DEVELOP GLOBAL LIMITED — Capital/Financing Update 2010

Nov 25, 2010

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PILBARA VMS COPPER PROJECT ROBUST AND PROFITABLE: SCOPING STUDY

ASX Announcement ASX Code: VXR Released: 26 November 2010

VENTUREX POISED TO COMMENCE FEASIBILITY STUDY ON NEW PILBARA COPPER MINE

Highlights:

• Initial mining inventory of 4.5 million tonnes @ 2.7% Cu Eq[1]

• Initial mine life 9 years

For further details Dr Tim Sugden Managing Director T: +61 8 6389 7400 M: +61 407 085 032 tim.sugden@venturexresources.com

• Annual milling capacity 600,000tpa

• Annual production up to 13,000t Cu Eq

• Base case financials:

• C1[2] cost US$0.45/lb Cu

• Annual operating cash flow3 $40 million

• Life of Mine EBIT $282 million

• Net Present Value[4] $101 million

• Internal rate of return 28%

• Timeline to production mid-2012

• Total pre-production capital estimated at $95.8 million

Venturex Resources Limited (ASX: VXR) is pleased to report positive results from an independent Scoping Study completed on its 100%-owned Pilbara Volcanogenic Massive Sulphide (VMS) Copper Project in Western Australia.

The study, which was undertaken by Snowden Mining Industry Consultants, has confirmed positive economics for the potential development of a centrally located copper-zinc-lead (silvergold) production facility centred on the existing Whim Creek mine site sourcing ore from multiple deposits.

Board

Tony Kiernan Chairman

Tim Sugden Managing Director

Michael Mulroney Non-Executive Director

Allan Trench Non-Executive Director

Anthony Reilly Executive Director

Liza Carpene Company Secretary

Average annual metal production is forecast at 7,800 tonnes of copper, 13,900 tonnes of zinc and 4,200 tonnes lead, significant gold and silver credits.

Estimated C1 cash operating costs are $0.50 cents/lb copper after by product credits confirming the proposed Pilbara VMS Copper Project as a low cost metal producer.

Contact Details

Registered Office Suite 3, Level 1 127 Cambridge Street West Leederville WA 6007

1 Cu Eq = Cu% + Zn% x 0.255 + Pb% x 0.24 + Ag(ppm) x 0.008 + Au(ppm) x 0.50

2 C1 = projected cash costs including mining, processing, site administration and refining, net of product credits

3 Revenue from product less royalties and operating costs

T: +61 8 6389 7400 F: +61 8 9463 7836 admin@venturexresources.com www.venturexresources.com

4 Net Present Value at 8% discount rate

ABN: 28 122 180 205

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The study is based on the existing total Mineral Resource of 7.6 million tonnes grading 2.2% Cu Eq as estimated by Venturex using the guidelines of the JORC Code 2004. The study has identified an initial open pit and underground Ore Reserve of 4.5 million tonnes grading 2.7% Cu Eq sufficient to support an initial mine life of nine years without any future exploration success. It is anticipated that ongoing exploration will add Mineral Resource and Ore Reserve additions in the underexplored VMS district around Whim Creek to further extend the life of the operation.

The study is based on plant capacity of 600,000tpa and an average life of mine grade of 1.4% Cu, 2.8% Zn, 0.9% Pb, 0.3g/t Au and 35g/t Ag (equivalent to 2.7% Cu).

Total pre-production capital is estimated at $95.8 million which includes the construction of a new milling and flotation circuit together with concentrate handling facilities. Crushing and key infrastructure facilities, including accommodation, site access, haul roads and water supply, are already in place at the Whim Creek site.

Based on metal prices of US$3.50/lb Cu, US$1.00/lb Zn, US$0.98/lb Pb, US$19.8/oz Ag and US$1,200/oz Au, the Project generates revenue of $800 million , EBIT of $282 million, NPV8% of $101 million at an IRR of 28%.

Significant Project upside exists including:

• Potential for resource expansion through extension of known deposits and new discoveries in the local area;

• Increased metal recoveries from further optimisation testwork; and

• Reduced pre-production capital through acquisition of existing equipment or modular plant construction overseas.

A detailed summary of the key Scoping Study components is provided in the attached Appendix 1.

“The completion of this Scoping Study represents a key milestone for Venturex in our quest to develop a substantial new mining operation in the Pilbara region,” said the Company’s Managing Director, Dr Tim Sugden.

“The key takeaways from this Study are that the Project, which will comprise several open pit operations with some limited underground mining feeding a centrally located polymetallic treatment facility, can deliver annual metal production of approximately 13,000 tonnes copper equivalent at a very competitive C1 cash operating cost of US$0.45 cents per pound.

