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quarterly report

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    __________________________________________________________________________________


    QUARTERLY REPORT
    For three months ending 30 September 2008

    HIGHLIGHTS

    PUNGKUT GOLD PROJECT, INDONESIA (75%)
    �� Mining Scoping Study for Sihayo 1 North and Sambung Inferred Resources near completion with
    results expected early November 2008, after delays due to scheduling commitments by the
    consultants. Directors are encouraged by preliminary pit shell modelling results to hand.
    �� Initial drilling in Old Camp Area of Sihayo 1 North prospect discovers significant new mineralisation
    with best results including:
    : 27m @ 2.36 g/t Au from surface
    : 10m @ 2.50 g/t Au from 58m
    : 14m @ 2.67 g/t Au from 82m
    : 8m @ 3.08 g/t Au from 34m
    : 13m @ 4.23 g/t Au from 6m
    �� Shallow drilling at Sarahan South Vein at Hutabargot Julu prospect intersects significant
    mineralisation in epithermal veining
    MALAWI – URANIUM EXPLORATION
    �� Geochemical sampling and ground radiometric surveys conducted over the Emoneni-Jandalala
    area of Mzimba Northwest identify a large cohesive anomaly.
    �� Sixteen uranium exploration targets generated from Landsat Mapping Interpretation of Chizani
    EPL area.
    __________________________________________________________________________________
    2 www.oropa.com.au
    1. CORPORATE
    As reported last quarter, Shareholders of Oropa Limited (“Oropa, or the Company”) approved the issue of up to
    13,280,376 new listed 2011 Options at the issue price of $0.002 per Option to the holders of options that expired
    unexercised on 31 December 2007. Shareholders also approved the placement of the shortfall (if any) by directors at
    their discretion. The Options Offer Prospectus was dispatched to the relevant holders on 8 August 2008 and a total of
    8,510,285 2011 Options were applied for before the closing Date (22 August 2008). The directors are currently in the
    process of placing the shortfall.
    During the reporting period, the Company raised $383,680 before costs via placements of 976,000 shares at 5.5 cents
    per share and 6,600,000 shares at 5 cents per share to overseas institutions and sophisticated investors. These funds
    have been, and are being applied towards ongoing exploration activities at the Pungkut Gold Project in Indonesia
    (“Pungkut”) and towards the recommencement of sampling programs in Malawi.
    2. REVIEW OF OPERATIONS
    2.1 INDONESIA
    Pungkut Gold Project, Sumatra (75%)
    The commissioning of a Scoping Study into the feasibility of bringing the Sihayo 1 North and Sambung Inferred
    Resources into mining production will provide Oropa with a framework to advance the project, and at the same time
    give an indicative value of the Sihayo 1 North and Sambung resources which are presently significantly under-valued.
    Promising results returned from recent drilling to the north-east of the Sihayo 1 North resource have identified a new
    target in the Old Camp Area, which opens up a broad and previously unexplored area to potentially increase the
    existing resources.
    Drilling re-commenced at Hutabargot Julu in the South Sarahan area. Previous soil geochemical sampling revealed a
    large gold and multi-element anomaly at the interpreted intersection of the Sarahan and Ali veins. Follow up mapping
    revealed massive pervasive silicification and significant gold in rock chips and a reconnaissance shallow drilling
    program was initiated to test for near-surface mineralisation. Deeper drilling is planned to test the intersection of
    Sarahan and Ali veins, before returning to the Ali vein to follow up on the bonanza grade intersection in HUTDD018.
