Celsius Resources Limited — Management Reports 2005

Mar 7, 2005

Attention ASX Company Announcements Platform Lodgement of Open Briefing

View Resources Limited Level 12 London House 216 St Georges Terrace Perth, Western Australia 6000

Date of lodgement: 08-Mar-2005

Title: Open Briefing. View Resources. Bronzewing & Nickel Operations

Record of interview:

corporatefile.com.au

View Resources Ltd (VRE) has been very optimistic about Bronzewing but you recently announced that a feasibility study to evaluate restarting the project showed that it did not currently meet View's financial hurdles. This was largely because mining contractor costs were approximately 30% higher than previous estimates. Ignoring the increase in costs, did the feasibility study expose areas which might threaten the longer term viability of the project?

MD Derek Lenartowicz

No it did not. The feasibility study concluded that all other areas would strongly support the project including geology, metallurgy, mine design and the environmental review. We reiterate that the decision to postpone development of this project does not in any way diminish the value or importance of Bronzewing to View Resources.

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Do you expect the project to proceed if costs return to more normal levels? How robust would the project be in a more typical cost environment?

MD Derek Lenartowicz

The feasibility study concluded that Bronzewing open cut was cash positive even under current market conditions. If you add around \$50 million in total over four years, that we lost because of increases in costs, we'd be looking at a project generating approximately \$15 million of free cash per year over a period of four or five years.

We expect the project to go ahead at some time in the future. We regard the deferment of the large open pit as a short term hiccup and we expect mining operating costs to eventually fall back to average long run levels. Mining companies worldwide are encountering similar cost pressures. In the meantime, we're reviewing options to mine Bronzewing on a smaller scale in the near term. Our nickel business is providing cash flow to underpin further evaluation of Bronzewing. We're confident about the longer term growth prospects for Bronzewing and our nickel business.

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The Board has decided that recommencing Bronzewing will be deferred until market conditions improve and/or further resources have been defined to support appropriate rates of return. What scale of project were you evaluating under the feasibility study and what scale of project might reach your hurdle rates of return?

MD Derek Lenartowicz

Our feasibility was aimed at developing a large open cut mine capable of producing 2.5 million tonnes per annum of ore.

Although the development of the large open pit has been deferred, Bronzewing still offers short term opportunities to produce significant quantities of low cost gold under current market conditions. We believe that the most advanced opportunities centre around the Orelia underground mine and a smaller version of the Bronzewing Central open pit. We hope to develop an operation producing somewhere between 50,000 ounces to 70,000 ounces of gold per annum at a very competitive operating cash cost under current market conditions. Developing Orelia won't in any way affect the future development of the larger open pit.

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Is owner operated mining an option?

MD Derek Lenartowicz

We don't consider this a viable option at this stage.

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Can you outline your exploration program at Bronzewing including the best prospects? When could we expect some meaningful results?

MD Derek Lenartowicz

Our best gold prospects centre around Orelia underground and two recently identified gold bearing outcrops. There is also the possibility of discovering a completely new nickel deposit on the ultramafics present on our leases. The exploration program will be in place for the next six months and we will obviously update the market as results come in.

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You recently reported that nickel production for the first two months of this calendar year alone has already exceeded the previous best full quarter production (September quarter 2004, 277 nickel tonnes). What is the current production split by mine and what split do you expect over the rest of the year?

MD Derek Lenartowicz

During 2004 we focussed on developing and accessing the ore in Zone 29. We've completed this program and for the next two months about 80% of our production will come from Zone 29. In April we'll complete access development to newly discovered ore body extensions at Carnilya Hill and, from that moment on, both mines should contribute around 50% of our total nickel production.

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How hard are you pushing the operations? What is the recent profile of mined grades and the future expectation?

MD Derek Lenartowicz

We're trying to capitalise on strong nickel prices and we're therefore working around the clock to produce as much nickel as possible. We have improved the mechanical efficiency and availability of our key mining equipment and we have first class miners operating our mines.

For the calendar year to date our average grade from the mines was about 3% nickel. In future the Carnilya Hill mine should produce ore with nickel content of between 2% to 2.5% and Zone 29 should be higher than that.

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How are you countering the operating cost pressures at the mines?

MD Derek Lenartowicz

We had several contractual arrangements in place at Zone 29 and Carnilya Hill before the increases in costs took hold. So we're immune from the cost increases in a number of areas, for instance in equipment hire. However, we're unavoidably exposed to cost increases in some other areas such as for fuel and general consumables.

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What cash flow are you currently generating from operations and how much do you expect that to improve as production increases?

MD Derek Lenartowicz

We recently announced that we expect to generate between \$350,000 and \$1,000,000 a month in free cash flow. The biggest impact on our future cash flow will happen when we complete the development of Carnilya Hill and deeper sections of Zone 29. We're currently spending around \$600,000 a month on development. We expect to finish the development program in four to five months and when that happens our costs should obviously reduce by that amount.

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View recently confirmed the existence of a parallel ore body at Carnilya Hill. Can you explain what you know about the dimensions and orientation of this ore body? How does it compare in size and quality with the original Carnilya Hill ore body?

MD Derek Lenartowicz

The grade of ore is similar to the original Carnilya Hill ore body but we've only recently discovered this particular structure and therefore we're not sure of its full extent. At this stage it is not possible to drill it any further because of the mine geometry. We will further drill this ore body and test for down plunge extensions to the main Carnilya Hill chute in early May when we finish development of the decline.

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Longer term, how will you improve or grow the nickel business?

MD Derek Lenartowicz

Part of our \$1.6 million exploration commitment is directed towards achieving organic growth of our existing operations. The biggest new opportunity comes with our 100% owned Dunlop deposit which has resources of approximately 300,000 tonnes of ore with an average grade of 2% nickel. The nickel contained in this deposit has a current in situ value of about \$120 million.

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Can you update other aspects of your current exploration programs including the significance of drilling results at Zone 29?

MD Derek Lenartowicz

At our nickel operations we're currently conducting down-hole geophysical surveys at Zone 29 and surface electromagnetic surveys at Carnilya Hill. A soil sampling program on previously untested areas of ultramafic at Carnilya Hill is also underway.

At Bronzewing we're concentrating on increasing the size of our underground development opportunity, Orelia. Newmont conducted a pre-feasibility study on this project and their designs reveal that there's an opportunity to mine 822,000 tonnes of ore at 5.9 grams per tonne for about 155,000 ounces of gold. We've identified a few areas which we believe will add to this resource. We also plan to test the extent of two long gold bearing outcrops which we recently identified only three kilometres from our Bronzewing plant. We also believe that ultramafic units located at Bronzewing are very prospective for nickel. We will drill nickel targets we have developed as part of the current exploration program.

corporatefile.com.au

Thank you Derek.

visit For further information View Resources $\alpha$ please www.viewresources.com.au or call Derek Lenartowicz on (08) 9226 4611.

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