TIVAN LIMITED — Interim / Quarterly Report 2007

Jan 13, 2008

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QUARTERLY REPORT DECEMBER 2007

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HIGHLIGHTS

• 2007 Exploration Programme completed.

• Drilling and geophysical results confirm that the Manbarrum Project has the potential to host multiple Zinc-Lead-Silver deposits.

• Further encouraging results were received from the Sandy Creek RC drilling program and additional high-grade results received from the diamond drilling.

• An updated JORC resource estimate for Sandy Creek is underway managed by consultants CSA Ltd.

• Initial RC Drill results from the Djibitgun Prospect (17km NE of the Sandy Creek MVT deposit), record high Zinc values within a broad zone of high-grade Silver mineralisation, confirming a new MVT deposit.

• The company anticipates that the 2007 drilling program at Djibitgun will underpin an initial JORC inferred resource estimate to be released in the March 2008 Quarter.

CORPORATE

• Raised $5m via the issue of 9.1m shares to sophisticated investors.

• November options exercised raising $255k.

• Cash position of $5.4m at the end of the Quarter.

• 2007 Annual Report released.

• All resolutions passed at AGM.

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Level 1, 282 Rokeby Road Subiaco, Western Australia 6008

T +61 8 9327 0900 F +61 8 9327 0901

www.tngltd.com.au corporate@tngltd.com.au

Contact:

Neil Biddle, Managing Director Paul Burton, Exploration Manager

Quarterly Report December 2007 1

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SUMMARY

During the December Quarter, TNG (“TNG”) completed the major exploration program at its 100%-owned Manbarrum Zinc-Lead-Silver Project , located in the Northern Territory. A total of 149 RC and 64 Diamond Drill holes were completed, for a total of 37,417m, with over 20,000 samples collected and submitted for analysis. In addition, regional and detailed geophysical surveys were completed.

Exploration and resource drilling was completed at the Sandy Creek deposit and additional reconnaissance drilling was completed at the Djibitgun Prospect, 17km northeast of Sandy Creek.

Work during the Quarter focused on completion of in-fill and extension drilling at Sandy Creek to enable an updated JORC resource estimate, and completion of reconnaissance drilling at the Djibitgun Prospect.

Results received to date have validated the existing Sandy Creek resource and confirmed extensions to the resource zone, both to the south and to the north.

The new JORC resource estimate is currently in progress, managed by CSA (Australia) Ltd and will be announced in the March Quarter 2008.

At the Djibitgun Prospect early results indicate a potentially significant new deposit with mineralisation intersected over a strike extent of 800m. This is the second deposit located by TNG in the Manbarrum Project area.

During the Quarter a detailed high resolution IP survey and a detailed gravity survey were also completed over a 32km area along strike from the Sandy Creek deposit, and baseline environmental surveying and monitoring of the Sandy Creek area by GHD consultants was completed.

Metallurgical test work also commenced during the Quarter on selected drill core from the Sandy Creek deposit. Results are expected in the March Quarter 2008.

The Company’s primary objective in 2007 was to delineate a significant inventory of zinc-lead-silver resources in the Manbarrum project area spanning multiple deposits. This objective has been achieved with the Company’s exploration approach.

With a second potentially large mineralised system being located at Djibitgun and numerous prospects remaining to be tested the Company has confirmed the potential of the Manbarrum Project area to continue to develop into a substantial MVT (Mississippi Valley Type) base metal district.

Quarterly Report December 2007 2

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TNG Operations

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Figure 1: TNG Limited Tenement Map

TNG Limited is a mineral exploration company holding interests in 34 exploration licences, mining titles and applications in some of the most prospective areas of the Northern Territory and Western Australia.

Quarterly Report December 2007 3

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EXPLORATION

Manbarrum Project, N.T: Zinc-Lead-Silver, TNG 100%.

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Figure 2: Location of Manbarrum Project

The Manbarrum Project is located in the Northern Territory, 70 kilometres north east of the regional centre of Kununurra.

The project is situated along the eastern margin of the Late Devonian to Early Carboniferous Bonaparte Basin , where a succession of clastic and carbonate rocks were deposited.

The Bonaparte Basin has been strategically targeted and assessed by TNG to have the potential to host multiple Mississippi Valley Type (MVT) zinc-lead-silver deposits and exploration programmes have been aimed at proving up a resource inventory in the area.

The granted Manbarrum tenements comprise three Exploration Licences and an Authority to Prospect (under Section 178), covering a combined area of over 538 square kilometres. In addition to these, licence areas in Western Australia covering the western margin of the Bonaparte Basin gives TNG access to most of the prospective areas of the Bonaparte Shelf Margin, where widespread Mississippi Valley Type (MVT) zinc-lead-silver mineralisation has been identified.

