CULLEN RESOURCES LIMITED — Interim / Quarterly Report 2003

Apr 29, 2003

CULLEN RESOURCES LIMITED

ABN 46 006 045 790

QUARTERLY REPORT 31 MARCH 2003

ENGHEMENTINS	2002년 2012년 2012년 2012년 2012년 2012년 2012년 2012년 2012년 2012년 2012년
GUNBARRET (2018)
Southern Prospect	Air core drilling outlines an extensive zone of anomalous gold $(>0.5 g/t)$ in weathered bedrock (to 80m depth) over a 1,200 $x$ 400m, NE-SW to N-S trend. Results include 12m $\omega$ 2.96 g/t Au on the southernmost drill line, with the prospect open to the south.
	RC drilling of the Central Zone of this prospect returns significant results including: 7m $(a)$ 9.02 g/t Au and 9m $(a)$ 6.2 g/t Au
	Further aircore drilling of the Central Zone and of possible extensions to the Southern Prospect are planned for the current June Quarter.
	Aeromagnetic interpretation identifies several priority targets within 2km of the Central Zone.
Ashbherton (308)	A Joint Venture Agreement is signed with Barrick Gold of Australia Limited which involves most of the Wyloo project area. Extensive exploration is planned for the June Quarter. Barrick may earn 70% interest by sole funding expenditure of \$5M.

ASX Code: CUL Level 4, 118 Christie Street ST LEONARDS NSW 2065 AUSTRALIA

Phone: +61 2 9437 4588 Fax: +61 2 9437 4599 Email: info@cullenresources.com.au Website: www.cullenresources.com.au

EXPLORATION ACTIVITIES

NORTHEAST GOLDFIELDS W.A.

GUNBARREL GOLD PROJECT - (Eureka Group E 53/568, E 53/535, E 53/818, E53/837, MLAs 53/868-870, Cullen 100%; Irwin Bore Group E 53/403, ELAs 53/925 and 981, Cullen 90%; ELA 53/1040, Cullen 100%)

Summary

Cullen's Gunbarrel Project covers approximately 650km² of granite/greenstone terrane in the NE portion of the Archean Yilgarn Block of Western Australia (see Location Plan). The Project is located 130 km E of Wiluna and 90km E of the highly productive Yandal Greenstone Belt. Cullen is exploring for gold in its own right and also for nickel on the Eureka Group tenements in joint venture with WMC Resources Ltd (WMC).

The Gunbarrel project has returned excellent exploration results and is considered by Cullen to be an exploration project of substantial potential.

Exploration activity remained high at the Gunbarrel Project during the Quarter with programmes of air core (46 holes for 2.125m) and RC (9 holes for 1.100m) drilling completed at the Southern, Kilkenny and Eureka Northwest gold prospects.

The air core drilling results are encouraging, and underline the economic potential of the mineralised shear systems at Southern with gold mineralisation now known to occur over 1.2km of strike.

Two RC holes drilled as 90m step-outs to the ENE of the Central Zone returned very significant ore grade intersections.

Preliminary interpretation of Cullen's detailed aeromagnetic survey flown in January 2003 indicates a favourable structural setting for gold mineralisation at Southern, and highlights several important new targets to the S and SSE.

Further air core drilling is planned for the current June Quarter.

Air Core Drilling-Southern and Kilkenny Prospects

Air core drilling (46 vertical holes for $2.125$ m) was completed on 100 x 50m spacings (see Drill Collar Plan) to test:

• $\bullet$ possible southerly extensions of mineralisation intersected in Cullen's previous air core drilling at Southern (including 6m $\omega$ ) 3.6 g/t Au in drillhole MEAC 130);
• possible northeasterly extensions of Southern; and, $\bullet$

a lag soil anomaly at the Kilkenny Prospect 800m NW of Southern.

Results, which were announced on 28 March 2003 (Table1), indicate a zone of strong gold mineralisation at Southern extends for at least 200m S of previous drilling. Best intersections include:

• 8m @ 2.03g/t Au (2.72 g/t Au repeat assay) from 12m and 6m @ 5.06g/t Au from $\bullet$ . 40m (MEAC 147).
• 12m @ 2.96g/t Au (3.78 g/t Au repeat assay) from 44m (MEAC 156, 125m SE of $\bullet$ MEAC 147).

