CHARIOT PROJECI': COMMENCEMENT OF MININGGiants Reef, subsequent...

CHARIOT PROJECI': COMMENCEMENT OF MINING

Giants Reef, subsequent to its agreement with Sons of Gwalia to purchase the balance of the Central
Number l and Number 2 Joint Ventures, is pleased to update the market with respect to progress on
the Chariot Gold Project.

On 22 January 2003, Giants Reef commenced open pit mining at the Chariot Gold Deposit. The first
phase of open pit mining is expected to continue for nine weeks. Following the completion of the
small open pit the company plans to establish 1-1 portal near the pit bottom and then construct a mine
access decline to approximately 300 metres in vertical depth.

The deposit remains open beyond 300m and to the West and the company plans to undertake
exploration drilling for reserve extensions from underground drill locations developed off the access
decline. The Mining Reserves, including all recovery factors and dilution allowances for the Chariot
Gold Deposit are currently classified as follows:
Category 'Sonnes (t) Grade, cut Ounces, cut (02)
Open cut, Probable 26,7 14 6.57 5,476
Underground, Probable 406,904 15.07 197,178
Total (rounded) 434,000 14.50 203,000
Based on an open pit cut-off grade of 3 g/t and an U/G cut-off grade of 6.24 g/t.

The gold grades interpolated into the Chariot resource were cornposited to a standard length, weighted by length and density. Composted gold grades greater than 130glt were cut back to 13Oglt. The grades cut-back represent approximately 1.5% of the samples used in the resource estimation.

The technical components of this report, other than those provided by consultants and external sources, have been compiled by Mr. C. A. lrvine BSc, MAuslMM, Chief Mine Geologist, who is a full-time employee and has over 13 years experience in the field of activity in which Re is reporting.