HAWSONS IRON LTD — Interim / Quarterly Report 2008

Jan 18, 2009

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QUARTERLY REPORT

FOR THE 3 MONTHS ENDED 31 DECEMBER 2008

Highlights

• ACQUISITION OF FTB (QLD) PTY LTD COMPLETED

• POSITIVE RC DRILLING GOLD RESULTS AT GLEN ISLA INCLUDING 6M AT 1.91 g/t GOLD FROM 4M BELOW SURFACE, NICKEL RESULTS OF 6M AT 0.93% NICKEL CONFIRM PRESENCE OF NICKEL OXIDE AT THE MERRI HILL PROSPECT AT COMBANING

• PETROGRAPHIC STUDY OF ROCK SAMPLES FURTHER ESTABLISHES PROSPECTIVITY OF THE EURIOWIE TENEMENT

• PANAMA HAT - POWER AUGER SOIL SAMPLING UNDERTAKEN AT THE WILLIAMS PROSPECT

• THE AGREEMENT FOR REDAN JOINT VENTURE, LOCATED SOUTH OF BROKEN HILL AND PROSPECTIVE FOR IOCG TARGETS[1] , SIGNED WITH PERILYA BROKEN HILL LIMITED

• ELEVATED GOLD AND COPPER ROCK CHIP RESULTS RETURNED AT MT AGATE INCLUDING 1.78 g/t GOLD AT THE MT SHEILA PROSPECT

Location Map

FOR FURTHER INFORMATION CONTACT:

NICK SHEARD EXECUTIVE CHAIRMAN CARPENTARIA EXPLORATION LTD

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Figure 1: Location of Carpentaria Exploration Ltd. Projects

Bus: +61 (7) 3161-3801

CARPENTARIA EXPLORATION LIMITED PAGE 2 of 14

SUMMARY

EXPLORATION

The global financial crisis has had limited effect on Carpentaria Exploration Limited (ASX Code: CAP), which is maintaining an aggressive exploration program. The Company is still committed to turning over quality projects and acquiring new projects that can be assessed rapidly. Carpentaria believes it will be able to use its positive cash position to lever into new high quality projects during the current financial downturn.

Hughenden Coal Project Redan JV Glen Isla Combaning Panama Hat JV Euriowie JV Mt Agate

By completing the purchase of FTB (Qld) Pty Ltd. (FTB) Carpentaria now has 15Coal Applications (EPCA) covering over 12,000 sq kms in the northern Galilee Basin with prospectivity for open-cut thermal coal and or UCG (underground coal gasification). The Redan joint venture (JV) with Perilya Broken Hill Limited (ASX Code : PEM) was signed this quarter to explore for iron oxide copper gold (IOCG) targets1south of Broken Hill, NSW. To consolidate IOCG prospectivity in this area, CAP has also acquired (100%) an additional tenement that adjoins the JV project. Drill results from the northern-most hole completed atGlen Islareturned a strongly anomalous gold intersection, which indicates the potential for a near surface mineralized system extending north of current drilling. AtCombaning, assays from the Merri Hill Prospect confirmed the potential for near surface nickel oxide mineralization outlined by previous air-core drilling. Metallurgical assessment work is ongoing. The results from the drilling of gold targets1at Merri Hill and Ingola have been disappointing. Auger drilling has been completed at the Williams Prospect in thePanama HatJV project to geochemically survey strike extensions of the known highly gold-anomalous quartz vein lode. Petrographic (microscope thin section) observations of rock samples atEuriowiefrom both the Mt Euriowie pegmatite tin / tantalum and Horrie Hoare’s lead-silver anomalous schist locations have been completed. At the Mt Euriowie pegmatite location, the petrography has confirmed that previous anomalous tin and tantalum rock geochemical analyses results are caused by the presence of economic tin and tantalum oxide minerals. The identified minerals are of sufficient grain size to be amenable to conventional metallurgical recovery methods, should sufficient grade and quantities be identified. At Horrie Hoares the petrographic observation of the previously discovered highly lead-silver anomalous schist by Carpentaria last quarter, indicates the metal source to be incompletely oxidized, fine-grained, primary lead sulphides confirming the potential for Proterozoic Century/ Mount Isa style base metal mineralization in the area. AtMt Agateground magnetic surveys and a rock sampling program have upgraded the potential of the Mt Sheila and QMH prospects and assisted in defining potential drill -targets1. FINANCIAL

Cash and deposits totalled A$4.25million as at 31 December 2008.

