Ann: Quarterly Activities and Cashflow Report , page-2

A few encouraging points in the quarterly:

HGO is so encouraged by drilling at Karapi on Sumba that they are looking at increasing the drilling program to achieve a maiden JORC resource by early/mid 2013 .. so within a year. To me that is a SIGNIFICANT development! Possibly the biggest news we have had for a while on the exploration front. The wording is "Continued strong gold intersections in trenching at Karapi indicate increased drilling is warranted, targeting a maiden JORC resource in 2013".

BH drilling is encouraging but with only 3 of around 10 holes drilled (and no assays yet available) they haven't yet hit the jackpot (the porphyry). Long way to go here I reckon.

This is certainly going to be a long-term investment .. nothing happens quickly!

H