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THIRD QUARTERLY ACTIVITY REPORT TO 31st MARCH 2011

HIGHLIGHTS FOR THE QUARTER

- Diamond drilling has commenced at the Collurabbie nickel-copper-PGE Project with 10 holes for 4000m to test for massive sulphides associated with several electromagnetic and coincident geochemical anomalies at the Spartacus Prospect.

- Two diamond drill holes are planned to test for the southern and northern extensions to the main massive sulphide mineralised zone at Olympia.

- Auger sampling is underway to test the Zeus and southern Rhodes areas. Limited exploration to date indicates potential for further Ni-Cu-PGE sulphides associated with fertile ultramafic rocks.

- Drillhole planning is underway to test two significant gravity targets at Spring Hill and Davenport Creek in the Peake-Denison inlier of the northern Gawler Craton. Both targets have potential to host a large ironoxide-copper-gold mineralised system such as those associated with the Prominent Hill and Osborne copper-gold deposits.


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