CORPORATE

Issued Capital

55,178,410 ordinary fully paid shares listed 12,321,590 ordinary fully paid shares unlisted (restricted) 21,447,415 options listed

CARPENTARIA EXPLORATION LIMITED PAGE 3 of 14

ACTIVITIES

Carpentaria Exploration Limited has completed its purchase of FTB (Qld) Pty Ltd. This gives CAP a 100% interest in 15 EPC (coal) applications in the northern Galilee Basin.

During the quarter a JV agreement with Perilya Broken Hill Limited. (ASX Code : PEM) has been signed to allow exploration for IOCG targets [1] south of Broken Hill.

Carpentaria’s inaugural annual general meeting was held on 25th November 2008.

The Company has been actively pursuing acquisition of quality projects and also maximizing the value of current projects through potential farm out / joint venture deals.

PLANNED MARCH QUARTER EXPLORATION ACTIVITIES

Exploration activities are focused on the following:

The Government and historical data from the area covering the Hughenden Coal project is being reviewed and a program of work is being formulated to be undertaken when applications are granted. Carpentaria is also actively seeking farm-out possibilities for part of this project.

Due to seasonal weather conditions in northern Queensland only limited activity is expected this quarter. Preparation for drilling of targets [1] at Mt Agate will be undertaken.

In the Broken Hill region geological field surveys including mapping and field basemetal surveys using a portable Niton XRF in-situ geochemical analysis tool will be undertaken.

At Panama Hat targets [1] will be assessed based upon the Williams Prospect power auger soil survey results.

EXPLORATION

Queensland Coal Projects - (Carpentaria 100%) Acquisition of FTB (QLD) Pty Ltd.

CARPENTARIA EXPLORATION LIMITED PAGE 4 of 14

Completed

Coal

Compilation and review of Government and historical company data covering the Hughenden Coal Project commenced during the quarter. The project is located over the Galilee and Eromanga Basins in North Queensland. The Project comprises a block of 15 separate coal exploration applications covering an area of approx 12,000 sq km (see figure 2). The project is located along the Mount Isa-Townsville rail line and the Flinders Highway, centred between the towns of Hughenden and Richmond, which lie 120km apart.

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Figure 2: Carpentaria Exploration Ltd coal applications in red and yellow

The area is regarded as highly prospective as data from Queensland Department of Natural Resources and Water (DNRandW) water bores shows documented coal intersections in at least 11 of these applications. Substantial coal resources have recently been announced elsewhere in the Galilee Basin by Waratah Coal Inc (TSX Code: WCI) and Linc Energy Limited (ASX Code: LNC).

The Hughenden Project area has had very limited prior direct exploration and drilling for coal. Existing drilling is of a reconnaissance nature, extremely widely spaced, shallow and often terminated short of target [1] depth due to poor down-hole conditions. This, together with an initial review of open file petroleum exploration wells, shows the area is one of least explored and geologically understood parts of the Galilee Basin.

Work is focusing on synthesizing all data sets, establishing a broad stratigraphic architecture and structural framework with an emphasis of locating or delineating potential basin down warps or sub basins capable of containing potential economic coal resources. Once this work is completed priority targets [1] for potential drill testing within the Galilee and Eromanga sections of the project will be generated

CARPENTARIA EXPLORATION LIMITED PAGE 5 of 14

Gold

Glen Isla - (Carpentaria 100%) - Positive RC drilling gold results including 6m @ 1.91 g/t from 4m below surface

The Glen Isla epithermal gold Prospect is hosted by Devonian Dulladerry Volcanics within EL 6246 located in central NSW (see figure 1). Previous explorers located both a moderately dipping sheet-like epithermal silica-sinter unit and a separate sub-vertical silicapyrite altered rhyolite breccia zone. Last quarter, Carpentaria drilled six reverse circulation (RC) holes totalling 993m. Analyses were received this quarter and a best result of 6m at 1.91g/t Au from 4m in RC08GIA37 was returned within oxidized silica-sinter (see figure 3).

