BOWDENS SILVER PROJECT

Field activities commenced at Bowdens in late January with the start of a drilling program. The program is designed to incorporate metallurgical sampling, resource definition drilling and sterilisation drilling away from the known mineralisation to allow the planning of mine-associated infrastructure. The current exploration will be included both in a preliminary EIS document and a bankable feasibility study which should be completed in the September quarter.

To date, 12 diamond drill holes, designed to recover samples for metallurgical testwork, have been completed. Results have confirmed previously interpreted mineralisation and samples have been submitted for metallurgical test work.

Results are pending for all 15 planned reverse circulation (RC) sterilisation holes.

Of the 132 RC drillholes planned for resource definition, 17 have been completed. Results received (Appendix B) have returned a number of significant intersections, including several that are outside of the current resource model and

have the potential to increase the current resource estimate. This is illustrated on the attached drill section 10,050mN with the intersections in hole BRC12011 (15m @ 165.8 AgEq from 100 metres depth) and hole BRC12006 (10m @ 96.1 AgEq from 4 metres and 26m @ 48.9 AgEq from 41 metres) being respectively below, and lateral to, the existing resource model. (AgEq refers to silver equivalent values. See Appendix B).

Following completion of the current drilling programme it is planned to update the resource model and the estimate of mineral resources.

Baseline monitoring of local noise, flora, fauna, surface water and groundwater are ongoing; these data will also be included in the preliminary EIS.

A Conceptual Project Development Plan (CPDP) document was prepared over the quarter and submitted to the Division of Resources and Energy (DRE).