doin great, page-3

the fundamentals behind gir Gents,

I have spoken with the MD and have an update to share. It shows the strong fundamental position behind the company, and that there is a very long way for it to go before it becomes one of those 'over hyped' up stocks.

GOLD PROJECTS (1. Snake Well 2. Munroe Bore)

1. SNAKE WELL

Diamond drilling to extend the gold mineralisation was completed before Christmas, and the samples are now in the lab waiting for assay results which should come out soon.

The company is looking to extend the mineralisation by drilling in the Rabbit North and Warren zone, with decent grade gold samples previously taken.

The current resource sits at about 200,000 oz @ ~2.0gt Au, and the company is looking to extend that to approximately 250,000 to 300,000 oz in order to justify the spend on a mining plant.

In the meantime, the company is conducting scoping work at a small scale gravity and heap leach operation to extract the near sufrace laterite hosted mineralisation, and this is likely to cost around $US2m to get up and running, with 90% recovery expected.

This will produce signficant cash flow for the company, as it is a very low cost operation. Therefore, profit margin on this will be high, especially with a rising gold price which I forecast to go through $US700 by June this year.

2. MUNROE BORE

The company is awaiting formal documentation of the sale of its interest in this project. Not sure whether this will be a cash settlement, or script in another company. I suspect the company will take the cash.

URANIUM ASSETS (1. Lake Frome 2. Olary/Blue Rose)

1. LAKE FROME

Heathgate has just reported drilling results from an intial 3 holes of a planned 15 hole rotary mud drilling program, which will be completed early in 2007.

Of the 3 holes drilled, NONE OF THEM REACHED BASEMENT due to technical problems, as this is where Alliance Resources (AGS) have reported their high grade mineralisation. The company however, is very excited with this prospect, as the early drilling results are showing distinct similarities to that of the drilling performed on AGS' land, and stronger grades are likely to be identified once the drill spacing is tightened to a 200m x 100m.

In any event, the mine cut-off grade at Beverly is only a small 0.03% U3O8, as the mineralisation is amenable to in situ leaching. Heathgate has identified grades above this cut off on GIR's tenements, with similar characteristics indicating that it too is open for ISL mining.

2. OLARY / BLUE ROSE

The company is excited on the rock chip grades announced by PacMag ("PMH") from the Domenic Prospect which graded 2.2% U3O8 .

PacMag has just received FURTHER approval from the South Australian Government co-funded (PACE) program, to continue drilling this prospect.

Work continues at establishing a small mining operation to extract the near surface oxide copper mineralisation at this project, which has shown grades of Cu of 10.5m @ 1.37%, including parts of gold contained within.

DALTONS (NICKEL)

The company is also pleased that Xstrata has relinquished its JV interest in this project, despite Falconbridge having spent $900,000 on airborne EM survey's on the project.

The company will be using this airborne survey data to continue its exploration of this promising project.

CORPORATE FRONTS - more spin-offs to come

1. Zinc Co Australia
We are all familiar with the Zinc spin-off, which will be done in a similar fashion to that of U308 - involving an 'in specie distribution' and 'priority entitlement to the IPO.'

This time around, however, the company will be paying more attention to the signifcant shareholders of the company, and it is likely to be the situation that in order to qualify for the priority entitlement, you will need more than just a $2,000 holding in GIR. This is good news for long time shareholders, and will reward those with bigger interests in the company. The company is trying to clear this with the ASX.

The Zinc company is likely to be capped around $8m, and will be tightly held. It will list in late March / early April this year. Prospectus will be lodged in Feb.

2. ANOTHER IRON ORE SPIN OFF

The Beebyn Iron Ore project and the Western Creek Project are likely to be the subject of another Iron Ore spin off that will occur later this year. Both projects are 100% owned by GIR, therefore, again, the spin off will likely be done in the similar fashion to U3O8.

This will result in more value being extracted by GIR shareholders, and will allow the company to focus exploration on this projects through the new listed entity.

GIR has a strong cash position over $6.5million.

The company operates on a P/E of ~ 8x, and further earnings will be realised this year through the two new spin-offs, the sale of Munroe Bore, and potential production at Snake Well by year end.

Not overvalued by any stretch of the imagination.

Cheers,

PT