“The operation has the capcity to generate very strong cash flows and profits, as reflected in the robust financial analysis generated as part of the Scoping Study.

“On the strength of this excellent result, we are likely to move ahead in the near future with the commencement of a Definitive Feasibility Study (DFS). This study is anticipated to be completed during the first half of next year, laying the foundations for a project development decision in the second half of 2011,” Dr Sugden said.

“The development looks particularly attractive in the current strong metal pricing environment and we are committed to progressing it as quickly as we possibly can,” he added.

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Timetable to Production

Subject to board approval, it is anticipated that the Company will now commit to a Definitive Feasibility Study which will be finalised in the third or fourth quarter of the 2010/11 financial year.

Key components of the DFS, as highlighted by the Scoping Study are:

• Optimisation of flotation performance

• Circuit configuration (two-stage or three-stage flotation)

• EPCM costs, including incorporation of used equipment and/or modular (off-site) construction of plant

• Direct shipping of high grade zinc-lead ores

• Location and design of tailings dam

		2010	2010	2010	2010	2011	2011	2011	2011	2012	2012	2012	2012
		Year 1				Year 2				Year 3
	ACTIVITY	Jun	Sep		Dec	Mar	Jun	Sep	Dec	Mar	Jun	Sep	Dec
ary	Resource Definition Drilling JORC Resource Estimation ScopingStudy
imin
Prel
y	Metallurgical Testwork Process design Pit/UG Design Environmental Approvals Additional Lease Applications Board Approval
tud
ty S
ibili
eas
F
tion	Final Circuit Design Key Contracts Construction Commission
ruc
nst
Co
	Mons Cupri Pre-strip Mons Cupri Production Whim Creek Production Liberty Indee Production Salt Creek Development Salt Creek Production
on
cti
odu
Pr

Figure 1. Anticipated timetable to production, assuming a successful scoping study result

Exploration Potential

There is excellent potential for further additions to Mineral Resources and Ore Reserves on 35 kilometres of known VMS horizon in the Whim Creek, Salt Creek and Liberty-Indee fields. Further discoveries will increase the scale and/or life of the planned operation. Immediate targets include the poorly drilled corridor immediately north of Mons Cupri, Salt Creek deeps and numerous gossans and geophysical anomalies to the north and south of the Evelyn Deposit.

TIM SUGDEN Managing Director

For further information, please contact:

Tim Sugden / Liza Carpene – Venturex Resources Limited on (08) 6389 7400 Nicholas Read / Paul Armstrong – Read Corporate on (08) 9388 1474

Appendix 1: Scoping Study Details Appendix 2: Mineral Resources and Ore Reserves

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About Venturex Resources Limited

Venturex Resources Limited (ASX: VXR) is a well funded Australian exploration and development company with a portfolio of VMS projects in the Western Pilbara. Venturex owns or controls the Whim Creek Copper Mine and all associated mining leases and exploration tenements including copper, zinc, lead, silver and gold resources at Whim Creek, Mons Cupri, Salt Creek and Liberty-Indee. Other assets include the Whim Creek Hotel, an accommodation village, crushing circuit and various mining infrastructure. The Company is committed to a strategy of consolidating VMS projects in the Western Pilbara and developing Whim Creek as a centralised processing hub. Venturex is also exploring for gold in Brazil through its wholly owned subsidiary CMG Mineração Ltda.

Competency Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Steven Wood, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Wood is a fulltime employee of Venturex Resources Limited and has sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Wood consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in this report as it relates to Ore Reserves is based on information reviewed by Dr Timothy Sugden BSc, PhD, who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Sugden is a fulltime employee of Venturex Resources Limited and has sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Sugden consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in the report that relates to the Scoping Study has been approved for release by Snowden Mining Industry Consultants.

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APPENDIX 1

SCOPING STUDY COMPONENTS

Tenure

The Pilbara VMS Copper Project comprises the Mons Cupri, Whim Creek, Evelyn and Salt Creek deposits, together with proposed plant and infrastructure. Mons Cupri, Whim Creek and Salt Creek are located on granted Mining Leases, while an application is pending for a Mining Lease over the Evelyn deposit at LibertyIndee. All projects are 100% owned by Venturex, except Liberty-Indee (70%) which converts to 90% on decision to mine.