TNG’s 2007 exploration program has been focused on the eastern shelf margin where the Sandy Creek deposit is located in the south west corner of the project area, and on other key prospects including NEIP, Djibitgun and Browns (Figure 3).

The focus of exploration on the eastern basin margin in 2007 was also aimed at refining known targets, unraveling the geological structure and locating new targets using multiple techniques. TNG has established that the basin margin is faulted and offset in

Quarterly Report December 2007 4

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several locations along northerly-trending basement-hosted structures which are considered important for mineralised fluid pathways providing additional exploration targets.

2007 Exploration Programme

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Figure 3: Manbarrum Project: Exploration Prospects

The exploration programme that commenced in late May was completed during the December Quarter. This was a major exploration programme and achievements include confirmation of extensions to the current mineralisation at the Sandy Creek deposit and the location of continuous zinc and silver mineralisation at the Djibitgun Prospect.

Two drilling rigs were operational at Manbarrum during the season – a Diamond Drill (DD) rig and a high-powered Reverse Circulation (RC) rig. A total of 149 RC holes for a total of 23,293 metres and 64 diamond drill holes for a total of 14,124 metres have been completed (See Table 1).

PROSPECT RC DD

No of holes m No o

PROSPECT		RC	DD	DD
	No of holes	m	No of holes	m
Sandy Creek NEIP Djibitgun	72 25 52	12,173 3,978 7,142	58 1 5	12,957.3 205.3 961.8
TOTAL	149	23,293	64	14,124.4

Table 1: 2007 Drilling Summary

Quarterly Report December 2007 5

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In addition, 84 line kilometers of high resolution IP survey and a detailed 3,000 station gravity survey were completed. Results are being assessed.

• The Sandy Creek Deposit

The Sandy Creek deposit is interpreted to be a strata-bound carbonate matrix replacement-type zinc-lead deposit, with similarities to several global Mississipi Valley Type (MVT) deposits (eg. SE Missouri MVT district, USA; Tri State district, USA).

Mineralisation Style

The Sandy Creek deposit is a typical MVT style comprising sphalerite, silver-bearing galena and pyrite mineralisation. It is almost exclusively a primary sulphide deposit, although some secondary zinc mineralisation is present in the supergene zone. No lead sulphates (anglesite) or carbonates (cerrusite) have been observed.

The mineralisation is predominantly hosted by a quartz-sandy carbonate unit, 100-120m thick within the faulted basin margin. In places, the mineralisation extends into the underlying silty carbonate unit. High-grade galena mineralisation has been intersected in the saprolitic clays as well as in a sedimentary breccia immediately underlying the Milligans Shale in the hanging wall of the quartz sandy dolomite.

Reverse Circulation (RC) Drilling

A total of 72 RC holes (12,173m) have been completed at the Sandy Creek deposit (Figure 4).

The company is pleased to report that nearly all holes intersected significant sphalerite (zinc sulphide) and galena (lead) mineralisation.

Results confirm the continuation of west-dipping strata-bound sphalerite and galena mineralisation, with an average width of 250 metres and an average thickness of 20-40 metres, with high grade zones extending to 100m.

Results:

Significant assay results continued to be received during the Quarter, further confirming and establishing the full extent of mineralisation. Significant assay results received during the Quarter are shown below. A full set of results are in Appendix A.

•	MRC104	34m @	2.87% Zn+Pb,	6.2	ppm Ag, from	76m
		13m @	4.58% Zn+Pb,	9.7	ppm Ag, from	77m
•	MRC107	101m @	4.71% Zn+Pb,	2.6	ppm Ag, from	91m
	Incl.	20m @	11.80% Zn+Pb,	3.5	ppm Ag, from	127m
•	MRC108	21m @	3.39% Zn+Pb,	8.6	ppm Ag, from	38m
		54m @	2.64% Zn+Pb,	5.8	ppm Ag, from	90m
	Incl.	26m @	3.51% Zn+Pb,	7.5	ppm Ag, from	95m
•	MRC111	11m @	4.00% Zn+Pb,	6.6	ppm Ag, from	133m
•	MRC113	10m @	3.56% Zn+Pb,	10.5	ppm Ag, from	88m
•	MRC122	19m @	3.72% Zn+Pb,	1.4	ppm Ag, from	145m

Quarterly Report December 2007 6

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Figure 4: Sandy Creek Drill Holes

Quarterly Report December 2007 7

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Diamond Drilling

Diamond drilling at the Sandy Creek Deposit was concentrated in the central high grade zone and additionally tested mineralised extensions to the north and west of this zone.

