acquisition of tenement in the musgrave provin

ASX ANNOUNCEMENT
5th April, 2007

Acquisition of Tenement in the Musgrave Province
And Purchase of Drilling Rig

In accordance with its strategy to expand and accelerate activities in the Musgrave Province of
South Australia PepinNini has acquired an additional exploration licence EL 3536 Pine Ridge
from Rio Tinto Exploration Pty Limited (Rio Tinto). The acquisition is subject to Ministerial
approval of the transfer of the tenement and the approval of Anangu Pitjantjatjara, the Traditional
Owners of the Land.
The Company has also purchased a new drilling rig to be dedicated to investigating the nickel
copper sulphide targets already identified within EL 3536 and within its other granted tenement
EL 3368. The Longyear LF90D conventional diamond drilling rig is scheduled to arrive from
Canada in early May and is specifically suited to exploration of the nickel targets being
investigated by PepinNini in the Musgrave Province. Specialist drilling management company
Fullbore Pty Limited has been contracted to operate and maintain the rig.
Exploration Licence EL 3536 – Pine Ridge
EL3536 covers 1,382 km2 of the eastern portion of the poorly explored Mesoproterozoic
Musgrave Province of South Australia. The basement rocks covered by the licence are
considered prospective for Broken Hill style base metal deposits, Olympic Dam style Iron Oxide
Copper Gold (IOCG) deposits, and Voisey’s Bay style magmatic Nickel-Copper sulphide
deposits.
Very little historic exploration has occurred in the region. Initial investigations by the South
Australian Department of Minerals and Energy (SADME) during the 1960’s and early 1970’s
identified at least seventeen prospect locations with indications of nickel and/or copper
mineralisation.
Mineral exploration was excluded from the Anangu Pitjantjatjara Lands during the Land Rights
Movement from the mid 1970’s up until the late 1990’s when Rio Tinto was awarded the first
exploration access to the district in almost 25 years.
Rio Tinto has held the exploration licence since 1999 and has spent in excess of A$1.1 million on
airborne magnetics, airborne electro-magnetics, ground geophysics, sampling and drilling. The
magnetic data reveals fractionated Mesoproterozoic granites (Pitjantjatjara Supersuite) in the
northern parts of the tenement suggesting good potential for IOCG (Olympic Dam) mineralisation
styles, whilst the high grade Mesoproterozoic metasediments and metavolcanics (Birksgate
Complex) are analogous to the Willyama Supergroup rocks which host the world class Ag-Cu-Pb-
Zn deposits of Broken Hill.
PepinNini intends to initially focus exploration on the Nickel-Copper potential of known ultramafic
bodies and will expand the regional investigation to generate valid iron oxide copper gold (IOCG)
and base metal (Broken Hill Style) targets.