Horse Well: Millrose/Mistake Well Prospect

Tenement E53/1471 – application

Magnetic anomalies located by Falconbridge 1973 -74.
10ppb and 2 ppb RAB anomaly BHP 1989 - 91

The Millrose/Mistake Well Prospect is located along strike from the Audax Resources Limited Millrose gold deposit which hosts a published resource of 251,000 ounces at a grade of 2.13 g/t (refer Audax 2007 Annual Report).

The project tenements are located over a basement of Archaean greenstones which are predominantly covered by various unconsolidated sediments of geologically recent origin.

Basement rocks are predominately of mafic volcanic origin with interbedded units of ultramafic composition. The ground is prospective for gold and base metals, having previously returned past anomalous results.

Drilling by a previous explorer, around the Mistake Well/Millrose Prospect, partly defined a semi-continuous three (3) km long gold anomaly (>0.1ppm Au), open ended to the south.

Based on the regional data review the Company has expanded its ground holding in the Yandal Greenstone tenements. During the quarter, the Company has made application for four tenements; E53/1485, E53/1486, E53/1488 and E53/1489.

The newly acquired tenements are situated to the east and north-east of Newmont’s Gourdis/Vause open pit mines.

Tenement E53/1486 and E53/1488– application

The tenement area is situated within the Strip Domain and is dominated by basalts and ultramafics that form the western portion of the Millrose Belt. Two major faults converge within the tenement.

Tenement E53/1485 and E53/1489– application

Mapping was carried out over the area by previous explorers defining the granite – greenstone boundaries and identifying major structures and rock units. A number of RAB holes drilled by previous explorers have intersected mafic greenstone facies.

Exploration Programs Going Forward

The exploration program for 2009 – 2010 will include:

Complete mapping to a 1:2000 scale over the main prospects
Review all exploration data
Drill approximately 1000m of diamond drilling at Palomino,Bronco and Filly
Drill a hole into the Filly sulphide zone and assay for base metals
Follow up drilling on exploration tenements recently acquired.