• Havilah drillholes used in resource estimation
• 54 Havilah holes totalling 7367m, comprising 36 AC (4483m), 16 RC (2460m) & 2 DD (424m inc P/C's) holes, were used in defining the resource, out of 62 Havilah holes in the prospect, totalling 8483m, comprising 40 AC (5059m), 20 RC (3000m) & 2 DD (424m inc P/C's). One DD hole was not assayed, so was excluded from the estimation.

• 52 Pasminco holes totalling 10082m, comprising 39 AC (4653m)
  & 13 DD (5429m inc P/C's) holes, were used in defining the resource, out of 130 Pasminco holes in the prospect, totalling 20553m, comprising 107 AC (12448m), 4 RC (471m) & 19 DD (7634m).
  • There is good general correlation of the geology and assay data between the Pasminco and Havilah drillholes.
  

• All Havilah AC holes were drilled using a standard 120mm bit size.
  
• All RC holes were drilled using standard face sampling hammers with bit sizes ranging from 120mm to 136mm.
  
• Pasminco AC holes are in the ratio of approx 50:50 NQ (76mm hole) & HQ (96mm hole) sizes.
  
• Diamond core sizes ranged from NQ (50mm) to PQ3 (83mm).
  The larger sizes & triple tube methods being used where required to maximise core recovery in weathered or broken ground.
  
• Drill core was routinely oriented where possible, by the spear method.

• Havilah AC & RC samples were collected at 1m intervals. Initial 3m grab composite assay sampling outlined anomalous intervals, which were then re-sampled by riffle splitting on a 1m basis to produce 2-3kg assay samples.
  
• Pasminco AC samples were collected at 1m intervals. Initial 3m grab composite assay sampling outlined anomalous intervals, approx 50% being re-sampled by riffle splitting on a 1m basis to produce 2-3kg assay samples. Approx 50% of the complete samples were taken to the lab, prepared in total and rotary split at the lab.
  
• All drill core was sampled using a diamond saw. Havilah sampled ¼ core on a 1m basis. Pasminco sampled ½ core on a 1m basis where mineralised, otherwise on a 2m basis.

• Havilah AC & RC sample quality & recovery was routinely logged and overall considered adequate. Holes were generally stopped if sample quality became unacceptible (small, wet or contaminated), particularly from hole 36 onwards.
  
• Core recovery was routinely recorded by both Havilah & Pasminco.
  
• Core recovery for the mineralised intersection in the supergene zone of the only Havilah diamond hole (NPDD034) used in the estimate, averaged 93%. Core recoveries overall averaged 92% in the supergene zone & 100% in fresh rock for this hole. Averages for hole NPDD035 (not used) were 57% in supergene & 97% in fresh core.
  
• Core recovery for the mineralised intersections of the Pasminco holes used in the estimate averaged 64% in saprolite (1 hole only, BEN395) & 98% in fresh rock for all the other holes.

• All Havilah AC, RC & diamond holes were logged by experienced geologists. The 1st 33 holes were logged on paper, the logs subsequently coded & digitised. The remainder were logged directly into a digital logging system, the data uploaded into an Excel spreadsheet, which was subsequently converted to an Access database.
  
• All Havilah drillcore and RC chip trays have been photographed.
  
• All Havilah & Pasminco drillcore & chip trays are stored at Havilah's camp at Yarramba Station.

• Havilah samples were assayed by Amdel from 2005-2006. Initial 3m composites were assayed for Au & base metals by aqua regia digest & ICP MS finish (ARM3), with Cu & Mo also by perchloric-HCL digest & AAS finish (AA1R). Follow up 1m riffle split samples were assayed for Au by 40g fire assay (FA1) & base metals by perchloric-HCL digest with ICP finish (MET1).
  
• Havilah samples were assayed by ALS from 2007-2010. Samples were assayed for Au by 50g fire assay (Au-AA26) & base metals by multi-acid (inc HF) digest with ICP AES finish (ME-ICP61). Over range samples were assayed by 'ore grade' 4 acid digest method with ICP AES finish (ME-OG62). Follow up 1m riffle split samples were only assayed for Au, Cu & Mo.
• Pasminco AC samples for holes up to BEN419 were assayed by ALS for Au by 50g fire assay with AAS finish (PM209) & base metals by multi-acid (inc HF) digest with ICP AES finish (IC587). Most other AC holes were assayed for Au by Amdel using the 1kg leachwell assisted cyanide leach bottle roll method (LW4) & for base metals by multi-acid (inc HF) digest with ICP MS finish (IC3M). Minor AC holes were assayed for Au by Aminya Labs using the cyanide leach bottle roll method. Cyanide leach was used to negate any potential coarse Au problem, as seen at Portia.
  
• Pasminco core holes BEN394 & 395 were assayed by ALS for Au by 50g fire assay with AAS finish (PM209) & base metals by multi-acid (inc HF) digest with ICP AES finish (IC587). All other core holes were assayed by Amdel for Au by 50g fire assay with AAS finish (FA3, FA1)) & base metals by multi-acid (inc HF) digest with ICP OES finish (IC3E). Appropriate methods (eg MET1) were used for over range results.
  