Five metallurgical test holes were also completed and are currently being assessed at METPLANT, Metallurgical Consultants.

A total of 58 diamond drill holes (12,957.3m), have been completed to date (Figure 4).

Results:

A number of significant high grade/ width intercepts received during the quarter are shown below with all intercepts shown in Appendix B.

• MDD029 22m @ 4.14% Zn+Pb, 14.1 ppm Ag from 148m

• • MDD030 3m @ 4.45% Zn+Pb, 19.2 ppm Ag from 134m • MDD031 11m @ 2.38% Zn+Pb, 5.3 ppm Ag from 54m • MDD033 9m @ 10.25% Zn+Pb, 10.3 ppm Ag from 79m • MDD034 38m @ 3.26% Zn+Pb, 2.4 ppm Ag from 50m • MDD035 7m @ 4.42% Zn+Pb, 6.4 ppm Ag from 92m • MDD042 9m @ 2.84% Zn+Pb, 5.3 ppm Ag from 120m • MDD045 33m @ 5.65% Zn+Pb, 16.6 ppm Ag from 19m • MDD048 21m @ 2.86% Zn+Pb, 4.8 ppm Ag from 67m • MDD049 52m @ 2.63% Zn+Pb, 10.0 ppm Ag from 59m • MDD050 9m @ 8.47% Zn+Pb, 18.7 ppm Ag from 89m • MDD053 4m @ 18.93% Zn+Pb, 31.0 ppm Ag from 62m

• MDD054 7m @ 4.47% Zn+Pb, 7.3 ppm Ag from 57m

JORC Resource

Following completion of the 2007 drilling programme and receipt of analytical results, an updated resource estimate to the previous JORC resource of 10.5 million tones, 3.74% Zn+Pb, (released in February 2007) was commenced, managed by CSA (Australia) Ltd. This will be released in the March Quarter 2008.

• NEIP Prospect

The NEIP anomaly is located 2km to the NE of Sandy Creek (Figure 3) and is defined by a large IP anomaly of similar amplitude to Sandy Creek.

Analytical and geophysical results are being assessed along with the completed Sandy Creek results and new geophysical data.

• Djibitgun Prospect

The Djibitgun Prospect is located 12 km to the NE of Sandy Creek (Figure 3), and is situated in an area where historical drilling recorded Zinc values of up to 8%, making it a priority target for the company in 2007.

Quarterly Report December 2007 8

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Geophysics

Results from a detailed IP survey carried out during the year at Djibitgun, defined a strong NE trending Induced Polarisation (IP) anomaly over an estimated strike length of more than 2km with an additional satellite anomaly of similar amplitude located to the NE (Figure 5);

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Djibitgun IP Anomalies
Figure 5: Djibitgun IP Anomalies.
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Drilling

A total of 52 RC holes (7,142m) and 5 Diamond holes (962m) were drilled (Figure 6). All samples are at the laboratory for analysis.

Initial assay results from reconnaissance drilling at Djibitgun have been encouraging, confirming the presence of an extensive zone of zinc and silver dominant mineralisation occurring within the Sandy Dolomite (Burt Range Formation) in both weathered and fresh profiles. The zinc mineralisation occurs in the weathered zone as secondary minerals zinc-carbonates and zinc-hydroxides, and reflects primary sulphide mineralisation at depth. The silver mineralisation is of significantly higher grade and more continuous than at Sandy Creek.

Significant intercepts are summarised in Table 2.

Quarterly Report December 2007 9

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Figure 6: Djibitgun Drill Holes

Quarterly Report December 2007 10

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Table 2: RC Drilling – Djibitgun Prospect

Hole ID	North	East	From m	To m	Width	Pb %	Zn %	Ag ppm	Zn+Pb %
DRC007	8308918	530062	84	114	30	0.44	3.05	21.20	3.49
			95	103	8	0.15	5.22	15.63	5.37
			95	114	19	0.14	4.16	11.90	4.30
			97	102	5	0.18	7.80	16.40	7.98
			104	107	3	0.21	5.57	12.33	5.77
DRC013	8309548	530201	76	86	10	0.16	4.3	12.30	4.46
			76	81	5	0.05	7.5	12.20	7.55
DRC015	8309663	530497	60	108	49	1.01	2.40	5.70	3.41
			69	92	23	1.50	3.20	5.50	4.70
			69	75	6	2.00	6.10	6.00	8.10
DRC031	8308500	530147	66	77	11	0.11	3.63	11.7	3.73
DRC040	8308881	530152	58	91	33	0.56	2.87	22.27	3.43
			62	86	24	0.58	3.69	27.46	4.27
			68	80	12	0.32	6.17	4.20	6.49
			68	75	7	0.37	8.03	5.40	8.40
DRC048	8309467	530161	64	75	11	1.23	2.23	20.27	3.46
			68	74	6	1.90	3.20	29.30	5.10

(Note: 1% cut-off Zn+Pb, minimum interval length 2m, 1m internal waste; not applicable to the mineralised envelope)

This has confirmed the Djibitgun prospect as the second deposit of MVT style to be located within the Manbarrum Project area.

