CANNINDAH RESOURCES LIMITED — AGM Information 2007

Nov 15, 2007

QUEENSLAND ORES LIMITED

ANNUAL GENERAL MEETING - 16 NOVEMBER 2007

Chief Executive Officer’s Comments

Mr Chairman, ladies and gentlemen

I appreciate this opportunity to address you on this occasion - my second AGM with Queensland Ores.

I am pleased to be in a position to say that we have finally been granted our Mining Leases at Wolfram Camp which will allow us to advance this project to production. At last year’s AGM I had forecast their granting in March 2007 with production following in August. The delays have been both frustrating and costly. We now have to bring the mine into production as soon as we reasonably can. The Wolfram Camp team is focused on this goal and Lycopodium Engineering, our EPCM contractor for the Treatment Plant, and its contractors are itching to get construction underway. We have confidence that the plant is well designed and will give us the best recoveries of wolframite and molybdenite practicably achievable. As shareholders will be aware, the cost of building the project has increased to $30 million, mainly as a result of additional equipment needs in the wolframite gravity circuit, additional costs associated with complying with the requirements of our Environmental Authority and, inevitably, the cost effect of the delays in getting the mine into production. We are not alone in facing delays and cost escalation; a number of mining companies, both large and small, are experiencing the same effects with their new mine developments. In terms of Australian ventures in the tungsten/molybdenum market we remain the leader in bringing a mine into production.

We have also predicted an increase in our operating costs for the mine to $75 per tonne of ore treated. Cost pressures will remain with us with the price of fuel at record levels in recent weeks.

The strength of the Australian dollar relative to the US dollar is also obviously a cause for concern. The prices for wolframite and molybdenite concentrates in US dollars have remained stable throughout the year with a minor strengthening in the price of molybdenum being apparent in recent times. The outlook from a supply and demand basis continues to look positive for both products. The Company is near to signing a 12-month marketing contract for our concentrates with a major Chinese trading company, with an option for QOL to extend the contract for a further three years. This is a considered approach that is aimed at maximising the longer term results for the company.

As I mentioned earlier, the intention is to now get Wolfram Camp into production as soon as we can and generate a positive cashflow which can in turn support the resumption of exploratory drilling and an expansion of our resource base.

At our Mount Cannindah project near Monto in Central Queensland we have learnt a great deal during the past year. The drilling programme on the main Mount Cannindah Mine deposit has been completed and work has commenced on a JORC compliant resource statement. The drilling programme picked up evidence which may support the existence of a large deposit at depth. Relatively elevated grades of both copper (including 28m at 2.53%Cu) and gold (including 4m at 8.26g/tAu) have been returned from recent drilling at around 200m below surface. In addition, disseminated copper mineralisation has been found in porphyritic dykes penetrating into the primary, breccia-hosted style of mineralisation

It is planned to test this deep target with a geophysical exploration programme which is now expected to take place in January/February 2008. The difficulty in obtaining the services of personnel with the necessary skills and equipment to undertake this work is again testament to the highly active state of the exploration industry.

During the last quarter the generally positive view on the prospectivity of the Mount Cannindah region led to an agreement being entered into with Xtreme Resources Limited for the purchase of two EPMs which surround our nine Mining Leases. The transfer of the EPMs is currently being progressed by the Department of Mines and Energy. The acquisition of these has increased our landholding in the region to around 120 square kilometres and has added defined targets to our portfolio.

Investigations into the main infrastructure requirements for a Mount Cannindah project have revealed that fixing on an economical supply of water for a one million tonne per annum size of project is not straightforward. Whereas reliable water supply sources have been identified in the region, their distances from the Mining Leases will give rise to unacceptably expensive delivery solutions. One possibility remains of damming a creek system which is within 5 km of the project area. However for this to progress further a number of changes will be required to the Resource Operations Plan for the river catchment concerned. This process is likely to take at least a year. This adds to the time that it will take to bring a Mount Cannindah project into production. Realistically speaking, if the water situation can be resolved by, say, the end of March 2009, the earliest that first production could be expected from a greenfields project would be mid 2011.

In concluding, I can say that the year ahead of us will be one full of challenges. You can be assured that the Queensland Ores team will do its utmost to deliver the best possible result for the Company and its shareholders during that time.

Thank you for your attention.

JBG/JBG

16 November 2007