an explanation of todays announcement, page-21

massive uranium play: charts on gir v ags the company offers more than just the heathgate uranium play, and more than just uranium itself....

1. Heathgate JV at Beverly (including extensions at 4 Mile, extensions at Beverly West, and extensions at Deep South - ie more diversified geographic potential than AGS).

2. Olary uranium project with PacMag (grades to 2.2% U3O8).

3. the 12% equity stake in U3O8 Ltd ("UTO")

4. Snake Well Gold project - advanced NEAR SURFACE gold project (+170,000 oz) with resource extension announcement to come Q1 this year.

5. Zinc Co Australia - Zinc Spin off to come this year (record date likely to be set for late February / early March). Listing early April.

6. a further Iron Ore spin off to occur in the second half of 2007

7. Dalton's advanced Nickel project - now 100% GIR interest, after Falconbridge spent over $900,000 on aerial surveying and historical data

URANIUM PLAY with Heathgate

The JV with heathgate currently has a drilling program in place. Previous drilling on GIR land has identified economic mineralisation which shows characteristics which are favourable to in-situ leaching (such as the process at Beverly).

As Heathgate is a private entity, they are under no requiements to report findings except for those required under statute. As we have seen in the case of Alliance Resources (AGS), the market is quick to place premium on any mineralisation that is economic. This is not a favourable situation for Heathgate, as it means that they have to pay a higher price to buy out their 25% stake. Hence, there will be a natural inclination for Heathgate to down play any findings. This then relies on the board of GIR to get the message out to investors on the ASX, and we know that in the past, the GIR board is conservative with their announcements.

Hence, I am of the opinion that any significant finding will be underplayed by the market, and the true value of any announcement will not be absorbed by the market immediately, allowing smart investors to identify the opportunity and buy into the company before the rest of the market catches on. The initial reaction is to compare any grades with those of AGS, which, 'let's be honest', are quite exceptional grades. Therefore, it is plausible that the market downplays any findings by GIR on this basis. The key point to remember is that THE CUT OFF GRADE AT BEVERLY IS ONLY 0.03% U3O8 (at historic uranium prices I think?). So that is bascially the yardstick to beat in order to be economic.

The exposure GIR now has to the uranium sector has seen it being picked up on the radar of many brokerage houses (including Patersons, DJ Charmichaels) and in many financial publications such as RESOURCE STOCKS magazine, and 'The Australian' newspaper.

Paterson's uranium report of October 2006 stated that "GIR offers unappreciated uranium exposure through its Lake Frome JV with Heathgate Resources, and 12% stake in ASX listed U3O8 Limited." They continue... "Patersons view GIR as exceptional project incubators, offering diversified exploration exposure to a suite of base and precious metals projects, and a lower risk investment alternative to pure uranium explorers."

I would go far as to say that GIR is that "unappreciated" that even Warwick Grigor in his Far East Capital report in December, noted GIR as a uranium play citing only its interest at Olary with PacMag Metals, and its 12% stake in ASX listed "UTO." Even Warwick Grigor failed to mention GIR's 25% stake with Heathgate, which according to the board of GIR is so valuable, that they decided to keep that uranium interest for themselves rather than spin it out through U3O8. So even those in the know, have really failed to wake up.

GIR has had a decent run of late. It has not yet ran anywhere near as hard as it did back in May , suggesting that there is the potential for a great deal more in it.

Finding reasons to sell the stock is hard considering:

1. the upside potential of Heathgate

2. the upside potential of "UTO" - which will release a JORC compliant resource this quarter (also a stock underappreciated by the market)

3. the upside potential of the Zinc Co spin-off (a sure 2x to 3x fold profit on the IPO and further profit through the in-specie distribution to GIR shareholders)

4. the resource extensions to come out of Snake Well. With the company most likely to move the near surface mineralisation into production by year end. High profit margins to be expected given the near surface nature of the mineralisation and the high recoverability of the gold.

5. The company has over $25m worth of cash and listed investments, with more cash funding to be realised after the Zinc spin off is complete.

Hard to find a reason to sell. Although if any one can, I am more than happy to hear their thoughts.

Cheers,

PT