ASX AND MEDIA ANNOUNCEMENT

4^th April 2008                                                                                      ELS  72 2008

DRILLING FOR RESERVE UPGRADE AT  MMAMANTSWE  

Integrated energy company Aviva Corporation Limited (ASX / BSE :AVA) has commenced a $3 million reserve upgrade drilling program at its 1.3 billion tonne Mmamantswe Coal Project in Botswana.

Two drill rigs have been mobilised on site for a 16,600 metre drilling program designed to upgrade 50% of the deposit to measured resources. The drilling campaign is expected to be completed by the end of August, with final coal quality test results expected by the end of October.

In February, Aviva announced it had doubled its initial 600Mt target at Mmamantswe, where Aviva is investigating the merit of a 1,500MW power station.

Aviva Managing Director Lindsay Reed said the resource estimate affirmed the Project as very low strip ratio open pit thermal coal deposit.

“The resource base has the potential to supply six million tonnes per annum to both a 1,500MW power project and/or direct coal sales to the power sector in South Africa. Aviva is now focused on advancing the project through drilling to deliver a significant resource upgrade,” Mr Reed said.

The program will include:

The large diameter holes will provide samples for drop shatter – wet tumble tests. This will allow the evaluation of different preparation techniques for the production of coal products ranging from, a low sulphur washed coal for export, to a de-shaled coal for a mine mouth power station.

The slim core holes will increase the density of coal quality and washability data to allow the estimation of a measured resource. All of the diamond core samples will be composited to provide 2,000kg of product coal for combustion testwork. This will enable the design parameters for a power station to be established.  

The RC holes will be geologically and geophysically logged to increase the data density and allow the estimation of a measured resource.

Rock & Stock have again been retained to project manage the drill program, and will provide geological and logistic management. Aviva is pleased to have initiated the employment of two graduate geologists from Botswana who will be working as field geologists on this program under guidance of the Rock & Stock project geologist. 

Drilling services will be provided by Quartz Drilling (RC) and Geosearch (Diamond) from South Africa. Field crews have been employed from the local area.

Coal quality and washability analysis will again be completed at the Witlab facility in Witbank, South Africa.

Aviva expects to appoint coal preparation and mining consultants in the near future, providing the necessary economic parameters to allow the Mmamantswe resource to be upgraded to proven and probable reserves.

Lindsay Reed                                                 Robert Kirtlan

Aviva                                                              Aviva

Chief Executive Officer                                Director

Tel: +61 (0) 8 9367 2344                                Tel: +61 (0) 8 9367 2344

Issued by:

Warrick Hazeldine

Purple Communications

Tel: +61 (0) 8 9485 1254  

ABOUT AVIVA

Aviva is an integrated energy company listed on both the Australian Stock Exchange and Botswana Stock Exchange with its head office in Perth. The company is growing a portfolio of integrated energy assets. Aviva’s most advanced asset is the Coolimba Power project in Western Australia.

The Coolimba Power Project will be on the Central West Coal project and is ideally located in the northern half of the SWIS power grid to take advantage of demand growth both in the SWIS and from new resource projects in the Mid West Region. The location has the advantage of low cost fuel, available water, adjacent infrastructure, existing mining lease and freehold land. Coolimba will be a 400MW base load generator employing leading emissions technology for water, sulphur and carbon dioxide.

Aviva is earning a 90% interest in the Mmamantswe project in Botswana where it has outlined a 1.3 billion tonne coal resource. The project is well positioned, being on the South African border and adjacent to key infrastructure including, highway, railway, and high voltage transmission lines.

Please visit: www.avivacorp.com.au

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