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Issued Capital = 92 million shares + 30.25 million options/warrants

Cash: $20 million

Currently defined Reserves 0.533Moz Au
Currently defined M+I Resources 1.95Moz Au

Diamond drilling results from the Frog’s Leg underground gold project located outside the Measured and Indicated resource of 723,000 ounces intersected
- MEDD134 62m at 5.58g/t Au including 10m @ 13.65g/t
- MEDD124 18m at 5.49g/t
- MEDD131 5m @ 14.49g/t

Continued the capital development program at the HBJ deposit

Commenced the Mt Marion Crown pillar development.

Completed open pit mining at Shirl and Bakers Flat

Commenced optimisation studies of a Stage 2 cut-back at Bakers Flat and diamond drilling to upgrade the Shirl deposit to a potential underground reserve. Currently drilling at Shirl (Main Lode and Cross Lode) to potentially increase the existing underground indicated resource of 99,000oz at a grade of 4.7g/t. A positive upgrade to the resource could lead to an underground study by the end of calendar 2008. Pre-collar drill results received in Dec 2007 intersected 3m @ 9,77 g/t and 4 m @ 3.02 g/t

Quarter was geared towards capital development and transition from completed open pits, mining still extracted 249,788t of 1.95/t gold ore and milling produced 15,513 ounces.

The Frog’s Leg Project (Dioro 49%) contains a total measured and indicated resource inventory of 23,000 ounces at 7.0g/t (JORC-TSX compliant).

The South Kal Project (100%) contains a total measured and indicated resource of 1.55 million ounces at 1.8g/t.

HBJ open pit cutback and stripping is anticipated to continue until late 2008

Shirl Pit mining ceased and the mining fleet was moved to complete the Bakers Flat open pit and commence open pit extraction of the Mt Marion crown pillar. The open pit performed better than expected with claimed mine grade and tonnes exceeding reserve by approximately 8,000 ounces.

Commenced feasibility studies based on higher gold price scenarios in order to assess the economic viability of the resources owned by Dioro which are not currently in the reserve category but which have already been defined within the South Kalgoorlie operation.

Shirl West intersected significant gold mineralisation in the Underground precollars to the west of the Shirl open pit. Best intersections include SHDD025, 6m @ 3.61g/t from 96m and SHDD026 8m @ 2.51g/t

Shirl East reverse circulation drilling program of 11 RC holes. Encouraging results have been received for the first 6 holes and results are awaited from the last 5 holes. Good grades including 3m @ 10.49 g/t from 23m; 2m @ 12.78 g/t from 36m; 3m @ 8.42 g/t; 2m @ 7.1 and 1m @ 11.5 g/t

The Frog’s Leg underground Measured and Indicated resource is 3.22 million tonnes at a grade of 7.00g/t for 723,000 ounces (EXCLUDING an additional 209,000 ounces of inferred resources). This incorporates all drilling completed prior to May 2007. A scoping study conducted on the 209,000 ounce inferred resources (5.7g/t Au), confirmed an additional 150,000 ounces has the potential to be incorporated into the reserves with minimal additional capital development.

(**) A resource update is expected EARLY in the next quarter 2008 (March – May), incorporating an additional 24 holes drill results since May 2007.

Proven and probable reserve of 622,000 ounces of which Dioro’s share is 305,000 ounces.

Mining development commenced in July 2007. Installation of surface infrastructure is well advanced. Two jumbo development crews have been commissioned. A total of 2229 metres of decline and level development and 70 metres of vertical development are now complete. The north portal was established allowing development of the upper section of the mist lode.

The feasibility study envisaged the extraction of 3.65 million tonnes at a fully diluted grade of 5.29 g/t Au (622,000 JORC Total Ore Reserve ounces) over a 7.5 year mine life. The proposed underground mine will be brought into production with a short development period followed by a mine life (based on the resources declared in July 2007) of 7.5 years at an average mining rate of approximately 83,000 ounces per annum (NB: **)

The feasibility study assumed a metallurgical recovery of 94.9% and a processing and haulage cost of $25/t ($19/t milling and $6/t haulage).

Significant wide high grade mineralisation in the ‘Gap’ with some of the richest intercepts for the whole of the Frog’s Leg deposit. Hole MEDD134 located at the southern margin of the Mist
indicated resource contains two high-grade zones in a broad zone of mineralisation that aggregates to 62m at 5.58g/t Au which extends the area of high-grade mineralisation 200m below the current indicated resource boundry and highlights the potential for a significant upgrade in the indicated resource and extends the mine life.

Results are still pending for three holes drilled in the upper northern portion of the Mist resource and two deep holes drilled below Rocket and the Gap.