re: announcement

I spoke to Mr Lee Boyd (Director) today. He confirmed the letter of intent with Constantia is still current and that an announcement is "EMINENT" which will clarify where the Company's direction is atm.

From my personal observations, the last quarterly showed expenditure of some $222,000 Four times the amount of previous quarterly expenditure. I thought it a fair comment to ask for a brake down of this amount as it was all lumped together under a)exploration and evaluation b)development c)production d) administration. He advised the additional costs incurred in the last quarter were related to evaluation so hopefully the Company will have some good news on the horizon if not in the "EMINENT" announcement.

cheers dorc