Quarterly Report - 1 April to 30 June 2008 - Discovery Metals Limited

ASX RELEASE31 July 2008Quarterly Report – 1 April to 30 June 2008HIGHLIGHTSBoseto Copper Project (formally known as Maun project) Pre‐Feasibility Study• Current project mineral resource of 49 million tonnes @ 1.2% Cu• Pre‐Feasibility Study (PFS) completed in July and key results announced• The Board of Discovery Metals Limited (Discovery Metals) has approved thecommencement of a Bankable Feasibility Study (BFS)• PFS base case delivers an economically robust project with significant upside potential• The BFS is targeted for completion in mid 2009Exploration & Infill Drilling• Discovery Metals secured an additional seven 100% owned prospecting licenses inBotswana covering 5,700 square kilometres.• The new tenements are an extension of the company’s 6,400 square kilometre, 100%owned tenements on the Kalahari Copper Belt in north west Botswana, bringing the totaltenement holding to 12,100 kilometres• Assay results from Reverse Circulation (RC) drilling at the Quirinus prospect (15 kilometresfrom current resources) were received including:• 4 metres @ 1.7% Cu and 13 g/t Ag, and• 6 metres @ 0.9% Cu and 14 g/t Ag, including 2 metres @ 1.5% Cu and 25 g/t Ag.• Announced in July, the infill drilling results increase Plutus prospect strike length by 1,000metres to 8,500 metres while remaining open to the south west• Announced in July, high grade intersections at Plutus including:• 12 metres @ 2.47% Cu and 24.7 g/t Ag (outside current resource),• 4.6 metres @ 2.52% Cu and 52.1 g/t Ag,• 11 metres @ 1.72% Cu and 20.5 g/t Ag,• 6 metres @ 2.2% Cu and 28.3 g/t Ag, and• 6.7 metres @1.93% Cu and 43.5 g/t Ag.• Announced in July, Zeta infill drilling results including:• 7 metres @ 1.5% Cu and 33g/t Ag, andCorporate Activities• 5 metres @ 1.9% Cu and 42 g/t Ag.• Mr Ribson Gabonowe, a Botswana citizen, was appointed to the company’s Board.• The company’s Botswana copper project was re‐named “Boseto Copper Project”.• At the end of the quarter, Discovery Metals held AUD $5.6 million in cash.Page 1 of 8

1. Boseto Copper Project Pre‐Feasibility StudyThe Pre‐feasibility Study (PFS) for Discovery Metals’ newly named Boseto Copper Project (formerlyknown as Maun Project) in north west Botswana was the main focus of activity during the quarterwith the PFS results released on 18 July, 2008.The PFS demonstrated an economically and technically viable project and provided the green lightto commence the next stage in development of what will be Botswana’s largest copper mine.Highlights included:• PFS based on an open cut mine delivering 2Mtpa ore to a conventional flotation plant.Average plant production 23,500 tonnes of copper and 780,000 ounces of silver per annumcommencing January 2011. Average Net Cash Costs US$1.43/lb copper after silver creditsare forecast• Economic evaluation using US$2.38/lb Cu price delivers Internal Rate of Return (IRR) of 23%with an after tax NPV of US$115 million. NPV rises to US$220 million and IRR rises to 35%with US$3.50/lb Cu priceThe transition into a Bankable Feasibility Study (BFS) is complete in many areas with a targeted BFScompletion date of mid 2009.The company will continue to coordinate the use of leading industry specialist consultants for alltechnical areas of the study. An engineering consultant will be appointed in the September quarterof 2008 to finalise the plant and infrastructure design and scheduling for the Boseto Copper Project.(a) Resource EvaluationThe PFS was developed on the basis of open pit mining of the company’s existing Inferred MineralResources at Plutus and Petra of 14.5 Mt @1.3% Cu and 4.5Mt @1.1% Cu respectively and a newZeta Inferred and Indicated Mineral Resource of 30 Mt @1.2% Cu and 18.2 g/t Ag (all at a 0.6%copper cut off). The total Zeta Mineral Resource includes an Indicated Mineral Resource of 8.9Mt@1.4% Cu and 20.3 g/t Ag.(b) Mining StudyFor the purposes of the PFS it was assumed that the Boseto pits will be mined via conventionalbenching using an hydraulic excavator and diesel trucks. Other than a minor volume of Kalaharisands at the surface, all material has been assumed to require blasting. Studies undertakenrecommend one 250t excavator and an initial fleet of three 100t trucks to be appropriate at thestart of mining operations.(c) Processing StudyThe PFS plant design is for a comminution circuit with SAG mill and in‐circuit pebble crusher todeliver a 2 Mtpa throughput. The flotation circuit is a conventional rougher‐cleaner‐recleaner circuitthat has been designed to cater for sequential sulphide and oxide flotation. The flotation circuitincludes a fine grinding stage on the rougher concentrate that has been shown in the test work toimprove flotation grade and recovery. Adequate residence time has been allowed to facilitate thesecond stage addition of a sulphidising agent and secondary collectors to float the copper oxides.(d) Infrastructure StudyApplication for power supply was submitted to the Botswana Power Corporation (BPC) requesting a20MVA power supply by the first quarter of 2011. BPC confirmed that a probable power supplyPage 2 of 8

