REVIEW OF OPERATIONS:The Company is pleased to report that...

REVIEW OF OPERATIONS:

The Company is pleased to report that exploration activities at the Carajas Copper Project in Brazil were successfully completed and a maiden JORC compliant resource prepared for the Antas South Deposit. This was an exceptional result for the Company and is only the first of six copper targets to be drilled on the Company’s 100% owned Rio Verde Licence.

ANTAS SOUTH DEPOSIT HIGHLIGHTS

An exceptionally high grade JORC resource of 210,000t at 11.65% copper, containing 24,400t of copper.

At a 0.3% copper cut-off the global copper oxide JORC resource is 8.0 Mt at 0.83% copper, containing 66,100t of copper.

At a 0.1% copper cut-off the global copper oxide JORC resource increases to 17.6Mt at 0.48% copper, containing 84,400t of copper.

Copper mineralisation is delineated over a strike length of two kilometres and is open along strike. There is considerable potential to significantly add to the existing resources through further drilling at Antas South and five additional key satellite targets. The Antas South Deposit is amenable to free dig mining from shallow open pits.

The Company is investigating the potential associated with the high grade resource to support a “starter” copper project.

Initial evaluation of the starter project indicates potential for strong cash flows (even at low copper prices) with revenues potentially being available for re-investment into self financing the development of the main 10,000tpa copper cathode heap-leach SX-EW phase. The Company is now targeting 20Mt of copper oxide mineralisation on the Rio Verde Property.