quarterly highlights

QUARTERLY REPORT TO 31 DECEMBER, 2007

Highlights

1. The Company is aiming for scandium production from Nyngan N.S.W. in 2009 at a
minimum rate of 10 tonne scandium oxide per annum. A land purchase has been
negotiated.

2. A major partner for the Young project should emerge within months unless the slow down
in USA affects world and/or China trade.

3. Metallurgical testwork on various new processes for laterite treatment have yielded
exciting outcomes including an elegant variation from Outotec Oy.

4 Direct smelting of the Young laterite is an option, especially for the refractory limonite at
Young, N.S.W.

5. Bullabulling gold production reached a quarterly record of 581.4 fine oz. Estimated
production for January is over 200 oz.

6. Preliminary sampling at Lake Barlee and Lake Giles yielded anomalous uranium values.
Lake Barlee seems to be gaining recognition in W.A. as an area quite prospective for
uranium.