oute to the Boseto Copper Project would be via Maun with an extension of the Francistown –Maun power line. Provision for alternative power supply (20MVA diesel power generation set) hasbeen included in the capital and operating cost estimates. In addition discussions and meetings areongoing with possible alternative power supply companies.(e) Environmental Impact AssessmentThe Environmental Impact Assessment (EIA) document will be structured to meet the requirementsof the Botswana Department of Environmental Affairs (DEA) and to this end the terms of referencehave been submitted to the DEA for their approval ‐ a key step in Botswana EIA process.The EIA study will include baseline studies that will meet the requirements of the Equator Principlesand Performance Standards of the International Finance Corporation (IFC), making it possible toformat the report in a manner compliant with the Equator Principles (an EPII compliant report),with some additional input, to meet international requirements.All identified risks will be addressed in the EIA, commencing with the baseline specialist studieswhich are currently underway. To date, no issues have been identified that would be considered toconstitute a significant risk to the project. Currently specialist studies for air quality, archaeology,biodiversity, ground and surface water, noise, soil and land use capability, and socio economicconsiderations are being progressed.(f) Hydro‐Geological StudyWater has been identified by all parties as a critical pre‐condition for the success of the BosetoCopper Project. Consequently, an extensive and in‐depth water exploration study is underway.All water required for the project will be sourced from underground aquifers supplemented byharvested rainfall and pit dewatering sources. Based on interpretation of existing borehole data aswell as information obtained during the recent pilot borehole drilling programme, the preliminaryconclusion is that known aquifers will have sufficient capacity to meet the anticipated annual waterdemand for the mine and mill operations. These aquifers are expected to be intersected at depthsbetween 150 metres and 250 metres.(g) Tailings Disposal StudyThe PFS design assumed conventional wet tailings deposition using a ring main with spigots.Investigations will continue into the potential value add of the application of either paste thickeningor belt filtration technologies to the tailings steam during the BFS. During the BFS key opportunitiesto increase concentrator throughput for limited capital spend will be documented and taken intoconsideration during detailed design.(h) Completion of Pre‐Feasibility StudyThe PFS for Boseto Copper Project commenced in October 2007 and has been completed on timeand on budget.The results of the PFS were released to stock exchanges on 22 July 2008.On the basis of the results of the PFS the board of Discovery Metals has made a decision to moveimmediately to a Bankable Feasibility Study on the Boseto Copper Project.Page 3 of 8