This result provides encouragement that a north striking belt of structural complexity extending from RC08GIA37 may host a high grade gold feeder structure to the known large scale gold and silver anomalism at the prospect. This zone is untested for 350m north of RC08GIA37 and also has additional potential for low tonnage near surface oxide gold mineralization.

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Figure 3 : Location of drilling, significant results and new target[1] zone

CARPENTARIA EXPLORATION LIMITED PAGE 6 of 14

Gold/Nickel

Combaning - (Carpentaria 100%) Nickel results of 6m at 0.93% Nickel confirm the presence of nickel oxide at the Merri Hill prospect

Merri Hill and Ingola Prospects (Gold)

Merri Hill and Ingola are two discrete high amplitude magnetic anomalies, considered prospective for Lucknow style, ultramafic associated, high grade gold deposits. A 9 hole RC drilling program totalling 1311m was carried out in the September Quarter. The results received this quarter were disappointing and it is interpreted that the high grade gold results from historical drilling at Merri Hill represent near surface, secondary enrichment of low grade primary mineralization.

The gold focus at Combaning has shifted to identifying drill targets [1] in the highly prospective western part of the tenement. Here, rocks of the Macquarie Arc Volcanics host a number of prospects and old workings including Mother Shipton, where historically, approximately 30,000oz of gold has been mined from hard rock and alluvial sources (see figure 4). A preliminary review of previous data has revealed a best intersection at Mother Shipton of 2m at 6.80g/t Au from 38m and 2m at 3.95g/t Au from 4m.

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Figure 4 : Location of prospects and new target[1] zone

The Macquarie Arc Volcanics are highly prospective for copper-gold porphyry and epithermal gold deposits and are host to the major copper and gold mines in central NSW, including Cadia, Cowal and North Parkes. The Gidginbung gold mine produced 700,000oz of gold in the 1980s and is located only 10km along strike to the north west of the Combaning tenement.

CARPENTARIA EXPLORATION LIMITED PAGE 7 of 14

Merri Hill and Ingola Prospects (Nickel)

At Merri Hill, a near surface zone of secondary nickel mineralization identified by prior air core drilling (eg. 8m at 1.45% nickel from 20m in SMRA64) was drilled tested last quarter with 3 RC holes totalling 168 metres to obtain samples for metallurgical test work. Significant assay results returned from this RC drilling in the current quarter are shown in Table 1. Samples have been submitted for detailed petrography (microscope analysis) and metallurgical assessment. Results are pending.

Table 1 Merri Hill RC drilling significant nickel intersections.

Hole	AMG East	AMG North	AMG Azimuth	Incl.	From (m)	To (m)	Thickness (m)	%Ni
RC08MH74	563509	6173841	048º	-80º	18	24	6	0.93%
RC08MH76	563402	6173894	-	-90º	12	18	6	0.83%

Tin/Tantalum

Euriowie - (Carpentaria owns rights to 100% base and precious metals other than lithium) - Petrographic study further establishes the prospectivity of the tenement.

In EL 6936, Willyama Supergroup meta-sediments are intruded by numerous pegmatite intrusions forming the well known Euriowie Tin Field, which contains a large number of small hard rock workings dating to the turn of the Twentieth Century. Tin production in the order of 140 tonnes is recorded for the field but in view of the large number of relatively deep hard-rock workings, higher production is thought to have actually occurred. Little modern exploration has taken place and there are no drill-holes recorded on this tenement.

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Figure 5: Euriowie Rock Chip and Petrological sample locations together with significant results

CARPENTARIA EXPLORATION LIMITED PAGE 8 of 14

Tin/Tantalum (continued)

This quarter a total of five samples were submitted for thin sectioning and petrographic examination. (see figure 5) The samples were taken to follow up the previously reported anomalous tin - tantalum (Sn-Ta) results from the Mt Euriowie pegmatite body and the lead - silver (Pb-Ag) anomalous white-mica schist exposure at the Horrie Hoares prospect.

