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

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