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Mineral Resources and Ore Reserves

Following aggressive drilling programs targeting the high-grade cores of known VMS systems, Venturex has re-estimated the Mineral Resources and Ore Reserves for the Project in accordance with the JORC Code 2004. The updated Mineral Resource and Ore Reserve estimates are summarised in Tables 1 and 2 below:

	Table 1. Pilbara VMS Project	Table 1. Pilbara VMS Project	Table 1. Pilbara VMS Project	Table 1. Pilbara VMS Project
	Mineral Resources (Appendix 2)
Category	Tonnes	Cu Eq	Cu	Zn	Pb	Ag	Au
		%	%	%	%	**g/t **	**g/t **
Measured	1,274,000	2.6	1.5	1.7	0.8	41	0.3
Indicated	5,989,000	2.2	1.1	2.4	0.7	24	0.2
Inferred	367,000	2.3	1.7	1.1	0.2	14	0.3
TOTAL	7,630,000	2.2	1.2	2.2	0.7	26	0.2

Table 2. Pilbara VMS Project Ore Reserves (Appendix 2)

Category	Tonnes	Cu Eq	Cu	Zn	Pb	Ag	Au
Probable		%	%	%	%	g/t	g/t
Total Probable	4,460,000	2.7	1.4	2.8	0.9	35	0.3

Mining Operations

Most ore will be mined by conventional open pit methods. The Mons Cupri and Whim Creek pits will produce 3,500,000 ore tonnes at a waste to ore ratio of 5.3:1. Both pits have been pre-stripped for oxide copper and primary ore is immediately accessible.

Mons Cupri and Whim Creek are located 2.5km from the proposed plant location and incur negligible ore haulage charges. At this stage there are no plans to develop underground operations at Mons Cupri and Whim Creek, but there is significant potential for additional resources to the north and northwest of Mons Cupri which may be accessible by decline access from the proposed pit.

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Figure 2. Cross-section of the Mons Cupri sulphide resource model with optimum pit shell

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Figure 3. Three-dimensional representation of the Whim Creek sulphide resource with existing oxide open pit

The Evelyn and Salt Creek Deposits will be developed initially with small open pits which will then provide decline access to deeper high grade ore positions. Evelyn and Salt Creek are located 35kms and 17kms, respectively, from the proposed plant location.

Mine Production Schedule

Mining schedules were completed using Snowden’s Evaluator software, based on a processing limit of 600,000 tonnes per year. Open pits will be mined at an advance rate of 60 vertical metres per annum with a target underground stoping capacity of 300,000 tonnes per year. In total, 4,460,000 tonnes of ore will be mined over a period of nine years.

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Processing

Test work shows that copper ores from Whim Creek, Mons Cupri and Salt Creek respond very well to normal flotation conditions. Copper concentrate grades range from 22-27% Cu with recoveries of 92% to 93%. Preliminary flotation test work on Salt Creek zinc-lead ores recovered 79-82% Zn to a concentrate grading 55% Zn. Lead will be recovered to a lead-zinc concentrate with expected grades of approximately 45% Pb and 15% Zn. Silver is recovered mainly to the lead-zinc concentrate.

Copper, zinc and lead-zinc concentrates are of suitable quality for international markets. Gold and silver are at payable levels in the copper and lead-zinc concentrates and penalty elements are generally below threshold levels.

Further flotation test work will be conducted over the next four months to optimise metal recoveries and concentrate quality.

Process Plant Design

There is potential for the existing crushing circuit to be used without additional equipment.

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Figure 4.The Whim Creek three-stage crushing circuit

Preliminary comminution test work has demonstrated medium ore hardness with a Ball Mill Work Index of 17kWh/t. A SAG mill, ball mill grinding combination is likely to provide the most operating flexibility to treat the variety of ores.

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The Scoping Study capital and operating cost estimates have provided for separate copper, zinc and lead flotation circuits to give the processing plant more flexibility and decrease the chances of copper-lead cross contamination.

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Figure 5. Processing plant configuration

Future optimisation testwork will determine the potential benefit in including a heavy media separation (HMS) plant upstream of the grinding and flotation circuits to increase feed grade and remove hard waste material plus the suitability of producing a high grade Salt Creek Zn-Pb massive sulphide product suitable for direct shipping.

Concentrate Transport and Shipping

Copper concentrate (30,000 tonnes per year) and zinc concentrate (30,000 tonnes per year) are expected to be shipped from Port Hedland (115km to the northeast). Lead concentrate (10,000 tonnes per year) is likely to be shipped in sealed containers.

Management and Workforce

The Scoping Study allows for a permanent workforce of 87 employees and an average of 45 mining contractors. The workforce will be predominantly fly-in/fly-out via Port Hedland or Karratha. There is sufficient accommodation at the existing Whim Creek mine accommodation Village and capital has been allowed for minor Village upgrades.

Infrastructure

The Northwest Coastal Highway connects the Whim Creek site to Karratha (120km) and Port Hedland (115km).

