Stonehenge Lead-Zinc-Silver Project -- EL 17/2003 & 20M/2001

The Company's namesake Stonehenge lease (Tenement Map), located three kilometres from Zeehan and accessible via existing sealed and gravel roads lies within the Heemskirkm Mineral field and covers extensive historical lead-zinc- silver workings.

The area consists of Proterozoic sediments overlying younger Cambrian sedimentary and volcanic rocks intruded by gabbros and underlain by serpentinised nickeliferous ultramafic volcanic rocks (Stonehenge Geology). The dominant mineralising event in the area is the intrusion of the Devonian Heemskirk Granite which provided both mineralised solutions and the heat source to remobilise metals from existing rock units to develop mineral concentrations in favourable lithological and structural sites. The lease is prospective for lead-zinc-silver, tin and nickel mineralisation.

Sunshine -- 20M/2001
The Sunshine Mining lease is located within the Stonehenge Exploration Licence (Tenement Map) and is approximately three kilometres to the south east of Zeehan Zinc PLC's Comstock Mine, five kilometres west of the township of Zeehan and neighbours the Avebury Nickel Mine a further four kilometres to the south-west.

During 2007, drilling identified lead-zinc-silver mineralisation at the Sunshine prospect and established consistent mineralisation over a strike length of 125m to a depth of 40m. The mineralised zone remains open along strike and at depth. Drilling intersections included up to 7m @ 12.8% zinc, 1.6% lead and 22 g/t silver at the main mineralised zone and also encountered wide intersections of low grade mineralisation from surface that demonstrated additional potential further to the west.

An Inferred resource estimate of;

287,600 tonnes at 2.8% zinc, 1.5% lead and 31g/t silver containing 8,000 tonnes of zinc, 4,200 tonnes of lead and 291,000 ounces of silver

was calculated on the Sunshine deposit. It was carried out in house by Mr Todd Hibberd who is a Member of The Australasian Institute of Mining and Metallurgy and qualifies as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

The estimation is based on 21 diamond core and reverse circulation drill holes (Sunshine Drilling Map) designed to intersect the mineralisation on a nominal 25m by 25m spacing. The deposit was modelled in three dimensions using cross sectional interpretations of the geology and mineralisation. The deposit boundary was defined by a 0.5% zinc cut-off grade which coincides with the geological boundary of the shear zone. Individual blocks were defined around drill hole intersections with block boundaries on and between cross sections defined by the midpoints between adjacent holes and by geological constraints. Estimation methodologies included inverse distance squared and ordinary kriging. Based on statistical analysis, maximum sample assays were reduced to 30% zinc, 9% lead and 200g/t silver (top cuts) and all grades were length weighted. Block densities were assigned based on density analysis of samples collected from diamond core drill hole samples.

The mineralisation occurs within Precambrian Oonah Formation sediments which have been thrust over the Cambrian Crimson Creek Formation volcaniclastic rocks, basaltic rocks and sedimentary rocks. The structure is complex with the sequence folded in a series of tight folds with west to northwest trending axes and disrupted by NNE-SSW faults with conjugate or linking faults orientated NNW-SSE in the prospect area.

The Sunshine deposit strikes north-east, is sub-vertical and extends to the surface where initial channel samples identified 10m @ 22% zinc. The mineralisation is open on strike to the north-east and at depth. The lode is contained within a wider shear system and the mineralisation may extend to the Colonel North Mine 400 metres to the north-east. Geological logging in conjunction with the assay results indicates that lead grades increase to the north-east while zinc grades increase to the south-west.

The area contains several other historical lead-zinc-silver workings (Tenement Map) and remains prospective for additional resources at Sunshine and economic open pitable mineralization associated with other historic mineralisation within the Oonah black shale units. Historical drilling 200 metres to the northwest of Sunshine intersected substantial widths of mineralisation at depth which may indicate further extensions to the Sunshine mineralisation or a new zone of mineralisation.