This new mineralisation is related to quartz veins near a NW-SE trending, sheared felsic volcaniclastic/ultramafic contact which is concealed by up to 10m of transported cover.

A single traverse of holes across the large Kilkenny lag gold geochemical anomaly returned anomalous intersections of 8m @ 0.26g/t Au from 53m to the end of hole (MEAC 185) in sheared ultramatics, and 4m $\omega$ 0.18g/t Au from 21m in adjacent hole MEAC 186, 50m to the East.

TABLE 1: SIGNIFICANT AIR CORE DRILL RESULTS - Gunbarrel Project.
Prospect/Hole	East	North	From	$T\sigma$	Intersection &	Repeat Assay
Ĭď	GDA 94	GDA 94	(m)	(m)	Grade $(g/t \, Au)$ #	$(g/t A u)^{**}$
Southern
MEAC 145	354000	7055950	48	52	*4m @ $0.63$	0.87
MEAC 147	353900	7055950	12	20	$*8m \, @ 2.03$	2.72
			40	46	$*6m @ 5.06$	5.06
Including			44	45	1m (a) 14.29	13.63
			49	50	Im (a) 9.32	9.17
			52	53	$\text{Im}$ @ 1.12	1.03
MEAC 150	353750	7055950	30	34	*4m @ $0.48$	0.53
MEAC 156	353950	7055850	32	36	*4m @ $0.62$	0.81
			44	56	$*12m$ @ 2.96	3.78
MEAC 157	354000	7055850	57	61	4m @ 1.32EoH	1.11
Including			58	60	2m @ 2.1	1.66
MEAC 163	354050	7055750	32	36	*4m @ $0.97$	1.02
Kilkenny
MEAC 185	353900	7057349	53	61	*8m @ 0.26EoH	N/A
MEAC 186	353950	7057342	21	25	*4m @ $0.18$	0.04

* 4m composite samples. # Assay method B/ETA. ** Assay method AAS.

N/A Not available. EoH End of Hole.

RC Drilling - Southern

A short programme of RC drilling (7 holes for 904m) was completed to test (1) various structural targets over a strike of 500m and (2) the possible ENE extension of the Central Zone. The results, which were announced on 20th March 2003, are summarised as follows (Table 2):

• MERC 74 and 75 results prove a 90m ENE strike extension of multiple, stacked, quartzsulphide shear lodes previously intersected in MERC 58 to 66 by Cullen. The lodes dip $\sim$ 35^° SE (see Drill Section) in felsic and mafic/ultramafic host rocks along a NE trending, sheared contact zone. New ore grade intersections include: $2m (a)$ 10.01 g/t from 50m and $7m$ @ 9.05 g/t Au from 116m (MERC 74) and 9m @ 6.2 g/t Au from 98m (MERC 75). These new mineralized intervals include high grade, single metre assays (Table 2).
• The Central Zone extends ENE for at least 350m, and has not been closed off.
• MERC 76 and 77 tested an interpreted NS trending shear zone target in the NW of the prospect area. MERC 76 bottomed in mineralisation (1.54g/t Au) and MERC 77 intersected lower grade mineralisation.
• MERC 72 and 73 tested down dip of Cullen's previous air core intersection of 6m $(a)$ 3.6g/t Au in MEAC 130. MERC 72 intersected 1m @ 2.41g/t Au and MERC 73 intersected broad, low grade lode mineralisation (18m $\omega$ ) 0.47g/t Au).

RC Drilling - Eureka Northwest

Two RC holes for 196m were drilled to follow up an earlier Cullen intersection of 10m $\omega$ 2.54 $g/t$ Au (MERC 55). This prospect is marked by a 3km long base-of-hardpan gold geochemical anomaly. Limited previous RAB and aircore drilling by Cullen intersected gold mineralisation associated with quartz veins in sheared conglomerate and ultramafic schist.

MERC 79 and 80 indicated down dip continuity of mineralised lodes intersected in previous hole MERC 55 (10m @ 2.54 g/t Au), with intersections of 2m @ 2.2 g/t Au from 97m and 2m @ $2.7$ g/t Au from 103m.