Total site power demand is expected to be 6MW. A 5km connection to the regional HV line is under consideration. A gas spur to site is also available. The indicative cost range is 15-20 cents per kwhr.

Existing aquifers will be used for process water supply.

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Environment

All proposed mining and processing operations, except Evelyn, are on existing mining leases. The proposed operations will not significantly increase the footprint of the existing mine. Additional flora, fauna, surface and groundwater base line surveys will be required at Salt Creek and Evelyn to comply with EPA, DMP, DEC and DoW guidelines. Waste rock and tailings characterisation will also be required.

Capital Costs

Estimated pre-production capital expenditures are summarised in the following table:

Item	$M
Feasibility studies	3.8
Procurement, Construction & Management - Concentrator	80.0
Tailings Storage Facility	3.0
Village Upgrade	1.0
Port Facility Capital	2.0
Working Capital	4.0
Haul Road - Salt Creek	1.0
Haul Road - Evelyn	1.0
Total	95.8

Operating Costs

Mining

Mine operating costs include load and haul, drill and blast, and fixed contract costs are based on a single mining contractor quotation.

Processing and Ore Costs

The process cost used was A$45 per ore tonne including site administration.

Overhaul costs of A$5.19 per tonne of ore for Salt Creek ore haulage and A$8.01 for Liberty-Indee to the ROM crusher were applied.

Financial Parameters

Taxation and Depreciation

The Australian corporate tax rate of 30% was used. Depreciation of capital expenditure was used with the write-off against taxable profit at the rate of reducing primary tonnes of reserves. No inflation was considered.

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Operational Cashflow Valuation

A summary of the project financial parameters for the Whim Creek Project, based on the identified mining inventory is summarised below.

Parameter	Unit	Value
Mine Life	years	8.05
MINING INVENTORY
Ore Grade
Copper	%	1.41
Lead	%	0.87
Zinc	%	2.9
Gold	g/t	0.25
Silver	g/t	35.1
Tonnes of Reserves	Mt	4.46
MINING
Total Tonnes Mined	Mt	28.51
PROCESSING
Recovered to concentrate
Copper	%	0.92
Lead	%	0.80	Recovered to concentrate
Zinc	%	0.85	Copper	Lead	Zinc
Gold	%	Variable	0.60	0.00	0.30
Silver	%	Variable	0.30	0.60	0.08
Grade in concentrate
Copper	%	27.00
Lead	%	45.00		Grade in concentrate
Zinc	%	48.00	Copper	Lead	Zinc
Gold	g/t	Variable	3.16	0.00	1.57
Silver	g/t	Variable	210.29	1302.64	55.82
FINANCIAL INPUTS
AUD	$	1.00
USD	$	0.89
Discount rate	%	8.00
SPOT MARKET SALES
Spot Price
Copper	$US/lb	3.50
Lead	$US/lb	0.98
Zinc	$US/lb	1.00
Gold	$US/oz	1200.00
Silver	$US/oz	19.80
OPERATING COSTS	$M	388.88
Total Mining Cost	$M	143.27
Mining Cost / tonne	$/t	32.03
Total Processing Cost	$M	207.49
Processing Cost / tonne	$/t	46.40
Operating Cost / ore tonne	$/t	86.95
ROYALTIES	$M	34.63
GOVERNMENT TAXES	$M	83.34
FINANCIAL ANALYSIS
Cash Inflow	$M	799.14
Cash Outflow	$M	600.87
Net Cashflow	$M	198.27
Operating Cashflow	$M	367.53
Earnings Before Interest & Tax (EBIT)	$M	281.61
	AUD/lb cu metal
C1 Cost	sold.	0.50
NPV	$M	100.79
IRR	%	28

All A$ except where specified otherwise * C1 costs include all operating cost only,

