Attached is the contents of the analysis on the White Dam...

Attached is the contents of the analysis on the White Dam Project carried out by Strachan Corporate in November 2006 as part of their Exco coverage (refer to link).

White Dam Gold Project
http://www.excoresources.com.au/documents/061124StrachanCorp_Final.pdf

In the northeast of South Australia, about 80 km west of Broken Hill, Exco has outlined an open pit, oxide ore reserve of 4.3 million tonnes grading 1.28 g/t gold, containing 173,000 oz of gold, within a measured and indicated resource of 7.3 million tonnes grading 1.09 g/t gold.

Drilling at the Vertigo deposit, 800 metres southwest of White Dam indicates an additional resource of 1.78 million tonnes grading 1.28 g/t, containing 73,000 oz of gold. Recent drilling has extended and most likely upgraded reserves, which should now enable at least a three year project life at a treatment rate of 1.5 - 2 mt pa.

The project will involve a dump leach process with an additional capital cost of $4.5 million, plus up to $4 million for process water, to treat 2 million tonnes pa of ore, producing around 50,000 oz of gold pa with estimated cash costs of A$375/oz.

Exco has appointed an experienced mining project manager, based in Adelaide and has purchased a gold processing plant with a replacement value approaching $2 million for $440,000. Ausenco Ltd, who originally designed the plant, has been contracted to develop and implement a plan to refurbish and relocate it to site, most likely by May 2007.

Exco has conducted numerous large scale column leach tests, indicating metal recoveries of between 70 and 80%. Low cost, dump leaching will reduce capital and operating costs, with little offsetting reduction in gold recovery expected, since the ore has a favourable mining geometry and low levels of clay, favouring high gold recovery.

Mining of oxidised material should be low cost with free digging material delivered direct to leach pads. Care will be taken to treat only the oxidised material since ransition mineralisation at depth contains low levels of copper which would act to reduce gold recovery and increase reagent costs if it were mixed with oxide ore.

The White Dam project has potential to expand reserves, with good grades of gold, including 6 metres @ 1.96 g/t Au from 10 metres and 2 metres @ 1.79 g/t Au from 16 metres,
intersected outside the stated resource, with further encouragement from drilling at White Dam North, 500m to the NW of the measured resource likely to be followed up with additional drilling in Q1 2007.

At the Vertigo prospect, 800 metres south-west of White Dam, drill results including 14 metres @ 2.14 g/t Au from 18 metres and 6 metres @ 3.44 g/t Au from the surface, have resulted in the outlining of an inferred resource of 1.78 million tonnes grading 1.28 g/t Au, containing 73,000 ounces. Conversion of even 50% of this resource into a reserve would expand the project life by at least 6 months
Strachan Corporate assumes that the mineable reserve in the White Dam region will expand to 5.2 million tonnes and estimates a pre-tax NPV of $38 million at a gold price of A$805/oz, valuing the asset at 14 cps for Exco.