Approximately 2km of the gold geochemical anomaly, which is broadly related to a conglomerate-ultramafic contact, remains largely untested. Targets for further aircore drilling will be identified from interpretation of Cullen's detailed aeromagnetic survey together with earlier geochemical data.

TABLE 2: SIGNIFICANT REVERSE CIRCULATION INTERSECTIONS - Gunbarrel Project
Prospect/Hole Id	East	North	From	Tо	Intersection &
	GDA 94	GDA 94	(m)	(m)	Grade (g/t Au)
Southern
MERC 72?	354098	7056063	78	79	1 m (a) 2.41
MERC 73?	354114	7056358	66	84	18m (a) 0.47
MERC $74?$	354167	7056537	50	52	2m (a) 10.01
			$\overline{72}$	$\overline{73}$	$1m$ (a) $1.86$
			109	$\begin{tabular}{ c c c c c c c c c c c c c c c c c c c$	2m (a) 2.50
			116	$\overline{123}$	$7m$ $@$ 9.05
Including			$\overline{120}$	121	1m (a) 52.73
MERC 75?	354333	7056508	75	$\overline{76}$	$1m$ (a) $1.69$
			86	87	$Im($ a $3.29$
			91	92	1m (a) 1.05
			98	107	$9m$ (a) 6.20
Including			98	100	2m (a) 20.40
			126 129	127	1m (a) 1.29
			136	130 139	$1m$ (a) $1.04$ 3m (a) 1.31
MERC 76?	354138	7056588	69	70
			90	91	$Im($ $a)$ 7.93 Im (a) 3.77
			133	134	$1m \ (\hat{a}) 1.01$
			$\overline{135}$	136	$1m$ $@$ $1.54$ EoH
MERC 77?	354088	7056588	$\overline{112}$	$\overline{113}$	1m (a) 1.20
			115	116	$Im($ $\omega$ 3.10
			117	118	1m (a) 1.08
MERC 78	354225	7056491	39	40	1 m (a) 2.09
			41	42	$1m$ (a) 2.63
			112	113	1m (a) 1.23
			119	120	$1m$ (a) $1.73$
Eureka NW
MERC 79?	353568	7061559	74	75	$1m$ (a) $1.38$
			97	99	2m @ 2.19
			103	105	2m (a) 2.68
			109	110	1m (a) 1.31
			114	115	$Im(\omega)$ 1.08 EoH
MERC 80?	353558	7061658	53	54	$1m$ $\omega$ 1.18
			63	64	Im (a) 4.70

All 1m samples. Assay Method: Fire assay 50gm charge, AAS finish; All holes inclined $60^0$ : ? towards $270^\circ$ ; ? towards $315^\circ$ ; ? towards $090^\circ$ , except MERC 78 (vertical). EoH: End of hole.

Aeromagnetics

A 2.142 line km aeromagnetic survey with flight lines at 50m spacing was completed for Cullen in January 2003 in two separate areas over approximately $100 \text{km}^2$ . It covers the Irwin Bore, Southern, Eureka North and Eureka Northwest prospects and joins an earlier survey by Pegasus to give Cullen detailed aeromag coverage over a total area of $170 \text{km}^2$ .

Preliminary interpretation indicates that Southern lies along the southern flank of a major NNE trending shear zone separating two regional fold structures, an antiform to the S and a synform to the N (see Aeromagnetic Interpretation Plan). The antiform is strongly disrupted by the NNE shear zone and subsidiary NE and NW shears. Drilling to date indicates that intense shearing occurs at the margins of large, disrupted ultramafic blocks which form part of the antiform. Gold mineralisation may be related to favourable dilation zones along such sheared margins.

Importantly, several similar settings have been identified along a structural corridor extending for about 3km to the S of Southern. Four priority target areas within 2km of the Central Zone are shown on the Aeromagnetic Interpretation Plan.

North of Southern, target areas are indicated where NE-SW shears cross the regional synform at Kilkenny, Eureka and Eureka Northwest.

