Quarterly Report for the period ended 30 September 2007

HIGHLIGHTS:

Prairie Downs: Zinc-Lead-Silver

Drilling recommenced in July and will continue until December.

Mineral resources were updated during the quarter. Resources now stand at 4.9 million tonnes at a grade of 5.4% zinc, 2.0% lead and 14g/t silver at a nominal lower cut of 1% zinc. This resource contains 269,000 tonnes of zinc metal, 97,000 tonnes of lead and 2.3 million ounces of silver and includes a subset of 2.5 million tonnes at a grade of 7.3% zinc, 1.8% lead and 17g/t silver at a lower cut of 4% to 6% zinc. Further details are provided in an ASX release dated 29 August 2007.

The next resource update is expected in November 2007. This update is expected to result in an increase in tonnes and also in grade. Some of the drill results that will be included in this update are detailed in an ASX release dated 2 October 2007.

Laboratory delays have resulted in a large backlog of samples awaiting assay. The next results are expected by the beginning of November.

Prairie Downs Metals Limited has commenced a Bankable Feasibility Study (“Study”) for the Prairie Downs Zinc Project. Abesque Engineering & Construction Limited (“Abesque”) has been commissioned to design a 300,000 tonnes per annum processing plant with the capability to expand to 1,000,000 tonnes per annum. Further details are provided in an ASX release dated 4 October 2007.

Other Projects

No fieldwork was completed on either the Longreach Well or Perenjori projects during the quarter. The Coppermine Bore and Jillary uranium projects are joint ventured to Western Uranium Limited and are reported on by that company.

Corporate

On behalf of directors and shareholders I would like to extend a warm welcome to Mr Charlie Karelse who was been appointed as Chief Operating Officer during the quarter. Charlie is a qualified Mining Engineer with extensive experience across a range of commodities and countries.

Shareholders approved a share placement to institutional clients of Southern Cross Equities Limited at a general meeting to be held on 28 August 2007. The share placement comprised the issue of 6.0 million shares at a price of $0.91 per share to raise a total of $5.46 million (before costs of the issue).

Subsequent to the end of the quarter Prairie Downs Metals Ltd appointed Capital Investment Partners Ltd (“CIP”) as a corporate advisor to assist with the negotiation and structuring of future financing requirements in relation to the ongoing evaluation and development of the Prairie Downs Zinc Project.

Mark Hansen
Managing Director

For further information contact:
Elissa Samuel
Investor Relations Manager
esamuel@prairiedownsmetals.com.au

Information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Luke Kerr and by Mr Mark Hansen, both of whom are Members of The Australasian Institute of Mining and Metallurgy. Mr Hansen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Kerr and Mr Hansen consent to the inclusion in this report of the statements based on their information in the form and context in which it appears.