The Selebi-Phikwe Project comprises 21 contiguous Prospecting Licences(PLs) covering approximately 11,262 sq km in the eastern part of the Central District of Botswana. The Project covers prospective ground to the south of the Selebi-Phikwe Nickel Mining District and includes several Ni-Cu occurrences. These include the Lipadi Hill, Sunnyside and Kgwedi nickel prospects.

Exploration has targeted both massive sulphide and disseminated styles of nickel mineralisation. Ground geophysics was completed on all the prospects with ground EM over the Sunnyside and Lipadi prospects and IP over Sunnyside and Kgwedi. Grid-based soil sampling was also completed over the Sunnyside and the Kgwedi targets with historical soil data available over Lipadi.

The Sunnyside and Kgwedi prospects are located close to the Sunnyside Shear Zone which is a major geological structure located in the southern part of the Selebi-Phikwe tenement package. This zone extends for many tens of kilometres. Because this structure contains a number of known nickel sulphide occurrences, two large areas along the Sunnyside Shear Zone were selected for an airborne electromagnetic (VTEM) survey in addition to selected coverage over the Lipadi prospect. Approximately 4,300 line kilometres were fl own. The survey was completed in March 2008 and data processing is under way. Drilling is planned in 2008 on targets generated from interpretation of the airborne survey.

The ground EM survey at Sunnyside identified a 600m x 400m strong conductor within an IP anomaly that extends for approximately 1.7 km and is coincident with anomalous copper and nickel values in soils. A 16-hole drill program was initiated in December 2007 and 6 drillholes have been completed to date, with assays pending. Matrix sulphides and metre-scale intervals of massive sulphides were intersected in drillholes ALB-002 and ALB-004. A portable XRF analyser confirmed the visual identification of nickel sulphide in the drillcore and assay results are pending.

A substantial drilling programme will be continued in 2008 if the nickel assays from the initial drillholes are confirmed to be signifi cant.

The Lipadi Hill prospect in the eastern part of the Botswana tenement package was last explored in the 1970’s and yielded signifi cant nickel intercepts in drilling and trenching. A ground EM survey has been completed and an IP survey is underway on this target. Drilling at Lipadi is planned for 2008.

The third priority target within the Selebi-Phikwe tenement package is the Kgwedi nickel prospect. Ground IP was completed at Kgwedi and an east-west trending IP target was identifi ed extending for approximately 1600m. Four reconnaissance drillholes are planned as an initial test of the Kgwedi prospect in 2008.