On receipt of all results a JORC inferred resource is anticipated to be calculated.

In addition, geological mapping by TNG has located other significant areas of nearsurface oxide mineralisation at Djibitgun which will be evaluated in 2008.

• Browns Prospect

The Browns Prospect is located 5km to the NNE of Sandy Creek (Figure 3), and is characterised by large IP and gravity anomalies extending over 2km in strike length, supported by zinc rich (up to 2% Zn) gossans at the nearby Browns Hill.

Significantly, Browns is also located in a favorable structural setting along strike from Sandy Creek, and remains a key exploration target for the Company, particularly in light of results from Djibitgun.

No further ground work was carried out on this prospect during this Quarter due to the intensity of work on other prospects.

Quarterly Report December 2007 11

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Browns and other regional targets, including Landandi, will be tested in the 2008 exploration season.

• Environmental Survey

TNG has been proactive in establishing baseline Environmental groundwork in the Manbarrum Project Area which will be invaluable as the company progresses the project through to feasibility

GHD (Darwin) completed and reported on the baseline environmental survey during the Quarter for the Sandy Creek area, including monitoring of groundwater, flora and fauna.

TNG is pleased to report that no environmental issues were raised.

• Manbarrum Project Tenement Status

No changes during the Quarter to its exploration title holding (Table 3).

Tenement	Holder	Date	Date	Status	Area
		Applied	Granted
Application No					Km2
EL24395 (NT)	TNG 100%	08/09/04	16/08/05	- Granted	200.0
A 24518 (NT)	TNG 100%	15/12/04	25/08/05	- Granted	16.8
EL25470 (NT)	TNG 100%	13/07/06	05/03/07	- Granted	199.5
EL25646 (NT)	TNG 100%	16/10/06	23/08/07	- Granted	122.0
E80/3772 (WA)	TNG 100%	16/10/06	-	- Awaiting	402.8
				clearance
E80/3816 (WA)	TNG 100%	30/11/06	-	- Awaiting	224.0
				clearance

Table 3: TNG Tenements, Manbarrum Project

OTHER PROJECTS

Explorer, Rover and McClaren Creek Gold-Copper-Bismuth Prospects, TNG 100%

TNG has four exploration licences located 50km south of Tennant Creek in Central Australia (Figure 1). The exploration licences cover an area in excess of 2,500 square kilometres and contain numerous first order Tennant Creek-style magnetic ironstone targets with the potential to host gold, and gold-copper-bismuth deposits.

These prospects are hosted within the prospective Warrimunga Formation and have the same magnetic trend and magnitude as some of the world-class gold and gold-copperbismuth deposits in the Tennant Creek Inlier.

Quarterly Report December 2007 12

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Due to the Company’s focus on the Manbarrum Project, no exploration has been conducted during the Quarter.

Mount Peake: Nickel, TNG 100%

Mount Peake is located in the Arunta Province 80 kilometres north east of Alice Springs. Airborne magnetic surveys have indicated possible ultramafic intrusion hosted nickel targets.

Due to the Company’s focus on the Manbarrum Project, no exploration has been conducted during the Quarter

Tanami East (Goddards Prospect): Copper / Gold, TNG 100%

Tanami East, also known as Goddard’s Prospect, hosts significant malachite mineralisation outcropping over a strike length of 1,200 metres. Numerous values over 1% Cu and 100 ppb Au were obtained from rock chip samples carried out during the 1970s and the area is considered to have exploration potential for copper-gold deposits.

Due to the Company’s focus on the Manbarrum Project, no exploration has been conducted during the Quarter.

Other Tenements and Opportunities

TNG holds an interest in other tenement groups, however, in each case, the Company does not contribute towards exploration expenditure as the projects are subject to joint venture or options for sale. These projects include Kintore East and McTavish, both based in WA.

TNG currently has other applications over prospective interests for a range of commodities, and continues to review JV opportunities.