The petrographic examination of the Mt Euriowie sample indicates that it comprises mildly deformed albite-quartz dominant pegmatite with accessory phosphates, topaz and trace fluorite, which suggests the body crystallized from a fluorine rich melt, well known to be prospective for tin and other rare metals. Petrography confirmed the presence of cassiterite (the major tin ore mineral) with grain sizes in the 300 to 750 micron range, which is comparatively coarse-grained in terms of commonly used hard-rock gravity recovery processes. Petrography also confirmed the presence of tantalite / columbite crystals (the major tantalum ore mineral) with grain sizes up to 200 microns.

The results of the petrographic examination are very encouraging as it confirms the Mt Euriowie, and most likely other similar pegmatites within the Euriowie project, contain economic types and grain-sizes of tin and tantalum minerals.

At Horrie Hoares, petrographic examination has revealed that the highly silver - lead (AgPb) anomalous schist (0.75m @ 11.45% Pb, 191 g/t Ag and 0.7 g/t Au) is caused by a significant content of oxidized sulphide. Significant secondary Pb carbonate (cerrusite) and sulphate (anglesite) replaces incompletely oxidized fine-grained disseminated galena hosted by deformed quartz rich bands within quartz-sericite schist. This host rock also contains goethitic box works after iron sulphides and traces of the secondary copper sulphide covellite. The paragenesis of the sulphide is variable and appears to have both pre-deformation and syn-deformation vein components. The presence of pre-deformation, possibly syngenetic - diagenetic sulphide within permeable quartz-rich beds of a pelitic schist, is highly encouraging in terms of potential for Proterozoic shale hosted (eg Mt Isa, Century etc) style base metal mineralization.

Gold

Panama Hat - (Carpentaria earning initially 51%) - Power auger soil sampling undertaken at the Williams Prospect

At the Williams Prospect a total of 92 C-horizon soil samples were taken using a power auger. The samples were taken on a 10m interval along grid lines shown in figure 6. The program was designed to explore the covered eastern strike extent of the highly Au anomalous quartz vein previously sampled by Carpentaria, which returned results including 30 g/t, 19.05 g/t, 7.06 g/t and 3.68 g/t gold . The auger samples have been submitted to the laboratory and results are awaited.

CARPENTARIA EXPLORATION LIMITED PAGE 9 of 14

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Figure 6: Williams Prospect - EL 6556 - Power Auger Grid

Copper / Gold

Redan Project - Redan Farm in (Carpentaria initially earning 51% - EL 6979) and Burta (EL 7208 100% CAP) - A joint venture agreement signed for area with prospective for IOCG style targets[1]

During this quarter the Redan joint venture agreement with Perilya Broken Hill Limited. (ASX : PEM) was signed. The basic terms of the JV are as follows:

• PEM retains the rights to lead, zinc, silver discoveries, and Carpentaria has the rights to all other metal discoveries

• Minimum expenditure of $75,000 in year one

• Carpentaria can then elect to earn 51% with a $750,000 expenditure

• PEM can then contribute, if not Carpentaria expends further $1.0m to earn to 75%

• If PEM does not contribute at this stage then PEM converts to a 1.5% NSR Carpentaria considers that there is good potential for IOCG style mineralization in this EL and has also secured another tenement (EL 7208) - Burta - adjoining EL 6979 where additional targets [1] have been noted. (see figure 7).

When access is granted initial work will include mapping and sampling using a portable Niton XRF analyser.

CARPENTARIA EXPLORATION LIMITED PAGE 10 of 14

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Figure 7 : Location of Redan Project area showing IOCG targets[1] overlying the airborne magnetics

Copper Gold

Mt Agate - Elevated gold and copper rock chip results returned including 1.78 g/t gold at the Mt Sheila Prospect

At Mt Agate, Carpentaria has been awarded a Queensland Government Assistance Grant under round two (2) of the Collaborative Drilling Initiative (CDI) to test two high priority geophysical targets [1] at QMH and Mt Sheila (see figure 8). These targets [1] are considered to have potential for iron-oxide copper gold (IOCG) mineralization analogous to the Ernest Henry deposit. A secondary, but very closely related target [1] is precious and base metal mineralized massive sulphide magnetic skarns hosted by contact metamorphosed primary iron-rich or calcareous sedimentary units.

