copy of email from md

Dear Dave,

Thank you for your mail. Force majeure events have delayed commencement of drilling. Drilling programs in progress throughout much of northern and eastern Australia have been variably impacted by recent heavy rain events causing the anticipated completion dates, and freeing up of rigs to move to new programs, to be shuffled back a couple of weeks in general. The latest information I have is that drilling by Xstrata is now likely to get under way mid-April. Xstrata are most anxious to get underway and I understand that some Xstrata personnel will be on site in the near future to prepare access, drill sites etc ahead of anticipated rig mobilisation.

I expect to lodge our Quarterly report with ASX beginning of April. The report will contain an update on some positive developments at the Company?s Toondulya EL in the Central Gawler. 3-D modelling of a significant gravity feature has delineated some quality constrained targets requiring drilling. I am unable to discuss further until the information is in the public domain.

With respect to drilling in Tyler County by the Pantheon Joint Venture, I am advised that Pantheon will be releasing an up-date to the AIM market 31st March.

There is a strong possibility that we could see three drilling programs under way during the June Quarter and these may reasonably be expected to impact Argo?s share performance.

Please feel free to contact me again following release of the Quarterly should you wish to clarify any matters.

Best regards


Hugh


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From: Dr Hugh K. Herbert

Managing Director


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Argo Exploration Limited

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