Further results received from recent drilling at the Moto Gold...

Further results received from recent drilling at the Moto Gold Project:

- At the Karagba Prospect, all four diamond holes completed recently
across the mineralised zone returned significant intercepts
including: 6m (at) 4.35 g/t, 24m (at) 3.74 g/t, 34m (at) 2.76 g/t,
10m (at) 2.61 g/t and 48m (at) 2.06 g/t Au.


The drilling has defined an interpreted northeast plunging
mineralised zone that has a strike length of greater than 200m, a
thickness of up to 100m and a potential down plunge length of over
450m. The mineralisation is open down dip to the southeast and down
plunge to the northeast. An upgraded resource estimate is planned
for August 2005.


- At the Sessenge Prospect results from recent drilling include:
8m (at) 3.85 g/t, 6m (at) 5.11 g/t, 26m (at) 3.04 g/t, 28m (at)
3.58 g/t, 30m (at) 2.22 g/t and 28m (at) 2.10 g/t Au. An initial
resource estimate is planned for August 2005.


- At Pakaka, diamond drilling on the down-plunge extension of the
deposit has intersected significant mineralisation including:
18m (at) 6.12 g/t and 6m (at) 6.05 g/t Au. Completion of infill
drilling to enable a resource upgrade is scheduled for August 2005.

Results from an independent preliminary metallurgical testwork program indicate recoveries for oxide samples are generally at or above 90%. The initial pre-feasibility study is scheduled for completion in October 2005.

The Company currently has four drill rigs operating at the Moto Gold project in the north east of the Democratic Republic of Congo. Two diamond rigs are currently employed at the Pakaka deposit testing extensions to the known mineralisation and completing infill drilling to increase confidence in the resources. One diamond rig and one RC rig are currently employed at Karagba and Sessenge respectively seeking to identify mineralisation for resource estimation purposes at these early stage prospects.

KARAGBA

All four diamond holes, DDD014 to DDD017 inclusive, completed recently across the Karagba mineralised zone returned significant intercepts including: 6m (at) 4.35 g/t Au from 60m to 66m and 10m (at) 2.61 g/t Au from 80m to 90m in DDD014, 34m (at) 2.76 g/t Au from 18m to 52m in DDD015, 24m (at) 3.74 g/t Au from 82m to 106m in DDD016 and 48m (at) 2.06 g/t Au from 80m to 128m in DDD017.

These diamond holes were completed to infill on the NW-SE drill section lying 50m northeast of the Karagba artisinal pit. Previous RC campaigns failed to test the mineralisation at depth with both DRC079 (120m (at) 3.63 g/t Au) and DRC077 (16m (at) 1.32 g/t Au) ending in mineralisation.

The drilling has defined an interpreted northeast plunging mineralised zone that has a strike length of greater than 200m, a thickness of up to 100m and a potential down plunge length of over 450m. The mineralisation is open down dip to the southeast and down plunge to the northeast. A drill programme is underway to test between this drill line and the previously reported drill line formed by DDD011, 12 and 13 lying 370m to the northeast. The best intercept on this drill line was 118m (at) 5.19 g/t Au in DDD011. An upgraded resource estimate is planned for August 2005.

Significant results received and not previously reported are summarised in Table 1.

The Karagba mineralisation lies within the Durba-Karagba mineralised corridor. This corridor is 6km in length, trending NE and up to 250m in width. The mineralised zones are spaced at between 400m to 500m along strike within this corridor and all share a similar NE plunge component of minus 30 degrees. A recent re-evaluation of previous exploration results within this corridor to the NE of the Karagba mineralisation has identified other mineralised prospects. This includes a gold-in-soil anomaly defined by values of 190ppb and 194ppb Au and coincident with a topographic crest. The anomaly is 1km along strike to the NE from the surface position of the Karagba Prospect. A further 500m to the NE, RC drillhole AERC049 intersected 14m (at) 6.45 g/t Au from 20m to 34m. This is coincident with a gold-in-soil geochemical anomaly exceeding 100ppb Au.

SESSENGE

All results from the initial 32-hole RC programme and results from initial holes in the recently commenced infill programme have been received. These latest results further demonstrate the excellent economic potential of this prospect. Significant intercepts include: 8m (at) 3.85 g/t Au from 120m to 128m in SRC022, 6m (at) 5.11 g/t Au from 100m to 106m in SRC025, 26m (at) 3.04 g/t Au from 0m to 26m in SRC035, 28m (at) 3.58 g/t Au from 10m to 28m in SRC036, 30m (at) 2.22 g/t Au from 30m to 60m in SRC037 and 28m (at) 2.10 g/t Au from 0m to 28m in SRC072. An initial resource estimate is planned for August 2005.

Significant results received and not previously reported are summarised in Table 2.

PAKAKA

Diamond drilling on the down-plunge extension of the Pakaka Deposit has intersected significant mineralisation including: 18m (at) 6.12 g/t Au from 219m to 237m in PDD030 (including 4m (at) 17.83 g/t Au from 221m to 225m), and 6m (at) 6.05 g/t Au from 268m to 274m in PDD038. This programme has traced the mineralisation down plunge for 900m and to a vertical depth of 300m. It remains open in the down-plunge direction and the intercept in PDD030 demonstrates the excellent future underground potential for this deposit. Resource modelling is now in progress.

A 10,000m infill diamond drill programme on a 40m x 40m grid designed to enable a resource upgrade from inferred to indicated status is also in progress and is scheduled for completion in August 2005.

Significant results received and not previously reported are summarised in Table 3.

OTHER PROSPECTS

A number of new mineralised zones have been identified for exploration drilling over the next 6 months. The untested resource potential of the project remains significant, however the Company plans to reduce its "early stage" target drilling to one RC rig, and use the three diamond drill rigs to upgrade the resource base for the purpose of determining project economics.

PRE-FEASIBILITY WORK

A preliminary metallurgical testwork program, including comminution and whole ore leach testwork, has been completed from samples collected during recent drilling. Samples were obtained from Gorumbwa, Kibali, Pakaka, Megi and Pamao. The testwork programme was coordinated by RSG Global and conducted at the laboratory of Independent Metallurgical Laboratories in Perth, Western Australia. The results are included in more detail in the technical report prepared by RSG Global and released on 17 June 2005. In summary the results show that the mineralised material exhibits low to moderate hardness and is readily amenable to crushing and grinding. Gold extraction using cyanidation for oxide samples from all deposits is generally at or above 90% with fresh samples from the Pakaka and Pamao deposits exhibiting gold extractions above 80%.

SGS from Ghana has been engaged to complete a detailed environmental baseline survey to determine any environmental issues associated with a new operation.

The Company anticipates the initial pre-feasibility work to be completed in October 2005.