sandys worth watching

1 October 2008
Option to Acquire Gold Project

The Board of Directors is pleased to announce that TVN Corporation Ltd (TVN) has entered into an exclusive option agreement to acquire 90% of the Buduk Gold Project in West
Kalimantan from P.T. Gemala Borneo Utama (GBU). TVN has a three month period in which it can review the project then progress to acquisition if due diligence proves
satisfactory.

The Buduk project is located in West Kalimantan approximately 30 km north east of Sinkawang and 114 km north of the provincial capital, Pontianak. The project consists of a 2,000 ha granted Exploration tenement and an 1,100 ha Exploitation tenement which has the necessary approvals in place to produce gold, having produced small amounts of gold over the last 4 years.

A number of mineralised systems exist on the tenure and have been historically mined by the Dutch, Chinese and local miners over the last 300 years. Recent exploration (1980-1997) has identified both bedrock and alluvial mineralisaton. Independent Geologist, Agricola
Consulting has reported “There is considerable, un-tested, potential for a large tonnage, disseminated gold deposit at Buduk”. Over four million dollars has been spent on exploration
– mostly focused on the near surface mineralisation. A number of targets remain un-tested
across the tenements.
On completion due diligence, TVN intends to consolidate the geological information gathered
to date and target immediate generation of a JORC reportable oxide resource.
Over the last 4 years, significant work has been undertaken to determine the most appropriate
processing route for the oxide mineralisation present at Buduk. Both agglomeration and
screening trials have been undertaken to examine heap operational scale and heap leach
efficiency. These trials have resulted in a 75,000 tonne heap achieving an encouraging 75%
recovery on a head grade of 1.83 g/t. TVN intends to extend these trials with the aim of
optimising the overall extraction process. Assets currently on site include a 30 t/hr screening
and gravity separation plant, carbon columns, elution and stripping plant, a small excavator,
loader and a recently prepared and lined 80,000 tonne leach pad.
During the due diligence process, TVN will contribute up to US $150,000 (fully refundable,
secured against gold produced) towards the completion of an 8,000 tonne trial heap leach
which is stacked and ready for irrigation. On satisfactory completion of the trial heap leach
and successful due diligence, TVN may proceed to a sale agreement to acquire 90% of the
project under the following terms:
(a) issue and allotment of 50,000,000 Shares in TVN to GBU;
(b) issue and allotment of 50,000,000 converting performance shares in TVN,
which converting performance shares will convert to Shares upon
confirmation of a resource at the Project measuring at least 250,000 ounces
in accordance with the provisions of the JORC Code;
(c) issue and allotment of a further 50,000,000 converting performance shares
in TVN, which converting performance shares will convert to Shares upon
confirmation of a resource at the Project measuring at least 500,000 ounces
in accordance with the provisions of the JORC Code;
(d) TVN agrees to pay a royalty of US$20 per ounce of gold recovered from the
Project up to a maximum of 150,000 ounces; and
(e) A representative of GBU shall be appointed to the Board of TVN.
Execution of the Sale Purchase agreement will be subject to shareholder approval. Through
the due diligence process, TVN will determine whether there will be a requirement to raise
additional funds, and the timing of those funds, to finance the project exploration and
potential development.
Clearly a project with recognized mineralisation, recent production history and permitting in
place presents a great opportunity for TVN to explore and potentially develop a gold project
in a relatively short period of time.
Chris Mardon
Executive Director
Note:
The information in this report is compiled by Mr Chris Mardon, MAusIMM, a full time employee and
Executive Director of TVN Corporation Ltd. Mr Mardon has sufficient experience which is relevant
to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person
as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code). Mr Mardon consents to the inclusion in
the report of the matters based on his information in the form and content in which it appears.