Drill Results Confirm New Tin Discovery at Khartoum, North Qld...

Drill Results Confirm New Tin Discovery at Khartoum, North Qld

Highlights

• An initial six-hole scout drilling program has produced excellent results with best intersections including 104m at 0.21% tin from 12m and 34m at 0.26% tin from 99m. All holes intersected mineralisation with individual metre assays up to 3.00% tin.

• Channel sample results reported last year (ASX release 17 October 2007) included results of 35m at 0.38% tin and 5m at 1.0% tin. Given the correlation between the channel sample (surface) and drill results (sub-surface), future delineation of mineralisation for resource drilling should be very cost-effective.

• Similar zones of mineralisation have been mapped in the 2.8km by 2.5km area, which along with several tin soil anomalies within the larger 3km by 9km area, provide numerous new targets for future resource drilling.

• There is considerable potential to increase the scale of the Khartoum project within the Company’s tenement, outside of the area defined by current exploration.

• Although historical workings exist, the project area has not been the subject of modern exploration.

• The Company’s key focus remains the completion of the Feasibility Study for development of the Kingsgate molybdenum-bismuth project (Glen Innes, NSW). However, the Khartoum tin results are compelling and although the project is in its infancy, could lead to arguably the most significant new tin discovery for many years.

• The tin price is strong with a positive outlook; currently (7 Feb. 2008) the metal is A$18,700 per tonne.