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APPENDIX 2

Statement as at 25 November 2010

		MINERAL RESOURCES	MINERAL RESOURCES	MINERAL RESOURCES	MINERAL RESOURCES	MINERAL RESOURCES						ORE RESERVES	ORE RESERVES	ORE RESERVES
		JORC Classification	Tonnes x 1,000	Cu wt %	Zn wt %	Pb wt %	Ag **g/t **	Au **g/t **	CuEq wt %	JORC Classification	Tonnes x 1,000	Cu wt %	Zn wt %	Pb wt %	Ag **g/t **	Au **g/t **	CuEq wt %
Location
	Whim Creek
		Indicated	1,021	1.4	1.2	0.2	8.8	0.1	1.9	Probable	687	1.7	1.1	0.2	8.9	0.1	2.1
		Inferred	5	0.6	2.1	0.5	13.1	0.1	1.4
		Sub-total	1,026	1.4	1.2	0.2	8.8	0.1	1.9	Sub-total	687	1.7	1.1	0.2	8.9	0.1	2.1
	Mons Cupri
		Measured	1,274	1.5	1.7	0.8	41.0	0.3	2.6
		Indicated	3,617	0.7	1.1	0.4	17.0	0.1	1.3	Probable	2,815	1.1	1.8	0.8	32.1	0.2	2.1
		Inferred	53	0.7	0.6	0.2	8.8	0.0	0.9
		Sub-total	4,944	0.9	1.2	0.5	23.1	0.1	1.6	Sub-total	2,815	1.1	1.8	0.8	32.1	0.2	2.1
Salt Creek
	Zn	Indicated	475	0.2	14.1	4.4	107.1	0.5	6.0	Probable	361	0.2	12.8	4.2	109.2	0.5	5.6
		Indicated	423	3.7	0.9	0.1	2.7	0.1	4.0	Probable	236	4.1	1.3	0.2	3.2	0.1	4.6
	Cu
		Inferred	105	3.5	0.1	0.0	1.5	0.0	3.6
	Zn/Cu	Sub-total	1,003	2.0	7.0	2.2	52.0	0.3	4.9	Sub-total	597	1.7	8.2	2.6	67.3	0.3	5.2
	Liberty-Indee
		Indicated	453	2.2	4.5	0.4	42.0	0.9	4.3	Probable	361	2.2	4.5	0.4	40.7	0.9	4.3
		Inferred	204	1.0	1.8	0.2	22.4	0.4	1.9
		Sub-total	657	1.8	3.7	0.3	35.9	0.8	3.5	Sub-total	361	2.2	4.5	0.4	40.7	0.9	4.3
	All Allocations
		Measured	1,274	1.5	1.7	0.8	41.0	0.3	2.6	Proved
		Indicated	5,989	1.1	2.4	0.7	23.6	0.2	2.2	Probable	4,460	1.4	2.8	0.9	35.1	0.3	2.7
		Inferred	367	1.7	1.1	0.2	14.3	0.3	2.3
		Total Sulphide Resources								Total Sulphide Reserves
			7,630	1.2	2.2	0.7	26.1	0.2	2.2		4,460	1.4	2.8	0.9	35.1	0.3	2.7

Note: Rounding errors may occur.

