drilling program, page-2

significant rare metals potential at paralina also According to previous MTN's announcements, Mt Gee is also rich in La-Ce. They believe that there is 52,000 tonnes of La at Mt Gee.

As stated in the 2nd August 2005 announcement on Page 4

Rare earth elements are key ingredients to many new technology applications, such as modern rechargeable batteries and high intensity permanent magnets used in mobile phones, cars and computers. While they have long been applied in lasers and in specialty glass manufacture, their use in hybrid vehicles has dramatically increased the potential market. China is the largest miner of rare earths, with some 80% of the world’s production, providing rare earths concentrates or final refined products. Total world consumption is around 90,000 tonnes. The growth markets for rare earth products are batteries and magnets used in mobile Marathon Resources Ltd - ASX Release 2-8-05 Page 4 phones, computers and hybrid cars, with hybrid car technology holding out potential for the most rapid growth. The market for rare earth related products grew rapidly over the past decade. The current price of cerium oxide and lanthanum oxide is about $US3.50 per kg.


Further research I have conducted on La shows that:

http://www.speclab.com/elements/lanthanum.htm

The cost of La is abot $2 per gram. MTN quoted La at costing $3.50 per kg.

Rare-earth compounds containing lanthanum are extensively used in carbon lighting applications, especially by the motion picture industry for studio lighting and projection. This application consumes about 25% of the rare-earth compounds produced. La2O3 improves the alkali resistance of glass, and is used in making special optical glasses. Small amounts of lanthanum, as an additive, can be used to produce nodular cast iron.

La has many different used and with the hybrid car age in its teething stages of enormous growth, the demand for La may very well increase.


The follwoing websire at Rare Earth Canada Co Ltd shows that Lanthanum Hydoxide being $6 US per kg.

http://www.baotou-rareearth.com/prc/index.html


If we use that $6 US per kg quote to value MTN's La resource, the value of La inground at Mt Gee would be:

52,000 tonnes x 1000 (to convert from tonnes to kg) X $6 (per kg) / 0.75 (exchange rate conversion)

= $416,000,000 value of La at Mt Gee

THis value may increase subject to drilling at Armchair and Hodgkinson

The mining of La in conjunction with U will increase economies of scale at Paralina.

Paralina is a worl class Uranium and La project in the making.

It is by far the most undervalued U stock on the ASX with a mkt cap of $15 mil.

With drilling just starting now at Hodginkson we wont have to wait long for rewards to be reaped.

Exciting times ahead for MTN holders

Cheers