RESOURCE UPDATE UNDERWAY AND FURTHER POSITIVE DRILL
RESULTS RECEIVED AT CAPE LAMBERT

HIGHLIGHTS

• Independent, international mining consultancy Golder Associates has commenced a resource update utilising drill data and assay results received to 31 October 2007.
• Golder is scheduled to complete the resource update in late January 2008.
• A second resource update is scheduled for completion by Golder in the June 2008 quarter based on drill data and assay results received after 31 October 2007.
• Further Davis Tube Recovery (“DTR”) results demonstrate concentrates of saleable quality can be achieved from broad, moderately shallow magnetite zones within the Northern Extension Area. Significant results include:
  • MA415, 72m (from 80m) at an average DTR recovery of 28% mass to concentrate with a concentrate grade of 69% Fe and 3.7% silica,
  • MA320, 112m (from 84m) at an average DTR recovery of 34% mass to concentrate with a concentrate grade of 65% Fe and 6.7% silica,
  • MA417, 29m (from 43m) at an average DTR recovery of 26% mass to concentrate with a concentrate grade of 69% Fe and 3.7% silica,
  • Three drill rigs (1 x diamond and 2 x reverse circulation (“RC”)) remain working at Cape Lambert. One of the RC rigs is drill testing the newly discovered, southern most magnetic anomaly with initial positive results.
• Drill metrics to 26 November 2007 are as follows:
  • 77 RC holes have been completed for an advance of 27,598m. This compares with 69 RC holes for a total advance of 18,052m during 2006,
  • 5 diamond metallurgical holes and 8 diamond tails have been completed for an advance of 4,340m.

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