flea powder, page-11

I prob wouldnt go that far. The income has decreased quite a bit of the 6 months. In saying that they still had income whereby you would have production expenses to go with the income.

So next qrt they dont burn any cash with production but still have admin costs of around $200,000. Doesnt leave them with much.

Hopefully for their sake the talk with a third party goes well. Still some hope left.



Austral Africa Resources Ltd has suspended processing operations of its smelting plant in the short term due to
current economic conditions.

The Company continues to discuss the future of the plant with other parties with a view to possible sale, joint venture or other arrangements should the economic climate improve and are keeping all options open during these uncertain times.

AAF holds eight mineral exploration concessions in the Katanga province in the DRC. The Company is in talks
with a third party regarding exploration activities on selected concessions. These talks are in preliminary stages
and full details will be provided as and when formal agreement is reached.

The Company is continuing to actively seek new mineral exploration opportunities as well as considering its many
options in DRC and other parts of Africa and Australia.