Quarterly Report December 2007 13

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MINING PROJECTS

Cawse Extended JV: Nickel, TNG 20%, Norilsk 80%

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Figure 7: Cawse Extended Tenement Map

The Cawse Extended Project is a joint venture between Norilsk Nickel, one of the worlds largest Nickel mining and production companies and TNG Ltd. The project consists of 4 mining leases located in the Eastern Goldfields region of Western Australia, approximately 60 kilometres north-west of Kalgoorlie (Figure 7).

Four main types of mineralisation have been identified at Cawse. These are the oxide ores of limonite, talc, and siliceous cobalt and the smectite-saprolite ore (locally termed nontronite).

The upgrade ore type represents >80% of the Cawse nickel resource and is hosted mostly within a limonite unit, represented by goethitic clays in the upper saprolite zone.

Quarterly Report December 2007 14

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Metal Content	Metal Volume
Res_cat Product Total mass (t) ni (%) co (%) ni (t) co (t) Cawse Extended Measured Upgrade Ore 2,537,468 0.67 0.03 17,081 858 Grind Ore 30,775 1.02 0.26 314 80 Indicated Upgrade Ore 12,112,649 0.70 0.03 84,486 3,544 Grind Ore 54,993 1.16 0.20 636 111 Inferred Upgrade Ore 81,550,543 0.70 0.03 566,829 22,985 Grind Ore 503,850 1.34 0.21 6,756 1,056 Total 96,790,278 0.70 0.03 676,101 28,634

Table 4: Resource Estimate for Cawse Extended as at end 2006, (source: Norilsk Nickel Cawse).

A revised resource estimate is expected from Norilsk early in the March Quarter 2008.

Mine Scheduling

It is expected that mining will commence in October 2008. In-fill drilling is continuing and a mining proposal is being formulated for submission to the DoIR.

The company has held meetings with Norilsk on the future project plans.

CORPORATE

Placement

The Company successfully raised $5m via a placement of shares at $0.55 to sophisticated investors.

Demerger of Enigma Mining

The demerger is currently subject to finalisation of the taxation and legal implications, the outcome of which will be announced as soon as they are completed.

AGM

All resolutions placed before shareholders at the Annual General Meeting held on 8 November 2007 were approved by a show of hands.

Quarterly Report December 2007 15

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Cash Position

The Quarter closed with a cash balance of $5.4m following the successful completion of the 2007 drilling campaign and a raising of $5m via a placement to sophisticated investors.

Yours faithfully,

TNG LIMITED

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Paul Burton Exploration Manager

14 January 2008

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Paul Burton, who is a Member of The Australasian Institute of Mining and Metallurgy. Paul Burton is the Exploration Manager of TNG Limited. Paul Burton has sufficient experience which is relevant to the style of mineralisation 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’. Paul Burton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Quarterly Report December 2007 16

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Directors

John W Barr Chairman Neil Biddle Managing Director Michael Bowen Non Executive Director Terry Smith Non Executive Director Eddie Fry Non Executive Director

Chief Financial Officer/Company Sec

Damian Delaney

Australian Stock Exchange Listing
Shares	TNG
European Stock Exchange Listings
Frankfurt	A0B60K
Berlin	A0B60K
Munich	A0B60K
Stuttgart	A0B60K

Shareholder Enquiries

Major Shareholders – 14 January 2008

Damian Delaney

Contact

Telephone: (08) 9327 0900 Facsimile: (08) 9327 0901

Email: corporate@tngltd.com.au

ANZ Nominees Limited	12.71%
RAB Special Situations (Master) Fund Ltd	12.46%
CBH Resources	8.40%
JW Barr	5.77%
N Biddle	5.06%
TOTAL DIRECTORS HOLDINGS	16.24%

Website: www.tngltd.com.au

Capital Structure – 14 January 2008

Share Registry

Computershare Investor Services Pty Ltd Level 2, 45 St Georges Terrace Perth WA 6000

Ordinary	Shares	TNG	192,683,315
Options:	01.11.09	(unlisted)	200,000	$0.75
Options:	31.03.10	(unlisted)	14,000,000	$0.49
Options:	31.12.11	(unlisted)	5,100,000	$0.32

Telephone: (08) 9323 2000 Facsimile: (08) 9323 2033

Quarterly Report December 2007 17

Appendix A: Significant RC Assay Results, Received December Quarter, Sandy Creek Deposit.