Exploration & Infill DrillingBotswana Copper Project, (Discovery Metals 100%)The Botswana copper tenements comprised seven prospecting licences covering 6,400 squarekilometres in north western Botswana. During the quarter, an additional seven prospecting licenseswere granted to Discovery Metals comprising 5,700 square kilometres and extending from thesouth west boundary of the current tenements all the way to the Namibian border. The totalfourteen (14) tenements now comprise 12,100 square kilometres containing some 1,300 strikekilometres of copper and silver mineralisation potential across the Kalahari Copper Belt.Activity in the last quarter focussed on infill drilling of these existing mineral resources to upgradethe status from inferred to indicated and measured mineral resources as part of the PFS and BFSrequirements and on continuing the regional soil sampling programme which is currently underwayat the Quirinus prospect.Zeta Infill Drilling ProgrammeIn May 2007, an inferred mineral resource of 27.1Mt @ 1.3% Cu and 21 g/t Ag, using a block cut‐offgrade of 0.6% Cu, was reported for the Zeta prospect in accordance with the guidelines of the 2004JORC code.Zeta prospect drill holes were completed on 150 metre to 200 metre spaced sections near thesouth western limits of the known mineral resource and aimed at delineating the limits of thisresource. The Zeta prospect Inferred Mineral Resource was updated as part of the PFS resourceevaluation and currently totals 30.0Mt @ 1.2% Cu and 18 g/t Ag at a cut off of 0.6%.Plutus Prospect Drilling ProgrammeLate in 2007, a mineral resource of 14.5Mt @ 1.3% Cu and 13 g/t Ag, using a block cut‐off grade of0.6% Cu, was reported for the Plutus prospect and classified as inferred in accordance with theguidelines of the 2004 JORC code. This mineral resource was based on 22 RC/diamond drill holescompleted by Discovery Metals on approximately 500 metre spaced sections coveringapproximately 5km of strike length.Following the end of the quarter, the Plutus copper‐silver mineralisation assay results received inJuly from holes drilled at Plutus include: 12m @ 2.47% Cu and 24.7 g/t Ag, 4.6m @ 2.52% Cu and52.1 g/t Ag, 11m@ 1.72% Cu and 20.5 g/t Ag, 6m @ 2.2% Cu and 28.3 g/t Ag, and 6.7m @ 1.93%Cu and 43.5 g/t Ag.Drilling at Plutus was targeted at both infill and resource expansion to define the strike extent ofthe Plutus prospect in the south‐west. Resource expansion drilling has extended the area ofpotential economic interest by a further 1,000 metres to the south‐west. This increases the Plutusprospect strike length to 8,500 metres with mineralisation still open to the south‐west. The Plutusprospect now extends to within 900 metres of the Petra prospect which contains an InferredMineral Resource of 4.5Mt @1.1% Cu.Page 4 of 8

Quirinus Prospect Drilling ProgrammeThe Quirinus prospect is located approximately 15 kilometres from the current Mineral Resourcesat Zeta, Plutus and Petra, which is within trucking distance of the centrally located concentratorbeing contemplated as part of the Boseto Copper Project.Following on from the continuing Niton exploration program, three (3) reverse circulation drill holestotalling 220 metres were completed at Quirinus the end of the last quarter of 2007. All holesintersected copper‐silver mineralisation of a similar style to that found at Zeta, Plutus and Petra.The assay results for these drill holes were received during the quarter and included:• 4 metres @ 1.7% Cu and 13 g/t Ag, and• 6 metres @ 0.9% Cu and 14 g/t Ag, including 2 metres @ 1.5% Cu and 25 g/t Ag.A diamond drilling programme is planned to define the limits and grade of mineralisation atQuirinus. This programme is similar to the drilling programmes which resulted in the definition ofthe Zeta and Plutus inferred resources.The Quirinus prospect contains approximately 40 strike kilometres of potentially copper‐silvermineralised stratigraphy and a soil geochemistry programme will be continued in order to explorethis strike length.SafetyThe Management of Discovery Metals regretfully reports the death of a contract employee, MrBashi Janki. On 14 May Mr Janki, an employee of a contract drilling company, was injured in a fallfrom a 1.5m high platform while drilling exploration holes at the Boseto project. Mr Janki sustainedneck and head injuries in the fall, was transported to hospital in Maun and medivac flown toGaborone 2 days later. While under observation at Gaborone Hospital, Mr Janki passed away 10days after the incident. The company is working in co‐operation with the Botswana Department ofMines to further investigate both the cause of death and the causes of this incident.Page 5 of 8

