Redbank Copper Project

Highlights

• The Company acquired the Redbank Copper Project in December 2005. The project is located in the Northern Territory McArthur River Basin, some 40km from the Queensland border and 50km south of the Gulf of Carpentaria. The tenements comprise Exploration Retention License (ERL) 94, Mineral Leases (Northern) 631 to 636 inclusive and Mineral Lease (Northern) 1108. Mine infrastructure and operating plant and equipment used to treat oxide ore were also included in the purchase.
• The project is expected to provide the Company with a source of early cashflow commencing 2Q of calendar 2006, through the treatment of existing high grade copper stockpiles, followed by sulphide concentrate production once the flotation plant acquired as part of the purchase is refurbished.
• The tenement package acquired by the Company includes numerous advanced copper targets identified for early drilling.
• A JORC classified mineral resource estimate by SRK Consulting has identified indicated and inferred resources of 4.2 million tonnes at an average grade of 1.5% copper, to a depth of approximately 300 metres, as summarised below:

  Resource	Tonnes	% Cu	Tonnes Cu	lb's Cu
  Measured (stockpiles)	54,000	6.0%	3,260	7,189,000
  Indicated	995,000	1.8%	17,800	39,284,000
  Inferred	3,179,600	1.4%	43,850	96,740,000
  Total Mineral Resource	4,229,000	1.5%	64,910	143,211,000

Project Development Strategy and Exploration Objectives

The Company proposes to conduct a comprehensive exploration programme to delineate additional oxide and sulphide copper mineralisation. The objective will be to ultimately self fund exploration activities and to this end the business plan is to quickly develop a cash flow from the treatment of available stockpiles and in situ oxide material at Redbank with minimal capital expenditure.

The business development plan for the Redbank Copper Project for the next two years involves:

1. Expanding the present pilot scale treatment of high grade copper stockpiles to a small but profitable rate of copper cement production. A preliminary process review conducted by technical consultants Bemex Corporation Pty Ltd estimates that with minor plant modifications and technical improvements cash operating costs for the treatment of the existing stockpiles to produce copper cement would be well around $1.00 per pound of contained metal. This compares favourably to the recent spot price for copper (July 2006). Subsequent surpluses from the treatment of oxide ore will depend on the delineation and treatment of additional oxide reserves from the Bluff and Punchbowl deposits and other prospects within the Redbank leases;
2. A two year exploration programme to include drilling at the Sandy Flat mine environs, the Bluff and Punchbowl deposits and other identified drill target areas to:
   1. Test for near surface oxide mineralisation suitable for treatment via acid leaching, and
   2. Identify sufficient copper sulphide mineralisation to justify refurbishment of the flotation plant at site to produce copper concentrate as a possible second cashflow stream.
3. A comprehensive review and compilation of the available historical data utilising modern methodologies and procedures to identify deeper regional primary sources of copper mineralisation;
4. Consideration of alternatives for the dewatering of the Sandy Flat open pit mine and the recovery of the contained copper; and
5. RC drilling at floor of the Sandy Flat open cut as well as extensional drilling the east and the west of the deposit, together with geological mapping and assessment of unexplored geochemical anomalies (subject to dewatering of the pit).

In the twelve months before the acquisition, pilot scale copper cement production was established at Redbank through a process of leaching high-grade crushed ore stockpiles within plastic lined vats. The Company plans to expand production to a more commercial scale operation by establishing several additional vats under leach to provide the Company with a near term cashflow.

Initially the Company plans to target niche markets through the production of intermediate copper product used as an input for further refinement by chemical company suppliers. The Company also plans to drill test identified exploration targets to confirm the depth of weathering profile and to establish tonnage of oxide and sulphide material within the mineral resource, as well as extend the mineralisation within the Company’s granted leases.

Exploration Potential and Budget for Redbank Project

SRK have reported that the Redbank Tenements contain multiple exploration targets within ERL 94, including the above prospects, which they consider have a high likelihood of further mineralisation similar to the already identified breccia pipes. In addition, potential exists for higher tonnage, lower grade stratabound style of mineralisation at prospects such as Airport/Mountain. The Company plans to conduct a comprehensive exploration program to test these targets and expand near surface oxide copper tonnages within its leases. Deeper sulphide targets and transitional oxide-sulphide targets will also be tested.

The Company intends to systematically undertake four levels of exploration depending on the phase of exploration in each target area, being resource definition, reserve definition, defined targets and regional programmes. These will be ranked and prioritised with field work to include geological mapping, soil sampling, cutting and assaying (or re assaying where appropriate) of drill core stored at site, completion of data compilation and review of historical database, specific target generation, and drilling. This will initially require only one geologist at the commencement of the programme and then another senior geologist when the pace and activity increases.

The clear delineation of oxide, transitional and sulphide mineralisation within the known but unmined deposits at the Bluff and Punchbowl will be an important part of the programme at an early stage to enable an assessment of the commercial viability of processing alternatives (the oxide and transitional material at the Sandy Flat deposit has already been mined and now constitutes the stockpile material to be vat leached).

Additional Project Information

Additional detailed information on the Redbank Project can be found in the independent technical report prepared by SRK Consulting and included in the Prospectus issued by the Company on 3 November 2005.