re: + quarterly report. + Extracts:Introduction: "Excellent...

re: + quarterly report. + Extracts:

Introduction:

"Excellent progress was made towards completing the BioGold acquisition during the coming quarters, which is expected to deliver consolidated production well over 200,000 ozs pa, along with a significant revenue stream and growing profits".

• Drilling exploration programme on the Jinya Gold Project to commence in February 2004.

Page 3: "In addition, Michelago has appointed the Zenith Corporate Advisory Group in Beijing to carry out a valuation of the BioGold enterprise, based on the Due Diligence report.

This valuation has been completed and is under consideration. Michelago anticipates holding a general meeting of shareholders to approve the various transactions outlined above in March 2004".