Gold Exploration, Gold Mining, Gold Dicovery, Exploration Company

As outlined below, the net results of this major commitment to drilling are that the global resource has more than doubled to 1,138,000 ounces of gold and, more importantly, there has been a tenfold increase in the categories of Measured and Indicated mineral resources to 909,000 ounces.

In addition to the focus on drilling and the establishment of a solid resource base, the company has also made significant progress on developing an in-depth understanding of the regolith and bedrock geology of the Mosquito Creek Belt, which is the main host of the mineralisation within Nullagine goldfield.

To underpin this work, the entire landholding was subject to high-precision, airborne magnetic and radiometric surveys, and almost a third of the landholding has been mapped, including all of the key areas around the main gold resources.

The knowledge gained from these work programs has allowed the company to develop a reliable and cost-effective exploration methodology that is based on a logical progression from geological targeting, to meaningful surface sampling and various phases of well-directed drilling. This approach will serve the company well in the future, and should allow mineable reserves to be replaced and the mine life extended beyond the scope of this feasibility study.

The Mosquito Creek Belt is a typical Archaean turbidite-dominated, metasedimentary thrust belt in which gold mineralisation is structurally controlled. The mineralisation is controlled by faults and quartz vein arrays that appear to have channelled gold-bearing fluids away from broader shear zones, which are located nearby and are recognised as the major conduits for regional-scale fluid flow.

In most deposits, including those that comprise the Bartons, All Nations and Golden Gate resources, gold is sited within or near the margins of steeply inclined quartz veins. The exception to this style of mineralisation is the large Golden Eagle deposit, which is characterised by gold disseminated through fractured wall rock that surrounds a series of gently inclined faults.

In outcrop, the Golden Eagle mineralisation is not accompanied by obvious wall rock alteration and, significantly, there are no historic workings developed on the zones of disseminated mineralisation, despite grades as high as 50 g/t Au. These features suggest that there is the potential for locating other, large-tonnage, Golden Eagle-style resources outside of the known mining centres within the Nullagine goldfield.

Independent geological and resource consultants Hellman & Schofield Pty Ltd undertook estimation of the majority of resources within the project area. The multiple-indicator kriging (MIK) block-modelling technique employed for estimation has been applied to the Gloden Eagle, Bartons, All Nations, Shearers and Golden Gate ABCD deposits. CSA Global undertook estimation for the five small Golden Gate area satellite deposits, namely Falcon, Condor, Crow, G Reef and Harrier.

The JORC-compliant resource inventory for the Nullagine Gold Project at a 0.5 g/t Au cut-off grade is summarised in the table 1.

Apart from the current known resource base, there is clear exploration upside attached to the project area by virtue of the significant strike length of mineralised structures that are encompassed by the project, and the fact that much of the area has not been tested by modern, high-quality exploration of the type that Millennium can apply.

The Little Wonder and Golden Gate satellite deposits Mineral Resource estimate has been compiled and prepared by Steven Hodgson, (MAIG) of CSA Global Pty. Ltd. who is a Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2004 Edition and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

The reported Mineral Resource as it relates to Bartons, All Nations, and Golden Gate ABCD reef has been compiled by Mr Nic Johnson. Mr Johnson is a Member of the Australian Institute of Geoscientists and an employee of Hellman & Schofield Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the 'Australasian Code for Reporting of Mineral Resources and Ore Reserves' of December 2004 ("JORC Code") as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia.

The Competent Persons listed consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.