issue of securities

Re: ISSUE OF SECURITIES

Purpose of the issue
On 20 April 2007 shareholders ratified the issue of $5.5 million Convertible Notes convertible to 12,222,222 shares, to Mineral Securities Operations Limited, as part of a $30 million capital raising. Mineral Securities Operations Limited issued a Call Notice on the 20 September 2007 for $3.6 million of the Convertible Notes convertible to 8,000,000 shares in accordance with the terms of the Convertible Note.
A further Call Notice has been issued for $1.9 million of the Convertible Notes convertible to 4,222,222 shares in accordance with the terms of the Convertible Note.
The Company advises that 4,222,222 shares have been allotted and issued with the relevant Appendix 3B as per the attached.

Secondary Trading Exemption
The Corporations Act restricts the on-sale of securities issued without disclosure unless the sale is exempt under section 708 or 708A. A sale of the Securities noted above will fall within the exemption in section 708A(5) of the Act.
The Company hereby notifies the Australian Securities Exchange under paragraph 708A(5)(e) of the Corporation Act that:
(a)
the Company issued the Securities without disclosure to investors under Part 6D.2 of the Act;
(b)
as at 13 March 2008, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and section 674 of the Act; and
(c)
as at 13 March 2008 there is no information:
i.
that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and
ii.
that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:
•
the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or
•
the rights and liabilities attaching to the Securities.