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Individual & Consolidated Financial Projections

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Cia Minera Santa Barbara

Rincon Salar

Pykes Hill

Bulman

Nilnav Orthopaedics





* Net cash flow surplus for six month period ending December 2007 - US$17.4 million and a further US$17.4 million by June 2008.




* Consolidated figures reveal that capital expenditure is recouped by December 2008.




* Commodity prices adopted for key resources are conservative and below current world prices.




* Current world price for Lithium Chloride is US$4,200 per tonne however, US$3,000 per tonne has been adopted.





* The sensitivity analysis reveals that in the event of a fall in current world commodity prices of up to 65%, Admiralty Resources will be in a break even operating cash flow position.



Funding




* Consolidated projected funding requirements will peak at US$40.2 million in June 2007





* Committed funding available totalling US$25 million to 15 February 2007 has been sourced as follows:




o Converting Note 2nd tranche due February 2007 - A$10 million




o Conversion of Share Options on issue A$17.5 million of which A$8.75 million to be converted before 30 December 2005




o Loan Perolin Investments - limit A$6 million available now





* Balance of peak funding requirements of US$15.2 million due by December 2007 will be sourced through traditional Institutional debt funding.





* Institutional debt funding discussions / negotiations for balance of US$15.2 million are being conducted with the Directors anticipating a favourable outcome by December 2006. This financial outcome is based on projections to
30 June 2006 and 31 December 2006 respectively that the Santa Barbara Iron Ore Mine and three of the Rincon Salar’s key resources will be fully operational producing surplus cash flows.