Hole ID	North	East	From m	To m	Width m	Pb %	Zn%	Ag ppm	Zn+Pb %	Interval Zn+PB
MRC103	8297280	520637	87	89	2	0.46	3.54	11.00	4.00	2.00@4.00
MRC103			119	123	4	1.21	1.93	4.25	3.14	4.00@3.14
MRC103			126	129	3	0.28	1.70	1.33	1.98	3.00@1.98
MRC104	8297249	520623	76	110	34	0.75	2.13	6.18	2.87	34.00@2.87
Incl.			77	90	13	1.14	3.44	9.69	4.58	13.00@4.58
			91	99	8	0.41	2.11	6.00	2.52	8.00@2.52
			102	104	2	1.61	1.47	6.50	3.08	2.00@3.08
			106	110	4	0.81	1.04	2.50	1.86	4.00@1.86
MRC107	8297241	520685	91	192	101	0.2	4.52	2.6	4.7	101.00@4.7
Incl.			127	147	20	0.2	11.6	3.5	11.8	20.00@11.8
MRC108	8297207	520708	38	59	21	0.85	2.54	8.60	3.39	21.00@3.39
Incl.			39	44	5	2.75	3.91	20.00	6.66	5.00@6.66
			45	47	2	0.13	1.03	2.50	1.15	2.00@1.15
			48	59	11	0.25	2.58	5.64	2.83	11.00@2.83
MRC108			90	144	54	0.25	2.38	5.76	2.64	54.00@2.64
Incl.			95	121	26	0.34	3.17	7.50	3.51	26.00@3.51
			122	144	22	0.18	1.80	4.00	1.98	22.00@1.98
MRC110	8297359	520694	104	109	5	0.07	2.62	13.00	2.69	5.00@2.69
MRC111	8297471	520683	133	144	11	0.26	2.98	6.55	3.24	11.00@3.94
Incl.			133	138	5	0.42	2.52	5.60	2.94	5.00@2.94
			139	144	5	0.13	3.92	8.60	4.05	5.00@4.05
MRC111			224	229	5	0.33	4.29	-0.40	4.62	5.00@4.62
MRC113	8297611	520834	88	98	10	2.96	0.60	10.50	3.56	10.00@3.56
Incl.			88	92	4	4.91	0.51	10.75	5.41	4.00@5.41
			93	98	5	1.91	0.77	12.00	2.68	5.00@2.68
MRC113			143	145	2	0.01	1.40	-1.00	1.40	2.00@1.40
MRC114	8297616	520784	114	118	4	0.83	3.25	20.25	4.08	4.00@4.08
MRC114			145	148	3	3.63	1.03	3.67	4.67	3.00@4.67
MRC120	8297611	520884	65	71	6	2.82	0.86	16.33	3.68	6.00@3.68
MRC122	8297115	520637	145	164	19	0.22	3.50	1.42	3.72	19.00@3.72
Incl.			145	155	10	0.20	3.72	0.50	3.92	10.00@3.92
			156	164	8	0.27	3.58	2.63	3.85	8.00@3.85
MRC125	8297366	520635	126	141	15	0.17	2.03	6.20	2.20	15.00@2.20
Incl.			126	134	8	0.06	2.43	7.50	2.49	8.00@2.49
			136	141	5	0.42	1.94	5.80	2.36	5.00@2.36
MRC127	8297760	520777	151	158	7	0.28	2.16	17.29	2.44	7.00@2.44

Quarterly Report December 2007 16

Appendix B: Significant DD Assay Results, Received December Quarter, Sandy Creek Deposit.

