Ann: Large Magmatic Ni-Cu Mineralised System Confirmed, page-2

Summary:

 Ten RC and 3 diamond core holes completed in the past month

 Twelve of the 13 holes drilled so far have intersected visible sulphides within Ruins Dolerite

 Multiple zones of interpreted primary Ni-Cu sulphides intersected within mafic-ultramafic rocks, confirming the presence of a large, complex magmatic Ni-Cu sulphide system at Merlin

 Sulphides in drillholes now identified along 1,500m of strike and down 500m of dip, open in all directions

 High power DHTEM survey contractors due on-site tomorrow

 First two batches of samples have been dispatched for laboratory analysis, results expected within 3 weeks

 Drilling is ongoing  Source of large Induced Polarization (IP) chargeability anomaly still undetermined

 Excellent results from preliminary metallurgical flotation testwork

 First flora and fauna baseline survey completed