2. Dikoloti Nickel Project, North East Botswana ‐ (Discovery Metals 85%)There has been no exploration or test work for the Dikoloti nickel project during the quarter.The Dikoloti nickel project comprises four prospecting licences covering an area of 600km2surrounding the three nickel deposits of BCL Limited in the Selebi‐Phikwe region of north eastBotswana. Discovery Metals has earned an 85% interest from Xstrata, which is currently diluting.An inferred mineral resource of 4.1Mt @ 0.7% Ni, 0.5% Cu and 1.2 g/t PGE’s at a cut‐off of 0.5% Nifor 28,700 tonnes of contained nickel has been defined.During 2007 a scoping GEOLEACH TM study was completed and the encouraging leaching results havebeen previously reported.Discovery Metals continues assessing the best strategy for the Dikoloti project.3. Australian Projectsa) Musgrave Project, Western Australia (Discovery Metals 100%)A joint venture agreement is in place with Redstone Resources Limited (Redstone).Surface geochemical studies were undertaken during this quarter.b) Litchfield Project, Northern Territory (Discovery Metals 100%)A joint venture agreement is in place with Trajan Minerals Limited, which has recently changed itsname to Pacific Ore Limited (Pacific). Pacific is yet to commence expenditure to earn‐in an interestin this project.No exploration activities were conducted during this quarter.c) Cat Camp Project, Lake Johnstone, Western Australia (Discovery Metals 100%)No exploration activities were conducted in this quarter.4. Corporate ActivitiesMr Ribson Gabonowe, a Botswana citizen, joined the Board in May as non‐executive director,reflecting the importance to the company of the 24.5% of Discovery Metals’ shares held by thepeople of Botswana and the Botswana investment and pension funds.As a reflection of the company’s community commitment, the name “Boseto Copper Project” wasselected in collaboration with local chiefs, being an amalgam of four local village names ‐ Bo forBodibeng and Bothlathogo, Se for Sehitwa and To for Toteng.At the end of quarter, Discovery Metals held AUD $5.6 million in cash.For further information on this release and Discovery Metals Limited generally, please contact:Brad Sampson MANAGING DIRECTOR Ph: +61 7 3218 0200 or Mob: +61 4 38 771 037brad@discoverymetals.com.auAIM Nominated Advisor – RFC Corporate Finance Limited, Contact Rob Adamson Ph: +61 2 9250 0000AIM Broker – Fox-Davies Capital, Contact Richard Hail Ph: +44 20 7936 5200Australian PR – BBS, Contact Gerard Reilly Ph +61 (7) 3221 6711 Email greilly@bbspr.com.auUK PR – Conduit PR Contact Jane Stacey/Jos Simpson Ph +44 20 7429 6606/ +44 79 2292 3306ASX & BSE: DMLAIM: DMESHARE PRICE: A$0.48 SHARES: 130.1M Market Cap: A$62.4MPage 6 of 8

Competent Persons StatementThe information in this report as it relates to the Plutus and Petra Mineral Resources for the Boseto Copper project wascompiled by Mr Stefan Mujdrica and Mr Jason Hosken, who are Members of The Australasian Institute of Mining andMetallurgy. Mr Mujdrica and Mr Hosken are full time employees of Snowden Mining Industry Consultants. Mr Mujdricahas sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and tothe activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “AustralasianCode for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. The information in this report as itrelates to the Dikoloti Mineral Resource was compiled by Mr Stefan Mujdrica. Mr Mujdrica has sufficient experiencewhich is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he isundertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves”. The information in this report as it relates to the Zeta MineralResources for the Boseto Copper project was compiled by Mr Ferdinando Camisani, who is an Honorary Life Fellow of TheSouth African Institute of Mining and Metallurgy, a recognised overseas professional organisation. Mr Camisani is anAssociate of A&B Global Mining. Mr Camisani has sufficient experience which is relevant to the style of mineralisationand type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person asdefined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and OreReserves”. The information in this report that relates to Exploration Results is based on information compiled by Mr FredNhiwatiwa who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Nhiwatiwa is a full‐time employeeof the company. Mr Nhiwatiwa has sufficient experience which is relevant to the style of mineralisation and type ofdeposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. MrMujdrica, Mr Camisani and Mr Nhiwatiwa consent to the inclusion in the report of the matters based on informationprovided by them and in the form and context in which it appears.Forward Looking StatementsThis release includes certain statements that may be deemed “forward‐looking statements”. All statements in thisdiscussion, other than statements of historical facts, that address future activities and events or developments that thecompany expects, are forward‐looking statements. Although the company believes the expectations expressed in suchforward‐looking statements are based on reasonable assumptions, such statements are not guarantees of futureperformance 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 those in forward‐looking statements include marketprices, continued availability of capital and financing, and general economic, market or business conditions. Investors arecautioned that any such statements are not guarantees of future performance and that actual results or developmentsmay differ materially from those projected in forward‐looking statements.Page 7 of 8

