ADAVALE RESOURCES LIMITED — Capital/Financing Update 2007

Oct 7, 2007

8 October 2007

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Company Announcements Office ASX Limited Level 6, 20 Bridge Street SYDNEY NSW 2000

By Electronic Lodgement

Dear Sirs

APPOINTMENT OF CORPORATE ADVISOR AND PLACEMENT

Pocketmail Group Limited ( Pocketmail or Company ) is pleased to announce that it has appointed Crosby Corporate Finance (Holdings) Limited ( Crosby ) as its corporate advisor to assist in the development of the Company.

The assistance to be provided by Crosby includes financial and capital raising services.

Crosby is a leading independent deal-focused Asia-oriented merchant banking and asset management group. Crosby is quoted on the AIM market of the London Stock Exchange. Further details can be found on that company's website www.crosby.com.

As part of its appointment, Pocketmail has agreed to grant to Crosby 5 million options each to acquire 1 fully paid ordinary share at an exercise price of 6 cents per share on or before 30 November 2011 and a further 5 million options each to acquire 1 fully paid ordinary an exercise price of 6.5 cents each on or before 1 December 2011.

The Board of Pocketmail welcomes the appointment of Crosby and looks forward to working with Crosby for the term of its engagement.

Pocketmail is also pleased to confirm it has agreed to place 20 million fully paid ordinary shares at an issue price of 5.5 cents per share to the Crosby Active Opportunities Master Fund Limited.

As announced on 5 September 2007, Pocketmail confirms that drilling has been completed on the first stage work on the Lake Surprise Project in South Australia. The drilling samples which were sent for assay are now due to be received in the next 4 weeks.

The results of the assays will allow the Company’s geoscientists to further understand the nature of the mineralisation after which the Company can then consider whether it is appropriate to make a change to the nature of its activities to a mining exploration company, and at that time change its name. In the event that the Company does change the nature of its activities, it will seek the approval of shareholders at the appropriate time, issue a prospectus and attend to the various other re-compliance requirements under chapters 1 and 2 of the ASX Listing Rules.

PocketMail Group Limited ABN 96 008 719 015 Level 2, 45 Stirling Highway, Nedlands WA 6009, PO Box 985, Nedlands WA 6909 Tel: +61 8 9389 8799 Fax:+ 61 8 9389 8327 Web: www.pocketmail.com.au

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In that regard, it should be noted that the funds raised from the placement to the Crosby Active Opportunities Master Fund Limited shall not be used for any mining activities until such time as the Company has completed all re-compliance requirements (if applicable).

Yours faithfully

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David McArthur POCKETMAIL GROUP LIMITED Company Secretary

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