Hole ID	North	East	From	To	Width	Pb %	Zn%	Ag ppm	Zn+Pb %	Interval Zn+PB
MDD024	8297215	520758	35.9	45	9.1			11.13	3.01	9.10@3.01
Incl.			35.9	41	5.1	0.83	3.53	14.1	4.36	5.10@4.36
			43	45	2	0.05	1.88	8.5	1.93	2.00@1.93
MDD025	8297298	520689	81.8	85	3.2	0.35	4.76	12.13	5.11	3.20@5.11
MDD025			129	132	3	0.64	1.14	2.33	1.79	3.00@1.79
MDD025			163	165	2	0.14	1.69	2	1.83	2.00@1.83
MDD027	8297233	520518	173	176	3	0.17	1.74	7	1.91	3.00@1.91
MDD028	8297436	520783	104	107	3	2.01	2.44	15.00	4.44	3.00@4.44
MDD028			112	114	2	0.42	0.81	2.00	1.23	2.00@1.23
MDD029	8297532	520762	148	170	22				4.14	22.00@4.14
Incl.			148	157	9	1.26	2.99	16.11	4.25	9.00@4.25
			158	161	3	2.83	3.91	32.00	6.74	3.00@6.74
			163	170	7	2.81	1.58	9.00	4.39	7.00@4.39
MDD029			176	179	3	1.82	0.40	4.67	2.22	3.00@2.22
MDD029			186	188	2	2.22	0.54	7.00	2.76	2.00@2.76
MDD029			191	193	2	0.91	1.40	7.50	2.31	2.00@2.31
MDD029			195	197	2	0.43	1.84	12.00	2.27	2.00@2.27
MDD030	8297587	520799	134	137	3	2.42	2.03	19.17	4.45	3.00@4.45
MDD031	8297263	520726	54	58	4	0.82	3.09	8.25	3.91	4.00@3.91
MDD031			61	65	4	0.52	1.53	5.25	2.05	4.00@2.05
MDD032	8297247	520581	112	135	24			4.83	2.18	24.00@2.18
Incl.			112	112.8	0.80	0.12	8.10	12.00	8.22	0.80@8.22
			117	120	3	0.01	1.56	3.33	1.57	3.00@1.57
			122	130	8	1.03	2.67	8.50	3.70	8.00@3.70
MDD033	8297201	520658	67	70	3	1.40	1.60	5.33	3.00	3.00@3.00
MDD033			71	75	4	0.03	1.89	2.50	1.93	4.00@1.93
MDD033			79	88	9	6.66	3.59	23.64	10.25	9.00@10.25
MDD033			119.5	124	4.5	0.15	2.61	-1.00	2.76	4.50@2.76
MDD033			127	129	2	0.17	1.21	-1.00	1.38	2.00@1.38
MDD034	8297255	520729	50	88	38				3.26	38.00@3.26
Incl.			50	53	3	3.65	6.05	18.30	9.70	3.00@9.70
			54	65	11	0.45	3.29	2.27	3.74	11.00@3.74
			66	70	4	0.06	2.61	0.25	2.66	4.00@2.66
			75	78	3	0.02	3.60	-0.33	3.62	3.00@3.62
			79	88	9	0.02	2.08	-0.78	2.10	9.00@2.10
MDD034			96	114	19				1.88	19.00@1.88
Incl.			96	98.5	2.5	0.02	1.43	-1.00	1.45	2.50@1.45
			105	111	6	0.02	1.82	0.33	1.84	6.00@1.84
			113	114	1	0.11	15.30	4.00	15.41	1.00@15.41
MDD035	8297199	520649	73	76	3	0.17	1.33	4.67	1.50	3.00@1.50
MDD035			77	79	2	0.25	2.75	8.50	3.00	2.00@3.00