    Figure 1: Pungkut project area North Sumatra, showing principal prospects
    __________________________________________________________________________________
    3 www.oropa.com.au
    Activities – North Block:
    Sihayo 1 North:
    �� Commenced Scoping Study into the mining economics of Sihayo 1 North and Sambung resources
    �� Exploration drilling at the Old Camp Area
    Hutabargot Julu:
    �� Exploration drilling at Sarahan South
    Figure 2: Sihayo – Sambung – Hutabargot Julu gold trend, North Block, Pungkut Project
    Sihayo 1 North
    During August, independent consultants SRK Consulting (Australasia) Pty Ltd (“SRK”) commenced a Scoping Study
    to determine the approximate costs and economics of mining and processing the combined Sihayo 1 North and
    Sambung Inferred Resources. This economic model is well advanced and a report is expected in early November.
    Oropa will use this information to generate work programs aimed at advancing Pungkut towards a pre-feasibility
    study next year.
    Final assays returned from the drilling at the North Western Extension indicated that the gold mineralised jasperoid is
    thinner in that area. However, a new drilling program in the Old Camp Area following up on a concealed exploration
    target has encountered significant gold intersections in both regolith and primary jasperoid mineralisation. Best results
    include:
    SHDD112: 27m @ 2.36 g/t Au from surface
    10m @ 2.50 g/t Au from 58m
    14m @ 2.35 g/t Au from 82m
    SHDD118: 8m @ 3.08 g/t Au from 34m
    SHDD120: 13m @ 4.23 g/t Au from 6m
    3.6m @ 3.09 g/t Au from 21.4m
    __________________________________________________________________________________
    4 www.oropa.com.au
    Exploration at the Old Camp Area is currently following up on an area adjacent to the north-east of the Sihayo 1 North
    resource that was previously interpreted to have been closed off by a fence of drill holes completed by Oropa in 2005.
    A number of test pits dug to depths of approximately 7m outlined significant gold in the regolith profile. Drilling was
    subsequently initiated to test the extent of the regolith and a possible source of the mineralisation. To date, nine holes
    have been drilled (including SHDD119, which failed to reach target depth and was replicated by nearby SHDD120).
    This program has encountered significant near surface gold mineralisation in both thick regolith cover, and in-situ
    jasperoid developed within silty-limestone over a 200m strike length. The silty-limestone appears to have formed in a
    deep channel, situated behind what may have been a limestone reef (now marble) to the north-east of the main
    resource (Figure 4). The south-western contact of the silty-limestone is bounded by a disconformity with volcanics.
    This channel interpretation allows for a narrow but laterally continuous target which could pinch and swell along
    strike. Further drilling along strike in both directions is on the agenda as there is no outcrop in the area, with host
    bedrock either obscured by regolith or Tertiary sediments.
    Similar style ‘jasperoid in silty-limestone’ has been observed 600m along strike to the north-west at Sihayo 2, where
    extensive outcropping jasperoid was previously drill tested in 2004 (Figure 3), with the seven widely spaced holes
    largely failing to intersect the outcropping mineralisation. Follow up drilling was not conducted due to the lower
    grades in outcrop. However, this latest discovery indicates that the potential exists for the higher grade Old Camp
    Area mineralisation to extend to Sihayo 2 and possibly beyond. Additionally, 400m along strike to the south-east of
    the Old Camp Area, drill hole SHDD023 encountered 4.2m @ 3.36 g/t Au from 10.55m in jasperoid at the Tertiary
    sediment – Permian limestone contact.
    Based on these recent discoveries, the Old Camp mineralised trend may extend over a strike length in excess of 1.4km
    from Sihayo 2 to SHDD023. Furthermore, to the north-east and east is an extensive area blanketed by Tertiary
    sediments that are interpreted to be thin (supported by geological and ground magnetic interpretations) offering good
    potential for additional concealed mineralisation. The Old Camp Area discovery is regarded as being an important
    development with the potential to substantially add to the 1M oz Au Inferred Resources already outlined along the
    Sihayo trend.
