Corporate

In July 2007, the Company placed 1,100,000 shares at $0.10 per share to raise $110,000. The placement will assist with the funding of the company's exploration activities, particularly the forthcoming drilling program at Mt. Dalgety.

Mt Finnerty Project

The Mt. Finnerty nickel project has been farmed out to Breakaway Resources Ltd. Breakaway has the right to earn a 60% interest in the Mt Finnerty tenements by the expenditure of $2,000,000 over 4 years. Breakaway may withdraw at any time after spending the first years statutory expenditure on the tenements.

Breakaway has completed an auger geochemistry program on the Mt. Finnerty property. The auger geochemistry returned anomalous results up to 4,950 ppm nickel, 479 ppm copper and 116 ppb combined platinum and palladium. The results confirmed previous nickel/copper soil anomalies identified in exploration by WMC in the late 1960's/early 1970's.

Examination of historic drill hole data by Breakaway indicated that there is a strong possibility that a 27.4 metre intersection of 0.37% nickel by a previous explorer in the 1970's was disseminated magmatic sulphides. Breakaway is considering a limited drilling program to confirm whether the nickel geochemistry intersected is sulphide related.

Mt Dalgety Project

Ten main volcanogenic massive sulphide (VMS) targets have been identified on the property - Booree Creek, Jumbo, Jumbo South, Beehi, Top Deck, Beelu, River, No 3 Bore, Bilyarra and Midway.

Surface sampling of the gossans associated with these targets has returned anomalous individual assays up to 1,403 ppm copper, 4,791 ppm lead and 4,016 ppm zinc. The large size of the geochemically anomalous gossans discovered to date is encouraging as they indicate the possibility of large VMS bodies beneath.

A program of ground geophysics, fixed loop and moving loop Transient Electro Magnetics (TEM), to locate sub surface VMS bodies associated with the gossan targets was completed in December 2006/January 2007. The TEM program covered parts of the Booree Creek, Jumbo, Jumbo South, Beehi, River and No 3 Bore VMS prospects. Analysis of TEM data indicated weak to moderate TEM anomalies associated with anomalous geochemistry in gossans at Booree Creek, Jumbo South, No 3 Bore and River.

Heritage clearances and approvals have been received for an initial drilling program which has been scheduled for October 2007. Main drilling targets will be the Booree Creek, Jumbo and Beehi prospects.