Ann: Drilling Update Carr Boyd Nickel Project - Amended, page-12

Olympic dam was 7 holes. Sirious was 24 holes and was found on the last day when they had run out of money. That was to find the Nickel Sulphides. ESR has already found the Sulphides and is now in the process of looking for the orebody. All indicators so far from the ONE hole suggest it is close. The Lithium search has not been finished. It was put back to concentrate on this project as the company believed that they could find the target faster and that would result in a higher share price and less dilution when they need to raise more money. They really have three project all of which are extrememly interesting. One is Nickle/ Copper , another Gold and Nickel and the final project is a Lithium exploration play. As a company you need to manage your expenditure and spend the money in the highest potential project. If you hit then you raise money to further drill the other projects. The management appear to have focussed on this project as it has the highest potential to return positive results. All the information they have given us so far also suggests that they are right. IF the next couple of holes further add to this then we should see the stock re rated. At the stage that they find something major I expect another capital raise which will allow the company to drill the Lithium and gold projects. If they hit anything there then the next leg up will occur.