis Tube Recovery (“DTR”) results for the first two RC holes expected in the
middle of July;
Diamond core drilling commenced at the Project on 28 June 2007; and
By the middle of the September quarter, the Company expects to have three (3) drill
rigs (1 diamond plus 2 RC) working at the Project.