NICKEL AND GOLD EXPLORATION COMMENCES TODAY AT QUEEN VICTORIA...

NICKEL AND GOLD EXPLORATION COMMENCES TODAY
AT QUEEN VICTORIA ROCKS (NEAR COOLGARDIE, WA)

• Aircore drilling (11,000m approx.) commenced today to test significant gold
anomalies – drilling anticipated to be completed in one month
• Induced polarisation (IP) surveys commenced today to refine previously
identified electromagnetic (EM) conductors – targets scheduled to be tested with
drilling this Quarter

Below is an extract from Quarterly Report released to the ASX on 15 January 2007

Encouraging nickel and gold exploration results were announced during the Quarter.

In relation to gold exploration, a 250 hole (for approximately 13,000 metre) aircore drilling program
has now been planned to test gold-in-soil anomalies at the Spargos Extended prospect and the
King of Princes prospect. This is a particularly exciting time for the Company as the drilling
programme will commence in late January and continue for approximately four weeks. The aim is
to identify further gold anomalism that may be associated with a significant deposit.

Once all of the aircore drilling results have been received it is our intention to test targets with
deeper drilling as soon as possible. It is surprising that minimal systematic gold exploration has
taken place within this area over the years even though it is close to the historical gold mining
town of Coolgardie. It is worth noting that the drilling at the King of Princes is in the vicinity of a
small historical gold shaft.

It was originally planned to test the Spargos Extended gold anomaly with aircore drilling during the
1st Quarter. Unfortunately environmental approvals were not obtained in time for this to occur.
Those approvals have now been received and therefore drilling will commence at this prospect in
late January and thereafter move north to the King of Princes prospect.

In relation to nickel exploration, EM conductors were identified during December 2006 and these
targets will now be refined with IP during February 2007. By way of background, EM is a broad
geophysical tool that aims to identify conductive rocks. IP is a tool used to refine the EM
conductors (or ‘targets’) to increase the probability of intersecting the conductors with drilling. Until
the conductors have been drilled and the samples assayed it is not possible to determine whether
the conductive material is sulphides that host nickel mineralisation.

Exploration at QVR has previously identified nickel sulphide mineralisation and therefore the continued
search for a high grade nickel sulphide deposit within the project is justified.