DirectoryDISCOVERY METALS LIMITEDABN 29 104 924 423Web site www.discoverymetals.com.auEmail: info@discoverymetals.com.auInvestor information contacts:Brad SampsonManaging DirectorPhone: +61 7 3218 0200 Mobile:+61 4 3877 1037Email:OrPaul FultonChief Financial Officerbrad@discoverymetals.com.auPhone: +61 7 3218 0218 Mobile: +61 4 0054 4831Email:paul.fulton@discoverymetals.com.auAIM Listing:AIM Nominated AdvisorRFC Corporate Finance LimitedContact: Rob Adamson Phone: +61 2 9250 0000AIM BrokerFox‐Davies CapitalContact: Richard Hail Phone: +44 20 7936 5200United Kingdom investor information:Conduit PRContact: Jane Stacey/Jos SimpsonPh +44 20 7429 6606Mobile +44 79 2292 3306Shareholder enquiries:Queries related to share registry matters should bedirected to:Computershare Investor ServicesLevel 19, 307 Queen StreetBrisbane, Queensland 4000Tel: 1300552270 or +61 7 3237 2100Fax: +61 7 3237 2152Web site: www.computershare.comStock exchange listingsAustralian Stock Exchange ‐ ASX Code: DMLBotswana Stock Exchange ‐ BSE Code: DMLAlternate Investment Market ‐ London Stock ExchangeAIM Code: DMEIssued capitalThe current ordinary issued capital of the company is130,102,195 ordinary shares and 10,215,525 director andexecutive optionsRegistered OfficeLevel 8, 410 Queen StreetBrisbane, Queensland 4000, AustraliaPhone: +61 7 3218 0222Fax: +61 7 3218 0233Botswana Country OfficeUnit 2, Ipelo House Plot 103, International Commerce ParkGaborone, BotswanaPhone: +267 318 0751Fax: +267 318 0752DirectorsGordon Galt – ChairmanBrad Sampson – Managing DirectorMorrice Cordiner – Non‐Executive DirectorRibson Gabonowe – Non‐Executive DirectorJeremy Read– Non‐Executive DirectorJohn Shaw – Non‐Executive DirectorCompany Secretary ‐ Roslynn ShandPage 8 of 8

Appendix 5BMining exploration entity quarterly reportAppendix 5BRule 5.3Mining exploration entity quarterly reportIntroduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.Name of entityDiscovery Metals LimitedABNQuarter ended (“current quarter”)29 104 924 423 30 June 2008Consolidated statement of cash flowsCash flows related to operating activitiesCurrent quarter$A’000Year to date(12 . months)$A’0001.1 Receipts from product sales and related debtors - -1.2 Payments for (a) exploration andevaluation(b) development(c) production(d) administration(2,956)--(630)(5,887)--(3,806)1.3 Dividends received - -1.4 Interest and other items of a similar naturereceived 175 4891.5 Interest and other costs of finance paid - -1.6 Income taxes paid - -1.7 Other (Indirect Taxes) 172 344Net Operating Cash Flows (3,240) (8,861)Cash flows related to investing activities1.8 Payment for purchases of: (a)prospects(b)equityinvestments(c) other fixedassets1.9 Proceeds from sale of: (a)prospects(b)equityinvestments(c)other fixedassets1.10 Loans to other entities - -1.11 Loans repaid by other entities - -1.12 Other (provide details if material) - -Net investing cash flows 0 3601.13 Total operating and investing cash flows(carried forward) (3,240) (8,501)--0-0---(63)-423-+ See chapter 19 for defined terms.30/9/2001 Appendix 5B Page 1

Appendix 5BMining exploration entity quarterly report1.13 Total operating and investing cash flows(brought forward) (3,240) (8,501)Cash flows related to financing activities1.14 Proceeds from issues of shares, options, etc. 70 11,2511.15 Proceeds from sale of forfeited shares -1.16 Proceeds from borrowings -1.17 Repayment of borrowings -1.18 Dividends paid -1.19 Other (provide details if material) -Net financing cash flows(3,170) 2,750Net increase (decrease) in cash held (70) 2,7711.20 Cash at beginning of quarter/year to date 8,787 2,8671.21 Exchange rate adjustments to item 1.201.22 Cash at end of quarter5,617 5,617Payments to directors of the entity and associates of the directorsPayments to related entities of the entity and associates of the related entitiesCurrent quarter1.23 Aggregate amount of payments to the parties included in item 1.21.24 Aggregate amount of loans to the parties included in item 1.10$A'00060-1.25 Explanation necessary for an understanding of the transactions-Non-cash financing and investing activities2.1 Details of financing and investing transactions which have had a material effect on consolidatedassets and liabilities but did not involve cash flows-2.2 Details of outlays made by other entities to establish or increase their share in projects in which thereporting entity has an interest-Financing facilities availableAdd notes as necessary for an understanding of the position.Amount available$A’000Amount used$A’0003.1 Loan facilities - -3.2 Credit standby arrangements - -+ See chapter 19 for defined terms.Appendix 5B Page 2 30/9/2001

