Ann: Mt Bevan Joint Venture Update, page-23

Attention is now being directed at the extensive pegmatite development in the northern lease area associated with the Mt Alexander granite intrusion. Granite and pegmatite has been intersected in the St George mafic dyke complex in their diamond drilling of the Ni Cu Cathedrals zone. This area in the adjoining JV ground on the Mt Bevan lease is deeply covered by sheet wash and drilling will be required to test this area. Scattered surface rubble of pegmatite and vein quartz points to shallow buried pegmatite. This area will be investigated in the June quarter by Legacy-Hawthorn under the exiting JV where Other Minerals—such as lithium and nickel –copper are covered under a separate agreement giving title to any discoveries that the current JV might make. Hancock will allow this exploration and possible development to proceed under a separate agreement for Other Minerals noting that iron ore mining and development always has priority. There are provisions for separate development of any mining of other minerals to take place, if needed by shared costs on any new mining projects close to existing or planned iron ore operations. As this stage the majority of our Ni Cu and Li targets are quite far away from the existing magnetite resource. Details of this exploration are provided in the December quarterly reports of both Legacy and Hawthorn.