WEST KALGOORLIE PROJECT

The Company’s portfolio in the Kunanalling, Ora Banda, Grants Patch, Carbine and Split Rocks regions is collectively known as the West Kalgoorlie project. These tenements cover approximately 533 square kilometres and now contain mineral resources of 612,000 ounces of gold. The Project is located approximately 60 kilometres northwest of Kalgoorlie and lies immediately to the north of Cazaly’s Kunanalling project in the East Coolgardie Mineral Field of Western Australia.

Backflip Prospect

Recently completed Diamond Drilling at the West Kalgoorlie Project has returned high grade gold intersections from the Backflip Prospect. The small program comprised two pre-collared diamond holes for a total of 357 m to test extensions of mineralisation and to improve the understanding of mineralisation controls at the prospect. Hole WKDD0001 returned an outstanding intercept of 12.97m @ 9.94g/t Au.

Both holes intersected the shear which is strongly altered with sulphide zones proximal to quartz/carbonate veins. The shear hosts narrow high-grade gold mineralisation within a broader low-grade halo. Significantly, gold mineralisation occurs beneath a depleted weathered zone hindering previous exploration efforts in the region. These diamond drill holes support the shear structure as the primary host of high-grade mineralisation with very fine-grained visible gold hosted within multi-generational quartz veining.

The mineralisation within the shear is continuous over 400 m with high-grade shoots plunging steeply within the shear. The main shoot remains open at depth and there remains scope for additional shoots to be discovered within the shear.

The drilling has provided invaluable geological information to target potential repetitions of the high-grade shoot and to enable identification of similar structural settings throughout the area, providing scope for further discoveries in the region.

The Backflip Prospect is favourably located only 6km from existing heavy haulage roads and less than 25 km from the third party owned Paddington Gold Processing Plant.

Mick Adam and Wadi Gold Deposits

(Joint Venture Agreement with Waratah Gold Limited)

The The Mick Adam and Wadi deposits are located 40km west of Kalgoorlie. The Mick Adam deposit has an inferred resource of 4,510,000 tonnes at 1.27g/t for 184,100 oz of gold. Wadi has an inferred resource of 849,000 tonnes at 1.53g/t for 41,900 oz of gold, and also has a measured resource of 240,000 tonnes at 2.11g/t. The total resource in the project area is 226,000 oz of gold. The majority of resources are on granted mining leases.

The Company has signed a letter of intent for a farm-in and joint venture agreement with gold exploration and development company, Waratah Gold Limited (ASX:WGO) to develop the Mick Adam and Wadi Gold Deposits in the West Kalgoorlie Gold Project.

Under the terms of the agreement Waratah will earn a 50% stake in the project from Cazaly by meeting all rents, rates and expenditure commitments as well as meeting other development milestones. Profits from operations will be divided equally once project capital has been repaid.

Waratah intends to have a scoping level study completed within 4 months of signing the formal farm in agreement with Cazaly. A decision to mine will be made within 12 months of completion of the scoping study. Waratah will proceed as fast as prudently possible to capitalize on a strong gold price.

The projects have previously been reviewed for development and at current gold prices above A$1000 per ounce, they now provide a compelling case for production.

Engineering and metallurgical studies, undertaken on the project area, have indicated the deposits are amenable to heap leaching with favorable recoveries. Waratah considers that heap leaching offers many advantages over traditional processing for this project and will mean a relatively low capital expenditure requirement and low operating costs.

Grants Patch

The Grants Patch sub-project covers a 15 kilometre strike along the northwestern limb of the Mt. Pleasant anticline. The positioning of the mineralisation is governed by gold bearing structures associated with major NNE trending faults (Black Flag and Royal Standard Faults) that link the main regional NW striking (Zuleika Shear and Boulder-Lefroy Fault) structural zones.

Catherwood Deposit

Catherwood is located adjacent to the Coolgardie North road, 33km north of Coolgardie adjacent to public and private roads that link up to several operating gold processing plants.

A feasibility study was completed by Golder Associates in May 2008. The detailed Catherwood pit design derived an estimated Ore Reserve of 178,000 tonnes at an average grade of 2.73 g/t gold for 15,600 contained ounces.

KUNANALLING GOLD RESOURCES