    Figure 3: Sihayo 1 North Inferred Resource outline and exploration targets
    __________________________________________________________________________________
    5 www.oropa.com.au
    Figure 4: Old Camp Area geological cross section
    Table 1: Sihayo 1 North Significant Drill Intersections
    Notes
    1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories of Jakarta
    2. Lower cut of 1.0ppm Au used
    3. A maximum of 2m of consecutive internal waste (material less than 1.0ppm Au) per reported intersection
    4. All interval grades were calculated as a weighted average
    5. All intervals reported as down hole lengths
    6. Sampling regime as quarter core for PQ diameter core and half core for HQ diameter core
    7. Quality Assurance and Quality Control (QAQC):
    8. Coordinates in UTM grid system
    __________________________________________________________________________________
    6 www.oropa.com.au
    Hutabargot Julu
    Hutabargot Julu has been Oropa’s primary regional exploration target in the North Block over the past nine months,
    with programs testing intermediate-sulphidation epithermal quartz and massive silica alteration in veins interpreted to
    extend over a strike length of up to 3km. Results from Oropa’s earlier drilling include a vein intersection of 5m @
    37.7 g/t Au from 47m (Ali Vein - HUTDD018) supporting the potential of the area to host rich deposits as exist
    elsewhere in Indonesia; Newcrest’s Gosowong and Kencana mines on Halmahera Island and Antam’s Pongkor mine
    in West Java to mention a few.
    During the Quarter, encouraging multi-element assay results were obtained from the Sarahan - Ali soil geochemical
    sampling program. This program was based on 100m line spacings with 50m spaced samples, and was implemented
    to establish the location of strongest alteration zones (Figure 6). Highlights are summarised below:
    Table 2: Best results Hutabargot Julu soils
    The soil geochemistry has outlined several anomalous areas; the most prominent of which is Sarahan South, located
    south of the Simalagi River. The Sarahan South (plus 0.1 g/t Au) soil anomaly extends over 150m, with maximum
    values of 12.8 g/t Au and 22 g/t Ag. Elevated anomalous lead, silver, arsenic, antinomy and molybdenum values are
    indicative of a major fluid up-welling zone and a high priority target for deep mineralisation.
    Geological mapping following up on two plus 5 g/t Au rock outcrop samples situated within the Sarahan South
    anomaly has identified massive silica alteration and veining.
    Anomalous gold and multi-element values have also been confirmed in soils at Sarahan Vein overlapping with
    existing drilling targeting the vein with a maximum value of 2.78 g/t Au associated with a broader (plus 0.1 g/t Au)
    soil geochemistry halo over the northern Sarahan vein. At the North Ali Vein, high gold values in soils of 3.4 g/t and
    1.17 g/t Au warrant follow up geochemical sampling and geological mapping. A weak multi-element anomaly
    located south-east of the 5m @ 37.7 g/t Au intersected in Ali Vein hole HUTDD018 will be followed up with drilling
    to test for extensions of this bonanza grade mineralisation.
    Diamond drilling commenced at Sarahan South targeting the massive silica alteration. Four shallow drill holes were
    completed to test for near surface mineralisation. All drill holes intersected significant mineralisation within the vein.
    Best results include:
    HUTDD022: 12m @ 1.58 g/t Au from surface
    HUTDD023: 2m @ 3.26 g/t Au from 7m
    1m @ 3.36 g/t Au from 17m
    Further drilling is planned at Sarahan South to test the epithermal system at depth. The Ali Vein is interpreted to
    intersect the Sarahan Vein at Sarahan South, which combined with the coincident multi-element anomaly, makes this
    an important conceptual target .
    __________________________________________________________________________________
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    Figure 5: Hutabargot Julu plan and diamond drill holes
    Figure 6: Hutabargot Julu gold in grid soil sampling
    __________________________________________________________________________________
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    Table 3: Hutabargot Julu Significant Drill Intersections
    Notes
    1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories of Jakarta
    2. Lower cut of 1.0ppm Au used
    3. A maximum of 2m of consecutive internal waste (material less than 1.0ppm Au) per reported intersection
    4. All interval grades were calculated as a weighted average
    5. All intervals reported as down hole lengths
    6. Sampling regime as quarter core for PQ diameter core and half core for HQ diameter core
    7. Quality Assurance and Quality Control (QAQC):
    8. Coordinates in HUTLG local grid system
    Figure 7: Hutabargot Julu combined sections for 5700mN and 5600mN
    South Block:
    No significant activities in the South block during the September quarter.
