Ann: Quarterly Activities Report , page-3

Hey numbers-

In a nutshell, AON has now defined a 1.4 km strike which is continuos with our next door neighbours represented by 3 positive holes out of 4. The true or actual widths look promissing and will add tonnage to the overall resource.

AON has drilled in total 9 holes and as we recall from their first drilling in 2009, had exceeded all expectations by about 30%. This was a positive announcement and indicated more ironore than what the geological mapping had suggested.

This round of drilling I expect will return similar results in as far as metallurgy. What the team are waiting on is the result i.e. what are the insitu grades( in ground) how much silica etc. They will then do some processing test work with grinding to benefeciate the Iron content. This process will give us an idea of how much grinding(cost) is involved in reaching a high Iron content.

The take home message for Mt Oscar was in the last bullet
saying they need to assess the economic prospects of drilling and if infact their money would be best placed acquiring another world class Ironore asset.

They are currently doing field works on Mt Oscar East which is only 15km's away. This involves Rock chip sampling and mapping. Mt Oscar East shares the same infrastructure advantages as Mt Oscar and therefore is a highly desirable deposit to have. lets wait for these results.

Commonwealth Hill has an interesting 8km strike with preliminary field works showing high head grades and low silica. This I think is a good play. Apollo to determine a strategy and factor in Cost for drilling.

All in all, I think the announcement would suggest that further drilling at Mt Oscar is likely albeit a few holes at a time and if a bigger and better opportunity comes along they will utelise the cash at hand to buy a world class project adding significant value and hence uplift to the share price..