Proposed Drilling - June Quarter

A programme of approximately 4,000m of aircore drilling is scheduled to commence in late April with the following objectives:

• Testing possible strike extensions of the Central Zone;
• Testing previously defined lodes within selected areas of the Central Zone for up-dip continuity within the oxide profile;
• Definition of the new zone of mineralisation discovered at the southern end of Southern by holes MEAC 147 and 156:
• Testing possible southerly extensions of this new zone;
• Testing of two of the priority structural targets identified from aeromagnetics, one of which, located 400m S of the limit of air core drilling, has associated anomalous gold in lag; and
• Further testing of the Kilkenny Prospect geochemical anomaly. $\bullet$

Irwin Bore Group

Cullen has now earned 90% of the Irwin Bore tenements from Revesco Group Ltd. No drilling was carried during March Ouarter.

GUNBARREL NICKEL PROJECT - (Eureka Group E 53/568, E 53/535, E 53/818, E53/837, Cullen 100%, WMC may earn a 75% interest in nickel and base metal rights)

WMC is planning to drill two diamond holes, each to 230m depth, to test nickel targets during June Ouarter 2003. One is to be drilled into the AK47 target and the other into the 303 target. The holes will test cumulate ultramafics with coincident electromagnetic conductors, as indicated by ground TEM geophysical surveys.

WONGANOO GOLD/NICKEL PROJECT - (White Well Group E 53/645, ELAs 53/1030, /1069, /1046 and /1083 Cullen 100%; option to earn 80% in E53/988)

Following reconnaissance field work, an option was signed with Quantum Resources Ltd, the holders of E53/988, "Wonganoo", which adjoins E53/1030 to the SW. The agreement allows Cullen to review and compile the existing geological and historical exploration data and at its election. Cullen may then earn an 80% interest in the tenement by sole funding expenditure of \$50,000.

Application E 53/1083 was lodged to cover extensions of greenstones west of E 53/1030.

Compilation of available geological and exploration information is in progress in order to prioritise nickel and gold prospectivity.

EASTERN GOLDFIELDS W.A.

KILLALOE NICKEL PROJECT (E 63/722*, E 63/765*, P 63/1131, 1132, 1133, 1172, 1173 1174, Cullen 100%, *7.5% NPI to Xplore Pty Ltd applies to these tenements; Sipa Resources International NL (Sipa) may earn 70% in nickel and base metal rights)

Sipa Resources International N L may earn 70% in the rights to explore for and mine nickel, base metals and associated Platinum Group Element ore from Cullen Resources NL at Killaloe, 25km NE of Norseman in the Kambalda-Widgiemooltha Nickel Province in the Eastern Goldfields of Western Australia.

Extensive exploration by Sipa over the last year has consisted of geological mapping and airborne magnetic data interpretation, followed by ground electromagnetic (EM) surveying. RAB, RC and Diamond Core drilling along about 20km of the Eastern and Western Ultramafic Complexes.

The first ever EM survey over the 10km of strike of the Western Ultramafic Complex was completed during the Quarter (see Nickel Programme Plan). The survey identified 11 conductors, ten of which were subsequently tested by deep RC and Diamond Core drilling.

Five EM conductors situated close to the interpreted basal ultramafic contact were intersected and explained by the presence of either sulphidic black shales or barren massive to semi massive sulphides. No significant nickel mineralisation was detected. KLC27 was drilled to test the conductor located south of KLC 19 and intersected 2m of massive sulphides at 104m with up to 0.34% copper. The remaining four conductors were associated with barren massive sulphides or sulphidic black shales. Follow-up down hole TEM confirmed all ten conductor positions in-hole. Two off-hole conductors were also detected in KLC 25 and KLD 9.

A review of all work to date is now being undertaken by Sipa prior to planning any subsequent work.

KILLALOE GOLD PROJECT - (E 63/722*, E 63/765*, P 63/1131, 1132, 1133, 1172, 1173 1174, Cullen 100%, *7.5% NPI to Xplore Pty Ltd applies to these tenements)

A programme of auger pedogenic carbonate, soil and rock chip sampling was carried out during the Ouarter (see Gold Programme Plan) and new target areas were identified at the Duke, Peninsula, Peninsula South, and NE Volcanic Zone prospects.

