hitting the radar

The Oasis uranium prospect was drilled by Esso Minerals in 1978. Esso drilled 32 diamond holes and 14 percussion holes and intersected economic grades of uranium mineralisation over a strike length of approximately 300 metres. Better reported intersections include 9.5 metres @ 0.23% U3O8 from 28 metres and 6.7 metres @ 0.23% U3O8 from 48.3 metres depth. Trench samples recorded up to 12.5% uranium. No uranium exploration has been completed in the immediate area since the Esso work.

The Greenvale Project is located 200 kilometres west of Townsville in north Queensland. Glengarry holds a strategic land package of approximately 2800 square kilometres immediately east of the 4.5 million ounce Kidston gold deposit previously mined by Placer Dome and south along strike of the high-grade, Balcooma zinc deposits currently being exploited by Kagara Zinc Limited. The Greenvale Project is considered very prospective for several styles of gold and base-metal mineralisation and the grant of three large tenements in late 2004 will allow Glengarry to access priority areas in 2005.

Exploration at Greenvale in 2005 has confirmed the potential of the Maitland, Galah Dam and several other prospects to host economic mineralisation.

Maitland

Geophysical surveying has confirmed the potential of the Maitland prospect (previously referred to as Daintree) to host significant copper mineralisation. The survey has defined a strong anomaly coincident with and below historic copper workings. Drilling in the 1960's recorded near surface intersections up to 21.4 metres @ 3% copper. Maitland is located approximately 60 kilometres southeast of Copper Strike Limited's Einasleigh Project, where recent drilling reported intersections up to 50 metres at 6.65% copper. The geological setting of Einasleigh and Maitland is very similar.

Copper-silver ores were mined from the Maitland prospect from 1909 to 1921 and drilling in the 1960's confirmed copper mineralisation over a 300 metre length. Most of this historic drilling was not assayed for gold or silver.

An Induced Polarisation (IP) survey was recently completed at the Maitland prospect. IP surveying is a geophysical technique commonly used to define copper mineralisation beneath barren cover. It involves transmitting an electric current into the ground and measuring chargeable responses caused by minerals such as copper sulphides.

The IP survey indicates the copper mineralisation at Maitland is open at depth with good potential to contain higher grade zones. Two other IP anomalies were defined approximately 2 kilometres south and 500 metres east of the Maitland prospect. The Company plans to test the three IP anomalies for copper mineralisation as soon as a suitable drill rig becomes available.

Regionally, the Maitland prospect is located adjacent to a major, 80 kilometre long structure known as the Lynd Mylonite Zone (LMZ), which is spatially related to a number of other historic copper, gold and uranium prospects in the area. A similar parallel structure, the Balcooma Mylonite Zone, occurs approximately 20 kilometres east of the LMZ and is interpreted to be the main control on mineralisation at Kagara Zinc's Balcooma zinc deposits. The Greenvale Project covers approximately 60 kilometres of the LMZ which will be major focus of future exploration at Greenvale.

Galah Dam

Three RC percussion drill holes totalling 651 metres were drilled at the Galah Dam prospect in April 2005. The results (Table 1) confirm the presence of a large, mineralised polymetallic system which may represent the halo to a high grade, massive sulphide deposit similar to the Balcooma zinc deposits being mined by Kagara Zinc, approximately 20 kilometres to the west. The prospect is hosted by rocks of similar age and composition as at Balcooma but is more geologically complex.