60% Interest

At the Penny’s Find project located 50 km northeast of Kalgoorlie, the Company
discovered a near surface resource of 314,000 tonnes @ 5.2g/t Au. The proximity of
the deposit to Kalgoorlie, the current gold price and the ability to mine a substantial
portion of the resource by open pit methods enhances the value of this resource.
The gold mineralization at Penny’s Find is associated with quartz veining developed at
the sheared contact between mafic volcanics and sediments. The mineralization occurs
over a strike length of 250m, averages 8m thick and has been defined to a depth of
160m below surface. Limited diamond drilling has shown high grade gold values
continue to at least 250m depth with the existing resource being open at depth. A
high proportion of the gold is coarse grained.

Metallurgical testwork has shown both oxide and fresh mineralization to be free
milling with a high gravity recoverable gold component (60 – 70%). Total gold
recovery in 24 hours was 98% for oxide and 97% for fresh.

Penny's Find contains a JORC compliant gold resource of 314,000 tonnes at
5.2g/tAu located on granted mining lease M27/156. This resource comprises the
following categories:

Category	Tonnes	Grade (g/t Au)	Ounces
Measured	79,000	4.40	11,120
Indicated	132,000	3.98	16,880
Inferred	103,000	7.33	24,313
TOTAL	314,000	5.18	52,313

In September 2010 the Company entered into an agreement with Brimstone
Resources Ltd whereby Brimstone have the right to purchase the project for staged
payments of $2 million plus a royalty, or earn an 80% interest by staged payments
and expenditure. Full details of the agreement can be read in the September 2010
ASX announcement. To date Brimstone has earned 40% equity in the Penny’s Find
project