September Quarter Highlights

• Continuing work was performed on the Pre-Feasibility Study for Mariposa, with results expected within the next month.
• Continuing work was performed on the Scoping Study for Soberana with results expected within the next month.
• As part of the Scoping Study, a 240 tonnes live test and 600m of RC drilling were carried out in July 2012.
• A total of 5,883m of RC drilling were completed at La Chulula (Harper South) during June and October.
• A total of 3,253m of RC drilling were completed at Simpson (Pampa Tololo).
• A ground magnetic survey, rock and soil sampling and 1,000 of RC drilling were performed as part of the 2012 exploration programme in Bulman (NT).
• Mr Hanjing Xu was appointed independent Non-Executive Director on 2 August 2012 and elected as such at the AGM.
• $920,000 was spent in exploration and evaluation. An exploration budget of $1.3M has been allowed for the December quarter.
• The quarter ended with cash on hand of $4,633,000 (previous quarter: $6,223,000).

Exploration Outline for the December Quarter

• Completion and release of the Pre-Feasibility Study, including an updated Mineral Resource Statement and Maiden Reserve Statement.
• Continue the discussions for plant construction and operation by third parties.

• Completion and release of the Early Mine Production Study, including an initial Mineral Resource Statement.
• Lodgement of the Environmental Impact Study;
• Continuation of discussions for plant construction and operation by third parties.

• Geological plotting of the data collected during the combined 5,883m drilled on the two RC drilling campaigns conducted in La Chulula since June 2012.
• Assessment of the laboratory results of the samples sent to laboratory for iron, chemical and mineralogical testing.
• Design of a third phase of RC drilling campaign aimed at plumbing the depth of the resource and fill in the information gaps that may exist.
• Commencement of the third RC campaign.

• Geological plotting of the data collected during the 3,253m maiden RC drilling campaign carried out in August and September 2012.
• Assessment of the laboratory results of the samples sent to laboratory for iron, chemical and mineralogical testing.

• Design and completion of  a maiden RC drilling campaign of approximately 2,000m. The purpose of the campaign is to confirm the IOCG (iron oxide copper gold) nature of the deposit and test the depth indicated by the high-resolution magnetic study performed in March 2012.
• Perform on site XRF testing on samples and dispatch a range of samples for laboratory assay.

• Receipt of the results of the ground magnetic survey, soil and rock sampling and 1,000m of RC drilling.
• Assessment of the results and of the economic viability of the Bulman Project.
• Design of a strategy for the future of the project.