Quarterly Report December 2007 17

MDD035			81	83	2	0.07	1.39	9.00	1.46	2.00@1.46
MDD035			88.3	91	2.7	0.97	2.02	6.37	2.99	2.70@2.99
MDD035			92	99	7	2.13	2.29	6.43	4.42	7.00@4.42
MDD035			100	102	2	0.29	1.29	1.00	1.58	2.00@1.58
MDD035			130	132	2	0.10	1.09	0.00	1.18	2.00@1.18
MDD035			139	143	4	0.08	2.52	0.25	2.60	4.00@2.60
MDD035			159	161	2	0.13	1.02	0.00	1.15	2.00@1.15
MDD035			164	167	3	0.04	2.03	1.67	2.06	3.00@2.06
MDD035			168	171	3	0.06	1.87	4.33	1.93	3.00@1.93
MDD037	8297045	520426	133.1	140	6.9	0.04	1.70	4.52	1.73	6.90@1.73
MDD037			150	152	2	0.03	1.58	10.50	1.61	2.00@1.61
MDD038	8296989	520483	83	87	4	0.02	1.31	4.00	1.33	4.00@1.33
MDD038			92	98	6	0.13	1.33	3.00	1.45	6.00@1.45
MDD038			101	104	3	0.07	0.98	2.33	1.05	3.00@1.05
MDD038			125	131	6	0.03	1.80	1.83	1.83	6.00@1.83
MDD038			157	159	2	0.01	1.72	5.00	1.73	2.00@1.73
MDD039	8296994	520428	110	112	2	0.26	1.00	4.00	1.26	2.00@1.26
MDD039			126	129	3	0.02	3.01	1.33	3.03	3.00@3.03
MDD039			135	138	3	0.03	1.55	0.67	1.58	3.00@1.58
MDD039			142	146	4	0.04	2.25	3.50	2.29	4.00@2.29
MDD040	8296994	520376	150	152	2	0.32	2.90	3.00	3.22	2.00@3.22
MDD041	8296946	520429	80	83	3	1.20	3.11	16.00	4.31	3.00@4.31
MDD041			89	91	2	0.01	1.08	3.50	1.09	2.00@1.09
MDD041			114	116	2	0.01	1.42	0.00	1.43	2.00@1.43
MDD041			172	174	2	0.01	3.16	19.00	3.17	2.00@3.17
MDD042	8297120	520523	120	129	9	0.23	2.61	5.33	2.84	9.00@2.84
MDD042			145	148	3	0.03	2.05	11.00	2.07	3.00@2.07
MDD043	8297120	520483	159	161	2	0.01	2.13	3.00	2.13	2.00@2.13
MDD043			163	166	3	0.02	2.62	2.00	2.65	3.00@2.65
MDD043			179	181	2	0.06	2.00	5.00	2.06	2.00@2.06
MDD043			182	185	3	0.02	4.09	19.67	4.11	3.00@4.11
MDD044	8297169	520489	205	207	2	0.02	1.24	1.50	1.26	2.00@1.26
MDD044			213	217	4	0.02	2.73	-1.00	2.75	4.00@2.75
MDD045	8297258	520866	19	52	33			16.61	5.65	33@5.65
Incl.			19	23.7	4.7	11.73	0.35	46.47	12.09	4.70@12.09
			28	31	3	2.99	0.66	10.33	3.65	3.00@3.65
			32	36	4	6.01	1.27	10.50	7.28	4.00@7.28
			37	42	5	6.76	1.70	12.60	8.46	5.00@8.46
			44	52	8	1.64	1.87	17.00	3.51	8.00@3.51
MDD045			66	69	3	0.08	1.66	-0.33	1.73	3.00@1.73
MDD048	8297262	520674	67.2	88	20.8	0.36	2.50	4.76	2.86	20.8@2.86
MDD049	8297239	520676	58.8	111	52.2				2.62	52.2@2.62
Incl.			58.8	73.5	14.7	1.78	5.66	11.05	7.44	14.70@7.44
			77.9	90.9	13	0.18	2.14	-0.45	2.32	13.00@2.32
			95.5	98.1	2.6	0.02	5.14	-2.00	5.16	2.60@5.16
MDD049			99.2	106.1	6.9	0.02	1.29	-2.00	1.31	6.90@1.31
MDD050	8297242	520613	88.6	97.6	9	1.78	6.69	18.72	8.47	9.00@8.47
MDD050			105.6	109	3.4	7.17	1.78	7.26	8.95	3.40@8.95
MDD050			111.4	113.5	2.1	2.4	1.34	6.05	3.74	2.10@3.74
MDD051	8297164	520727	49	53	4	0.23	1.71	6.75	1.94	4.00@1.94
MDD051			56	65	9	0.27	1.48	3.44	1.75	9.00@1.75
MDD051			70	76	6	0.14	1.23	2.33	1.37	6.00@1.37

Quarterly Report December 2007 18

MDD051			85	87	2	0.06	1.97	1	2.03	2.00@2.03
MDD051			89	93	4	0.05	1.46	1	1.51	4.00@1.51
MDD051			96	98	2	0.05	1.31	0	1.36	2.00@1.36
MDD051			110	117	7	0.05	1.84	2.57	1.89	7.00@1.89
MDD051			118	120	2	0.01	1.05	0.5	1.06	2.00@1.06
MDD052	8297171	520634	94	98	4	0.06	1.52	-1	1.57	4.00@1.57
MDD052			103	105	2	0.03	1.23	-1	1.26	2.00@1.26
MDD052			111	125	14	0.05	2.29	-1	2.33	14.00@2.33
MDD052			154	156	2	0.04	2.8	-1	2.84	2.00@2.84
MDD053	8297189	520749	33	37	4	0.28	1.82	5.75	2.1	4.00@2.10
MDD053			45	48	3	0.06	1.37	1	1.43	3.00@1.43
MDD053			62	66	4	1.66	17.27	31	18.93	4.00@18.93
MDD053			96	98	2	0.12	1.05	3	1.17	2.00@1.17
MDD054	8297137	520644	42.1	45	2.9	1.18	3.7	6.66	4.88	2.90@4.88
MDD054			52	56	4	1.22	0.62	2.5	1.84	4.00@1.84
MDD054			57	64	7	0.83	3.64	7.29	4.47	7.00@4.47
MDD054			65	67	2	0.07	2.72	4	2.79	2.00@2.79
MDD054			78	87	9	1.12	1.93	5.22	3.05	9.00@3.05
MDD054			88	91	3	0.08	1.07	0.33	1.15	3.00@1.15
MDD054			107	109	2	0.07	1.62	1	1.69	2.00@1.69

Quarterly Report December 2007 19