Company Update

Further from RexTraders notes, clarification belowfor the avoidance of doubt:

Paterson Range/Mount Macpherson:

By way of back ground the geo-chem have proved tobe of marginal value due to the level of “cover” over the ground in questionwhich has meant Avira are relying on geo-physics (airborne and ground EM) andpossibly air core holes to try and identify prospective RC drill targets.Whilst they have completed heliborne VTEM Avira found it extremely challengingto lock in a contract service provider to complete targeted fix loop EM.

A combination of travel restrictions and currenthigh levels of activity have made it challenging. In addition, the proposedground EM program for the Mount Macpherson is relatively small and as aconsequence they are having to find a Contractor to slot it in between largerjobs that are currently scheduled for Co’s such as IGO/Encounter. Avira dohave a master Service Agreement in place with Wireline Services who haveindicated that our 1 week program can be accommodated as part of a largerprogram of works in the area. At this stage they have pushed start date fromJune to July to August. Avira, along with their geo-physics consultants(Southern Geoscience) continue to push them and will be updating the market assoon as we have a firm commitment on start date.

Wyloo/JV:

This (potential) opportunity came about through a reverse enquiry from a junior exploration company that holds neighbouring tenements. These guys wanted to gauge our interest in participating in a airborne EM survey over a broader survey area along with a couple of other exploration companies with the aim of defraying mobilisation and de-mobilisation costs where we would pay for our pro-rata share and our line kms.

In addition to initial ground based geo-chem this would be a low cost enhancement to pre-drill exploration programs. Timing, cost and survey plan have not been finalise or committed to to-date.

Capital/Acquisition:

Avira’s last quarterlyreport make it obvious that they will require additional capital to progress onboth projects in the near term. Avira continues to identify and asses new opportunities as part of our stated strategy. If they were to “commit” to a new project it would have to be attractive enough with sufficient upside be able to support a capital raise required to cover any cash consideration and the inevitable exploration spend.

Trust that help.