the strategy going forward

THE STRATEGY going forward is three fold;
I) Maximise the cash flow from the expanded Lady Annie Operation.

II) Sell non- core assets to lower debt and re-invest surplus cash in new business.

III) Seek to unlock value from core assets.
The company is actively working on and toward all three elements of its forward strategy.

The phase two expansion of the process facilities is now complete at Lady Annie. Mining activity has commenced at the Lady Annie pit and commencement of ore extraction in November 2008 will signal start of the ramp up phase to lift production 58% to 30,000 tpa.

Post completion of the merger and a final review of the asset base, those assets considered non-core will be progressively sold for value and the proceeds will be utilised to lower debt. Any surpluses to the debt reduction
plan will be reinvested in growth opportunities in core asset areas.

During the current year the exploration priority will be given to extending the mine life of the copper oxide leach operation and development of the copper sulphide resource base to assess the feasibility of copper concentrate
production.