CARPENTARIA EXPLORATION LIMITED PAGE 11 of 14

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Figure 8 : EPM 14955 - showing location of prospects over airborne magnetics

Mt Sheila Prospect

During the quarter Carpentaria has completed a detailed ground magnetic survey totalling 22 line km and and taken 10 reconnaissance rock samples at this prospect.

Previous exploration at Mt Sheila in the 1970s and 80s returned anomalous copper and barium and silver (Cu-Ba) results ( maximum 0.22% Cu, 0.36% Ba ) from the gossanous ironstone exposed at the magnetic anomaly being targeted [1] by Carpentaria. These results were not followed up by the previous explorers.

Carpentaria field work this quarter has defined exposures over 900m in length of dense hummocky hematite-magnetite-quartz ironstone with clots of box-work limonite sponge developed after sulphide. The sampling results confirmed the prior anomalous Cu-Ba geochemical results reported by previous explorers and also showed highly anomalous gold up to 1.78 g/t as shown in figure 9.

A sample taken from the historic Mt Sheila mineral occurrence also returned elevated copper and gold, namely 0.6% Cu and 0.87 g/t Au.

.A diamond core hole has been designed to test this magnetic anomaly and associated boxwork bearing ironstone exposures which will be drilled early next quarter.

CARPENTARIA EXPLORATION LIMITED PAGE 12 of 14

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Figure 9 : Mt Sheila Prospect ground magnetics (reduced to the pole ) and rock chip results

QMH Prospect

25 line kms of detailed ground magnetics were completed over 4 sq km to detail a previously identified aeromagnetic anomaly. The data defines an anomaly of 4500 nT amplitude, 800 m in length and 160 m wide (see figure 10). Most of the prospect contains sub cropping quartz - magnetite veining within the Argylla Formation.

Only one hole has been drilled into this anomaly by previous explorers returning a 4m @ 0.247% Cu from 46m below surface.

Three-dimensional modelling and interpretation of the ground magnetic data indicates the peak of the magnetic source has not been drill tested and potential remains for IOCG mineralisation at depth and along strike of the previous drilling. It is intended to test this target [1] early next quarter under the Queensland Government CDI grant.

CARPENTARIA EXPLORATION LIMITED PAGE 13 of 14

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Figure 10 : QMH Prospect ground magnetics - reduced to the pole

CARPENTARIA EXPLORATION LIMITED PAGE 14 of 14

ABOUT CARPENTARIA

Carpentaria Exploration Limited is an exploration company focused on finding base and precious metals and bulk commodities in Eastern Australia. The company holds 100% owned tenements in NSW and Queensland and also has a number of farm-in deals. Most tenements have known mineralised systems and are being explored using modern, efficient technologies. It is Carpentaria’s intention to ultimately mine its discoveries.

CORPORATE DETAILS

Board of Directors: Principal & Registered Office: Nick Sheard Executive Chairman Ground Floor, Boundary Crt., Stan MacDonald Non-Executive Director 55 Little Edward St., Bob Hair Non-Executive Director Spring Hill, Qld 4000 Mike Chester Non-Executive Director Contact Details: Capital Structure: Email: info@capex.net.au Ordinary Shares 67,500,000 Website: www.capex.net.au Listed Options 21,447,415 Telephone: (61 7) 3161 3801 Facsimile: (61 7) 3161 7860 Major Shareholder: PO Box 1019, Giralia Resources 10% Spring Hill, Qld., 4004 Stock Exchange Listing Share Registry: Australian Stock Exchange Link Market Services Limited ASX Code: CAP Level 12, 300 Queen Street CAPO Brisbane Qld 4000

1 The term "Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.

The information in this report that relates to Exploration Results is based on information compiled by Mr Nick Sheard, who is a Member of the Australian Institute of Geoscientists and is a Registered Professional Geoscientist - Mineral Exploration and Geophysics. Mr Sheard is a full time employee of Carpentaria Exploration Limited and Mr Sheard has sufficient expertise which is relevant to the style of mineralization and 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 Sheard consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information please contact:

