Cowal East JV

(NSW, Gold Fields 82%, Clancy 18%)

The Cowal East project consists of two tenements, Koobah EL6553 and Wyrra EL6554, located in the Cowal Igneous Complex, east of the Cowal gold mine and north and south of the Marsden copper-gold prospect. In the year to 31 December 2010 a total of 8,285m of drilling was completed on the Wyrra tenement. Diamond drilling was completed at the Eurowie and Timberscombe prospects (7 holes for 2,960m) and infill and regional aircore drilling was also completed (47 holes for 5,325m).

At Eurowie, three diamond holes followed up significant intercepts reported previously in hole WYACD006: 57m @ 0.13% Cu from 170m; 27m @ 0.27% Cu & 0.15g/t Au from 362m, including 14m @ 0.44% Cu & 0.25g/t Au from 374m. The follow up holes tested the along strike and down dip extensions of the copper-gold mineralisation. Encouraging alteration and zones of magnetite-pyrite veins ± quartz-chalcopyrite were defined, however, only narrow intervals of low-grade copper-gold mineralisation were intersected.

Aircore drilling, including some holes with diamond tails returned several encouraging basement copper and gold anomalies, including one interval of 6m @ 0.54 g/t Au from 100m (WYAC211) southeast of Eurowie that remains to be followed up.