• The methods used are considered to be appropriate, although the use of the cyanide leach method for Au was probably not necessary.
  
• Havilah monitored assay data accuracy and precision by the submission of standard, blank or duplicate samples at a nominal rate of 1 per 25 drill samples, in a rotating sequence.
  
• Pasminco monitored assay data accuracy and precision by the submission of a standard at a nominal rate of 1 per 50 & a duplicate at 1 per 20 drill samples.
  
• No data quality issues of significance were identified.

• Variability of assays between average spaced (15-50m) holes in the supergene zone is generally fairly high.
  
• Although no specific twin holes were drilled, a small number of holes either cross or come within a few metres of others and have been used for comparison. Unfortunately, the examples are only in weakly mineralised material.
  
• Four examples involving AC or RC holes only were investigated (BEN1033 vs NPAC005 vs NPAC053, BEN386 vs BEN1050, BEN387 vs NPRC027, BEN1025 vs NPRC028).
  
• Three examples of DD holes very close to or crossing AC/RC holes or pre-collars were investigated (BEN395 vs BEN389, BEN394 vs BEN1051, BEN394 vs BEN1050.
  
• Three examples of DD holes very close to or crossing other DD holes were investigated (BEN600 vs BEN1051, BEN592 vs BEN1051, BEN597 vs BEN1051).
  
• There is insufficient data, particularly in well mineralised material, to make a definitive comparison. Although there are some significant local variations, the available data suggests there appears to be generally good agreement in the order of magnitude of the grades & the intersection widths between crossing or very close spaced holes, both Havilah's & Pasminco's.
  
• Although data is limited, no significant bias between the drill methods or differences in intersection widths, was observed. No issues that could significantly affect the resource calculation were identified.

• Havilah & Pasminco's drillhole collar coordinates were surveyed in UTM coordinates using a differential GPS system with an x:y:z accuracy of 20cm:20cm:40cm.
  
• Of Havilah's 60 AC & RC holes, 18 (from hole 36 onwards), were surveyed using a digital multi shot survey camera, at 30 to 50m intervals downhole.
  
• Havilah's 2 diamond holes were surveyed at 30m intervals downhole using a digital multi shot survey camera.
  
• Pasminco's AC holes were vertical & were not surveyed.
  
• Pasminco's diamond holes were surveyed at 30 to 50m intervals downhole, using Eastman or digital multi shot survey cameras.

• The original drilling by Pasminco was completed on 100m spaced sections, approx perpendicular to the strike of the stratigraphy and mineralisation. Initial vertical 100m spaced AC holes along each section were infilled to 50m over the supergene mineralisation.
  
• Pasminco's diamond holes mainly targeted the primary mineralisation at depth, down dip & along strike from the initial discovery. The holes were drilled at a dip of -60o to -70o to the west, approx perpendicular (70-80o) to the dip (-40o east) of the stratigraphy & stratabound mineralisation. Several were drilled on the main sections 6522600N & 6522700N, at spacings of 50 to 100m, to a depth of approx 400m down dip from the base of the supergene mineralisation (520m vertically from surface). Similarly oriented single holes were drilled on other 100m spaced sections to the north & south, 150m to 300m down dip from the base of the AC holes & supergene zone. One hole (BEN1051) was drilled approx down dip (-60o) to the east, to test structurally controlled mineralisation targets.
  
• Havilah's AC & RC drilling was aimed at better defining the supergene resource. It essentially infilled Pasminco's 100m x 50m pattern of vertical AC holes to produce an approx 50m x 25m pattern over the supergene resource. Most of the holes were steeply dipping at 75o – 80o to the west. A small number were spaced at 40-50m on the 50m infill sections. Some holes are as close as 15m apart.
  
• Resource drilling is predominantly concentrated between 447730E and 448453E and between 6522375N and 6522875N.
  Estimating and Reporting of Mineral Resources

• A seperate database for the Pasminco holes used in the modelling & estimate was produced as a 'cut down' version of Pasminco's Benagerie database, which was rebuilt and validated by an independant consultant in 1998 & was subsequently added to.
  
• Havilah's database used in the modelling & estimate was rebuilt and validated in 2010.
  
• Examination of the databases has not revealed any issues of concern that could significantly affect the current resource estimation.

• The Cu-Au-Mo mineralisation at North Portia is located on the easterly dipping, far north easterly limb of the 'Benagerie Dome', which is a major elongate N-NNE trending, double plunging antiformal structure.
  
• The mineralisation is restricted to & hosted within a distinct 150m thick package of strongly albitised, variably evaporitic & calcareous pelites, with scattered thin carbonates, collectively termed the 'Prospective Sequence' (PS Units 2 - 6).
  
• The 'Footwall Sequence' (Unit 1), generally consists of variably magnetic, scapolitic, flaser bedded & 'red rock altered' albitites. The 'Hangingwall Sequence' (Unit 7+), consists largely of variably graphitic pelites, with minor evaporitic & carbonate bearing horizons.
  