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Mons Cupri and Whim Creek Mineral Resource Estimate Parameters
Tenement	The Mons Cupri Volcanogenic Massive Sulphide (VMS) deposit is within M47/238. The Whim Creek VMS deposit is within M47/236 and M47/443. The Salt Creek VMS deposit is within M47/323. These tenements are wholly owned by Venturex Pilbara Pty Ltd, a subsidiary of Venturex Resources Limited.
Geology	Mons Cupri, Whim Creek and Salt Creek are Archaean polymetallic (Cu, Zn, Pb, Ag, Au) VMS deposits hosted by volcanogenic sediments. There are two principal styles of mineralisation: stratabound massive sulphide and stringer/feeder.
Previous Exploration	The sulphide zone at Mons Cupri and Salt Creek was discovered by Texas Gulf Australia Ltd in the late 1960s. Further drilling was conducted by Dominion Mining Ltd and Straits (Whim Creek) Pty Ltd. In the 1960s and 1970s drilling and mining studies were conducted at the Whim Creek deposit by Whim Creek Consolidated NL and Dominion Mining Ltd. Straits (Whim Creek) mined the oxide resources via open cuts. Venturex Resources Limited acquired Straits (Whim Creek) Pty Ltd in February 2010 and commenced drilling in May 2010.
Drilling Technique	At Mons Cupri and Whim Creek the drilling is diamond and reverse circulation (RC) with the majority of recent drilling being RC. Diamond core size is HQ and NQ. Core recovery is generally excellent. Core orientations were done where possible. Hole intersections points within the orebody are generally spaced 15 – 30 metres, with the majority less than 20 metres. Down hole orientation information is mainly from 30 metres-spaced single shots, with more recent drilling having some gyro to confirm the single shots. At Mons Cupri hole orientation is generally 30 – 90 degrees to the stratiform component of the ore body with the majority being ~60 degrees. At Whim Creek hole orientation is generally 60 – 90 degrees with the majority being ~80 degrees. At Salt Creek the drilling is diamond and reverse circulation (RC) with the majority of recent drilling being diamond. Diamond core size is HQ and NQ. Core recovery is generally excellent. Core orientations were done where possible. Hole intersections points within the orebody are generally spaced 20 - 50 metres. Down hole orientation information is mainly from 30 metres-spaced single shots, with more recent drilling having some gyro and multishots to confirm the single shots. The angle of intersection with the massive sulphide lenses is generally 45 degrees.
Logging and core photo’s	Geological logging is sufficient and representative across the deposits. Wet core photographs have been taken of the majority of holes drilled in the last 6 years at Mons Cupri and Whim Creek. Wet core photographs have been taken of all holes drilled in the last year at Salt Creek with some older holes having core photos.
Sampling Technique	Samples used in the resource estimation area are approximately 50% diamond core and 50% RC chips. Core samples are generally <1.5 metres. Recent RC samples are generally 1m splits.
Sample preparation and Assay Technique	Recent samples were analysed at UltraTrace Laboratories, Perth, WA. Samples were dried, crushed, split with a riffle splitter and pulverized. Au, Cu & Zn was determined by ICP Optical Emission Spectrometry. Ag & Pb was determined by ICP Mass Spectrometry. Older samples at Salt Creek were analysed at ALS Laboratories, Perth, WA. Au was determined by Atomic Absorption Spectroscopy, Ag, Cu, Pb, Zn was determined by ICP- AES (Inductively-Coupled Plasma Atomic Emission Spectrometer).
Database and QAQC	DataShed™ was used for drill hole and sample data storage and validation. Samples with QAQC data were evaluated using QAQCR assay quality reporting software. QAQC data evaluation included field duplicates, lab standards, repeats and lab blank flushes.
Interpretation	Geological confidence is high for the main high grade stratabound zone in all deposits. At Mon Cupri geological confidence is moderate in the lower zinc zone and the stringer/feeder zone where grade distributions are more erratic and data density is lower. Cut-off grades were determined using log probability plots. The high grade zone wireframes were interpreted using a 0.8% Cu and 2% Zn cut-off. At Mons Cupri the stinger/feeder zone was interpreted using 0.2% Cu cut-off. At Salt Creek wireframes were interpreted by boundaries of massive sulphide for the Zn/Pb lenses and by 2% Cu cut-off for Cu wireframes.
Dimensions	At Mons Cupri the high grade stratabound zone measures ~300 metres (NW) by 160 metres (NE). It is approximately 30 metres thick and dips to the west at 30 degrees. The stringer feeder zone measures 350 metres (EW), 150 metres (down dip) and is generally 30 metres thick. At Whim Creek.the ore body measures ~500 metres (EW) by ~100 metres (NS). It averages 8 metres in thickness and dips ~30 degrees to the north. At Salt Creek zinc-lead-silver massive sulphide lenses are 100-150 metres x 200 metres with true widths of 1-5 metres. The lenses dip steeply to the north and pitch steeply to the east. The copper lenses have less clearly defined margins. They are sub-parallel to the zinc-

