Agam Iron Sands Project Indonesia

The Company executed a heads of agreement to joint venture in 2008 with PT Galian Endapan Buana (“GEB”) to develop the Agam Iron Sand Project in West Sumara, Indonesia (“the Project”).

The Company subsequently entered into a formal cooperation agreement with GEB in September 2008 whereby the Company (though its subsidiary PT Coziron Copper International) was granted an 80% interest in the Project including the mining rights attached to the Project.

The Company undertook an initial exploration program to identify the mineralised iron sand layers at the Project. An independent consultant was engaged to complete a geological assessment of the Project which found that further geological work would be required to identify the most prospective area of the Project.

In 2009, the Company put the further development of the Project on hold pending the Company raising funds, which it was in the process of negotiating with a third party. Following the recent recapitalisation of the Company, a review and evaluation of the Project to determine the requirements for ongoing exploration and development has been commenced.