Federation Tin Project -- EL 31/2002

The Federation project EL 31/2002 (Federation Tenement Map) is located 10km west of Zeehan adjacent to the Zeehan-Trial Harbour road. The lease area consists of a variety of deformed and altered granites (Geology Map) containing extensive quartz tourmaline veining and broad hydrothermal alteration zones.

An Inferred Resource estimate for the Sweeney's tin-zinc-silver deposit was calculated during 2007 based on compiled historical diamond drilling results (Sweeney's Drilling Map).

The Inferred Resource, using a 0.2% tin cut-off grade is:

562,000t at 0.5% tin, 1.4% zinc and 36 g/t silver containing 2,869 tonnes of tin, 8,000 tonnes of zinc and 657,000 ounces of silver.

The Sweeney's mineralisation is hosted in the Heemskirk Granite and occurs at surface and remains open on strike and at depth. The bulk of the resource is shallow and potentially amenable to open pit mining and in close proximity to treatment facilities.

The potential to expand resources in the Federation tenement is high due to the presence of other zones of mineralisation at the adjacent Anomaly One Prospect and throughout the Heemskirk Granite Complex (Federation Tenement Map). Historic sampling at Anomaly One to the east of Sweeney's has demonstrated co-incident anomalous tin (>500ppm), silver (>10 ppm) and lead (>1000 ppm) from auger sampling and a historic down hole cored drill intersection of 17.9m at 2.2% zinc and 0.45% lead from 32.8m down hole.