2005 Annual Report

Address by the Chairman

It is my pleasure to present to you the Annual Report for the year to 30 June 2005.

Exploration during the year was conducted on three fronts, namely at Telfer in Western Australia for gold and base metals, at Tsumkwe in Namibia for diamonds and base metals and at Kihabe in neighbouring Botswana for base metals.

At Telfer, Barrick Gold of Australia Limited completed four deep diamond core holes, each of which were drilled to in excess of one thousand metres. Two holes drilled at Tim’s Dome and two holes drilled at East Thomson’s Dome, were designed to test the “M Reefs” and “I Reefs” within the lower Malu Formation.

Results from this drilling are currently being reviewed to gain a better understanding of the controls of mineralisation at both Tim’s and East Thompson’s Domes.

At Tsumkwe in Namibia, a large portion of exploration was concentrated in the western sector of the project this year. Two separate areas in this western sector have continued to yield very positive results from drilling to the base of the overlying Kalahari Sands. A combination of high kimberlitic garnet counts together with a significant number of very fresh kimberlitic garnets recovered from this drilling indicates the presence of possibly two kimberlites in this area.

On the Company’s base metals project which spans the border between Namibia and Botswana a number of base metal anomalies delineated from geochemical sampling, were covered by Induced Polarisation (I.P.) dipole to dipole and gradient array surveys for the purpose of more confidently determining how best these anomalies should be drilled from hereon. Further drilling will be conducted on this project during the current year.

Of encouragement at Kihabe in Botswana, where the Company has conducted some wide-spaced drilling over a zinc anomaly some 2.6km long, yielding grades up to 5.4% zinc, 2.7% lead and 194g/t silver, metallurgical tests of mineralised drill chips has shown that metal recoveries for all of zinc, lead and silver are within the ninety percentile.

During the year Mr Martin Spence B.Sc. Aus. IMM was appointed to the Board as Director of Exploration. Mr Spence is a qualified geologist with considerable experience in diamond, gold, nickel and base metals exploration. He has spent a significant amount of time in Southern Africa involved in diamond exploration, where he has found a number of kimberlites.

I should like to thank the Board and all staff members for their continued support during the year.

N R FORRESTER

CHAIRMAN