• In detail, the PS & mineralisation appears to have been disrupted by a number of roughly NS striking subvertical (predom E side up) faults. The Proterozoic basement, which hosts the mineralisation, is overlain by approx 40m of Tertiary age clay of the Namba Fm. plus 20m of Quaternary to Recent sands & clay.
• Primary Cu-Au-Mo sulphide mineralisation consisting predominantly of chalcopyrite, pyrite & molybdenite, occurs as two main styles:

1). Stratabound replacement style (dominant style) – hosted within the PS, particularly the 'Lower Carbonate Unit' (Unit 2) & Unit 3. May include some bedding parallel vein style.

2). Vein & breccia style (subordinate style)– hosted within & closely assoc with thin quartz-carbonate veins, the main set of which dip to the west, roughly orthogonal to bedding. Some hosted within steeply dipping breccias or faults, some of which might be 'remobilised' feeder structures.

• Secondary/supergene Cu-Au-Mo mineralisation is developed in the weathering profile, above the primary mineralisation. The profile consists of a totally oxidised saprolite zone, overlying a non oxidised sulphide bearing saprolite zone, which grades through saprock to fresh rock. The mode of occurrence & mineralogy of the Cu-Au-Mo species in the oxidised zone is unknown. In the non oxidised zone, the supergene sulphides consist predominantly of pyrite & chalcocite, with lesser bornite, chalcopyrite & molybdenite.

• Polygons and hence triangulations are based on interpretations completed on nominal 50m sections.
  
• Triangulated interpretations were generated for the following domains: +$20_value, Mo_primary and Mo_secondary.
  
• The dollar value of each assay interval was calculated based on conservative prices of A$5000 per tonne for Cu & A$1000 per oz for Au.
  
• The Mo_primary domain outlines the primary Mo sulphide mineralisation, dipping at approx 40o E, using a lower cutoff of 100ppm.
  
• The Mo_secondary domain outlines the supergene Mo mineralisation, with a sub-horizontal distribution, using a lower cutoff of 100ppm.
  
• Triangulated interpretations were also generated for the base of cover, oxidation, saprolite and saprock.
  
• The block model was constructed with parent blocks of 15mE by 15mN by 15mRL with sub blocks available to a minimum of 5mE by 5mN by 5mRL.
  
• Inverse distance was used to estimate Cu, Au and Mo grades and specific gravity separately for all domains and oxidation states.
  
• Up to two estimation passes with increasing search neighbourhood size were run for Cu, Au estimation into the $20 domain.
  
• The search directions for each estimation was aligned with relevant geological correlation and distances based on drill hole spacing.
  
• 1m assay composites were used with length weighting used in estimation.
  
• A minimum of 4 and maximum of 32 composites were used per estimate.

• Tonnes have been estimated on a dry basis.

• No grade cut off parameters have been applied for estimation of Cu or Au. A high grade cut of 5000ppm Mo was used within the constraints of the geological boundaries of the Mo_primary domain to control the distribution of high Mo grades in widely spaced drilling.

• 
  Bulk density • Density values of 1.72 for oxidised saprolite, 1.89 for unoxidised saprolite, 2.27 for saprock & 2.65 for fresh rock, were assigned to blocks in the corresponding domains in the block model.
  
• Density values for the saprolite were based on 71 measurements (30 ox sap, 41 unox sap, weight in air vs weight in water method) of what is considered to be the same material, in 12 PQ diamond core holes from the Portia Prospect, located several hundred metres along strike to the south.
  
• The density value for saprock was taken to be mid way between the saprolite and fresh rock values, the material being essentially a transition from one to the other.
  
• The density value for fresh rock was taken to be that of what is considered to be exactly the same material at the Kalkaroo Deposit, located approx 60km to the SE.
  
• The only density data available for North Portia was in the form of Pasminco's down hole gamma-gamma compensated density logs of most of their diamond holes, plus a small number of AC holes. These suggest values of approx 2.05 for saprolite in general, 2.4 for saprock & 2.7 for fresh rock. Comparison with these values & those for similar material at Kalkaroo, suggests that the values arrived at for the saprolite at North Portia might be underestimated by 0.1 to 0.2 units, therefore being conservative.

• Mineral resources have been classified based on the degree of confidence in the continuity of mineralisation, the quality of the data and the drill hole spacing.
  
• Although the drill hole spacing in the supergene resource is fairly close (25m spacing on 50m sections), the resource has been classified as indicated, because of the apparent inherent variability in the grades, even at this spacing, plus the fact that most of the holes were AC or RC, with difficult drilling conditions and resultant uncertainties in sample quality in some cases.
  
• The dividing surface between the indicated & inferred resources is naturally the base of the saprock, which is the base of the supergene zone/mineralisation and most of the AC (+-RC) holes stopped at or before this surface.
  
• The primary resource (in fresh rock below the base of saprock) has been classified as inferred, because of the wide drill hole spacing and resultant uncertainties in the continuity of the mineralisation. It is also apparent that the mineralisation is probably disrupted by faulting, which has not been fully taken into consideration in the simplified geological model.
  
• The supergene resource equates to the indicated resource.
  
• The primary resource equates to the inferred resource.