The Company’s Celestial nickel laterite property, also on Palawan Island, covers an area of 2,835 hectares, and has substantial permitting already in place. The Company will earn a 52% economic interest in this project, with the right to increase this to 71.2% through future payments.

Acid leach metallurgical test work has been conducted on the property and a pre-feasibility study has demonstrated economic viability, subject to more detailed work being carried out for a bankable feasibility study. The property has been well explored, yielding a current resource estimate of 77 million tonnes of 1.25% nickel and 0.10% cobalt within an area of 800 hectares.

With respect to the Ipilan project, preliminary field operations are under way and progressing satisfactorily following the approval by the Philippines Mines & Geosciences Bureau of the third extension of the Exploration License covering the project area. The re-sampling and evaluation program will ensure that an accurate knowledge of grade, quality and value is obtained. The Company anticipates activity on this project will accelerate over the balance of the financial year.

The Company owns 52% (40% directly and 12% indirectly) of Ipilan Nickel Corporation, a company incorporated in the Philippines. Ipilan Nickel Corporation was incorporated and registered with the Securities and Exchange Commission on 22 July 2005 and its principal activity is the exploring, developing and mining of the Celestial/Ipilan mineral properties.