Ann: Annual Report to shareholders , page-2

At Wilcherry Hill, in South Australia, we have, along with others in the area, been instrumental in developing a whole new mineral field – the commercial extent of which remains limitless. Our exploration efforts at Wilcherry Hill in the past year have highlighted the potential for exciting new discoveries of Silver (Black Hill and Ultima Dam West), Tin (Zealous), Tungsten (Golden Gate) and Manganese (Hercules and Pier Prospect). Although not further tested in the year, the lead, zinc and silver at Telephone Dam, remains a high priority target when suitable drilling funds become available.
With an eye to the future, your Company has also acquired control of over 7,000 Km2 of exploration tenements around the large Challenger gold mine in the highly prospective North Gawler Craton, also in South Australia.
In all, Trafford controls the third largest tenement package in South Australia behind BHP and Rio Tinto!
Drilling at the Twin Peaks iron ore project in Western Australia was highly successful with large intersections of direct shipping grades of over 65% Fe being achieved. The Company is now well on its way to earning a 51% stake in this potentially lucrative project, with the real possibility of achieving over an 80% stake in the not too distant future.

Last, but by no means least, Trafford’s involvement in the IronClad joint venture (20:80) became increasingly active during the year. As a result of the temporary downturn in iron prices early in the year, Trafford instigated a total review of all projected capital and operating costs at the Wilcherry Hill Iron Ore project. This full scale review has taken most of the year but is now nearing completion and, as a result, the mine start up draws ever closer.

The coming year promises to be a game changing year for your Company with income from the IronClad J/V funding increased levels of exploration on strong targets, already outlined by our skilled geological staff.
Once again I thank you sincerely for your continued support and look forward to the coming year with great anticipation and excitement.