    __________________________________________________________________________________
    9 www.oropa.com.au
    2.2 MALAWI
    Oropa’s wholly owned subsidiary, Oropa Exploration Pty Ltd (“OEPL”) currently holds 100% interests in three
    Exclusive Prospecting Licences (“EPLs”) for uranium exploration over the Mzimba Northwest, Chitunde and Chizani
    Project areas covering a total of some 3,500km2. The Chizani project area is located immediately to the north of Globe
    Metals & Mining’s (“Globe’s”) niobium-uranium-tantalum-zircon multi-commodity Kanyika deposit in central
    Malawi.
    Additionally, OEPL has entered into separate Memorandum of Understandings (“MOUs”) with two local EPL holders
    to joint venture 90% interests in exploration and mining for uranium and other minerals (excluding coal) in these two
    contiguous EPLs to the north of Paladin Energy Ltd’s (“Paladin’s”) Kayelekera uranium deposit (“Kayelekera”). The
    Ngana and Ngana East EPLs are presently granted for coal exploration and development. The two prospects are in a
    strategic location, containing basins of Karroo sediments and being the nearest mapped occurrence of Karroo within
    the 20km to the north of Karroo hosting uranium mineralisation at Kayelekera. Negotiations are ongoing with the two
    vendors to advance the MOUs to formal Shareholder Agreements.
    Figure 8: Malawi EPLs Location Map
    __________________________________________________________________________________
    10 www.oropa.com.au
    Mzimba Northwest Project (100%)
    Owing to the prevailing global financial uncertainty, Oropa focused on advancing Pungkut to Scoping Study stage
    during the quarter, with exploration in Malawi re-commencing in late July with a follow up geochemical sampling
    program being undertaken at Mzimba Northwest. This program concentrated on the Emoneni-Jandalala district in the
    north-eastern sector of the EPL (Figure 9) where a north-south striking ridge coincident with airborne uranium
    radiometric anomalies has been interpreted to be associated with the Mafingi quartzites. These quartzites, formed
    from the erosion of the basement sediments during the Proterozoic era, filled valleys, basins and other topographic
    low areas. Subsequently, the entire Proterozoic sequence has experienced deformation and high grade metamorphism.
    The contact between the quartzites and gneiss is unconformable, and has been associated with uranium mineralisation.
    Sixty eight stream sediment samples, 14 panned concentrate samples, and 26 rock chip samples were collected earlier
    in the year in the Emoneni-Jandalala area to complete the initial exploration program for this target, details of which
    were reported in the March Quarterly Report.
    Figure 9: Emoneni Target Area
    A second phase of the reconnaissance program was initiated at the Emoneni area in late July. This involved follow up
    on the initial geochemical sampling, geological investigations and ground radiometric surveys. The new program
    covered parts of the Emoneni hills where previous exploration had yielded geochemically anomalous U308 values at or
    above 100 ppm from the initial stream sediment survey. The follow up initiative included the collection of stream
    sediment samples upstream of the known anomalies in order to define their provenance and a pitting program
    designed to investigate regolith in anomalous areas. Ancillary survey work included ground radiometric surveying
    using a hand held gamma ray spectrometer.
    __________________________________________________________________________________
    11 www.oropa.com.au
    The pitting program was carried out on the western flank of the Emoneni hills. A 6km baseline was established
    along with two survey lines set on either side of the baseline. This configuration was used for reconnaissance
    radiometric surveying at 500m intervals along the survey lines and pits were sunk up to 3m deep along the
    baseline at 1000m intervals to investigate the soil profile and collect soil and rock chip samples at 1m depth
    intervals from each pit. The regolith profile proved to be deep as none of the pits were successful in reaching
    bedrock. The encouraging results from the radiometric surveying are currently being compiled.
