Ann: Annual Report to shareholders , page-2

The past year has been one of intense exploration activity for the Company, with a major resource drilling program continuing at McPhee Creek, where the iron ore resource has grown rapidly in the past year, from around 50Mt to the current 210Mt.

The continuing drilling has produced some startling intersections (Wooooooo....), some of which have yet to be fully assessed for inclusion into the resource numbers or remodelling of the exploration target.

McPhee Creek now assumes major significance in the portfolio (note: not Western Creek), and it, together with Mt Webber, represents the major projects in the region capable of near term development.

The Companys present intention is to maintain its independence.