re: court case. coming events 1. Court case: Filed legal...

re: court case. coming events 1. Court case: Filed legal proceedings

2. Aside from the litigation, what can we expect to see in the coming months? Summit expects to make considerable progress on a range of fronts in the coming months.

In summary:
1. By the end of 2006 we will complete the current $7 million drilling program which has been designed to underpin JORC compliant resource estimates for each of Summit’s eight uranium deposits.

We expect to have estimates released for at least five, and possibly six, of these deposits before the end of 2006.
2. Detailed metallurgical drilling and laboratory testwork is now underway to confirm our preliminary view that the uranium deposits will be amenable to a common processing and metal recovery operation.
3. Contracts are being be finalised to fly a large electro magnetic survey of the Georgina Basin, to the west of Mount Isa, where Summit is searching for channel and paleochannel, unconformity and roll front style uranium deposits. These results will be night-time heat sensing thermal imagery to select the first drill targets by early 2007.
4. There is ongoing copper-gold exploration along the Mount Isa Paroo Fault zone to the south of Mount Isa with an extensive new IP survey underway to design the next round of drill tests. As soon as we get the results, we intend to drill the anomalies, searching for deep-seated copper bodies similar to those being mined by Xstrata to the north at Mount Isa.

5. Summit intends to spin out its iron ore and phosphate assets in the Constance Range by de-merging them into a new ASX listed company, Pacific Mines Limited (“Pacific”) and distributing Pacific shares to existing Summit shareholders.

Documentation to effect that spin-out is currently being prepared and should be completed to allow the project to be separately funded and underway by 2007. Pacific has been initially funded by Summit and it is intended that, following the approval of Summit shareholders of the demerger, Pacific will raise approximately $4 million by way of an IPO prospectus issue to new shareholders and list on the ASX.

Your board is confident that Summit has a very bright future ahead of it. That confidence is underpinned by excellent projects, an expanding resource base, the current spot uranium price of over US$50 pound along with the positive outlook for future uranium demand; the high likelihood of a change to the Australian Labor Party’s policy on uranium mining in early 2007; the upside that this litigation offers with the opportunity to consolidate ownership of the company’s Mount Isa uranium project and the significant progress we are making on a range of fronts in relation to our copper, gold, iron ore and phosphate projects. We appreciate your continuing support and will provide further updates on Summit’s operations and the legal proceedings in due course.

Yours sincerely Summit Resources Limited

Alan J Eggers

Managing Director
Perth 25 September 2006