core sector communique

Drilling Hits 1% Copper at the Basil Copper Prospect

· 10.5m @ 1.02%Cu, 0.07%Co from 262.5m in LB067DD drilled at the Peaks Zone is the first significant intercept of higher copper grades along the Basil Trend;

· Downhole geophysics completed on this drillhole suggests the mineralisation continues for hundreds of metres downdip and along strike from the intercept. Drilling will test the Peaks 1% copper intercept in August;

· Drilling continues to test for zones of higher grade copper mineralisation and to extend the Basil copper-cobalt horizon to the northwest with a total drilled mineralised strike length of more than 2.9km and in excess of 7km remaining untested;

· 18 of 27 completed holes have been assayed and reported for 8158 metres of drilling, with the program anticipated to drill up to 20,000 metres in total in 2011;

· Field verification of VTEM anomalies has identified new surface mineralisation on the wholly owned Lizzie Creek tenement; and

· Gravity and geochemical surveys over a large iron oxide copper gold alteration system has identified gravity anomalies coincident with elevated copper geochemistry.