Potential New Base Metal Discovery in the Gascoyne Province, Western Australia:

• Gascoyne Project comprises 100% owned tenements covering 311 km² that are highly prospective for Lead (Pb), Zinc (Zn) and Copper (Cu) deposits, located in the Gascoyne Region, Western Australia.
• Located approximately 250 km to the east of Carnarvon and 1200km north from Perth.
• Project covers an area of mid-Proterozoic aged, metamorphosed sediments and volcanic rocks which have been subjected to several phases of tectonic deformation and intruded by granitoids.
• Exploration work and drilling has proven the Company’s geological model of base metal  mineralisation being associated with coincident soil  geochem and “thumbprint” magnetic anomalies.
•  First pass RC drill testing of one these targets has returned significant intercepts of 2.3% Pb and 0.9% Cu. Lead sulphide (galena) and copper sulphides (chalcopyrite) identified in drill chips.
• Drilling has defined two areas of base metal mineralisation 9 km apart.  Significant base metal results on three consecutive RC drill sections with strike length of over 100m established at Area 1. Lead and copper mineralisation outlined remains open along strike.
• Iron/manganese-stained outcrops identified. These are significant and may prove to be gossanous have been identified by interpretation aerial photography data and confirmed by field visit.
• Numerous thumbprint targets and a gravity anomaly outlined from previous exploration by BHP remain untested.
• Regional rock chip sampling has returned anomalous values of up to 953ppm Pb and 487ppm Zn.
• Audalia’s target is a Broken Hill Sedimentary Exhalative (SEDEX) massive sulphide Pb, Zn and Cu deposit.

Exploration work completed to date on the Gascoyne Project:

1. Regional rock chip sampling
2. Airborne magnetic surveys at 100m line spacing
3. Geological Interpretation of Aerial Photography at 1:25,000 scale
4. Systematic auger geochemical sampling – 400 drill holes,
5. RC Drilling :  30 drill holes for 2136m;
6. Induced Polarisation and Mise a la mass surveys.

Gascoyne Proposed Exploration Works to Commence in July:

1. Further systematic auger geochemical surveys of untested of thumbprint anomalies;
2. Next phase of Geophysical – IP surveys;
3. Follow-up RC drill testing of significant lead copper and zinc intersections at Area 1 with the aim of extending strike length and size of the zone of lead copper and zinc base metal mineralisation at Area 1.

Figure 1 Gascoyne Project - Location Map

Figure 2 Geology/ Magnetic Interpretation with auger geochemistry and location of RC drilled Area(s) 1 and 2

Figure 3 Area 1 Drill Cross Section showing significant lead, copper and zinc base metal mineralisation

Figure 4 Area 1 plan showing lead copper base metal mineralisation over a strike length of 100m

Figure 5 Geological and regolith interpretation showing Fe/Mn enriched gossanous areas