Sipa's nickel related RAB and RC drilling had previously located priority gold targets at Duke and Big Bend. In the western part of Duke, RAB drilling had tested the basal contact of the Eastern Ultramafic Complex and KLR 52 intersected 10m $(a)$ 0.12g/t Au in a zone of weak to moderate quartz veining. The nearest RAB drilling is 200m S and 800m N.

At Peninsula, a 700 x 500m area was sampled by soil augering on 200 x 50m spacings and an additional line 100m N tested quartz veined and sheared mafic volcanics. Anomalous assays of up to 39ppb Au were reported from the SW part of the new grid associated with quartz veining in mafic volcanics intruded by a basic igneous rock (gabbro). A 700m long, NW-SE trending zone up to 80m wide of $\pm 10$ ppb Au occurs in the central part of the new grid associated with sheared and quartz veined mafic volcanics. Both zones are open along strike.

Auger sampling SE of Peninsula tested a major structural trend (Sipa mapping) over an area 2.3km (NW-SE) x 400-1200m. Eight traverse lines 320m apart tested a fault intersection with magnetic mafic rocks. Sample spacing across strike was 100m. Moderately anomalous gold assays occur along a major structure in the W of the new grid area. Highs of up to 11ppb Au occur in the NW of the grid and are open to the N and W. The results are considered significant, particularly as Sipa mapped deep transported overburden in the area that will mask bedrock gold geochemistry.

In the Duke Prospect area, auger sampling tested for extensions to the Duke mineralisation to the W and SW. The sampling extended the existing grid 250m W over 1.4 km of strike. Anomalous gold assays up to 28ppb Au were reported SW of Duke over a 500m zone that extends the anomaly to 1.2km. The auger gold assays near the collar of KLR 52 are weakly anomalous (4-5ppb Au).

At NE Volcanic Zone, traverses were extended 350m E to sample sheared mafic volcanics. The new grid covered a 1.2km x 350m area between parallel NNW trending shears Sipa mapping). Moderately anomalous gold assays extend the anomaly NE to the edge of the drainage to Lake Cowan. Earlier sampling of porphyry intrusive returned 0.4g/tAu and auger sampling nearby contained up to 55ppb Au.

Auger sampling at Big Bend covered a 1.5 x 1.6km area but no anomalous results were recorded over this target.

Results of the recent auger sampling have been combined with earlier results and interpretation has identified Peninsula - Peninsula South, Duke and Baseline as priority targets for follow up. Field inspections will be carried out and where possible, rock chip samples collected to identify mineralized structures. Further auger sampling along the major structure at Peninsula will determine the extent and continuity of the anomaly over a 4km trend. RAB and/or RC follow up of Peninsula and Baseline will be planned on completion of auger sampling

ASHBURTON GOLD PROVINCE W.A.

BARRICK WYLOO JOINT VENTURE De Courcy (E 47/874, 875, 1004), De Courcy North/Horse Well (E 47/903, ELA 47/1154), Hardev Junction (E 08/1145, ELAs 08/1166, 1189, 1327), Catho Well (ELA 08/1330), Cardo Bore (E 08/1341) and Mount Stuart (ELA 08/1292)

Barrick Gold of Australia Limited (Barrick) and Cullen have entered into a Joint Venture Agreement whereby Barrick may earn a 70% interest in the Wyloo tenements by sole funding expenditure of \$5 million over $\frac{1}{2}$ vears. Expenditure of \$350,000 in the first vear is committed. subject to granting of two key tenements at Hardey Junction (E 08/1166, 1189). The agreement is also subject to the usual WA Department of Minerals and Petroleum Resources approval.

Cullen has been actively exploring in the Ashburton since 1998 and has acquired large tracts of underexplored areas along major shear zones prospective for Carlin style" sediment-hosted gold deposits.

The Joint Venture plans to commence exploration in the current June Quarter with reconnaissance RAB, aircore and RC drilling on geochemical and conceptual targets that were identified by Cullen. Further mapping and reconnaissance stream sediment sampling are scheduled for the remainder of the Joint Venture tenements.

