update on feasability study

Good information update on feasability of project.

YALGOO IRON PROJECT UPDATE
• The testing of the suitability of a representative
iron ore concentrate from the Project in both the
ITmk3® and FASTMELT/FASTMET® pig iron
manufacturing technologies at Kobe Steel in Japan
is proceeding well with the results expected in the
first half of October.
• The Company has completed additional spring
flora surveys and heritage surveys over areas to be
explored in the next drilling programme and have
not identified any impediments to the proposed
work programme.
• An additional programme of ground magnetic
surveys have been completed to in-fill data from
400m traverses to 100m traverses in key areas.
The modelling of the ground magnetic surveys have
proved to be a very cost effective reconnaissance
tool against which to plan the drilling programmes.
• The Phase 3 drilling programme is currently
scheduled to commence in October and is expected
to continue until around February 2008. The
Phase 3 programme will in-fill drill certain sections
of the Inferred Resource of the Project in
preparation, subject to satisfactory results, for
conversion to a Reserve classified and reported in
accordance with the JORC Code. Phase 3 drilling
will also extend the resource drilling along strike
with the aim of increasing the Resource inventory.
The Company is pleased to advise that work on the
Definitive Engineering Study (“DES”) for the Yalgoo
Iron Project (the Project) is well underway and advises
the following progress:
17