Ann: Quarterly Activities Report, page-3

spoke with Fenix yesterday about the lack of information on where we are going.

"It wasannounced that we are modelling the airborne geophysical data which has neverdone before over the Muller Range tenement Baia and Cecelia prospects. We alsoannounced reviewing higher resolution satellite imagery to help with structuralanalysis and defining target areas for fieldwork. We are not revisiting theAster satellite studies.

 

During themining wardens hearings, the the Mining Warden told the landowners that we cannegotiate access to the project sites for fieldwork once the tenements havebeen granted renewal. Until then, it is sensible to fully analyse all existingtechnical information. Once tenements are renewed we can begin a field programof trench sampling.

 

Results of the present evaluation of technicaldata is planned to be announced during November. The geophysical modelling hasalready shown a large mineralised porphyry system extending to significantdepth that requires additional drilling either by us or a Joint Venture partner

Michael Kandeand Peter Swiridiuk can propose a fieldwork program now but the board maynot want to risk those expenses until we know the tenements are secure.

Fenix Dong"

So we are just waiting on the renewals to go through which there should be no reason why they dont. They have been granted previously and we have met our milestones. The latest imaging should be interesting and will hopefully kick start us off again when investotrs see the size of the mineralised system

GD