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	lead-silver lenses and widen to around 7 metres true thickness in higher grade zones.
Estimation and Modelling Techniques	The block models and estimations were conducted using Vulcan 8.0 software. At Mons Cupri and Whim Creek the block model had a parent cell measuring 10 metres (X axis), 10 metres (Y) and 3 metres (Z) with sub-cells of 2 metres (X), 2 metres (Y), 0.5 metres (Z). This block size is appropriate given an average drill spacing of 20 metres. At Salt Creek the block model had a parent cell measuring 2 metres (X axis), 20 metres (Y) and 20 metres (Z) with sub-cells of 0.5 metres (X), 2 metres (Y), 2 metres (Z). This block size is appropriate given an average drill spacing of 50 metres. The estimations were performed using ordinary kriging. Search ellipse parameters were derived from variograms using Snowden Supervisor software. Top cuts were determined using log probability plots. At Mons Cupri a top cut of 4g/t Au and 2% Pb was used in the high grade domain and top cuts of 4% Zn and 1.5% Pb were used in the copper stringer/feeder zone. At Whim Creek top cuts of 15% Cu and 20% Pb were used in the transitional zone. At Salt Creek no top cuts were applied. The estimations were validated against original composite grades, by section and globally.
Moisture	Tonnages are estimated on a dry basis. Moisture content in ore is expected to be very low.
Bulk Density	For the Mons Cupri deposit assigned average specific gravity (SG) values were used in the resource estimation: 2.3 g/cm3 for oxide waste (based on historical determinations), 2.8 g/cm3 for fresh waste, 2.9 g/cm3 for the stringer/feeder zone, 3.0 g/cm3 for the high grade copper zone and 3.2 g/cm3 for the high grade zinc zone. SG was determined by the water immersion technique on drill core. For the Whim Creek deposit assigned specific gravity (SG) values were used in the resource estimation based on historical determinations: 2.67 g/cm3 for oxide material, 2.76 g/cm3 for transitional and fresh waste, 2.79 g/cm3 for transitional ore and 2.91 g/cm3 for fresh ore. For the Salt Creek deposit assigned average specific gravity (SG) values were used in the resource estimation: 2.4 g/cm3 for oxide, 2.78 g/cm3 for fresh waste, 3.0 g/cm3 for copper Lenses, 3.2 g/cm3 for the high grade zinc/lead in the western lenses and 4.1 g/cm3 for the high grade zinc/lead in the eastern lenses. SG was determined by the water immersion technique on drill core.
Classification	Classifications into Inferred, Indicated and Measured categories are based on a combination of average weighted distance from sample points, variography, drill density and geological confidence.
Cu Eq Calculation	The Cu Eq (Copper Equivalent) calculation is based on metal values and relative process recoveries (see below). Based on metallurgical recoveries and projected concentrate grades, the Company believes that revenue will be received for each of these metals. The Cu Eq formula used in this report is as follows: Cu Eq = Cu% + Zn% x 0.26 + Pb% x 0.24 + Ag(ppm) x 0.008 + Au(ppm) x 0.50
Evelyn Mineral Resource Estimation Parameters
Geological Setting	Copper-zinc-lead-silver-gold mineralisation at Evelyn is believed to be a structurally modified Volcanogenic Massive Sulphide (VMS) deposit, associated with mafic volcanic stratigraphy. The VMS horizon can be traced for approximately 12 kilometres along strike.
Drilling techniques	The resource estimate is based on 3,327 samples derived from 61 reverse circulation (RC) holes and 4 diamond holes.
Drill hole spacing	Typical spacing of intersection points in the massive sulphide was between 10m and 30m
Drill hole collar positions	Collar positions were determined using a Trimble Pathfinder differential GPS, providing accuracy of less than 100cm.
Down hole surveys	Dip and azimuth readings were taken every 10 to 50 metres using a downhole camera.
Intersection angle	Most RC holes were drilled perpendicular to the strike of the massive sulphide lenses. The angle of intersection between the lenses and holes is generally 60 to 70 degrees.
Sampling	The samples within the ore were all virtually 1m in length therefore no compositing of samples was required or performed.
Sample preparation and assaying	The samples were analysed at UltraTrace Laboratories. Samples were dried, crushed, split with a riffle splitter and pulverized. Au, Cu & Zn determined by ICP Optical Emission Spectrometry. Ag & Pb determined by ICP Mass Spectrometry.
Data validation	DataShed was used for drillhole and sample data storage and validation.
Density	218 density determinations were determined using the pycnometer method. 66 values are inside the ore zone as defined by the wireframe, and 152 sit outside the ore wireframe. The overall average density value in the ore zone is 4.17 t/m3. In the absence of any values for weathered ore Optiro used conservative values of 3.0 and 3.5 for oxidised ores and transitional sulphides respectively.