Appendix 5BMining exploration entity quarterly reportEstimated cash outflows for next quarter$A’0004.1 Exploration and evaluation 3,0004.2 Development -Total3,000Reconciliation of cashReconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.Current quarter$A’000Previous quarter$A’0005.1 Cash on hand and at bank 5,617 8,7865.2 Deposits at call5.3 Bank overdraft5.4 Other (provide details)Total: cash at end of quarter (item 1.22)Changes in interests in mining tenements- -- -- -5,617 8,7866.1 Interests in miningtenements relinquished,reduced or lapsedTenementreferenceNature of interest(note (2))Interest atbeginningof quarterInterest atend ofquarter6.2 Interests in miningtenements acquired orincreased+ See chapter 19 for defined terms.30/9/2001 Appendix 5B Page 3

Appendix 5BMining exploration entity quarterly reportIssued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with prices and dates.Totalnumber7.1 Preference + securities(description)7.2 Changes during quarter(a) Increases throughissues(b) Decreases throughreturns of capital, buybacks,redemptions7.3 + Ordinary securities 130,102,195 130,102,195Number quoted Issue price persecurity (see note 3)(cents)Amount paid up persecurity (see note 3)(cents)7.4 Changes during quarter(a) Increases throughissues(b) Decreases throughreturns of capital, buybacks7.5 + Convertible debt -securities (description)7.6 Changes during quarter -(a) Increases throughissues(b) Decreases throughsecurities matured,converted7.7 Options (descriptionand conversion factor) 1,250,0001,250,000500,0002,000,0001,300,000718,8881,000,000497,337250,000250,000500,000200,000 200,000 35 cents 35 cents500,0007.8 Issued during quarter 500,000500,000Exercise Price30 cents35 cents30 cents30 cents35 cents26 cents30 cents36 cents36 cents36 cents43 cents54 cents43 cents54 centsExpiry Date1 February 20091 February 20091 April 20101 May 20101 May 20101 September 20101 September 20105 December 20101 October 20101 October 2011Vest 25/03/09, expiry25/03/2012Vest 25/03/10, expiry25/03/2013Vest 25/03/09, expiry25/03/2012Vest 25/03/10, expiry25/03/20137.9 Exercised during 200,000 200,000 35 cents 1 May 2010quarter7.10 Expired during quarter - - - -7.11 Debentures(totals only)7.12 Unsecured notes(totals only)+ See chapter 19 for defined terms.Appendix 5B Page 4 30/9/2001

Appendix 5BMining exploration entity quarterly reportCompliance statement1 This statement has been prepared under accounting policies which comply withaccounting standards as defined in the Corporations Act or other standards acceptableto ASX (see note 4).2 This statement does /does not* (delete one) give a true and fair view of the mattersdisclosed.Sign here: ..................................................... Date: 31 July 2008(Company Secretary)Print name:Roslynn ShandNotes1 The quarterly report provides a basis for informing the market how the entity’sactivities 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 noteor notes attached to this report.2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests inmining tenements acquired, exercised or lapsed during the reporting period. If theentity is involved in a joint venture agreement and there are conditions precedentwhich will change its percentage interest in a mining tenement, it should disclose thechange of percentage interest and conditions precedent in the list required for items6.1 and 6.2.3 Issued and quoted securities The issue price and amount paid up is not required initems 7.1 and 7.3 for fully paid securities.4 The definitions in, and provisions of, AASB 1022: Accounting for ExtractiveIndustries and AASB 1026: Statement of Cash Flows apply to this report.5 Accounting Standards ASX will accept, for example, the use of InternationalAccounting 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.== == == == ==+ See chapter 19 for defined terms.30/9/2001 Appendix 5B Page 5