    A random radiometric survey carried out at the top of the Emoneni hills identified two uraniferous rock types
    which are potentially the provenance of the radioactive sediments. The feldspathic-quartz-biotite gneiss is a very
    coarse grained leucocratic rock. K-Feldspar constitutes 60% of the rock with grain sizes of up to 30mm. White
    quartz is the second dominant mineral and is uniform throughout the package. The biotite is medium to coarse
    grained. The quartz-biotite gneiss is characterised by distinct bands of coarse grained clear quartz up to 10mm in
    diameter, separated by thin bands of biotite. It also contains minor muscovite and plagioclase feldspar. The total
    radiometric readings in the vicinity of these rock types averaged 2,000cpm. Rock chip samples were collected
    from these outcropping rocks.
    A unique type of vegetation was also observed on the western side of the Emoneni hills towards the Kawiruwiru
    River. This pocket of vegetation is characterised by very small leaves peculiar to areas underlain by Karroo
    sandstones as observed in other parts of Africa and in the Karroo sandstones of the Ngana area in the north of
    Malawi. Pits were dug in the area where this vegetation exists, but the bedrock could not be reached due to
    hardness of the ground and the thickness of the overburden. However, the soils recovered from these pits were
    rich in quartz grits and pebbles suggesting quartz rich bedrock.
    Seventy six samples, including 4 soil samples, 15 rock chip samples and 57 stream sediment samples were
    collected during this program and will be dispatched for multi-element analysis in early November. The results of
    these analyses will be interpreted in Perth before another field program is finalised. However, a broader ground
    radiometric survey, gridding and soil sampling on the western side of the Emoneni hills is warranted to determine
    the western extent of the anomaly and the trend of the potential mineralisation, along with a ground radiometric
    survey and geological validation of geochemically anomalous eastern and southern portions of the Emoneni hills
    area.
    Chizani Project (100%)
    The 1,283km2 Chizani Project area (EPL0223/2007) is situated in central Malawi adjacent to Globe’s niobiumuranium-
    tantalum-zircon multi-commodity Kanyika deposit hosted by alkalic granitoid and pegmatitic zones, and
    also lies adjacent to tenements held by CC Mining SA. The EPL is considered to offer uranium exploration
    potential for hydrothermal uranium targets and is currently being assessed as part of a remote sensing study
    designed to provide for the selection and ranking of target areas for future ground exploration for uranium and
    other minerals.
    The proximity of the Chizani Project area to Kanyika provides Oropa with a nearby niobium-uranium-tantalum
    and zircon deposit model to apply to exploration search parameters within the Chizani area. Recently, Globe
    announced an Inferred Mineral Resource of 56.4 Mt of 2,600 ppm Nb205, 70 ppm U308, 120 ppm Ta205 and 4,800
    ppm ZrSiO4 at the Kanyika deposit. Globe successfully completed a Scoping Study and is presently conducting a
    Pre-Feasibility Study on the deposit. The currently defined resource is contained within a deposit measuring
    2.1km in length and 300m in width and extends down to an average depth below surface of 120m.
    During the quarter Mackay & Schnellmann Pty Ltd completed a Landsat Mapping Interpretation of the Chizani
    project area, with the intention being to map the geology of the area and provide uranium targets for further
    exploration. Sixteen exploration targets have been identified from the survey, based on the Landsat mapping in
    conjunction with the airborne radiometric data. High uranium counts occur in a number of areas which will
    constitute the initial work programs to be undertaken at Chizani. The report recommends that although focus
    should be on uranium exploration, the area is also considered to be favourable for other minerals such as base
    metals and gold, while the tectonic setting of the area is also considered to be favourable for diamondiferous
    kimberlite exploration. More interpretive work will be undertaken in advance of future exploration at Chizani.
