Company Overview

Listed on the Australian Stock Exchange (ASX:PDZ) and based in Perth, Prairie Downs Metals Limited is exploring and delineating high grade zinc, lead, silver, copper and gold deposits at its namesake project in Newman, Western Australia.

The Prairie Downs Project is located approximately 100 kilometres southwest of the mining town, where there is an airport, and just 45 kilometres from the main highway running through the East Pilbara region of Western Australia.  A gas pipeline is on the property.
     
Since listing in October 2005, the Company has completed over 300 drill holes at the Project resulting in the definition of a total inferred and indicated resource in three lodes of 4.7 million tonnes at a grade of 6.3% zinc, 1.8% lead and 18g/t silver at a nominal lower cut of 1% zinc. This resource contains 295,000 tonnes of zinc, 83,000 tonnes of lead and 2.6 million ounces of silver.

The total inferred and indicated resource includes a high grade inferred and indicated resource of 1.6 million tonnes at a grade of 12.3% zinc, 3.7% lead and 36g/t silver.

The Company, recognizing the great potential of the main structure for other commodities and mineralization models, recently commissioned a regional review of the entire Prairie Downs tenement package which has identified nine high priority targets for further exploration. These targets comprise potential channel iron ore, gold, uranium, and further main lode style base metal mineralisation.

The consolidation and development of the Company's database will support the future progression of a bankable feasibility study in relation to the identified resource at Prairie Downs.

A positive scoping study was completed in mid-2007 and Abesque Engineering & Construction Ltd completed a study to finance and develop a copper/lead/zinc/silver mine at Prairie Downs. This study is based on an operation treating 500,000 tonnes of ore per annum and covers the process plant and related supporting surface infrastructure.  
The Prairie Downs Project has a number of competitive advantages, the most important being the high metal grades, shallow oxidation, shallow mineralisation and excellent resource upside.

Responding to current economic conditions the Company has scaled back expenditure, re-evaluated previous exploration and feasibility work and is now well placed to position the Prairie Downs Project for further development and explore additional opportunities to add shareholder value.

The Company is committed to retaining a strong financial position in the current economic climate. New investment opportunities designed to deliver long-term growth to shareholders continue to be evaluated while the systematic progression of the Prairie Downs Project advances with campaign style on-ground exploration and the pursuit of commodity specific joint ventures.