ASX Release: 09 July 2008

The first drill hole at the Costean Seven copper prospect was abandoned due to loss of water return at a depth of 311 metres. Diamond drill hole PDD308 has intersected continuous copper and silver mineralisation from 9 metres to 285 metres, the interval from 0.6-9 metres is mineralised in copper, zinc and silver and the interval from 285 metres to 311 metres is mineralised in silver.

A Niton XL3T handheld XRF machine has been used to give an indication of grade ranges for each metal. However, it must be stressed that these values are indicative only and may vary significantly from the final laboratory assays, which are not expected for 6 to 8 weeks.

The copper grade is variable; it is often in the 0.2% to 1.0% range with regular zones that grade in the 2.0% to 6.0% range. It appears to occur as chalcocite, bornite and chalcopyrite.

Silver is consistent down the hole, typically grading 15g/t to 40g/t with regular zones exceeding 100g/t.

Empirical analysis of the XRF peaks suggests that gold is also present in the system, which is supported by laboratory assays of rock chips, as detailed in ASX release dated 22 May 2008.

The 0.6 to 9 metre interval grades 2% to 8% zinc, 0.1% to 4% copper and 10g/t to 50g/t silver. The 285 to 311 metre interval grades 15 to 25g/t silver and 0.05% copper.

The style of mineralisation is not known at this time but may have affinities with copper porphyry systems. Host rocks to mineralisation are thought to include altered Proterozoic volcaniclastics and breccias, intrusive dolerite, the silicified and sheared rift zone itself and volcanics that are thought to be of Archaean age. Alteration includes silica, carbonate, chlorite and sericite, all of which have been observed at surface.

Finally, it must be stressed that this is a single drill hole. Many more holes will be required at Costean Seven before it will be possible to fully understand the significance of these results. Meanwhile, the Company will continue to report results as they come to hand.