Re St George=============On 5 November 2009, the Company...

Re St George
=============
On 5 November 2009, the Company acquired 100% ownership of a tenement package comprising 519 sq km in the Narnoo and Minigwal Greenstone Belts (approx. 150 km east of Laverton, Western Australia). The tenements were acquired by Desert Fox Resources Pty Limited from A1 Minerals Limited. The acquisition included the exploration database for the tenements that comprises geological, geophysical, drilling and other exploration data. An additional two tenements at this location were acquired from A1 Minerals Limited on 15 June 2010.

The Company, through Desert Fox Resources Pty Ltd, has subsequently filed applications for seven exploration licences adjacent to the existing tenements. Four of these applications were granted on 23 June 2010. These new applications, together with the acquired tenements, create a contiguous project area of 1,421.50 sq km (the ?East Laverton Property?).

The East Laverton Property hosts the Crusader Gold Project, the Zeus Nickel Project and the Empire Copper Project. The tenements purchased from A1 Minerals were acquired for cash consideration (which has been paid in full), with A1 Minerals retaining a 2% net smelter royalty in regard to minerals extracted and sold from these tenements. The balance of the tenements in the East Laverton Property (being the applications filed by St George Mining) are unencumbered by any third party interests. Three projects have been established at the East Laverton Property and they are outlined below.