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Nick Sheard - Executive Chairman Carpentaria Exploration Limited (+617) 31613801

Appendix 5B

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Mining exploration entity quarterly report

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

Name of entity

Carpentaria Exploration Limited
ACN or ABN	Quarter ended (“current
	quarter”)
63 095 117 981	31-Dec-08

Consolidated statement of cash flows

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13	Cash flows related to operating activities Receipts from product sales and related debtors	Current quarter $A’000	Year to date (6 months) $A’000
		-	-
	Payments for
	(a) exploration and evaluation	- 721	- 1,006
	(b) development (c) production
	(d) administration	- 94	- 308
	Dividends received
	Interest and other items of a similar nature received	26	32
	Interest and other costs of finance paid Income taxes paid Other
	Net Operating Cash Flows	- 789	- 1,282
	Cash flows related to investing activities Payment for purchases of: (a)prospects (b)equity investments
	(c) other fixed assets	- 25	- 25
	Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets Loans to other entities Loans repaid by other entities Other
	Net investing cash flows	- 25	- 25
	Total operating and investing cash flows (carried forward)	- 814	- 1,307

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1.13 1.14 1.16 1.17 1.19 1.20 1.21 1.22	Total operating and investing cash flows (brought forward)	- 814	- 1,307
	Cash flows related to financing activities
	Proceeds from issues of shares, options, etc.	3	3
	Proceeds from borrowings	-	-
	Repayment of borrowings	-	-
	Other – capital raising costs	- 4	- 36
	Net financing cash flows	- 1	- 33
	Net increase (decrease) in cash held	- 815	- 1,340
	Cash at beginning of quarter/year to date	5,061	5,586
	Exchange rate adjustments to item 1.20
	Cash at end of quarter	4,246	4,246

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

• Current quarter $A'000

• Aggregate amount of payments to the parties included in 51

• 1.23 item 1.2 Aggregate amount of loans to the parties included in item -

• 1.24 1.10 Explanation necessary for an understanding of the

• 1.25 transactions

Item 1.23 relates to Directors Remuneration, Fees and Superannuation Contributions.

Non-cash financing and investing activities

• Details of financing and investing transactions which have

• 2.1 had a material effect on consolidated assets and liabilities but did not involve cash flows

Details of outlays made by other entities to establish or

• 2.2 increase their share in projects in which the reporting entity has an interest

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Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 3.2 4.1 4.2 5.1 5.2 5.3 5.4		Amount available $A’000	Amount used $A’000
	Loan facilities	-	-
	Credit standby arrangements	-	-
	Estimated cash outflows for next quarter	$A’000
	Exploration and evaluation	220
	Development	0
		Total 220
	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
	Cash on hand and at bank	66	55
	Deposits at call Bank overdraft Other (provide details)	4180	5006
		.
	Total: cash at end of quarter(item 1.22)	4,246	5,061

Changes in interests in mining tenements

6.2 Interests in mining tenements acquired or increased Interests in mining tenements relinquished, reduced or lapsed	Nature of interest (note (2))	Interest at beginning of quarter

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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.

7.3 7.4 7.7 7.8 7.9 7.10		Number quoted	Issue price per security (see note 3) (cents)
	+Ordinary securities Quoted	55,178,410
	Options Quoted (Exercisable on 30 June 2010)	21,447,415 12,321,590	0.25
	+Ordinary securities Un-Quoted(restricted) Changes during quarter
	(a) Increases through issues	2,500,000	0.25
	(b) Decreases through returns of capital, buy-backs
	Options (description and conversion factor) Issued during quarter Exercised during quarter Expired during quarter	Number	Exercise price Expirydate
		3,700,000	0.30 30-Jun-10
		500,000	0.27 30-Jun-10
		800,000	0.15 30-Jun-10
		-

Compliance statement

• 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).

• 2 This statement does give a true and fair view of the matters disclosed.

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_______ 15/01/2009
Company Secretary
Chris Powell
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• 1 This 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.

• 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 .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive 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.