news out significant nickel anomalies

20 December 2006
Companies Announcements Office
Australian Stock Exchange Limited


SIGNIFICANT NICKEL ANOMALIES AT WAITE KAURI

Eagle Eye Metals Ltd (‘Eagle Eye’) is pleased to announce the results of the recently completed surface soil sampling programme at its Waite Kauri Nickel Project, near Leonora, in the North Eastern Goldfields of Western Australia.

HIGHLIGHTS

· Surface soil sampling has defined significant and extensive surface nickel mineralisation, along more than 5 kilometres of prospective stratigraphy.

· Sampling has delineated four broad areas of anomalism for drill testing. These prospects are named Wanaka, Taranaki, Ruapehu & Kaikoura.

· The prospect areas average greater than 250 ppm nickel at surface, with values of up to 2850 ppm (0.285%) nickel.

Eagle Eye’s Waite Kauri project area covers the southern strike extensions of the stratigraphy hosting GME Resources Ltd’s Waite Kauri nickel oxide deposit (1.30 Mt @ 1.33% Nickel & 0.14% Cobalt), see Figure 1. Eagle Eye has recently completed a soil sampling programme, which consisted of 781 samples and was undertaken in two phases:

1. The first phase tested the southern area of P 37/6665, along strike from the historical Newmex sampling, at 100 x 25 metre spacing.

2. The second phase tested the ultramafic host unit through P 37/6634, 6664 & 6757. This sampling was undertaken at 200 x 50 metre spacing.

Sampling has defined four key prospect areas for drill testing at Waite Kauri (see Figure 1):

1. Wanaka

The Wanaka prospect is directly along strike from GME Resources Ltd’s Waite Kauri Nickel Oxide deposit (1.30 Mt @ 1.33% Nickel & 0.14% Cobalt). The surface anomaly is approximately 1700 metres long, up to 500 metres wide and averages over 250 ppm nickel, with peak values of over 2850 ppm (0.285%) nickel.

2. Taranaki

The Taranaki prospect occurs on a flexure of the host ultramafic unit. The surface anomaly is approximately 700 metres long, up to 200 metres wide and averages over 250 ppm nickel, with peak values of over 960 ppm (0.096%) nickel.

3. Ruapehu

The Ruapehu prospect covers a broad area, over the host ultramafic unit. The surface anomaly is approximately 2100 metres long, up to 400 metres wide and averages over 250 ppm nickel, with peak values of over 2800ppm (0.28%) nickel.

4. Kaikoura

The Kaikoura prospect covers a structural splay of the host ultramafic unit. The surface anomaly is approximately 400 metres long, up to 100 metres wide and averages over 250 ppm nickel, with peak values of over 540ppm (0.054%) nickel.

The surface sampling conducted by Eagle Eye, at Waite Kauri, has proven highly successful in outlining significant and extensive zones of nickel mineralisation for drill testing.

The company is currently planning a program of Reverse Circulation (RC) drilling to begin ‘resource definition’ across these prospect areas. This drilling is scheduled to commence in the first quarter of 2007.

Yours faithfully

Eagle Eye Metals Ltd
Wayne Ryder
Executive Chairman