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Quality control procedures	Samples with QAQC data were evaluated using QAQCR assay quality reporting software. QAQC data evaluation included field duplicates, lab standards, repeats and lab blank flushes.
Geological interpretation	Venturex developed a Vulcan format wireframe of the interpreted mineralisation and the surface topography. These wireframes was converted into Datamine format for resource estimation. Surfaces were constructed for the base of complete oxidation (BOCO) and top of fresh rock (TOFR). The information contained in the historical geology logs as well as the collar file were combined with 29 down hole depths recorded for the TOFR and 9 depths for the BOCO.
Dimensions	Two massive sulphide lenses (North and South) have been identified by RC drilling. The North Lens has a long axis length of approximately 200 metres and plunges to the north at approximately 50 degrees. The larger South Lens has a long axis length of at least 300 metres and plunges to the north at approximately 40o. The horizontal strike length is in the range 60 to125 metres and maximum true width is approximately 16 metres. The lens is open at depth and interpreted to extend below the North Lens.
Estimations and modeling techniques	The resource calculation was conducted by Optiro Pty Ltd using data and interpretations supplied by Venturex. Grades were estimated using ordinary kriging.
Block modeling	The deposit was modelled using a 5 mE by 10 mN by 10 mRL block size with sub-blocking to a minimum of 0.5 m in each dimension to correctly honour the volume of the lode and weathering horizons.
Cut-off grades, top- cut grades	A top-cut of 20% Cu was applied to copper grades in the oxide and transitional zones.
Model Validation	The resource model was validated against the input data by comparison of the average input composite and output block grades and visual comparison in section and plan views.
Classification	The classification applied to the Evelyn resource is based on the calculated kriging efficiencies and slopes of regression in the block model. The parameters reflect the quality of the estimates with regard to the data density and modelled variogram. The blocks with closely spaced data therefore receive a higher classification that those further away from data. The classification takes into account only the spatial continuity demonstrated in this round of grade estimation.
Ore Reserve Parameters
Status of scoping studies	Venturex Resources Limited (the Company) is currently conducting a Scoping Study into the development of a base metals operation centred on the established Whim Creek Mining Leases (M47/236, M47/237, M47/238, M47/443, M47/323, M47/324). The Study is based on feasibility studies previously conducted by Straits Resources Limited from 2004 to 2008. Previous work includes resource/reserve estimation, open pit and underground mine design, metallurgical test work, mill design and costing and environmental and social impacts. The Company is of the view that a substantial component of the Mons Cupri and Whim Creek Mineral Resource can be converted to Ore Reserves because there is a reasonable expectation that an economically-viable development will proceed and additional approvals, licences and contracts will be received or modified. The Whim Creek site includes substantial mining infrastructure, including crusher, workshops, water bores, power distribution systems, accommodation and haul roads.
Net Smelter Return	The Probable Ore Reserves was estimated using a Net Smelter Return estimate on a Cost, Insurance and Freight (CIF) basis and incorporating commercial factors relating to: • Metal prices o Copper US$7715/t; Zinc US$2205/t; Lead US$2161/t; Silver US$19.8/oz; Gold US$1200/oz • Flotation recoveries to copper, zinc and lead sulphide concentrates: o Copper 92%; Zinc 85%; Lead 80%, o 95% Ag and 90% Au (split between Cu, Zn and Pb concentrates) • Smelter terms o Copper conc: 1% deduction; 97% payable o Zinc conc: 8% deduction; 97% payable o Lead conc: 3% deduction; 97% payable o Au and Ag: variable • Foreign exchange (A$1.0 = US$0.89) • Haulage, shipping and loading (via Port Hedland) A$70/t • Treatment and refining charges o Copper US$50/t concentrate; US$.05/lb o Zinc US$240/t concentrate; US$.05/lb o Lead US$160/t concentrate; US$.075/lb o Silver US$0.5/oz o Gold US$5.0/oz • State Royalty 5%

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Market Assessment	The Company has conducted extensive evaluations of demand, supply and stock situations for copper, zinc, lead and the precious metal by-products. The metal values used in the optimization are considered reasonable in the context of consensus demand/supply outlook.
Site Costs	Fixed & variable processing charge = $46/t (assuming a milling rate of 600,000t per annum)
Cut-off parameters	The economic cut-off grades (expressed as Cu% Eq)are: Mons Cupri Open Pit 0.62% Whim Creek Open Pit 0.65% Salt Creek Open Pit 0.72% Evelyn Open Pit 0.76% Salt Creek Underground 1.96% Evelyn Underground 1.4%
Dilution	For the open pits mining dilution is considered to be incorporated into block grade estimates because of the smearing effect of ordinary kriging. In subsequent feasibility studies, specific dilution parameters will be determined for the edges of the ore domains, but given the thickness and continuity of mineralisation and gradational ore contacts on the lower margins, net dilution is expected to be minimal. The Salt Creek and Evelyn underground reserves are diluted 10% and ore recovery is 90%.
Open pit mining costs	Mons Cupri Load &Haul Total Waste Cost (A$/bcm) Additional Costs for Ore (A$/bcm) RL 1143-1134 4.68 2.21 RL 1134-1122 5.47 2.16 RL 1122-1110 5.39 1.94 RL 1110-1098 5.07 1.99 RL 1098-1086 4.76 2.11 RL 1086-1074 4.81 2.05 RL 1074-1062 4.99 2.07 RL 1062-1050 5.39 1.99 RL 1050-1038 5.39 2.24 RL 1038-987 5.92 2.48 RL 987-936 6.48 2.68 RL 936-885 7.04 2.89 Whim Creek RL 1078-1066 4.68 2.21 RL 1066-1054 5.47 2.16 RL 1054-1042 5.39 1.94 RL 1042-1030 5.07 1.99 RL1030-1018 4.76 2.11 RL 1018-1006 4.81 2.05 RL 1006-994 4.99 2.07 RL 994-982 5.39 1.99 RL 982-970 5.39 2.24 RL 970-958 5.92 2.48 Drill & Blast $2.0/bcm
Wall angles	For Mons Cupri, pit wall angles are 49.5 degrees in the oxide zone and 55 degrees in the primary zone. For Salt Creek, the pit wall angle in the oxide and primary zone is 46 degrees.
Underground geotechnical assessment	Further detailed geotechnical assessments of underground rock stability are required before mine designs are finalised.
Underground mining costs	At Evelyn the underground mining method is mechanised uphole retreat costing $A40/t. At Salt Creek the mining method is mechanised underhand cut and fill costing $A80/t.

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