    __________________________________________________________________________________
    12 www.oropa.com.au
    PHILIP C CHRISTIE
    Director
    31 October 2008
    Note 1: It is advised that in accordance with the Australian Stock Exchange Limited Listing Rule 5.6, the information in this report that relates to
    Exploration Results is based on information compiled by Mr. Dean Pluckhahn, who is a Member of the Australasian Institute of Mining and
    Metallurgy. Mr. Pluckhahn is a full time employee of Oropa Ltd and has sufficient experience which is relevant to the style of mineralisation
    and type of deposit which is 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. Dean Pluckhahn
    consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
    Note2: All statements in this report, other than statements of historical facts that address future timings, activities, events and developments that the
    Company expects, are forward looking statements. Although Oropa Ltd, its subsidiaries, officers and consultants believe the expectations
    expressed in such forward looking statements are based on reasonable expectations, investors are cautioned that such statements are not
    guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements.
    Factors that could cause actual results to differ materially from forward looking statements include, amongst other things commodity prices,
    continued availability of capital and financing, timing and receipt of environmental and other regulatory approvals, and general economic,
    market or business conditions
    Figure 11: Chizani Project Area Malawi
    Radiometric Contours Uranium
    Figure 10: Chizani Project Area Malawi
    Geology
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    30/9/2001 Appendix 5B Page 1
    jRule 5.3
    Appendix 5B
    Mining exploration entity quarterly report
    Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
    Name of entity
    OROPA LIMITED
    ABN Quarter ended (“current quarter”)
    77 009 241 374 30 SEPTEMBER 2008
    Consolidated statement of cash flows
    Cash flows related to operating activities
    Current quarter
    $A
    Year to date
    (3 months)
    $A
    1.1 Receipts from product sales and related debtors
    - -
    1.2 Payments for (a) exploration and evaluation
    (b) development
    (c) production
    (d) administration
    (385,519)
    -
    -
    (267,326)
    (385,519)
    -
    -
    (267,326)
    1.3 Dividends received - -
    1.4 Interest and other items of a similar nature
    received
    1.5 Interest and other costs of finance paid 3,222 3,222
    1.6 Income taxes paid - -
    1.7 Other (provide details if material) - -
    Net Operating Cash Flows (649,623) (649,623)
    Cash flows related to investing activities
    1.8 Payment for purchases of: (a)prospects
    (b)equity investments
    (c) other fixed assets
    -
    -
    (1,191)
    -
    -
    (1,191)
    1.9 Proceeds from sale of: (a)prospects
    (b)equity investments
    (c)other fixed assets
    -
    -
    -
    -
    -
    -
    1.10 Loans to other entities - -
    1.11 Loans repaid by other entities - -
    1.12 Other – cash acquired on purchase of subsidiary - -
    Net investing cash flows (1,191) (1,191)
    1.13 Total operating and investing cash flows
    (carried forward) (650,814) (650,814)
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    30/9/2001 Appendix 5B Page 2
    1.13 Total operating and investing cash flows
    (brought forward) (650,814) (650,814)
    Cash flows related to financing activities
    1.14 Proceeds from issues of shares, options, etc. 248,249 248,249
    1.15 Proceeds from sale of forfeited shares - -
    1.16 Proceeds from borrowings 50,000 50,000
    1.17 Repayment of borrowings - -
    1.18 Dividends paid - -
    1.19 Other – cost of share issue - -
    Net financing cash flows 298,249 298,249
    Net increase (decrease) in cash held
    (352,565)
    (352,565)
    1.20 Cash at beginning of quarter/year to date 457,189 457,189
    1.21 Exchange rate adjustments to item 1.20 27,542 27,542
    1.22 Cash at end of quarter 132,166 132,166
    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
    1.23
    Aggregate amount of payments to the parties included in item 1.2
    32,080
    1.24
    Aggregate amount of loans to the parties included in item 1.10
    -
    1.25
    Explanation necessary for an understanding of the transactions
    NOT APPLICABLE
    Non-cash financing and investing activities
    2.1 Details of financing and investing transactions which have had a material effect on consolidated
    assets and liabilities but did not involve cash flows
    NOT APPLICABLE
    2.2 Details of outlays made by other entities to establish or increase their share in projects in which the
    reporting entity has an interest
    NOT APPLICABLE
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    30/9/2001 Appendix 5B Page 3
    Financing facilities available
    Add notes as necessary for an understanding of the position.
