Guys, I received this today from GTX management. Was one of the...

Guys, I received this today from GTX management. Was one of the few shares to post an 11% gain in yesterdays sea of red,which gives a real indication of strength.

I can understand your concern regarding the lack of current progress reports.

From a corporate viewpoint our focus in January was largely upon completing the settlement of the Sino placement which was announced at the time. In order to ensure that we were in a position to lodge a s708A certificate in relation to the placement ( which effectively includes a statement that we have kept the market informed) the Quarterly Report actually included any material matters between 31/12 to the date of lodgement of the Report and therefore in essence reported on our activities during the early part of January.

From an operational point of view ,since that time our team has undertaken a complete review of the drilling program at Weilong and has been also focusing upon developing our next drill target(s) elsewhere. We have also commenced technical discussions with Sino which are preparatory to developing specific joint venture arrangements with them and exploring other operational synergies. However, these discussions are far too preliminary to announce at this stage.

Unfortunately, February is a somewhat slow month operationally in China ,somewhat like Christmas/January in Australia,due to Chinese New Year celebrations. Both our staff and the staff of our government joint venture partner returned to work this Monday and we can now get moving again.

As soon as we have something meaningful to report we will do so and hopefully this will be within the next few weeks.

Your sincerely

Peter Curry

South Pacific Securities Pty Limited

ABN 75 002 213 783

Australian Financial Services Licence No. 252984

Level 24, Royal Exchange,

56 Pitt Street, Sydney NSW

( + 61 2 9251 6730
Ê + 61 2 9251 6326
8 [email protected]

* PO Box R658, Sydney

NSW 1225