breaking out, page-6

For the same reason it went up around 5-6 cents late December....

Update on Lionel Diggings
A contract has been signed with a drilling contractor for the planned 1,080m, reverse
circulation seven-hole program to fully test the high grade gold vein system at depth at Lionel
Diggings. The rig is currently positioned some 25 km from site and will be mobilized to
commence drilling in the second week of January 2008, after the summer break and pending
weather conditions.
Geological mapping and chip sampling was completed at Lionel Diggings in October with the
full results and Geological Report released on 29 November. Assays from mineralised quartz
veins yielded up to 28.8g/t gold and 39.5g/t silver whilst alteration envelopes in host granites
up to 0.5m thick around the quartz veins carry up to 73.3g/t gold and 12.7g/t silver in grab
samples. The report and sampling results are available at www.iiglimited.com.au
Background: Lionel Diggings is located 25 km east of the Ravenswood gold field which has
a gold endowment of over 5 million ounces. It lies on the eastern side of the Pajingo-Charters
Towers-Ravenswood structural corridors. Gold was first discovered at Lionel Diggings in
1879 and worked through to the mid-1880’s with approximately 1,000 ounces of gold
recovered from a series of shallow, high grade workings over an area of 773m x 375m. Some
further chip sampling was undertaken in the 1980’s and 1990’s when the lease was held by
other companies, but the property has never been drilled to properly assess the potential of the
tenement.