RE: WONARAH PHOSPHATE PROJECTAKD Limited has entered into an...

RE: WONARAH PHOSPHATE PROJECT

AKD Limited has entered into an agreement with Desert Energy NL ("Desert") whereby Desert has acquired an option to purchase AKD’s Wonarah Phosphate Project located near Tennant Creek in the Northern Territory, Australia.

Desert has secured a 6 month option to purchase Wonarah by paying AKD $25,000 cash with the right to extend the option period for a further 6 months by making an additional payment of $25,000 cash to AKD. Desert can exercise the option to purchase

Wonarah upon Desert listing on the ASX and hence paying AKD a further $50,000 cash and issuing AKD $250,000 worth of ordinary shares at par value in the capital of Desert.

AKD will retain the right to a 50% contributing interest in the project area for the exploration and development of deposits for diamonds, gold and base metals. AKD will
also have the right to clawback up to 10% equity in the phosphate rights in the project area by reimbursing Desert 20% of the total expenditure incurred by Desert. Desert will be responsible for the tenement maintenance during the option period.

Yours faithfully,

Z. Sas

Managing Director