YANKS BORE PROJECT - Yanks Bore E 08/1022, Cullen 51% (Cullen and Udu Resources Ltd contributing pro rata); Red Hill West E 08/1135, Cullen 100%

Fieldwork and compilation of all exploration data confirmed several prospects within E 08/1022 which warrant further investigation. The Hunter Zone/Yanks Bore Fault corridor (see previous Quarterly Reports) is strongly anomalous in gold over a 9km strike and provides several target areas for further work and possible drill testing.

SLATE BORE - (M 08/79, Cullen 100%, E 08/1021, Cullen 100%)

Cullen continues to follow up expressions of interest by parties willing to explore Slate Bore as a base metal exploration prospect. The known base metal prospects and geochemical anomalies are located within a large scale hydrothermal alteration system and indicate potential for stratiform/stratabound, sediment-hosted base metal sulphide deposits.

CORPORATE ACTIVITIES

During the quarter Cullen has sold 175,000 shares in Peter Hambro Mining Limited giving proceeds of approximately \$621,000 (a book profit of \$565,000). At the end of the quarter the Company retained 100,000 shares valued at approximately \$450,000.

ATTRIBUTION

Information in this report which relates to mineralisation is based on information compiled by Grahame Hamilton, a full time employee of Cullen Resources Limited who is a Member of the Australian Institute of Geoscientists and has relevant experience as a Competent Person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves in relation to mineralisation being reported on.

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Name of entity

CULLEN RESOURCES LIMITED

ABN

46 006 045 790

Quarter ended ("current quarter") 31 March 2003

Consolidated statement of cash flows

			Current quarter	Year to date
	Cash flows related to operating activities		\$A'000	$\left(\begin{array}{cc} 9 \end{array}\right)$ months) \$A'000
1.1		Receipts from product sales and related debtors
1.2	Payments for	(a) exploration and evaluation	(410)	(1,556)
		(b) development
		(c) production
		(d) administration	(66)	(231)
1.3	Dividends received
1.4		Interest and other items of a similar nature received	16	68
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows		(460)	(1,719)
		Cash flows related to investing activities
1.8	Payment for purchases of:	(a)prospects
		(b)equity investments
		(c) other fixed assets	(50)	(50)
1.9	Proceeds from sale of:	(a)prospects
		(b) equity investments	621	621
		(c)other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows		571	571

⁺ See chapter 19 for defined terms.

1.13			Total operating and investing cash flows (carried
	forward)					148

$\overline{\mathcal{L}}$

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	111	(1, 148)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other share issue expenses
	Net financing cash flows
	Net increase (decrease) in cash held	111	(1, 148)
1.20	Cash at beginning of quarter/year to date	1,446	2,705
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	1.557	1,557

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities $\overline{\phantom{a}}$ ī

	Current quarter \$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2	87
1.24 Aggregate amount of loans to the parties included in item 1.10

$1.25$ Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$\overline{a}$

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

⁺ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities
3.2	Credit standby arrangements

l,

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation	250
4.2	Development
		250
	Total

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	1.557	1.446
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1.557	1,446

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed			$\overline{a}$

⁺ See chapter 19 for defined terms.

6.2	Interests in mining tenements acquired or increased	$\mathbf{m}$	$\blacksquare$	$\overline{r}$

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	price Issue per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference
	*securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns of
	capital, buy-backs, redemptions
7.3	+Ordinary
	securities	268,752,376	268,752,376
7.4	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns of
	capital, buy-backs
$7.5\,$	*Convertible debt
	securities
7.6	(description)
	Changes during quarter
	(a) Increases
	through issues
	(b) Decreases
	through securities
7.7	matured, converted Options
	(description and	10,000,000		Exercise price \$0.04	Expiry date 30 November 2004
	conversion factor)	3,500,000		\$0.05	17 January 2006
		2,000,000		\$0.08	17 January 2006
7.8	Issued during quarter	3,500,000		0.05	17 January 2006
		2,000,000		0.08	17 January 2006
7.9	Exercised during quarter
7.10	Expired during
	quarter
7.11	Debentures
	(totals only)
7.12	Unsecured notes (totals only)

⁺ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here:		Date: .
	$\ldots$ .29/04/03
	(Director/Company secretary)

Print name:

Wayne Kernaghan

Notes

• $\mathbf{1}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive $\overline{4}$ Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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⁺ See chapter 19 for defined terms.