    Amount available
    $A
    Amount used
    $A
    3.1 Loan facilities
    - -
    3.2 Credit standby arrangements
    - -
    Estimated cash outflows for next quarter
    $A
    4.1 Exploration and evaluation
    300,000
    4.2 Development
    -
    Total
    300,000
    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
    Previous quarter
    $A
    5.1 Cash on hand and at bank 82,716 407,739
    5.2 Deposits at call – Bank Guarantee
    - Letter of Credit
    - Term Deposit
    20,000
    29,450
    -
    20,000
    29,450
    -
    5.3 Bank overdraft - -
    5.4 Other – Share Purchase Plan A/c - -
    Total: cash at end of quarter (item 1.22) 132,166 457,189
    Changes in interests in mining tenements
    Tenement
    reference
    Nature of interest
    (note (2))
    Interest at
    beginning
    of quarter
    Interest at
    end of
    quarter
    6.1 Interests in mining
    tenements relinquished,
    reduced or lapsed
    - - - -
    6.2 Interests in mining
    tenements acquired or
    increased
    - - - -
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    30/9/2001 Appendix 5B Page 4
    Issued and quoted securities at end of current quarter
    Description includes rate of interest and any redemption or conversion rights together with prices and dates.
    Total number Number quoted Issue price per
    security (see note
    3) (cents)
    Amount paid up per
    security (see note 3)
    (cents)
    7.1 Preference
    +securities
    (description)
    7.2 Changes during
    quarter
    (a) Increases
    through issues
    (b) Decreases
    through returns
    of capital, buybacks,
    redemptions
    192,088,274
    192,088,274
    7.3 +Ordinary
    securities
    7.4 Changes during
    quarter
    (a) Increases
    through issues
    (b) Decreases
    through returns
    of capital, buybacks
    7,636,362
    7,636,362
    $0.055
    $0.055
    7.5 +Convertible
    debt securities
    (description)
    7.6 Changes during
    quarter
    (a) Increases
    through issues
    (b) Decreases
    through
    securities
    matured,
    converted
    7.7 Options
    (description and
    conversion
    factor)
    12,791,441
    2,700,000
    500,000
    8,500,000
    12,791,441
    2,700,000
    500,000
    8,5000,000
    Exercise price
    $0.20
    $0.13
    $0.12
    $0.15
    Expiry date
    31/01/2010
    31/12/2009
    20/10/2008
    31/05/2013
    7.8 Issued during
    quarter
    8,510,285 8,510,285 $0.20 31/01/2011
    7.9 Exercised during
    quarter
    7.10 Expired during
    quarter
    7.11 Debentures
    (totals only)
    7.12 Unsecured
    notes (totals
    only)
    Appendix 5B
    Mining exploration entity quarterly report
    + See chapter 19 for defined terms.
    30/9/2001 Appendix 5B Page 5
    Compliance statement
    1 This statement has been prepared under accounting policies which comply with accounting
    standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
    2 This statement does /does not* give a true and fair view of the matters disclosed.
    Sign here: ............................................................ Date: ...23 October 2008.........................
    (Director)
    Print name: PHIL CHRISTIE
    Notes
    1 The quarterly report provides a basis for informing the market how the entity’s activities have
    been financed for the past quarter and the effect on its cash position. An entity wanting to disclose
    additional information is encouraged to do so, in a note or notes attached to this report.
    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.
    == == == == ==
 
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